International Journal of Mechanical Engineering and Technology (IJMET) Volume 10, Issue 01, January 2019, pp. 1710-1721, Article ID: IJMET_10_01_170 Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=01 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication Scopus Indexed A CRITICAL EVALUATION OF GEN-Y BUYING BEHAVIOR TOWARDS ONLINE FASHION RETAILERS Dr. Kiran.G Associate Professor Welingkar Institute of management Development & Research Dr. D.N. Murthy Dean-Marketing & Research Welingkar Institute of management Development & Research Dr. Nila Chotai Professor Jain University Dr. Pradeepa Marketing Manager Malnad Hi Tech Diagnostics ABSTRACT In India the pace of online users has been faster with users being more comfortable to buy online for apparels, footwear and fashion accessories when compared to other countries (Forrester research)1 and the consumers are becoming more mature by passing time.On the other hand business to consumer e-commerce has also shown a major growth in the GDP from the year 2009 from 0.13% to 0.21% in 2017 as percentage of GDP in India (The Statistics Portal) and expected to touch 0.24% by end of 2018.A number of business today have gone online from the traditional stores not just to sell online but also for various marketing strategy. For consumers who want to shop online the platform well known for e-commerce is business to consumers (B2C) which includes online shopping for all their needs. This study was conducted to analyze the shopping patterns of millennials when to comes to the clothing brands online the study was conducted in Bangalore city covering the age group of 23-35 year youngsters and the study indicated a significant relationship between the buying behavior and the factors influencing the young buyers to buy the clothing brands from the online portals. The study was exploratory in nature covering important variables identified. Keywords: Buying, online, shopping, millennial, behavior, customer, fashion http://www.iaeme.com/IJMET/index.asp 1710 editor@iaeme.com Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa Cite this Article: Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa, A Critical Evaluation of Gen-Y Buying Behavior Towards Online Fashion Retailers, International Journal of Mechanical Engineering and Technology, 10(01), 2019, pp.1710– 1721 http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&Type=01 1. INTRODUCTION Online fashion retailers with the help of internet have changed the way consumer shop and buy products online. A large number of e-tailer’s enter the online business with an objective of not just selling the product but also to convey, communicate and to take valuable feedback from the consumers. Online retailers are rapidly growing over the period of time in various aspect of doing business online. Internet world stats (2017) shows that 55.1% of the world population using internet for shopping online, making payments, browsing information and many such activates are from Asia. The stats also show that Indian internet users have rapidly increase over a period of time from 7.5% in 2010 to 34.8% of population in 2016 which provides a huge platform for the e-tailers to set up their business online because stats shows that number of users are going to increase in the coming years. Source: Original from the author. 2. MILLENNIAL CONSUMER BEHAVIOR Millennial’s are the group of consumers who are very different and unique from the other category of consumers. The below table is the comparison of how they are different Characteristic Role in the family Purchase behavior Consumer type Generation X Information getter Money oriented Sincere Media habits Television Technology Price-quality Diversity Shopping behavior Use technology Loyal till they find a better new deal Price oriented Accept it Self-reliant Appealing products Snacks, footwear, music Loyalty Millennial’s Strong influencers Realistic and Savvy Smart Television, social media and various internet source Assume technology As per their convince Value and quality oriented Celebrate it Self-inventive Fashion, accessories, health, entertainment Source: Accenture, Insight Outlook 3. REVIEW OF LITERATURE Ambujakshi (2017) conducted a study to have a better understanding of how youth of age group 15-24 a young target segment which is growing ever faster play a major role in buying decision making process, get influenced by advertising, this study was based on the level of influence advertising has on the youth buying behavior of electronic gadgets and found that Majority of the youth agree that advertising does influence them in their buying behavior were on the other hand they feel advertising should be more creative and effective. http://www.iaeme.com/IJMET/index.asp 1711 editor@iaeme.com A Critical Evaluation of Gen-Y Buying Behavior Towards Online Fashion Retailers AnushaSreeram, AnkitKesharwani, Sneha Desai (2017) explored to see if technology, visual appeal, product prototype and self-expression have a major influence on purchase behavior of online grocery buying intention through attitude and pleasure,this paper aims to test an model of online grocery buying intention by extending technology model by adding time pressure, efforts, value, design etc. to understand if consumer would purchase grocery online they found that Product assortment had a significant impact and it supports the notion of one stop solution as a major reason of buying grocery online. A structure equation model was used to test the technology impact with factors such as time, efforts and value. CherukuriJayasankara Prasad, AnkisettiRamachandraAryasri (2013)with an objective to enable retailer to segment their market and marketing strategy which would be helpful to meet their retail needs found that shoppers' age, gender, occupation, education, monthly household income, family size and distance travelled to store have significant association with retail format choice decisions. A total of 1040 food grocery stores were selected were it was found that all the factors have a significant association with retail format choice decision. Dipanjan Kumar Dey, AnkurSrivastava (2017) conducted a study to understand the shopping perspective of young consumers who buy from different value dimension such as fun, social interaction, novelty and outside appreciation, for which results said that the impulsive buying intentions of young consumers are positively associated with all the dimension of hedonic shopping value with time and money having a positive relationship. A structured questionnaire was used for the age group of 15-23. Dr. Renuka Sharma, Dr. Kiran Mehta, Shashank Sharma (2014) did a research based on structured questionnaire on millennial's based out in Punjab to understand the online buying behavior of consumers in India and to provide useful information to marketing professional to develop a better and effective strategy and results stated that the young Indian consumer are being addicted to online shopping but research still states the e-tail stores are not fully developed and a lot needs to be changed to make it more effective Johan Hagberg, MalinSundstrom, NiklasEgels-Zandén (2016) analyzed the phenomenon of the digitalization of retailing by developing a conceptual framework that can be used to further delineate current transformations of the retailer-consumer interface and result stated that digitalization transforms in a number of ways such as factor of exchange, communication, price and participation of consumers and retailers.This paper addresses a significant and on-going transformation in retailing and develops a framework that can both guide future research and aid retail practitioners in analyzing retailing’s current transformation due to digitalization Ms. Dipti Jain, Ms. Sonia Goswami, Ms. ShipraBhutani (2014) The main purpose of their study was to understandthe impact of perceived risk, perceived enjoyment, perceived usefulness and perceived ease of use factors on online shopping behavior of consumers, 160 online shoppers of different age, income and occupation with a prior experience in online shopping were considered on 5 point Likert scale basis and found that Only one factor perceived risk significantly affected online shopping behavior of young consumer. 4. STATEMENT OF RESEARCH PROBLEM The purpose of this project is to identify the factors which would influence the millennial consumers towards online fashion retailers. This study aims to answer the following question: • Does risk play a role in the purchase intention of millennial’s towards online fashion risk • Peer group have an influence on decision making of millennial’s? • Does trust play a very important factor when millennial’s shop online? • What influence the attitude of millennial’s towards online fashion shopping? http://www.iaeme.com/IJMET/index.asp 1712 editor@iaeme.com Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa 5. RESEARCH QUESTION What factors influence the purchase intention of millennial’s towards online fashion retailers in India? 5.1. SCOPE OF RESEARCH This research would be carried out in Bengaluru urban were majority millennial are tech savvy and are the ones who do online fashion shopping on a regular basis. This study would further help the marketers and online fashion retailers to understand the purchase intention of millennial’s, what attracts these millennial’s and what else can be done to attract those who still don’t make a purchase from online 6. RESEARCH METHODOLOGY The first step of a research study is to develop a blue print or a research design. Which give an overview of how the research should be carried on? It’s either exploratory, experimental or/and descriptive in nature which would help the researcher answer the question which they would like to find the answer for with respect to the subject or topic been selected to research upon. The next step after deciding the kind of research to be carried the researcher would go ahead to design a set of question to be asked depending upon the objective and scope of research, after which researcher goes ahead and collects the data and then the analysis of data is been done using different statistical tools. Only through interpretation a research would be able to explain the relationship between variables and arrive with findings before coming up with conclusion In this study the technique of research adopted is exploratory research. It’s a study which is been done for a problem which has not been defined clearly. It has the following objectives: • Specific formulation of problem • Setting priorities for further research • A clear research design about collection of data and information • It help is defining the relationship between factors related to it • Gives a depth knowledge to the researcher 6.1. RESEARCH DESIGN A research design is a basic plan which guides the process of data collection and analysis of the research begin carried out. It’s a framework that clearly specifies the type of information to be collected, the source of information and process of data collection. According to (Kinnear & Taylor, 1996; Chruchill&Lacobucci 2005) define research design “it is the blue print that is followed to complete the study” and “it ensure that study is relevant to the problem and will use economical procedure”. In the present study exploratory research design has been adopted which means that it is a research that has been carried out for a problem which has not been studied more clearly which will help to have a better understanding of the problem. This study does not aim to provide a final answer to research question but with an aim of exploring the research topic. 6.2. RESEARCH OBJECTIVE 1. To determine the of role trust in influencing purchase intention of millennial’s shopping online from fashion retailers 2. To study the impact of perceived risk on purchase intention of millennial’s shoppers 3. To assess the importance of perceived ease of use, perceived usefulness and peer group opinion on purchase intention of millennial shoppers http://www.iaeme.com/IJMET/index.asp 1713 editor@iaeme.com A Critical Evaluation of Gen-Y Buying Behavior Towards Online Fashion Retailers This study is limited to online fashion retailers of India and only in the city of Bengaluru 6.3. SCOPE OF RESEARCH This research would be carried out in Bengaluru urban were majority millennial are tech savvy and are the ones who do online fashion shopping on a regular basis. This study would further help the marketers and online fashion retailers to understand the purchase intention of millennial’s, what attracts these millennial’s and what else can be done to attract those who still don’t make a purchase from online. Further the study is based out only on the working professional millennial’s from the age group of 23-34 who have a disposable income which would provide the online marketers to understand the purchase intention of these millennial’s and what they need to improvise on to build upon the trust towards them. 6.4. METHODS OF DATA COLLECTION Data: it is a set of values of qualitative or quantitative variables. It is the process of collection, measurement and analysis and then visualized. The types of data are: 1. Primary Data: The process of collecting raw data or unused data directly from sources like survey, interview, observation, questionnaire and from an experimentation which are not been replicated before. Advantages of primary data: • It is accurate as it is collected directly from a predetermined population • It’s an unbiased data • It a basic and specific source of information Disadvantages of primary data: • Need a large size of sample • It’s quite costly and time consuming • It’s very subjective in nature. 2. Secondary data: Secondary data is a data which is readily available and processed into useful information available from the sources like government, journals, magazine, reports and statistical, Advantages of secondary data: • It is less expensive • It is time saving • It helps in problem solving • It provides a base for comparison of data Disadvantages of secondary data: • Accuracy is not known • Data sometime may be out dated • Information may not be same as required In the present study journals from published source were reviewed for better understating of the subject and the conceptual model. Apart from journal the researcher also collected statistical data from various trusted online sites for more information about millennial's in India and around few developed nations in the world. http://www.iaeme.com/IJMET/index.asp 1714 editor@iaeme.com Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa 6.5. SAMPLING METHODS Its tool applied to define the population which would be selected for the purpose of the survey. A process of obtaining sample from the given population with a predefined plan, it is also known as sample design 6.6. Target Population It is a process of collection of object or elements which is related to research study. In the study the aim was to examine and to identify those factors which influence the millennial's consumers towards online fashion shopping in Bengaluru context. The study focused on target population that is working professional of age group of 24-34. 6.6.1. Sampling Frame and Sampling Location The place or an area from which sample is drawn. The questionnaire was distributed to the working professional respondent from various location of Bengaluru. 6.6.2. Sampling Elements The research was conducted in Bangalore through questionnaire. The target population are working professional of age group 23-34 were selected because they have the required knowledge, information, access and disposable income, and respondents with prior experience in online shopping. 6.6.3. Sampling Technique The two commonly used methods of sampling are probability and non-probability sampling techniques used in the research study. In this study non-probability technique has been adopted as it is widely used, less expensive and with smaller population size. In this research Judgmental sampling technique was bee used because it’s fast and lower cost 6.6.4. Sampling Size Specifying appropriate sample extent is a tricky and sophisticate task. The rules of thumb for determining samples, more than 30 and less than 500 are appropriate for most research (Roscoe, 1975). In this study the sample size: Field study of 350 respondents 7. DATA ANALYSIS AND TOOL FOR RESEARCH The analysis of collected data was done through SPSS (Statistical Package for the Social Sciences) statistical software. The methods of statistical tools of analysis used are KMO and Bartlett's Test, Cronbach’s Alpha, Mean, Standard deviation, variance, chi-square test, Anova, coefficients and correlation.This study would use confirmatory factor analysis; confirmatory factor analysis is a statistical tool which is used commonly to test the hypothesis that would develop a relationship between the variable of the study. This is further done on the basis of theory and then to test the hypothesis statistically. 7.1. Kaiser-Meyer-Olkin (KMO) Test for Sampling Adequacy Kaiser-Meyer-Olkin (KMO) a test which is used to measures the suitability of data for factor analysis which measures the sampling adequacy of individual variable in the model and also for the entire model used in the research. It also measures the proportion of variance in the given set of variable which may be common variance. That is to say if the proportion is lower than the data becomes more suitable for factor analysis. KMO returns values between 0 and 1 indicate: • The sampling is adequate when the KMO value lies between 0.8 t0 1 http://www.iaeme.com/IJMET/index.asp 1715 editor@iaeme.com A Critical Evaluation of Gen-Y Buying Behavior Towards Online Fashion Retailers The sampling is not adequate when the KMO value is less than 0.6 and for which a remedial action needs to be taken • When KMO value is near to zero that there are large partial correlation For reference, Kaiser put the following values on the results: • When the KMO value is 0.00 to 0.49 then it is unacceptable. • When the KMO value is 0.50 to 0.59 then it is miserable. • When the KMO value is 0.60 to 0.69 then it is mediocre. • When the KMO value is 0.70 to 0.79 then it is middling. • When the KMO value is 0.80 to 0.89 the it is meritorious and • When the KMO value is 0.90 to 1.00 then the sampling is marvelous The result of the pilot study and KMO value were: • KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .850 Approx. Chi-Square 2073.194 Bartlett's Test of Sphericity Df 595 Sig. .000 The value of .850 and the result satisfy condition of KMO values between 0.8 and 1 which indicate the sampling is adequate. Individual KMO Value of the Variables of the Study Table 1: Perceived Ease of Use Construct Question I find most online shopping sites easy to use. Perceived Ease of Use KMO Value I find it easy learning to use most online shopping sites. I find it easy to use most online shopping sites to find what I want I find it easier to compare products when shopping at online retailers. .809 I feel that most online shopping sites are flexible to interact with. The above table shows the construct of Perceived Ease of Use using five items. The above have been adopted and modified from Weng Marc Lim(April 2012) Table 2: Perceived Usefulness Construct KMO Value Question I am able to accomplish my shopping goals more quickly when I shop online. I am able to improve my shopping performance when I shop online (e.g. save time or money). Perceived Usefulness I find the website of online retailers useful in supporting my purchase decisions. Shopping from online retailers improves my purchase decisions. .876 Shopping from online retailers makes it easier for me to satisfy my needs. The above table shows the construct of Perceived Usefulness using five items. The above have been adopted and modified from Weng Marc Lim (April 2012) http://www.iaeme.com/IJMET/index.asp 1716 editor@iaeme.com Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa Table 3: Attitude towards Online Fashion Shopping Construct Attitude Question I am comfortable to shop from online shopping sites. I like to purchase what I need from online shopping sites. I like to seek for product information from online shopping sites. I feel happy when I do my shopping online I hold a positive evaluation of shopping online. KMO Value .895 The above table shows the measurement items of Attitude towards Online Fashion Shopping and is been adopted and modified from Weng Marc Lim (April 2012) Table 4: Online Purchase Intention KMO Value Construct Question Intention It is likely that I will continue to purchase the product from online retailer I intend to continue purchase products from the internet in the future I would likely visit an online shopping site to shop for my needs I plan to do more of my shopping via online shopping sites. When I need to buy a particular product, I would search for an online retailer which has the product. .804 The above table shows a five item construct of purchase intention of millennial's towards online fashion shopping. It has been adopted and modified from Weng Marc Lim(April 2012) Table 5: Risk towards online fashion shopping Construct Question KMO Value Risk It is hard to judge the quality of the merchandiser over the internet I feel that there will be difficulty in settling disputes when I shop online (e.g. while exchanging products). I might not get what I ordered through online shopping. I might receive malfunctioning merchandiser. I do not shop online because of non-availability of reliable &well-equipped shipper .703 The above table shows the five item risk construct which may have an impact on attitude of millennial's towards online fashion shopping it has been adopted and modified from Hashim Shahzad (Spring 2015) Table 6: Peer Group Opinion Construct Question KMO Value Peer Group My friends influence me to do shopping online. The members of my family (relatives, parents, children, and spouse) believe that I should shop online. My colleagues influence me when I go for shopping online. I ask my friend about the product before shopping online I often observe what my friends are buying .851 http://www.iaeme.com/IJMET/index.asp 1717 editor@iaeme.com A Critical Evaluation of Gen-Y Buying Behavior Towards Online Fashion Retailers The above table shows a five items construct of peer group opinion and its impact on purchase intention of millennial's towards online fashion shopping. It has been adopted and modified from Yu et al. (2005) Table 7: Trust Construct Trust Question KMO Value I believe that the website would act in my best interest I believe that the website is trustful in its dealing with me I believe that the website would keep its commitment .849 I feel my personal details would not be share by the retailer to third party I feel that my card details would not be misused The above table shows the measurement item of trust which may have a direct influence on purchase intention of millennial's towards online fashion shopping. It has been adopted from McKnight, Choudhury&Kacmar (2002) Cronbach's Alpha It is the processes of estimating the reliability based on inter- correlation of the variables.The value of Cronbach’s alpha reliability coefficient will increase while the inter-correlations among test items increase, it usually ranges between 0 and 1 (Bajpai, 2011). Alpha Coefficient Range Less than 0.6 0.6 to < 0.7 0.7 to < 0.8 0.8 to < 0.9 0.9 and above Strength of Association Poor Moderate Good Very Good Excellent Table 8 PARTIAL LEAST SQUARE PATH MODELLING COMPOSITE RELIABILITY INDEX Latent variable Dimensi ons Perceived ease of use 5 Perceived usefulness 5 Risk 5 Cronbach's alpha 0.878 0.916 0.867 http://www.iaeme.com/IJMET/index.asp D.G. rho (PCA) Condition number 0.912 4.415 0.938 4.323 0.908 5.256 1718 Critical value 1.240 1.037 1.529 Eigenval ues 4.198 0.850 0.617 0.321 0.215 3.898 0.519 0.321 0.236 0.209 5.136 0.987 0.941 0.392 0.186 editor@iaeme.com Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa Attitude 5 Peer group opinion 5 Trust 5 Purchase intention 5 0.937 0.896 0.903 0.931 0.952 5.767 0.924 3.908 0.930 5.193 0.948 5.917 1.293 1.377 1.278 1.166 5.175 0.572 0.328 0.236 0.156 4.884 0.724 0.552 0.406 0.320 4.667 0.751 0.475 0.321 0.173 4.577 0.639 0.278 0.203 0.131 In this application, latent variable are reflective. The blocks have to be one-dimensional. Dillon-Goldstein’s rho is higher than 0.7 Table 9: Goodness of Fit GOODNESS OF FIT GoF GoF (Bootstrap) Absolute 0.783 0.781 Relative 0.969 0.963 Outer model 0.992 0.990 Inner model 0.976 0.972 GOF was 0.783 very close to GOF bootstrap. This value was hard to interpret; it could be useful when comparing the global quality of two different models. PARTIAL LEAST SQUARE PATH MODELLING Figure 1: PLS Path Model http://www.iaeme.com/IJMET/index.asp 1719 editor@iaeme.com A Critical Evaluation of Gen-Y Buying Behavior Towards Online Fashion Retailers All hypothesis were supported in the PLS Path Modeling approach. Thus, R square 0.869 which can be considered as a good result, 86.9%variance in online consumer purchase intention towards customer attitude. Table 1: Result of Path Coefficient and Hypothesis Testing Result of path coefficient and hypothesis testing Latent variable Perceived ease of use Perceived usefulness Risk Attitude Peer group opinion Trust Value 0.291 0.643 0.017 0.732 0.063 0.184 Standard error 0.043 0.042 0.025 0.039 0.024 0.039 t 6.718 15.489 0.678 18.996 2.600 4.708 Decision Supported Supported Supported Supported Supported Supported The above table presented the results for the path coefficients and hypothesis study in PLS path Modeling approach. The path coefficient value for perceived ease of use has a value of 0.291 and standard error of 0.043. The empirical t-value is 6.718 and it is greater than the significance t value of 2.57 for a probability error of 1%. It shows that Perceived ease of use has a strong positive influence on consumers’ purchase intention. With regards to attitude, the path coefficient value shows 0.732. The empirical t-value is 18.996, which is greater than significance level for probability error of 4%. Thus it has a weak influence on online consumer purchase intention. With regards to perceive risk, the path coefficient value shows 0.017. The empirical t-value is 0.678, which is lesser than the theoretical t-value of 1.65 for probability error of 3%. It indicates that H6 has a strong influence on consumers’ purchase intention at significance level of 5. Contrarily, the Perceived usefulness has a positive path coefficient value of 0.643. The t-value is 15.489 and it is higher than the theoretical t-value of 1.65 for probability error of 5%. Thus, it has a positive relationship with online consumer purchase intention. The path coefficient for trust shows 0.184. The empirical t-value is 4.708, which is more than the theoretical t-value of 1.96 for probability error of 4%. Thus, it shows that trust has a significant stimulus on online consumers’ purchase intention at significant level of 5%. Thus, the hypothesis is supported. Finally, the outcome revealed that all variables are supported towards online consumer purchase intention. 8. SUMMARY OF FINDINGS & CONCLUSION This study was done with an objective to know the factors which influence the millennial consumer to make a purchase decision from online fashion retailers in Bengaluru context. The findings of the study concluded that all the hypotheses employed in the study were supported which may be keeping in mind the fact that today’s millennial's are tech savvy, have an experience in online shopping and also most importantly they have access to all the information. The study also adds on to literature on retailing, consumer behavior, and retailing and also to the theory employed in this study. The study also gives a valuable insights into millennial's purchase intention. Lastly to conclude this study also ended with few limitation and recommendation which can be used as a source of information for the upcoming research to study on. http://www.iaeme.com/IJMET/index.asp 1720 editor@iaeme.com Dr. Kiran.G, Dr. D.N. Murthy, Dr. Nila Chotai and Dr. Pradeepa REFERENCES: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] Alan, A. E., Eyuboğlu, E., & Maltepe, I. (2012). 11th international marketing trends congress 19-21th January. Venice-Italy. 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