SJIF Impact Factor: 7.001| ISI I.F.Value:1.241| Journal DOI: 10.

36713/epra2016 ISSN: 2455-7838(Online)

EPRA International Journal of Research and Development (IJRD)
Volume: 5 | Issue: 5 | May 2020 - Peer Reviewed Journal

IMPACT OF E-COMMERCE ON BRAND LOYALTY AND

BRAND SWITCHING BEHAVIOUR OF CONSUMARS OF
ELECTRONIC PRODUCTS: A STUDY

Y.V.Sujana1
Research Scholar,Dept. of Management,Rayalseema University, Kurnool.

Prof. G.L.Narayanappa2
Research Supervisor and Dean,School of Commerce and Mgt.Dravidian University, Kuppam.

Article DOI: https://doi.org/10.36713/epra4559

ABSTRACT
In recent times, tastes and preferences are consistently changing on purchase behaviour. In the year 2018, around 120
million people made their purchases over the internet and the number expected to reach 175 million by 2020. The
demand potential of e-commerce made private equity firms to look for it. The government has an attractive policy for e-
commerce. The government policy allows the 100 % FDI (Foreign direct investment) in B2B model of e-commerce
and 100 per cent FDI also allowed in market place model through automatic route.
E-commerce gives benefits to society, customer and organisations. E-Commerce to Society: E-commerce is one
of the largest employment generators in India. It reduces the regional imbalances and makes all levels of customers
access the product at their fingertips. It eliminates the intentional bias of the sellers so that it saves the customer. E-
Commerce to Consumers: Customer can access a wide range of products or services at their fingertips. E-commerce
gives zero movement of truth and the first movement of truth for the customers. Customer reviews next to the product on
e-commerce site offers mirror purchase experience for customers so that customers avoid the counterfeit products. It
provides convenience and also saves time and money. E-Commerce to organisations: Technology makes the
organisations independent. E-commerce reduces salespersons’ dependence. It abolishes the geographical boundaries of
the business. It reduces the cost of sale. It can fetch the precise statistics over the sales, thereby strengthen the business
strategies.
KEYWORDS: E-commerce, Customer reviews, Foreign direct investment, electronic products

INTRODUCTION The government policy allows the 100 % FDI (Foreign

In recent times, tastes and preferences are direct investment) in B2B model of e-commerce and
consistently changing on purchase behaviour. In the 100 per cent FDI also allowed in market place model
year 2018, around 120 million people made their through automatic route.
purchases over the internet and the number expected to E-commerce gives benefits to society, customer
reach 175 million by 2020. The demand potential of e- and organisations. E-Commerce to Society: E-
commerce made private equity firms to look for it. The commerce is one of the largest employment generators
government has an attractive policy for e-commerce. in India. It reduces the regional imbalances and makes

2020 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |489 |

 SJIF Impact Factor: 7.001| ISI I.F.Value:1.241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 5 | Issue: 5 | May 2020 - Peer Reviewed Journal

all levels of customers access the product at their promotions and shop anywhere and anytime of e-
fingertips. It eliminates the intentional bias of the commerce influence the purchase attitude of electronic
sellers so that it saves the customer. E-Commerce to products. Upasana, Naveen and Abhishek (2015)
Consumers: Customer can access a wide range of in their research article on “A study of online purchase
products or services at their fingertips. E-commerce behaviour of customers in India” acknowledged that
gives zero movement of truth and the first movement of return, delivery services and refund policy of online
truth for the customers. Customer reviews next to the store influence the purchase behaviour.
product on e-commerce site offers mirror purchase Subhalakshmi and Ravi (2015) study on
experience for customers so that customers avoid the “The impact of perceived risk on the online shopping
counterfeit products. It provides convenience and also attitude of cosmetic products in Tirunelveli City” have
saves time and money. E-Commerce to organisations: extracted three different types of risks for online
Technology makes the organisations independent. E- shopping: financial risk, information risk and time risk.
commerce reduces salespersons’ dependence. It Sanjay Kumar (2015) article on “Online shopping – a
abolishes the geographical boundaries of the business. literature review” stated social contact, convenience,
It reduces the cost of sale. It can fetch the precise diversity and information seeking as the influential
statistics over the sales, thereby strengthen the business factor of online shopping. Riaz and Raman (2015)
strategies. research on “The emerging trend of online shopping: a
literature review” affirmed that online customer can
STATEMENT OF THE PROBLEM attain the knowledge of product quality, product
“E-commerce had a considerable impact on how specifications, price easily, and availability than
business is conducted. It has affected consumers, the traditional customer.
value chain, markets and business models.” Internet Li et al. (2015) study on “The interplay
and smartphone demanded the customer to transform between value and service quality experience: e-loyalty
from offline to online shopping. E-commerce for the development process through the eTailQ scale and
year 2017 has registered 38.5 US $ billion market value perception” explored the e-loyalty factors and
value, 2018 F yeas 50.0 US $ billion, 2020F year 63.7 also validated the e-service quality scale “eTailQ
US $ billion, 2022F year 150.0 US $ billion and 2026F scale”. The research claims eTailQ scale dimensions as:
year 200.0 US $ billion. Hence, the present research is security, website design, customer support and
undertaken on impact of e-commerce on purchase reliability. Korina C. Pinca and Legaspi (2015)
behaviour of electronic products. The specific problems article on “Online shopping behavior of students in the
raised in the present research include: What is the college of business administration: basis for enriching
source for e-commerce awareness. Can the e-commerce content of the subject matter” revealed that female
change the perceptions of electronic products?. What is students are more preferred online shopping than
the impact of e-commerce on purchase behaviour of female students. Kavitha and Muthumani (2015)
electronic products? How the e-commerce influence the research on “The Impact of demographic variables
post purchase behaviour of electronic products. based on buying behaviour intention towards e-store in
India” have explored the impact of demographic factors
SELECT REVIEW OF LITERATURE on online shopping. The research claims male and 26-
The existing studies concerning the awareness 30 age groups as the potential demographics for online
of e-commerce, impact of e-commerce on perceptions shopping.
of electronic products, impact of e-commerce on Hemani and Manjit Kaur (2015) article on
purchase and post purchase behaviour of electronic “Consumers’ behaviour towards online purchases”
products are reviewed; claims online purchase experiences, safety of payment,
Silky Vigg Kushwah1 and Anjali Singh product perception, and customer service as the as the
(2019) research on “From traditional shopping to influential factors of online shopping. Harjot and
online shopping a study of the paradigm shift in Daljit (2015) research on “E-commerce in India-
consumer behaviour” stated seller’s image, concern for challenges and prospects” acknowledged fear as the
customer and website quality as the influential factors greatest obstacle of online payment in India. Cheah et
of the online shopping. Manisha and Shukla (2016) al (2015) have explored the “Factors influencing
article on “An analysis of consumer behaviours consumers’ attitudes and purchase intentions of e-
towards online shopping of electronic goods with deals” and identified three different types of factors for
special reference to Bhopal and Jabalpur City” and online consumer attitude; vendor and product
stated that cash on delivery, product price, quality,
accessibility, time convenience, discounts and

2020 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |490 |

 SJIF Impact Factor: 7.001| ISI I.F.Value:1.241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 5 | Issue: 5 | May 2020 - Peer Reviewed Journal

characteristics, channel characteristics and consumer brands made them habitual buyers and
characteristics. switchers majorly.
 Out of 586, the highest, 83.95 stated that e-
NEED FOR THE STUDY commerce contributes for brand switch
Reason for selection of topic: In recent behaviour of electronic products and 16.04
times, customers’ tastes and preferences are percent stated that e-commerce can enhance
consistently changing in Indian. In the year 2018, the brand loyalty of electronic products.
around 120 million people made their purchases over Majority 64.89 percent of the customers
the internet and the number expected to reach 175 stated that by selling all verities of same
million by 2020. The demand potential of e-commerce brand e-commerce enhance the customer
made private equity firms to look for it. The loyalty and rest 35.10 percent are stated other
government has an attractive policy for e-commerce. reasons.
The government policy allows the 100 per cent foreign  To the statement “New models of electronic
direct investment in B2B model of e-commerce and products comes very often in e-commerce
100 per cent FDI also allowed in market place model hence I will change electronic brands
through automatic route. E-commerce gives benefits to frequently”, out of 492 respondents, 2.0
society, customer and organisations. In India, E- percent are disagreed, 22.4 percent are
commerce expected to reach US$ 200 billion by 2026. agreed, 2.6 percent are strongly disagreed,
Hence, the present study will help for electronic 6.3 percent are neutral and 66.7 percent are
product organizations to tap the potential market. The strongly agreed.
research is helpful for academicians to understand  For the statement “Large variety of brands on
about the impact of e-commerce on purchase behaviour e-commerce site makes the customer to
electronic products. For marketing practitioners it is choose different brands”, the highest, 68.3
useful to formulating strategies for e-commerce percent are agreed followed by 26.6 percent
purchase of electronic product. Hence, there is a need are strongly disagreed, 2.8 percent are
to undertake a research on impact of e-commerce on strongly agreed, 1.6 percent are neutral and
purchase behaviour electronic products. 0.6 percent are disagreed.
 Out of the 492 customers, 1.2 percent are
OBJECTIVES OF THE STUDY disagreed, 32.3 percent are strongly
The specific objectives formulated for this study are: disagreed, 1.4 percent are neutral, 62.4
I. To study the concept of e-commerce and percent are agreed and 2.6 percent are
theoretical aspects of consumer strongly agreed to the statement “Time lag
purchase behaviour of electronic between the purchases of electronic product
products; on e-commerce makes the customer to switch
II. To examine the awareness and the brand.”
perception of customers on e-commerce;  The highest, 18.5 percent are strongly
III. To analyze the impact of e-commerce disagreed, 37.0 percent are disagreed, 30.5
on purchase behaviour of electronic percent are neutral, 9.8 percent are agreed
products; and 4.3 percent are strongly agreed to the
IV. To assess the impact of e-commerce on statement “Offers/ Discounts of e-commerce
post purchase behaviour( satisfaction & make the customer to switch the electronic
loyalty) of electronic products and brands”.
V. To offer suitable suggestions for further  The highest, 62.8 per cent are agreed to the
improvements of electronic products statement “Price variants of brands on e-
purchase behaviour. commerce make the customer to switch the
electronic brands” followed by 29.9 percent
RESEARCH FINDINGS are disagreed, 4.1 percent are strongly agreed,
 The highest, 270 respondents are the satisfied 1.8 percent are neutral and 1.4 percent are
buyers followed by 192 respondents are strongly disagreed.
habitual buyers and switchers, 68 respondents  The rotated component matrix shows the two
are linkers of the brand and 56 respondents influential factors of e-commerce on brand
are committed buyers. Time lag between the switch behaviour of electronic products and
purchase and availability of more no. of the two factors are:
Factor -1: Promotions (Discounts and Offers)

2020 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |491 |

 SJIF Impact Factor: 7.001| ISI I.F.Value:1.241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 5 | Issue: 5 | May 2020 - Peer Reviewed Journal

Factor-2: Decoy effect reviews and ratings to products

modifications and new product development
SUGGESTIONS and it should be made an integral part of the
In the light of the findings arrived earlier, the research and development process of the
following measures were suggested; organization.
 It is an acknowledged truth that, product
 Majority of sample respondents cannot attain a good reputation through
acknowledged that they aware the e- offers, discounts. The product quality vital
commerce products through digital media for it hence it can be suggested that
like search engine, social media and so on. electronic product organisations along with
Hence, electronic product organizations the offers, discounts has to maintain proper
have to consider digital media as awareness quality of products.
media.  Along with financial aspects e-commerce
 E-commerce promotions are changing the sites, electronic product companies should
perception of customers. This fact is also focus on the right relationship with the
acknowledged by most of the sample e-commerce sites for long term business
respondents. Hence, it is advised to success.
electronic product organizations along with  Electronic products tastes and preferences
their own promotions have to collaborate change from time to time. Hence, electronic
with the promotions of e-commerce sites. product organisations should introduce the
 E-commerce is influencing the purchase new brand to increase its market share.
behaviour of electronic products through:
promotions (discounts and offers); product REFERENCES
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2020 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |492 |

 SJIF Impact Factor: 7.001| ISI I.F.Value:1.241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 5 | Issue: 5 | May 2020 - Peer Reviewed Journal

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2020 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |493 |