LITERATURE REVIEWAn article titled “A Third of E-Commerce Buyers Get Counterfeit Products” was published in The Economic Times on April 24, 2018.
It makes mention of a survey undertaken by LocalCircles, which showed that 38% online shoppers out of 6,923 respondents had received a fake product from an e-commerce website in the last one year. A second survey conducted by market research agency Velocity MR supported these findings. Most consumers say that categories like perfumes, fashion apparel, shoes, sports goods, and bags have a higher incidence of counterfeit products. E-commerce companies are taking stringent measures to ensure that fake products don’t reach customers, by delisting fraud sellers, keeping track of warehouses and using packaging which is tamper-proof.
An article titled “Online Shopping Still a Challenge for Indians: Survey” was published in The Economic Times on November 20, 2017. It reported the findings of global technology company, Pitney Bowes’ “2017 Global E-Commerce Study”. The study was based on a survey involving 1,200 retailers from 8 countries including India and 12,000 consumers from 12 global markets. According to the survey results, 73% of Indians who shopped online in 2016 faced issues related to lost products, shipping, returns and miscalculated duties and taxes. On a global level, only 43% online shoppers faced these challenges. The study also observed that India is the only country that offers quicker, shorter deliveries at an additional cost. Rajiv Kohli, Sarv Devaraj and M.
Adam Mahmood (2004) conducted a research on 134 online consumers to investigate the impact of decision support systems of e-commerce channels on consumers’ decision making process, and the factors that lead to consumer satisfaction. The study made use of seven-point Likert scale survey questions, SEM (Structural Equation Model) Analysis and a paired sample t-test. It was found that improved online support for gathering information leads to better evaluation of alternatives and selection of the most favourable option, as well as time savings and cost savings for the consumer, all of which are positively correlated with consumer’s satisfaction with the purchase decision. Bo Xiao and Izak Benbasat (2011) published a paper which presented a typology of product-related deceptive information practices that showcases the numerous ways in which e-commerce retailers deceive online shoppers.
In addition to this, the paper also developed an integrative model focussing on why online shoppers are misled by such deceptive practices and what factors contribute to whether or not they will be able to discover such deceitfulness. The researchers used a number of theory-based hypotheses to develop the conceptual model. It was concluded that perceived deceptiveness of an e-commerce website has a negative impact on perceived product value.
Factors such as individual characteristics, product characteristics and amount/type of deception influence consumer vulnerability to deception. It was also found that experience with online/offline shopping in general, product expertise and prior interaction with the e-commerce website influence the likelihood of consumers to notice anomalies in the e-commerce website.Anthony D. Miyazaki and Ana Fernandez (2001) carried out a research to determine whether greater levels of internet use relate to greater or smaller levels of perceived risks as well as privacy and security issues surrounding online shopping. Furthermore, the effect of use of alternative and more established remote purchasing methods (like telephone and mail-order shopping) on risk perception and online purchase rates was also examined. A pen-and-paper survey involving 160 respondents was conducted and the open-ended data was analysed using multiple regression analysis and a series of logistic regression models.
It was observed that higher levels of internet experience and use of other remote purchasing methods may lead to lower perceived risks related to online shopping as well as lesser number of specific concerns like system security and online fraud. Interestingly, consumers with longer periods of internet experience had higher concerns regarding online privacy.