CUSTOMER PERCEPTION AND RESPONSE TOWARDS ONLINE MARKETING IN CHENNAI CITY Dr. K. KRISHNAMURTHY Assistant Professor, Research Supervisor, P.G & Research Dept of Commerce, Rajeswari Vedachalam Government Arts College, Chengalpet S.H. REHANA BANU Ph.D Research Scholar and Assistant Professor, Department of Commerce, The QuaideMilleth College for Men, Medavakkam, Chennai-600100 ABSTRACT The World Wide Web (WWW) has grown incredibly since its inception in 1990 and by 1991 it was opened for commercial use. Online is changing the way of the consumers shop and buy goods and services. Most of the consumers are use the online not only to buy the product but also to compare prices and features of product. It is essential for the online marketers to understand the customer perception towards the online. Today many organizations provide online for the shopping purpose. This article highlights the customer perception and response towards online in Chennai city. KEYWORDS: World Wide Web (WWW), Online Shopping, Internet Shopping, Online Marketing, Website Marketing, Viral Marketing INTRODUCTION Indian population being young and net savvy, there has been an extra ordinary rise in the numbers of online shoppers. The recent growth in the mall culture in the country has in fact made consumers more aware about different options and encouraged them to search and eventually purchase online. India has more than 100 million internet users out of which one half opts for online purchases and the number is rising sharply every year. The growth in the number of online shoppers is greater than the growth in Internet users, indicating that more Internet users are becoming comfortable to shop online. Until recently, the consumers generally visit online to reserve hotel rooms and buy air, rail or movie tickets, books and gadgets and gizmos, but now more and more offline product like clothes - saris, kurtis, T-shirts - shoes, and designer lingerie, consumer durables are being purchased online. At present the market is estimated at Rs.46000 crore and is growing at 100 per cent per year. www.apjor.com Page 44
The two most commonly cited reasons for online shopping have been convenience and price. The capability of purchasing without leaving your place is of great interest to many consumers. IMPORTANCE OF THE STUDY The study focuses mainly on the evolution of customer perception and response towards online with special reference to Chennai city, but with the prevailing trend, it is necessary to focus on the essence and emergence of viral efforts from the internet companies. The Internet can increase an organization s geographic coverage beyond its traditional heartland. New customers can be reached; The Internet provides a low cost, effective way of transacting with customers compared to traditional selling costs. A site can be open for business all day everyday providing customer convenience. The Internet is a fast and flexible communications tool. Communications can be tailored to customer needs based on account histories and other data. It is an interactive tool enabling effective two-way dialogues between customer and organization to help achieve acquisition and retention objectives. REVIEW OF LITERATURE This research has reviewed 70 studies, which include 56 Indian and 14 foreign journals. The review of related literature regarding the evolution of customer perception and response towards online in Chennai city are analysed from different sources. From the analysis of the review of literature, it is found that all the studies have attempted to examine the customer perception and response of various product categories with the study of only the customer response. But no attempts have been made to study the customer perception and response towards online in Chennai city. So this was identified as research gap after analyzing the review of available related literature. Hence, by this present study an attempt has been made to study on evolution of customer perception and response towards online -with special reference to Chennai city. STATEMENT OF THE PROBLEM With increasing retail space rental and other operating cost, with declining sales and financial constraints, retailers have no choice but urgently need to find alternative to increase revenue. Online store can be one of the attractive solutions. Sulaiman et al. (2008) highlighted the fact that most companies use the Internet to cut costs and to improve competitiveness. However, before venturing in it, it is important for retailers to understand clearly such online shopping opportunity. No success can be guaranteed. Setting up a portal site can be costly, time consuming, lead to wrong direction and a mere waste of many resources. When appropriate goods and services are offered through online channel, only then consumers will purchase them. One of the critical arguments here is there any way that can shed some lights on potential of online sales of a specific product? How many customers are ready to buy online? The purpose of this study was to identify the potential of online sales on mobile phones. However, little information is known about Indian internet users attitude towards shopping online on such product. Therefore, it is important to understand the attitudes of our customers towards internet shopping and what are the factors that influence attitudes towards making an online shopping decision. Various problems are faced by the customers selecting the online have specific characteristics of forming the small value, but it forms a significant part family budget. Hence, it is imperative on the part of the research side to study the customer response in the purchase decision of online in Chennai city. OBJECTIVES OF THE STUDY The objectives of the research work are as under: 1. To understand the prime concern of the customers that hindered them to online shopping. 2. To analyse the awareness and perception of the customers towards online in Chennai city. 3. To understand the most important factor influencing the perception of viral among the customers in Chennai city. 4. To identify the security and problems regarding risks in the online in Chennai city. 5. To offer suitable suggestions to measures the online in Chennai city. HYPOTHESES FRAMED FOR THE STUDY The following null hypotheses have been framed and tested. Ho 1: There is no significant difference between customer perception towards online and the demographic profile of the respondents. www.apjor.com Page 45
Ho 2: There is no significant association between factors viral and customer perception in the viral communication, customer response in the viral communication, customer problems in the viral. Ho 3: There is no significant difference between customer perception towards security and problems of online and demographic profile of the respondents. RESEARCH METHODOLOGY The research is primarily descriptive in nature, as apart from descriptive statistics. The study is based on both primary and secondary data. Research defined as a systematic method of finding solutions to a problem and it is the process which includes defining and redefining problems, formulating hypothesis or suggested solutions, collecting organizing and evaluating data, making deductions and reaching conclusions and very carefully testing the conclusions to determine whether they fit the formulating hypothesis. This study adopted descriptive and analytical approach to evaluate and analysis the problem of the study and collect the data and information that will be available about it to reach to the result and suggest the suitable recommendations to solve it. Data Collection Method Both primary and secondary sources of data have been used in the study. Primary sources were used to collect the information from the respondent through questionnaire method. Secondary sources relating to the study were collected from books, journals, previous studies, internet, periodicals magazines, newspapers, research articles and websites were used to study existing literature. Sampling Design Proportionate Random sampling method was adopted for the study. The study is confined to Chennai city only. Since the size of universe is infinite, the researcher decided to select a sample size of 600 (each 3 respondents from 200 wards were selected) customers. Chennai city comprises of five areas namely, North Chennai, South Chennai, Central Chennai, Sriperumputur and Thiruvallur and from each wards 3 respondents hence totally 200 wards were selected for the study. In all, 600 respondents are chosen from different age groups on the basis of their literacy level for the study. Information for this study has been gathered with the help of structured and unstructured questionnaire with these respondents; the information for this survey is gathered. STATISTICAL TOOLS AND DATA ANALYSIS The following statistical techniques had been applied depending on the nature of data collected from the respondents, Percentage analysis, descriptive analysis (mean, standard deviation and co-efficient of variation); Independent samples T-test, one way ANOVA, correlation analysis, regression and factor analysis. The reliability test of the data in this study was analysed using Statistical Package for Social Sciences (SPSS v 20.0). For analyzing the data collected during the investigation, the following statistical values were used according to the relevance of its application. PRE TEST The pretest was conducted among 40 customers. The reliability of variables in each construct was confirmed through the pilot study. On the basis of the result of pretest, a certain modification in the statements or variables was made. The final questionnaire was prepared for data collection. Accordingly, the questionnaire has been restructured and the final questionnaire was prepared and approved by the research guide for conducting the field work. PERIOD OF THE STUDY The present study covered only primary data. The primary data collected in a period of six months from November 2014 and April 2015 for the purpose of analysis and evaluation. ANALYSIS AND INTERPRETATION OF ONLINE MARKETING Customers in the online have many issues relating to awareness, risks, privacy policy online, purchase problems etc., are a major issues and this study focus on a multiple set of variables relating to the customer perception towards the online. Ho 1: There is no significant difference between customer perception towards online and the demographic profile of the respondents. www.apjor.com Page 46
T test was applied to ascertain if there were any significant difference between customer perception towards online and the gender of the respondents in Chennai city and the following null hypotheses has been framed: Ho 1 a : There is no significant difference between customer perception towards online and the gender of the respondents. Table 1 T test for Customer Perception towards Online Marketing on the basis of Gender Variables Gender N Mean SD SE M t-value Sig. Customer awareness in online s towards the website towards price in online towards products in Online towards after sale services s towards delivery of product towards online advertisement towards advantages of online Male 360 26.32 2.616 0.138 Female 240 24.93 2.896 0.187 Total 600 25.77 2.812 0.115 Male 360 33.70 4.283 0.226 Female 240 31.23 3.493 0.226 Total 600 32.71 4.164 0.170 Male 360 21.53 2.320 0.122 Female 240 20.13 2.760 0.178 Total 600 20.97 2.595 0.106 Male 360 42.02 3.747 0.198 Female 240 39.68 3.960 0.256 Total 600 41.08 3.999 0.163 Male 360 32.24 3.154 0.166 Female 240 31.98 3.293 0.213 Total 600 32.13 3.210 0.131 Male 360 21.63 2.706 0.143 Female 240 20.23 2.790 0.180 Total 600 21.07 2.822 0.115 Male 360 64.77 5.846 0.308 Female 240 61.60 5.727 0.370 Total 600 63.50 5.999 0.245 Male 360 58.84 6.820 0.359 Female 240 54.11 5.926 0.383 5.967 0.001* 7.757 0.001* 6.480 0.001* 7.249 0.001*.968 0.334 (NS) 6.107 0.001* 6.592 0.001* 9.009 0.001* Total 600 56.95 6.875 0.281 The customer perception towards the awareness in the online, perception towards the website, price, products, delivery of product, advertisement, advantages and their respective calculated t value of 5.967, 7.757, 6.480, 7.429, 6.107, 6.592, and 9.009 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and gender of the respondents is rejected. However, the customer perception towards the after sale service and the calculated t value of 0.968 are not significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and gender of the respondents is accepted. Further, the mean value indicates that the male respondents are having more perception as compared to female respondents towards awareness about the online, website perception in the online, price charged in the online, products quality in the online, delivery of products in the online, online advertisement, and advantage in the online. One way ANOVA was applied to ascertain if there were any significant difference between customer perception towards online and the age of the respondents in Chennai city and the following null hypotheses has been framed: www.apjor.com Page 47
Ho 1 b : There is no significant difference between customer perception towards online and the age of the respondents. Table 2 ANOVA for Customer Perception towards Online Marketing on the basis of Age Variables Age N Mean SD SE M F-value P Value Customer awareness in online s towards the website towards price in online towards products in Online towards after sale services s towards delivery of product towards online advertisement towards advantages of online 20 to 30 years 225 25.61 2.644 0.176 31 to 40 years 268 25.77 2.932 0.179 41-50 years 57 27.05 2.728 0.361 Above 50 years 50 24.96 2.587 0.366 Total 600 25.77 2.812 0.115 20 to 30 years 225 34.96 5.451 0.363 31 to 40 years 268 31.23 1.655 0.101 41-50 years 57 32.58 3.635 0.481 Above 50 years 50 30.68 2.559 0.362 Total 600 32.71 4.164 0.170 20 to 30 years 225 20.72 2.601 0.173 31 to 40 years 268 21.11 2.542 0.155 41-50 years 57 21.79 2.328 0.308 Above 50 years 50 20.34 2.904 0.411 Total 600 20.97 2.595 0.106 20 to 30 years 225 42.49 4.158 0.277 31 to 40 years 268 39.97 3.642 0.222 41-50 years 57 41.79 3.683 0.488 Above 50 years 50 39.84 3.266 0.462 Total 600 41.08 3.999 0.163 20 to 30 years 225 32.92 3.198 0.213 31 to 40 years 268 31.41 3.242 0.198 41-50 years 57 32.90 2.926 0.388 Above 50 years 50 31.56 2.340 0.331 Total 600 32.13 3.210 0.131 20 to 30 years 225 20.87 2.874 0.192 31 to 40 years 268 21.22 2.807 0.171 41-50 years 57 22.16 2.455 0.325 Above 50 years 50 19.92 2.602 0.368 Total 600 21.07 2.822 0.115 20 to 30 years 225 64.29 6.658 0.444 31 to 40 years 268 63.14 5.130 0.313 41-50 years 57 64.26 5.927 0.785 Above 50 years 50 61.04 6.578 0.930 Total 600 63.50 5.999 0.245 20 to 30 years 225 60.27 8.730 0.582 31 to 40 years 268 54.67 3.475 0.212 41-50 years 57 56.95 6.542 0.867 Above 50 years 50 54.26 5.322 0.753 Total 600 56.95 6.875 0.281 5.697 0.001* 45.502 0.001* 3.895 0.009* 20.172 0.001* 11.125 0.001* 6.387 0.001* 4.838 0.002* 34.920 0.001* The customer perception towards the awareness in the online, perception towards the website, price, products, after sale, delivery of product, advertisement, advantages and their respective calculated F value of 5.697, 45.502, 3.895, 20.172, 11.125, 6.387, 4.838 and 34.920 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and age of the respondents is rejected. Further, the mean value indicates that the respondents age group www.apjor.com Page 48
between 20 to 30 years are have more awareness as compared to other age group of respondents towards the online website, products in the online, after sale services, online advertisement and advantages in the online. T test was applied to ascertain if there were any significant difference between customer perception towards online and the marital status of the respondents in Chennai city and the following null hypotheses has been framed: Ho 1 c : There is no significant difference between customer perception towards online and the marital status of the respondents. Table 3 T test for Customer Perception towards Online Marketing on the basis of Marital Status Variables Marital status N Mean SD SE M t-value P Value Customer awareness in online s towards the website towards price in online towards products in Online towards after sale services s towards delivery of product towards online advertisement towards advantages of online Married 372 25.92 2.852 0.148 Unmarried 228 25.51 2.734 0.181 Total 600 25.77 2.812 0.115 Married 372 30.96 2.690 0.139 Unmarried 228 35.57 4.550 0.301 Total 600 32.71 4.164 0.170 Married 372 20.91 2.680 0.139 Unmarried 228 21.05 2.454 0.163 Total 600 20.97 2.595 0.106 Married 372 40.62 3.562 0.185 Unmarried 228 41.83 4.533 0.300 Total 600 41.08 3.999 0.163 Married 372 32.54 2.993 0.155 Unmarried 228 31.47 3.443 0.228 Total 600 32.13 3.210 0.131 Married 372 21.20 2.713 0.141 Unmarried 228 20.84 2.985 0.198 Total 600 21.07 2.822 0.115 Married 372 62.72 5.797 0.301 Unmarried 228 64.79 6.112 0.405 Total 600 63.50 5.999 0.245 Married 372 54.54 4.973 0.258 Unmarried 228 60.88 7.698 0.510 Total 600 56.95 6.875 0.281 1.768 www.apjor.com Page 49 0.078 (NS) 13.871 0.001* 0.661 0.509 (NS) 3.427 0.001* 3.848 0.001* 1.493 0.136 (NS) 4.115 0.001* 11.099 0.001* The customer perception towards the website, products, after sale, advertisement, advantages and their respective calculated t value of 13.871, 3.427, 3.848, 4.115 and 11.099 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and marital status of the respondents is rejected. However, the customer perception towards the awareness, price, delivery of product, and their respective calculated t value of 1.768, 0.661, and 1.493 are not significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and marital status of the respondents is accepted. Further, the mean value indicates that the respondents are in the category of unmarried are have more awareness as compared to married category of respondents towards the online website, products in the online, online
advertisement and advantages in the online. However, the married respondents are having more satisfaction as compared to unmarried category of respondents towards the after sale services in the online. One way ANOVA was applied to ascertain if there were any significant difference between customer perception towards online and the educational qualification of the respondents in Chennai city and the following null hypotheses has been framed: Ho 1 d : There is no significant difference between customer perception towards online and the educational qualification of the respondents. Table 3 ANOVA for Customer Perception towards online on the basis of Educational Qualification Variables Educational Qualification N Mean SD SE F-value P Value Customer awareness in online s towards the website towards price in online towards products in Online towards after sale services s towards delivery of product towards online advertisement towards advantages of online Up to school level 36 24.50 2.145 0.357 Graduate/Diploma 177 26.33 2.456 0.185 Post graduate 325 25.78 2.883 0.160 Professional 62 24.79 3.260 0.414 Total 600 25.77 2.812 0.115 Up to school level 36 28.75 3.367 0.561 Graduate/Diploma 177 37.27 4.376 0.329 Post graduate 325 31.20 1.724 0.096 Professional 62 29.92 1.711 0.217 Total 600 32.71 4.164 0.170 Up to school level 36 19.08 1.680 0.280 Graduate/Diploma 177 21.54 2.410 0.181 Post graduate 325 21.07 2.484 0.138 Professional 62 19.89 3.270 0.415 Total 600 20.97 2.595 0.106 Up to school level 36 39.17 2.710 0.452 Graduate/Diploma 177 43.95 3.549 0.267 Post graduate 325 40.07 3.567 0.198 Professional 62 39.29 3.765 0.478 Total 600 41.08 3.999 0.163 Up to school level 36 33.50 2.501 0.417 Graduate/Diploma 177 32.58 3.268 0.246 Post graduate 325 31.71 3.192 0.177 Professional 62 32.27 3.168 0.402 Total 600 32.13 3.210 0.131 Up to school level 36 20.00 1.549 0.258 Graduate/Diploma 177 21.68 2.729 0.205 Post graduate 325 21.12 2.860 0.159 Professional 62 19.65 2.841 0.361 Total 600 21.07 2.822 0.115 Up to school level 36 59.50 4.488 0.748 Graduate/Diploma 177 66.49 5.975 0.449 Post graduate 325 62.81 5.236 0.290 Professional 62 60.94 6.966 0.885 Total 600 63.50 5.999 0.245 Up to school level 36 50.75 4.759 0.793 Graduate/Diploma 177 64.14 6.993 0.526 Post graduate 325 54.54 3.590 0.199 Professional 62 52.66 4.417 0.561 Total 600 56.95 6.875 0.281 7.564 0.001* 221.492 0.001* 13.783 0.001* 56.419 0.001* 5.328 0.001* 10.219 0.001* 28.723 0.001* 182.309 0.001* www.apjor.com Page 50
The customer perception towards perception towards awareness in the online, customer perception towards the website, price, products, after sale, delivery of product, advertisement, advantages and their respective calculated F value of 7.564, 221.492, 13.783, 56.419, 5.328, 10.219, 28.723, and 182.309 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and educational qualification of the respondents is rejected. Further, the mean value indicates that the respondents are having graduate/diploma as their educational qualification are more perception as compared to other educational qualification of the respondents towards the awareness about the online, online website, price in the online, products in the online, delivery of products in the online, online advertisement and advantages in the online. However, the educational qualification of up to school level respondents is having more satisfaction with the after sale services as compared to other category of educational qualification of the respondents in the online. Testing the significant difference between customer perception towards online and the occupation of the respondents One way ANOVA was applied to ascertain if there were any significant difference between customer perception towards online and the occupation of the respondents in Chennai city and the following null hypotheses has been framed: Ho 1 e : There is no significant difference between customer perception towards online and the occupation of the respondents Table 4 ANOVA for Customer Perception towards Online Marketing on the basis of Occupation Variables Occupation N Mean SD SE F-value P Value Customer awareness in online s towards the website towards price in online towards products in Online Business Man 48 26.94 2.891 0.417 Government Employee 78 26.36 2.584 0.293 Private Employee 276 25.54 2.757 0.166 Students 18 26.50 2.572 0.606 Self Employed 150 25.56 2.927 0.239 Others 30 25.00 2.691 0.491 Total 600 25.77 2.812 0.115 Business Man 48 32.63 4.226 0.610 Government Employee 78 32.19 2.847 0.322 Private Employee 276 32.29 3.998 0.241 Students 18 36.33 4.994 1.177 Self Employed 150 32.38 4.233 0.346 Others 30 37.50 3.812 0.696 Total 600 32.71 4.164 0.170 Business Man 48 21.88 2.199 0.317 Government Employee 78 21.39 2.451 0.277 Private Employee 276 20.62 2.731 0.164 Students 18 22.00 2.590 0.610 Self Employed 150 20.98 2.454 0.200 Others 30 20.90 2.468 0.451 Total 600 20.97 2.595 0.106 Business Man 48 41.94 3.473 0.501 Government Employee 78 41.35 3.441 0.390 Private Employee 276 40.54 3.992 0.240 Students 18 43.83 4.091 0.964 Self Employed 150 40.92 4.107 0.335 Others 30 43.10 4.302 0.785 Total 600 41.08 3.999 0.163 3.646.003* 12.802 0.001* 3.201 0.007* 4.948 *.001 www.apjor.com Page 51
Business Man 48 32.13 2.811 0.406 Government Employee 78 32.27 3.537 0.400 Private Employee 276 32.40 3.075 0.185 towards after sale Students 18 33.50 3.552 0.837 services Self Employed 150 31.30 3.299 0.269 Others 30 32.70 2.842 0.519 Total 600 32.13 3.210 0.131 Business Man 48 22.38 2.446 0.353 Government Employee 78 21.65 2.511 0.284 s Private Employee 276 20.63 2.925 0.176 towards delivery of Students 18 22.83 2.479 0.584 product Self Employed 150 21.06 2.740 0.224 Others 30 20.40 2.621 0.479 Total 600 21.07 2.822 0.115 Business Man 48 63.31 5.272 0.761 Government Employee 78 63.77 5.831 0.660 Private Employee 276 63.15 5.988 0.360 towards online Students 18 67.83 6.862 1.617 advertisement Self Employed 150 63.28 5.722 0.467 Others 30 64.90 7.535 1.376 Total 600 63.50 5.999 0.245 Business Man 48 57.75 6.446 0.930 Government Employee 78 55.81 4.770 0.540 Private Employee 276 56.28 6.800 0.409 towards advantages of Students 18 63.00 8.527 2.010 online Self Employed 150 56.46 6.958 0.568 Others 30 63.60 6.339 1.157 Total 600 56.95 6.875 0.281 3.319 0.006* 6.023 0.001* 2.507 www.apjor.com Page 52 0.029 (NS) 10.390 0.001* The customer perception towards the awareness in the online, customer perception towards the website, price, products, after sale, delivery of product, advantages and their respective calculated F value of 3.646, 2.802, 3.201, 4.948, 3.319, and 6.023, 10.390 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and occupation of the respondents is rejected. However, the customer perception in the advertisement and the calculated F value of 2.507 are not significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and occupation of the respondents is accepted. Further, the mean value indicates that the students are having more perception as compared to other category of occupation of the respondents towards the price in the online, products in the online, after sale service in the online, delivery of products in the online and advantages in the online. However, the occupation of business man is having more perception as compared to other category of occupation of the respondents towards the awareness in the online and the occupation of others is having more perception as compared to other category of occupation of the respondents towards the website in the online. One way ANOVA was applied to ascertain if there were any significant difference between customer perception towards online and the monthly income of the respondents in Chennai city and the following null hypotheses has been framed: Ho 1 f : There is no significant difference between customer perception towards online and the monthly income of the respondents.
Table 5 ANOVA for Customer Perception towards Online Marketing on the basis of Monthly Income Variables Monthly Income N Mean SD SE F-value P Value Customer awareness in online s towards the website towards price in online towards products in Online towards after sale services s towards delivery of product towards online advertisement towards advantages of online Up to Rs.20, 000 48 26.313 2.667 0.385 Rs.20, 001 to Rs.40, 000 102 24.873 2.601 0.258 Rs.40, 001 to Rs.60, 000 285 24.989 2.767 0.164 Above Rs.60, 000 165 27.497 2.185 0.170 Total 600 25.765 2.812 0.115 Up to Rs.20, 000 48 35.750 4.512 0.651 Rs.20, 001 to Rs.40, 000 102 31.882 3.428 0.339 Rs.40, 001 to Rs.60, 000 285 33.295 5.001 0.296 Above Rs.60, 000 165 31.327 1.132 0.088 Total 600 32.710 4.164 0.170 Up to Rs.20, 000 48 21.375 3.029 0.437 Rs.20, 001 to Rs.40, 000 102 20.588 2.314 0.229 Rs.40, 001 to Rs.60, 000 285 20.189 2.617 0.155 Above Rs.60, 000 165 22.418 1.871 0.146 Total 600 20.965 2.595 0.106 Up to Rs.20, 000 48 42.563 4.058 0.586 Rs.20, 001 to Rs.40, 000 102 40.000 3.279 0.325 Rs.40, 001 to Rs.60, 000 285 40.611 4.485 0.266 Above Rs.60, 000 165 42.127 3.061 0.238 Total 600 41.080 3.999 0.163 Up to Rs.20, 000 48 32.250 3.342 0.482 Rs.20, 001 to Rs.40, 000 102 31.735 3.327 0.329 Rs.40, 001 to Rs.60, 000 285 32.063 3.411 0.202 Above Rs.60, 000 165 32.461 2.693 0.210 Total 600 32.132 3.210 0.131 Up to Rs.20, 000 48 21.500 3.764 0.543 Rs.20, 001 to Rs.40, 000 102 20.324 2.347 0.232 Rs.40, 001 to Rs.60, 000 285 20.221 2.759 0.163 Above Rs.60, 000 165 22.861 1.893 0.147 Total 600 21.067 2.822 0.115 Up to Rs.20, 000 48 65.625 6.529 0.942 Rs.20, 001 to Rs.40, 000 102 63.088 5.692 0.564 Rs.40, 001 to Rs.60, 000 285 62.495 6.410 0.380 Above Rs.60, 000 165 64.885 4.796 0.373 Total 600 63.503 5.999 0.245 Up to Rs.20, 000 48 62.625 7.189 1.038 Rs.20, 001 to Rs.40, 000 102 55.088 5.666 0.561 Rs.40, 001 to Rs.60, 000 285 57.295 8.208 0.486 Above Rs.60, 000 165 55.855 2.897 0.226 Total 600 56.950 6.875 0.281 38.075.001* 19.461.001* 30.859.001* 10.212 0.001* 1.162 0.324 40.029 0.001* 8.040 0.001* 16.173 0.001* The customer perception towards the awareness in the online, customer perceptions towards the website, price, products, after sale, delivery of product, advertisement, advantages and their respective calculated F value of 38.075, 19.461, 30.859, 10.212, 1.162, 40.029, 8.040, and 16.173 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between customer perception towards online and monthly income of the respondents is rejected. Further, the mean value indicates that the respondents income up to 20,000 are having more perception as compared to other category of income of the respondents towards the website, products in the online, advertisement in the online, and www.apjor.com Page 53
advantages in the online. The income of above 60,000 are having more perception as compared to other category of income of the respondents towards the awareness about the online, price in the online, after sale service in the online, and delivery of products in the online. FACTOR ANALYSIS (General Awareness Regarding Online Marketing) This section factor analyses were used for to find out the awareness, price, product, after sale services, delivery of product, online advertisement and advantages in online in Chennai city. Factor analyses were used to find out the general awareness regarding online in Chennai city. There are 6 variables included in this study and principal component factoring method with variance (varimax) rotation was used for factor extraction. A three factor solution was derived using the score test. The Kaiser Mayer Olkin (KMO) and Bartlett's Test has been applied to ascertain the sampling adequacy for applying factor analysis. Bartlett s Test of Sphericity was applied to the constructs validity. Then again the KMO measure of sampling adequacy employed to analyze the strength of association among variables. The KMO measures of sampling adequacy were first computed to determine the suitability of using factor analysis to predict whether data are suitable to perform factor analysis or not. The value of KMO varies from 0 to 1, and KMO overall should be 0.60 or higher to perform factor analysis. If not then it is necessary to drop the variables with lowest anti image value until KMO overall rise above 0.60. Result for the Bartlett s Test of Sphericity and the KMO reveal that both were highly significant and concluded that this variable was suitable for the factor analysis. They also suggested that variables with loading greater than 0.30 are considered significant, loading greater than 0.40 more important, and loading 0.50 or greater are very significant. In this study, the general criteria were accepted items with loading of 0.60 or greater. The higher loading (factor) shows the stronger affiliation of an item to a specific factor. In our study Factor analysis has successfully reduced the variables influencing customer satisfaction toward internet shopping. Table 6 shows that the results of KMO and Bartlett s test. Table 6 Communalities S. No. Particulars Initial Extraction 1. I know the procedure for online 1.000.668 2. I know how to place an order 1.000.659 3. I know how to cancel an order 1.000.386 4. I know how to purchase the products and Payment mode 1.000.637 I know the options for placing a trade if I 5. 1.000.680 am unable to access my account online 6. I know what to do if I have a complaint 1.000.690 Communalities are used to find out the how much of the variance in each of the original variables is explained by the extracted factors. Higher communalities are desirable. From the Table 6 in the data interpretation on general awareness regarding online through factor analysis, out of six variables, I know what to do if I have a complaint variable got high communality value (0.690). It means extracted factors are able to explain low variance in that the variable more effectives than other variables. The I know how to cancel an order variable got lowest communality value (0.386). It means that the extracted factors are not able to explain much variance in that variable. Such variable may be dropped from the analysis. www.apjor.com Page 54
Table 7 Total Variance Explained Initial Eigen values Rotation Sums of Squared Loadings Component % of Cumulative % of Total Total Variance % Variance Cumulative % 1 1.632 27.195 27.195 1.564 26.060 26.060 2 1.051 17.513 44.708 1.104 18.399 44.459 3 1.036 17.264 61.972 1.051 17.513 61.972 4.930 15.495 77.467 5.850 14.168 91.635 6.502 8.365 100.000 Table 7 shows the percentage of variance in respect of 6 variables in general awareness regarding online. The overall three factors contribute Eigen values greater than 1.0, which is a common criterion for a factor to be useful. When the Eigen value is less than 1.0 the factor explains less information than a single item would have explained. These variables have been rotated to ascertain cumulative percentage of variance. The factor 1 causes 26.060 per cent of variance, factor 2 causes 18.399 per cent of variance, and factor 3 causes 17.513 per cent of variance in general awareness regarding online. The overall three factors cumulatively contribute 61.972 per cent. SUGGESTIONS FOR THE STUDY The online marketers must ensure adequate security features, confidence in the privacy information, perceived usefulness and familiarity. Transactions should be safe and proper security should be assured to the people making online purchases. Online companies must give a thought to secure, time saving, information about product and services factors when they design their online product strategy. The study highlights that awareness, convenience, accessibility, scope, attraction, experience and clarity are the important factors considered by the online. Usage of internet includes the consumer s purchase of product as well as the customer intention to secure for product related information while experiencing the new technology. The marketer perspective, they will more understand the attitude of the consumers towards online as well as the factors influencing consumers to make online purchases. The online marketer to serve the customers without any delay for quarries and it is advisable to follow time management principles consistently. Online companies need to have a good tie-up with the delivery companies so customers can have their products delivered cheaply, quickly, and safely. CONCLUSION The present study concluded that, the online is changing the way of the consumers shop and buy goods and services. Most of the consumers are use the online not only to buy the product but also to compare prices and features of product. It is essential for the online marketers to understand the customer perception towards the online. Today many organizations provide online for the shopping purpose. This study is helpful for the online marketers to know the factors which influence the customer perception towards the online. The results of the study also help the company to understand customer perception towards the online provided to purchase of product/service. www.apjor.com Page 55
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