A Study on Impact of Online Shopping on Direct System in India and the Road Ahead: AN INTERPRETIVE STRUCTURAL MODELING APPROACH.

Purpose: The average annual spending of Indians on online purchases is expected to rise 67 percent to Rs. 10,000 next year, according to a study. Currently, online shoppers spend around Rs. 6,000 a year on average, said the Assocham-PwC study. About 40 million consumers purchased something online this year and the number is expected to grow to 65 million by the end of this year with better infrastructure in terms of logistics, broadband and Internet- ready devices. The Internet and World Wide Web have made it easier, simpler, cheaper and more accessible for businesses and consumersto interact and conduct commercial transactions electronically. This is practically the case when online shopping (i.e. Internet shopping) is compared to the traditional approach of visiting a retail store. Design/Methodology/Approach: Descriptive research has been applied, describes data and characteristics about the population or phenomenon being studied. The researchers have used primary data through self-constructed structured Questionnaire and as far as the secondary data is concerned that was obtained from web sites, journals etc. Structured questionnaire was constructed to interview the respondents doing online purchases on 36 different parameters on Likert’s seven-point scale, which was later reduced to factors by using the statistical technique of factor analysis. Interpretative Structural Modeling is a process in which a set of interlinked elements are given a form of a comprehensive and a systematic model. This technique helps in formulating the inter-relationship among the identified variables. Findings: This research offers some insights into the linkage between e-shopping and customers’ decisions to shop or not shop online. This information can help online marketers and retailers to develop appropriate market strategies, make technological advancements, and make the correct marketing decisions in order to retain current customers and attract new customers. Specifically, if online marketers and retailers can better understand their customers, they can present goods and services more effectively and continuously to improve their offerings in order to strengthen their competitive advantage. Research Limitations/Implications: The study focuses on general problems faced by online marketers compared to traditional marketers. There might be certain more variables as one person is satisfied on particular aspect but another may not on the same aspect. Here the framework developed depends upon the opinion of few experts and has some element of bias. Through ISM, a relationship model among behavioral intent variables has been developed. This model has not been statistically validated. Structural equation modeling (SEM) hasthe capability of testing the validity of the model. [ABSTRACT FROM AUTHOR]