Factors Motivating the Consumers towards the Online Shopping in Coimbatore

Abstract

In the globalised era, internet plays a very vital role for communication as well as business convenience. The estimate includes companies across online travel, e-retailing, classifieds and online financial services. The estimate would mean an over 11 times growth from $4 billion estimated for 2014, the report titled 'Fast and furious: Just the beginning of multi-year explosive growth' said. "On a low base, multiple enablers of this explosive growth include increase in the number of internet users, increase in the proportion of online shoppers within those users, growth in the per-shopper transaction value, and continued flow of capital by willing investors, arming firms with ammunition to woo consumers online," the report said. According to estimates, India added around five million internet users to its base of 213 million, driven by a rapid growth in smart phones. While so far, travel has dominated the online shopping space with a CAGR of 32 per cent between 2009 and 2013, the report said that going forward e-retailers would drive growth, with expected CAGR of over 60 per cent to $7 billion in 2016 from $1.7 billion in 2013. The present paper is to identify the most influential factors of consumers to influence the online shopping in Coimbatore. The data has been collected from 600 respondents through structured questionnaires. The study found that five important factors namely Variety of products and offers, challenges of online shopping, Multiple payment options, Trustworthiness and convenience to influence consumers to prefer the online shopping in Coimbatore.