A Study on the Relationships between Pay Preference of Various Demographic Groups and Trust in Online Shopping in Pune

Abstract

Online shopping is very new to India but is catching very fast. In less than 5 years it reached to around 2 percent of total retail. The growth rate was more than double as compared to the organized retailing India. As per the review of literature one of the main reasons is trust of the shoppers in online retailing. The online vendors were successfully established their brands in the minds of the online shoppers. The question arises does all the demographic groups trust online shopping equally in Pune city? In current paper, the researchers tried to find out the relationships between pay preference by the respondents and various demographic variables and how these demographic variables differ in trust I online shopping. The relationship among pay preferences (Cash on delivery, credit card, debit card and online banking) and demographic variables (age, gender, income, education, marital status and occupation) have been tested through chi square test. Anova (analysis of variance) has been applied to find out the relationship among the groups respondents having various pay preferences and five elements of trust. 205 was the sample size. Some demographic variables age, gender and occupation have been found related with paying preference while there is no relation between paying preference and education, income and marital status. In case of anova result the cash on delivery payment method found to be significantly different from payment through credit card, debit card and internet banking in terms of all the five elements of trust in online shopping.

Keywords: trust, online shopping, Pune, online shoppers, Familiarity, Competency.