Understanding the importance of different factors influencing the online purchase decisions of search, experience, and credence goods

Abstract

In the past ten years, there has been a significant change in the purchasing behaviors of Indian consumers. This alteration in behavior in urban, se ban, and even rural areas is due to rising incomes, consumer awareness, expanding economy, availability of products and services, and easy availability of credit. (Subrato Dey 2017). Earlier consumers bought products only via traditional brick-and-mortar stores. But with the advent of technology and the increased number of smartphone users, consumers today have different channels through which they can buy the desired products. These are namely in-store, online and omnichannel. As per the data, 55-68% of consumers prefer omnichannel, i.e., consumers want offline (feel& touch) and online retail channels (variety). Due to various factors such as increased Internet usage, time-saving convenience, quick access to product-related information, product-related online evaluations, and most crucially, pay-ondelivery (POD) payment methods, online shopping is more popular. (Urvashi Tandon .et.al). According to a report, the online retail market grew by 25%, whereas the overall retail market declined by 5%. Even though there is a decline in the overall retail market, sellers are cognizant that they need to be omnipresent for the customers, e.g., Nykaa and Lens kart. Consumer goods are broadly divided into search, experience, and credence.