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AIMA Journal of Management & Research, February 2014, Volume 8 Issue 1/4, ISSN 0974 – 497 Copy right© 2014 AJMR-AIMA

ARTICLE NO.4

CHANGING FACE OF BUYERS BEHAVIOUR

TOWARDS ON LINE SHOPPING OF FINANCIAL

PRODUCTS IN INDIA (A CASE STUDY OF

RAJASTHAN STATE)

Dr. Shiv Prasad Associate Professor, Department of Management Studies Director – Research,

Secretary – Sports Board, Head, Department of Journalism and Mass Communication,

Coordinator- Coaching Classes, MDS University Ajmer

Dr. Amit Manne Ex- Research Scholar, MDS University Ajmer

Dr. Veena Kumari Post Doctoral Fellow, Department of Management Studies,M.D.S. University Ajmer

Abstract: Deregulation and the emergence of new forms of technology have created highly competitive

market conditions which have had a critical impact upon consumer behaviour. Bank providers must, therefore,

attempt to better understand their customers in an attempt not only to anticipate but also to influence and

determine consumer buying behaviour. Consumers are now more disposed to change their buying behaviour

when purchasing financial products. As a consequence, bank providers are less certain that their customers will

continue to reservoir with them or that they will be able to rely upon the traditional banker customer relationship to cross-sell high value, so-called ancillary products. In an era where customer retention and the ability to cross-

sell products to existing customers are critical in determining profitability, it is important that banks respond

strategically to these changes. The present research paper provides understanding the changing online buying

behaviour of consumers.

Key Words: Buyer Behaviour, Financial Products, Online Shopping, Internet Banking, Electronic

Channel, Customer Relationship Management (CRM).

Introduction

Buying behaviour patterns represent the design of behaviour of a large number of customers.

Customer buying habits or behaviour patterns are not permanently fixed, and certainly not

sacred, even though some habits tenaciously resist change. Consumers decide whether, what,

when, from whom, where and how much to buy. They can avail various mediums to buy the

products. Currently we are living in the age of internet. According to a study, “About 44

percent students use Internet in India and overall 72% of young people access Internet on

regular basis”. Due to the vast usage of Internet, the buying patterns have been changed. It

has changed the way goods are purchased and sold, resulting to the exponential growth in the

number of online shoppers. However, a lot of differences concerning online buying have


been discovered due to the various consumers’ characteristics and the types of provided

products and services. Attitude toward online shopping and goal to shop online are not

only affected by ease of use, usefulness, and enjoyment, but also by other factors like

consumer individuality, situational factors, product distinctiveness, previous online shopping

understanding and faith in online shopping.

Therefore, understanding who are the ones consuming and why they choose to use or keep

away from the Internet as a distribution channel, is a critical matter for both e-marketing

managers and consumer thinkers. There are lots of companies which are providing the

platform to consumers to buy the products through online. Online consumers tend to be better

educated. Higher computer literacy makes internet shopping smarter. Their awareness about

the internet also makes them better positioned to identify and take decision for products and

services. By the internet, consumers find that they no longer have to accept fixed prices for

the products and services and through the click of a few buttons the lowest priced, highest

quality product can be found.

Consumers on the one hand have the ease of choice, the comfort of shopping from home and

an endless variety of products, while saving time and money. Organizations, on the other

hand, are exploiting the unlimited shelf space the internet offers, operational timings and

geographical boundaries it unconfined and the opportunity it creates to cater to wide markets

at a comparative miniscule cost. As a result customers and organizations are having a much

fuller relationship than ever before.

Online Shopping

The Internet has proven a fertile ground for marketing and advertising and, by

extension, has significant implications for privacy. It readily offers all of the tools

needed by an organization attempting to fully embrace relationship marketing and

possesses unique customer data-gathering capabilities. The Internet serves as a platform for

online companies to create favourable relations with consumers. Although similar in some

respects, the Internet is different from traditional direct marketing channels in three main

ways:

1) increased data creation and collection,

2) Globalization of information and communications, and

3) Lack of centralized control mechanisms.

These differences can be used advantageously but at the same time they have the

capacity to create problems both for online companies and consumers. The Internet has

made enormous amounts of information available to consumers. Search engines have

become an essential way and the first choice to seek pre-purchase information for many

people. In the electronics market, consumers are able to seek information in many different

ways (search agents). They are able to seek more information faster (larger extent of search),

for more alternatives (width of search), and attributes of value (depth of search).

Consumer’s online pre-purchase information search is an essential part of consumer decision

making process. Consumer search is the main method, besides advertising, for acquiring

information necessary to purchase decisions. Consumers look for products and

competitive prices in an attempt to make a “right choice” and decide what, when, and from


whom to purchase. Consumers make everyday decisions regarding choice, purchase and use

of products and services. These decisions are often important to consumers and thus difficult

to make.

Financial products

Financial products is one of the fastest growing fields the world over. The opening up of

global economies has only increased the scope for financial products. Banks and financial

institutions are rapidly introducing innovative online financial products to capture

competitive space. Companies in this field are seeking to become financial super centres by

offering a variety of online financial products and services under one roof. However, dealing

in financial products comes with risk, as small mistakes can result in major damages to the

company. Therefore, the marketing for online financial products needs to be planned

meticulously to avoid errors and consequent damages and should be user friendly.

Considering the intense competition in the field, companies also need to create a source of

differentiation to improve customer recall. Financial products act as an investment avenue

and provide the required financial security to the investors based on the risk-return profile of

the financial products. In the past, traditional financial products were offered in India through

government initiatives by Public Sector Banks (PSBs) (deposit account, credit account), Life

Insurance Corporation (LIC), and postal department (recurring deposit, National Saving

Certificate, Kisan Vikas Patra). However, in recent years with the advent of liberalization of

financial services industry, diverse financial products have been introduced through

participation of private and foreign entities in addition to the public sector enterprises. These

include products such as debit and credit cards by banks, open-end and closed-end mutual

fund schemes (Exchange Traded Funds (ETFs), Index Funds, Systematic Investment Plans

(SIP), sector funds, etc.), life and non-life insurance schemes (Unit Linked Investment Plans

(ULIPs), pension plans, children education plans, etc.).

It further includes shares and debt securities offered by various entities, investments in which

are mainly facilitated by the brokerage houses. This has led to rising competition through

introduction of innovative and attractive products, regulatory initiatives and growth in the

investor base along with increased marketing activities in the financial sector. The increased

activities in the financial sector could be reflected in the growth in the aggregate deposits

with banks.

Conceptual Model to Explain On-line Buying of Financial Products

The MAO framework has enabled researchers to explain how consumer’s process

information obtained through exposure to advertising. Since the framework’s motivational

component arises from the need confronting consumers and directs their behaviour, it can be

used to explain any behavioural tendency that is based on an underlying need.

The basic constructs in the model include on-line purchase, on-line information search, and

antecedent levels of motivation, ability, and opportunity. Prior to the development of the on-

line channel, most consumers relied upon a financial adviser or agent (e.g., financial planner,

stockbroker, insurance agent) to manage their financial transactions. The present research

work suggests that consumers are more motivated to use the electronic channel when they are

not satisfied with their agent, and especially with the agent’s plan for them (end goal) and

methods. Conversely, dissatisfaction and conflict are lower when consumers view the agent’s


role performance favourably. Beyond this, consumers who exhibit readiness to use the on-

line channel are more likely to do so when presented with the opportunity. Their ability to use

the electronic channel will probably be influenced by how much they know about financial

products and markets, and how much confidence they have in their own decision-making

capacity. The greater their ability, and the probability of online use. Finally, beyond

motivation and ability, potential on-line consumers tend to face lower opportunity constraints

in making decisions themselves. Opportunity is constrained when consumers feel that they do

not have the time to personally manage their financial transactions.

Figure – 1: Conceptual Model to Explain On-line Buying of Financial Products

Internet Banking in India

The financial products and services have become available over the Internet, which has thus

become an important distribution channel for a number of banks. Banks boost technology

investment spending strongly to address revenue, cost and competitiveness concerns. The

purpose of present study is to analyze such effects of IB in India, where no rigorous attempts

have been undertaken to understand this aspect of the banking business. A study on the

Internet users, conducted by Internet and Mobile Association of India (IAMAI), found that

about 23% of the online users prefer IB as the banking channel in India, second to ATM

which is preferred by 53%. Out of the 6,365 Internet users sampled, 35% use online banking

channels in India. This shows that a significant number of online users do not use IB, and

hence there is a need to understand the reasons for not using it. Until the advent of ATMs,

people were unaware and/or not directly affected by the technological revolutions happening

in the banking sector. ATMs became the major revelation for customers, since it offered the

Agent

Performance

Task

Return

Satisfaction

With Agent’s

Performance

Disagreement/

Conflict

With Agent

Knowledge of

Financial Products

Willingness to

use online

channel

Income

Time

Availability

Confidence in

Decision Making

On-line

Purchase

Motivation

Ability

Opportunity

On line

information

search


facility to avoid long queues in front of the cashiers in banks. It also provided them the

flexibility of withdrawing money— anytime, anywhere. In the study by IAMAI, it was found

that the people are not doing financial transactions on the banks’ Internet sites in India

because of reasons such as: security concerns (43%), preference for face-to-face transactions

(39%), lack of knowledge about transferring online (22%), lack of user friendliness (10%), or

lack of the facility in the current bank (2%).

Review of Literature

Rastogi (2010) focused on features related to the buying behavior of online shoppers. They

found that online shopping is having very bright future in India. Perception towards online

shopping is getting better in India. With the use of internet, consumers can shop anywhere,

anything and anytime with easy and safe payment options. Consumers can do comparison

shopping between products, as well as, online stores. It is possible to identify two principal

factors that motivate and determine individual contracting choices, namely involvement and

uncertainty (Bateson, 1989; McKechnie, 1992; Harrison, 1997; Ennew and McKechnie,

1998). consumers' purchasing behaviour is greatly influenced by the type of financial product

being purchased, and this is in keeping with the research of Bateson (1977), Shostack (1977),

McKechnie (1992) and Betts (1994). This has enhanced our knowledge of how consumers

purchase different financial products but perhaps more significantly it has drawn our attention

to the role of delivery channels.

Dr.Praveen Sanu, Gaurav Jaiswal, Vijay Kumar Panday (2009) in their article, “ A study of

buying behaviour of consumers towards LIC”,

Prestige institute of Management and

Research, Gwalior, revealed that in present Indian market, the investment habits of Indian

consumers are changing very frequently. The individuals have their own perception towards

various types of investment plans. The study of this research work was focused over

consumer’s perception on investment towards Life Insurance Services. Syed Tabassum

Sultana (2010) concludes that the individual investor still prefers to invest in financial

products which give risk free returns. This confirms that Indian investors even if they are of

high income, well educated, salaried, independent are conservative investors prefer to play

safe. Bhatnagar, Misra and Rao (2000) measure how demographics, vender/service/ product

characteristics, and website quality influence the consumers’ attitude towards online

shopping and consequently their online buying behaviour.

Objectives of the Research

The objective of the research work is to study the buying behaviour of financial products

through online shopping and it contains the following secondary objectives:

1. To study the in depth view of Buying behaviour financial products and online

shopping.

2. To portray the consumers online buying financial activities and the influence &

motivation of sales agent channels on it.

3. To judge the ability to take care of financial affairs without the help of sales agent

and their opportunity to use the online channels to buy financial products.

4. To elaborate the ability of the consumer to use electronic channel, knowledge of

financial products and markets and confidence of their decision making capacity.

5. To evaluate the effectiveness of online shopping and Buying financial product on

the basis of demographic variables.


Nature of the study

The present research work to test the buying behaviour of financial products through online

shopping is a descriptive study in which micro nature investigation is used. Empirical

research will be conducted through primary as well as secondary data. The present research

work is analyzed with the help of the following financial and statistical tools. Financial tool

comprises ratio analysis and percentile whereas Statistical tool includes the use of SPSS such

as Factor analysis, t-test, ANOVA etc. Hypothesis to be tested

Hypothesis: The null and alternate hypotheses of the Research are enumerated as below:

Ho1 –Buying behaviour of financial products is not influenced by On Line shopping.

HA1 –Buying behaviour of financial products is influenced by On Line shopping.

Ho2 –Buying behaviour of financial products On Line is not affected by demographic

characteristics of consumers.

HA2 –Buying behaviour of financial products On Line is affected by demographic

characteristics of consumers.

HO3 –The consumers are not motivated by agent of financial products to use electronic

channel.

HA3 –The consumers are motivated by agent of financial products to use electronic channel.

HO4 –The availability of online recourses does not have impact on consumers preparedness to

use online channels.

HA4 – The availability of online recourses has impact on consumers preparedness to use

online channels.

HO5 –The acquaintance of financial products does not affect the consumer to use electronic

channels.

HA5 – The acquaintance of financial products affects the consumer to use electronic channels.

HO6 – Use of Online Channels does not have relationship with consumers’ time to manage

financial transaction.

HA6 – Use of Online Channels has relationship with consumers’ time to manage financial

transaction.

Sources of information

Primary as well as secondary data sources are used to generate evidence to supplement the

research design. The primary source of data includes the respondents i.e. investors'

consumers and others who may or may not uses online buying of financial products. The

researcher has used primary source data collection technique viz. observation, interview and

structured questionnaires from the respondents as per the convenience. Secondary sources

comprise business magazines, corporate journals, company records, newspapers, press

releases, internet, periodicals, pamphlets, articles, television and print media and others.

Sampling Plan/Research design

Universe

The universe for the research study covers all consumers who use online channels for buying

financial products.

Sample Design

The demographic variables of divisional headquarters and districts of Rajasthan have been

chosen for the study. The respondents in these areas comprise of businessman, professionals,


traders, government and semi government employees, students etc from Rajasthan. The

sample is selected on the basis of convenience sampling by the researcher and frequent users

of online channels.

Sample Size

The sample size includes 1000 respondents in rural, urban and semi urban parts of Rajasthan

having different age and income group.

Pilot Survey

A pilot survey of 200 respondents is carried out to gather feedback. Based on the same, final

adjustments are made before the survey.

Research Instrument

The research instrument includes questionnaires for the respondents. The structured

questionnaires include both open ended & close-ended questions. Rating & scaling is used to

measure the opinions of the respondents.

Method of Contact

The respondents in the urban, semi-urban and rural are personally interviewed by the

researcher or contacted through mailed questionnaires.

Questionnaire Development

A well-structured questionnaire is developed after pilot survey. The questionnaire comprises

two parts. Part I consists of general information about respondents’ demographic

backgrounds. Part II, III.IV&V consists of questions relating to factors important for online

purchase, information source, expected and experiences and opinion on online purchase.

Tools for Analysis

The proposed research is analyzed with the help of financial and statistical tools as per the

requirement of the research. As the research is exploratory in nature, hence, financial tool i.e.

Ratio Analysis, percentile, comparative statements and others are used. The Statistical tool

envisages t-Test, Large Sampling Method and ANOVA as per the applicability of research.

The test was designed on the basis of Likert type five point scales.

Analysis & Findings

The questionnaire is developed which provide information about the buying financial product

on line. The questionnaire is divided in five parts and the sample size of the consumer

respondent was 1000 distributed mostly on the divisional headquarters such as Ajmer,

Bharatpur, Bikaner, Jaipur, Jodhpur, Kota & Udaipur. This has become possible only by

taking convenience sampling and visiting financial institutions and banks etc.

Buying Behaviour of Financial Products through On Line shopping in Rajasthan

This includes analysis and interpretation of Buying Behaviour of Financial Products through

On line Shopping in Rajasthan which comprises five parts, in which the first part is

descriptive, using frequencies and percentages, relates to the general social – economic

characteristics of the respondents in the study area. The findings of the demographic and

socio-economic related to this section are enumerated as out of 1000 respondents 710 are

male and 29% are female. This shows that the little less than three quarters of the male uses

Online Shopping for buying the financial product. It can be concluded that the reason for this

that they are the frequent decision maker with regard to financial products for taking the tax

benefits, security for the future or household emergency. The 73.6 % of the respondent are

having the age of 26 or more which indicates that the risk bearing capacity have increased to


these respondents. It should also be articulated that the 264 out of 1000 respondents are up to

the age of 25 years which shows craziness and zeal in youth to buy the financial product

through on line Online Shopping. It should be made clear that the youth generally start

buying financial product when he/she becomes mature enough, so the 26.4 percentage is

handsome number who goes for on line buying of financial product online. This is

emphasised that 27 percent professionals such as Doctors, Chartered Accountants,

Consultants uses the on line On line Shopping to purchase the financial product, 227 Service

Class Employees out of 1000 have opined that they buy the financial product on line as they

have the view that it is easy to operate and its retrieval. 24.7 percent business man connoted

about the use of on line Online Shopping to buy the financial product.

Measurement of Buying Behaviour of Financial Product through on line shopping

The second part of the questionnaire is on Buying Behaviour of Financial Product through

online shopping consisting of 24 statements to measure the Buying behaviour of Financial

Product through online shopping. The respondents were asked to rate their agreement with

these statements on a five point Likert type rating scale. Their responses have been used to

compute a quantitative measure named as Buying Financial Product Shopping Score

(BFPSS) for the purpose of analysis. The scores of all the statements have been added to

calculate aggregate Buying Financial Product Shopping Score for each respondent.

To measure the internal consistency and reliability of the instrument developed for measuring

Buying Behaviour of Financial Products, Cronbach's Alpha Coefficient was calculated by

using SPSS. The instrument for buying behaviour through on line financial product has

attained a Cronbach Alpha value as 0.867. The appropriateness of data set for factor model

was tested using Kaiser Meyer Olkin (KMO). The value of KMO statistic 0.531 was found

which is greater than the desirable value 0.5. Thus the correlation between the pairs of

variables is explained by other variables and hence factor analysis was found to be an

appropriate analysis technique. The nine factor solution given by SPSS has explained 53.757

% variance. These factors were extracted by using rotated component matrix and were

identified according to largest loading values in a particular factor.

The factor Eigen value having value more than one is taken as factors which are nine in

numbers. These are Cost of Product, Accessibility of Information, Timeliness, Connectivity,

Assistance of Agent, Availability of E-Service, Affordability, Co-operation and Simplicity.

Hence, the null hypothesis that buying behaviour of financial products does not have any

relationship with online Shopping is rejected and alternate hypothesis is accepted. It can be

said that the Buying of financial product has significant relationship with on line Shopping.

Identification of Sources to Motivate for Online Buying of Financial Product

The third part relating to sources which motivates for online buying of financial product

related responses includes that 343 out of 1000 respondents have viewed that they are

motivated or get the information to buy financial product online either through financial

consultants or sales agent. 32.9 percentages of respondents have connoted that they come to

know or motivated to buy the product by seeing the advertisement on electronic or print

media and making search on internet for the same. 16.3 percent respondents are opined that

they have very good friends and availability of referrals that have made us to go for online

Buying of financial products.


Measurement of expected and experienced responses of consumer’s buying behaviour

through on line

The fourth part comprises the findings of impact from expected and experienced responses of

consumer’s with reference to Buying behaviour of financial product deliberate that the

outcome by clubbing similar statement such as encouraging to operate through online,

companies assistance to operate online and design of websites are efficient. This has got the

almost similar impact with respect to experienced and expected responses of consumers. The

levels of difference between the expected and experienced responses of “Encouragement to

operate account through online”. In this case the Mean is .1 which is showing that the users

found positive responses than the expected with the Standard Deviation of 1.383. This is

remarkable because the users are encouraged to operate their accounts through on line

successfully. The statement such as trustworthiness, confidentiality & privacy, clarity of

instruction to be followed has similar impact. The levels of difference between the expected

and experienced responses with regard to “Online purchase of financial products is

trustworthy”. In this case the Mean is 0.4 which is showing that the users have the positive

responses of experienced and expected, with the Standard Deviation of 1.368. This indicate

that the on line purchase is trustworthy for the consumers always, hence, they do not find any

difference in trust by Buying through on line, they do have the faith and trust in this regard.

The statement relating to use of online purchase will increase in future, increase of customer

interest through company websites, recommending on line purchase to others are having

similar impact. It portrays the levels of difference between the expected and experienced

responses of “Expected use of online purchase will increase in future”. In this case the Mean

is .06 with the standard deviation of 1.38 which shows that the expected use of on line

purchase will increase; this has been opined by the most of the respondents. The statement

relating to availability of information at the time of need exhibiting various levels of

difference between the expected and experienced responses of “Information is available when

needed”. In this case the Mean is .07 which is showing that the users found good responses

than the expected with the Standard Deviation of 1.521. This has paramount importance that

the consumer’s expectancy and experience has positive connotation which indicates that the

information is available to them as they are in need.

Measurement of Customers’ Opinion for Buying On Line The fifth part related to consumers’ opinion for Buying On Line consist 08 statements to

measure the opinion of customers for Buying on line On line Shopping. The respondents

were asked to rate their agreement with these statements on a five point Likert type rating

scale. Their responses have been used to compute a quantitative measure named as

Customers’ Opinion for Buying Online Score (COBOS) for the purpose of analysis. The

scores of all the statements have been added to calculate aggregate Customers’ Opinion for

Buying Online Score for each respondent. To measure the internal consistency and reliability

of the instrument developed for measuring Customer’ Opinion for buying on line, Cronbach's

Alpha Coefficient was calculated by using SPSS. The instrument for Customers’ Opinion for

Buying on line has attained a Cronbach Alpha value as 0.824. The appropriateness of data set

for factor model was tested using Kaiser Meyer Olkin (KMO). The value of KMO statistic

0.531 was found which is greater than the desirable value 0.5. Thus the correlation between

the pairs of variables is explained by other variables and hence factor analysis was found to

be an appropriate analysis technique. The three factor solution given by SPSS has explained


42.565 % variance. These factors were extracted by using rotated component matrix and were

identified according to largest loading values in a particular factor.

The factor Eigen value having value more than one is taken as factors which are three in

numbers. These are Simplicity of Procedure, Ease of Payment and Brand Name of the

Organisation. Hence, the null hypothesis that buying behaviour of financial products does not

have any relationship with on line Shopping is rejected and alternate hypothesis is accepted.

It can be said that the Buying of financial product has significant relationship with on line

Shopping.

The Influence of demographic characteristics on Buying Behaviour of financial product

online

i Influence of gender on Buying Behaviour of financial product online

This includes the influence of genders on Buying Behaviour of Financial Products online.

The questionnaire consist 24 statements to know the influence. The scores of individual

statements have been added to determine aggregate Buying Financial Product Online

Shopping Score (BFPOSS). This score has been used for analysis the influence of gender on

consumers’ Buying behaviour. The significance level for Levene’s test is .154. This is larger

than the cut-off of .05. This means that the assumption of equal variances has not been

violated.

If the value in the Sig. (2-tailed) column is equal or less than .05 (e.g. .03, .01, .001), there is

a significant difference in the mean scores on your dependent variable for each of the two

groups. If the value is above .05 (e.g. .06, .10), there is no significant difference between the

two groups. The output of the Sig. (2-tailed) value is .154. As this value is above the required

cut-off of .05, it is concluded that there is not a statistically significant difference in the mean

Buying behaviour scores for males and females. This indicates that the null hypothesis is

rejected and alternate hypothesis is accepted as the gender has influence on buying behaviour

through online Shopping.

ii Influence of age on Buying Behaviour of financial product online

The influence of age on Buying Behaviour of Financial Products online is narrated below.

The questionnaire consists 24 statements to know the influence of age on Buying behaviour.

The scores of individual statements have been added to determine aggregate Buying

Financial Product Online Shopping Score (BFPOSS). This score has been used for analysis

the influence of age on consumers’ Buying behaviour. The homogeneity of variance option

tells the Levene’s test for homogeneity of variances, which tests whether the variance in

scores is the same for each of the nine groups. In this case, it is 0.910 which is more than .05

hence no significant difference exists. If it is less than .05 then the output headed Robust

Tests of Equality of Means is taken.

This ANOVA table gives both between-groups and within-groups sums of squares, degrees

of freedom etc. The p value is less than or equal to .05 (e.g. .03, .001), there is a significant

difference somewhere among the mean scores on your dependent variable for the nine

groups. The p value is 0.236 which is greater than .05 hence there is not any significant

difference hence the alternate hypothesis is accepted. Thus, it can be said that the Buying

behaviour of financial products online is affected by the different age groups. The statistical

significance of the differences between each pair of groups is provided in the Multiple


Comparisons, which gives the results of the post-hoc tests but it can be applied only if

significance difference exist which is not in this case.

iii Influence of occupation on Buying Behaviour of financial product online

The scores of 24 statements have been added to determine aggregate Buying Financial

Product On line Shopping Score (BFPOSS). This score has been used for analysis the

influence of occupation on consumers’ Buying behaviour. The homogeneity of variance

option tells the Levene’s test for homogeneity of variances, which tests whether the variance

in scores is the same for each of the nine groups. In this case, it is 0.996 which is more than

.05 hence no significant difference exists. If it is less than .05 then the output headed Robust

Tests of Equality of Means is taken.





difference hence the alternate hypothesis is accepted. Thus, it can be said that the Buying

behaviour of financial products online is affected by the different occupations such as

serviceman, businessman, professionals and others. The statistical significance of the

differences between each pair of groups is provided in the Multiple Comparisons, which

gives the results of the post-hoc tests but it can be applied only if significance difference exist

which is not in this case.

Determining the effect of Agent’s motivation to use electronic channel for buying financial

product

The scores of 13 statements’ average related to Electronic Channel have been taken to see the

effect of agents’ motivation to use electronic channel for buying financial product. The

homogeneity of variance option tells the Levene’s test for homogeneity of variances, which

tests whether the variance in scores is the same for each of the nine groups. In this case, it is

0.359 which is more than .05 hence no significant difference exists. If it is less than .05 then

the output headed Robust Tests of Equality of Means is taken.





difference hence the alternate hypothesis is accepted. Thus, it can be said that the role of

agent to motivate the consumers to purchase financial product by using electronic channel is

praiseworthy. This can be articulated that the agent promote the consumers to use the

electronic channels to buy the financial products. The statistical significance of the

differences between each pair of groups is provided in the Multiple Comparisons, which

gives the results of the post-hoc tests but it can be applied only if significance difference exist

which is not in this case.

Influence of consumer’s preparedness on the availability of on line Resources

The average scores of 04 statements related with availability of on line resources and 11

statement’s average of consumers’ readiness to use is taken as independent and dependent

variables respectively. The homogeneity of variance option tells the Levene’s test for


homogeneity of variances, which tests whether the variance in scores is the same for each of

the availability of online resources and consumers’ preparedness. In this case, it is 0.489

which is more than .05 hence no significant difference exists. If it is less than .05 then the

output headed Robust Tests of Equality of Means is taken.





difference hence the alternate hypothesis is accepted. Thus, it can be said that the Consumers’

preparedness to use the available online resources for buying financial products have positive

relationship. The statistical significance of the differences between each pair of groups is

provided in the Multiple Comparisons, which gives the results of the post-hoc tests but it can

be applied only if significance difference exist which is not in this case.

Measurement the acquaintance of Financial Products to use the electronic Channels

The average scores of 03 statements related with acquaintance such as ability, confidence and

knowledge and 13 statement’s average of electronic channel is taken as independent and

dependent variables respectively. The homogeneity of variance option tells the Levene’s test

for homogeneity of variances, which tests whether the variance in scores is the same for each

of the nine groups. In this case, it is 0.057 which is more than .05 hence no significant

difference exists. If it is less than .05 then the output headed Robust Tests of Equality of

Means is taken.





difference hence the alternate hypothesis is accepted. Thus, it can be said that the

acquaintance such as ability, confidence and knowledge of financial product affect the

consumers to use electronic channels. The statistical significance of the differences between

each pair of groups is provided in the Multiple Comparisons, which gives the results of the

post-hoc tests but it can be applied only if significance difference exist which is not in this

case.

Knowing the Consumers’ time Management to use Electronic Channel

The average scores of 02 statements related to time and 13 statement’s average of electronic

channel is taken as independent and dependent variables respectively. The homogeneity of

variance option tells the Levene’s test for homogeneity of variances, which tests whether the

variance in scores is the same for each of the nine groups. In this case, it is 0.358 which is

more than .05 hence no significant difference exists. If it is less than .05 then the output

headed Robust Tests of Equality of Means is taken.




groups. The p value is 0.000 which is less than .05 hence there is significant difference hence

the alternate hypothesis is rejected. Thus, it can be said that the use of channel does not have

any relationship with consumer’s time to manage financial transactions. The statistical


significance of the differences between each pair of groups is provided in the Multiple

Comparisons, which gives the results of the post-hoc tests but it can be applied only if

significance difference exist which is not in this case.

Conclusions The customers’ involvements in online Buying have become an important trend.

Advancement in the Internet technology has facilitated the growth of in-home shopping as

consumers are increasingly using the Internet as a shopping approach in performing their

Buying activities, companies can take this opportunity to use the Internet as a medium to

attract and maintain current and potential customers. In this vein, online companies must

understand consumers’ perceptions of website characteristics and their online shopping

behaviour.

The advancement of the World Wide Web has resulted in the creation of a new form of retail

transactions- electronic retailing (e-tailing) or web-shopping. The rapid growth of the Internet

technology has enabled Indian consumers to purchase products or services from the web-

retailers and search product information from the Internet. However, web-retailers can only

offer certain ranges of products and services to web-shoppers, including e-banking services,

technology gadgets, cosmetics, clothing and the booking of airlines ticket.

Effectiveness of the e-marketplaces for financial products is not linear function of existence

of such marketplaces. It will rather depend upon efficiency of the web site in achieving the

business objectives such as promotion of products and services, provision of data and

information and processing of business transactions. These may be achieved with the help of

four basic factors of value creation, namely, timely, custom, logistic and sensational. Hardly

any attempt seems to have been made to look at e-marketplaces with focus on ownership,

range and competition issues, particularly in the Indian financial sector.

The buyers of financial products and services are concerned with the effectiveness of their

e-procurement process. The effectiveness of their e-procurement will depend upon

selection of appropriate type of e-marketplace that has the supplier set, amount and quality

of product information and accompanying services. The effectiveness of e-procurement of

financial instrument is usually measured in terms of factors such as competitiveness in

cost of funds or investment instrument, transaction costs, bargaining power, trust,

uncertainty, payment as well as delivery efficiency and the variety and quality of

instrument in terms of suitability for the purpose for which it is procured. Many of these

factors are market situational ones and they must be taken into consideration while

selecting the appropriate type of e-marketplace.

Similarly, the nature and functioning of e-marketplaces for financial instruments should be a

matter of interest and concern to the regulators of financial markets. Central banks and

securities regulatory bodies must be as interested in bringing some order to the chaotic space

of e-marketplaces for financial products, as they are in the brick and mortar marketplaces.

These institutions have always shown interest in the online trading in shares of companies

that are being traded online.

The markets for financial products and services are highly scattered and sellers seek to

provide their financial products and services all over the global. In fact, in case of most of


the financial services such as banking and financial broking, one can leverage on global

presence. E- Marketplaces have global presence and they offer access to widely scattered

customers at no additional cost. The markets for financial products and services are deep.

These markets offer a wide variety of financial instruments to suit desired risk/reward

balance. Most of these instruments are highly liquid, allowing for cross-selling multi-

products. Each customer is likely to seek a number of financial products and services.

Thus, customer relationship management (CRM) plays critical role in financial services

business. The interactivity and convenience offered by the e-marketplaces make these

marketplaces apt for selling financial products.

The financial products and services are information intensive by nature. Promptness in

delivery of complete information regarding financial product plays an important role in

success in this sector. With the large volumes and high value of transactions, quickness with

which an enterprise can respond to an opportunity is crucial. E-marketplaces are reservoirs of

product related information that can easily be delivered to the potential customer at a very low

cost. E-marketplaces can store digitised financial products deliver them to any remote location.

To the extent, the financial products can be digitised; they can be delivered electronically to

the customer at a very low cost. Thus, buying/selling process can be fully automated. This can

offer substantial saving in the cost.

Financial services have high intensity of transactions and thus minor saving in transaction

processing and execution costs can result in substantial savings in overall cost of a

financial services company. E-marketplaces are highly scalable in terms their capacity to

handle large volume of transactions and have facilities for automating the transaction

processing. This can help in reducing transaction-processing costs leading to substantial

savings.

This finding suggests that online Buying is fast emerging as an important media choice for

certain products/ services. The result also implies that the Internet is medium better suited for

high involvement products/ services especially in the Informative category. This further

suggests that cyber advertising will be able to fulfil consumers’ information needs. While the

percentage of online shoppers are still very low, however as the growth rate of Internet users

in Rajasthan increased, there is a possibility of the increase in online Buying. Coupled this

with the improvement in the infrastructure, certainly online consumers will show an increase

in numbers.

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