Price point trumps loyalty in e-commerce: IAMAI study

Chennai: Users across age groups are keen on price-points, variety and timely delivery while shopping on e-commerce platforms and for repeating their purchase, a recent study has stated.

The Internet and Mobile Association of India [IAMAI] has launched a report titled ‘Online Stickiness of e-Commerce Customers in India’. The report provides insights about about differing behaviours across age groups for the three most popular e-commerce service categories in India – online retail, on demand transport services and online travel booking. The survey was conducted amongst 4,700 e-commerce users across the country.

The report finds that at an overall level, the age group between 18-24 years is ‘accommodating’ in their approach towards e-commerce with their focus being more on brands of the products and less concerned about price comparison, delay in refunds etc.

The age group between 25-34 years is the least demanding category of all and is most comfortable with e-commerce services simply because of the convenience it offers. In comparison, the age group between 35-44 years are the most demanding age group; and consider give factors like refunds, response to queries, customization of services more importance, the report added.

The age group 45 and above are keen about the convenience and guarantees of online services, and are more interested in factors like promptness of customer service than cash-backs offered. This category needs the most convincing to purchase online and clearly look at e-commerce as a tool of convenience than bargain, it stated.

However irrespective of age group, every category is keenly aware of the price advantage the platforms offer and take discounts for granted vis-à-vis offline channels.

For online retail, price point, variety and timely delivery are the top factors for customers in terms of determining repeat purchase from any platform, finds the report.

In contrast, ‘all time availability of cabs’ is the most important factor for online transport services. The aspect of physical security is very important for female passengers across age groups and is often the most important factor for determining repeat choice of platforms for this kind of services.

“Males in the age group 25-34 are more concerned about prompt response than any other category, while males across the age-group 25-44 are keen on customized packages for monthly subscription, probably because in urban centres these services are being used for regular commutes,” the report said.

NT Bureau