Effect of E Commerce on Investment Behaviour among Working People

Abstract

The Researcher conducted a descriptive study to study the changes in the investment behavior of the investors due to the effect of E-Commerce such as E-banking and E-payments especially among working People in Tirupattur Town. Samples of 81 respondents from Tirupattur Town were selected randomly and Data collected through well framed questionnaire in order to analyse the Demographical factors, investment behavior and response of the respondents for the e-transactions. The data were analyzed by using simple percentage analysis and behavior was tested by chi-square analysis with the help of Hypothesis.

The findings revealed that 35 % of the investors belong to the age group of more than 35 years, 42 % of them having Rs. 1,00,000 to Rs. 3,00,000 annual income, 53 % of them invest only less than 5 % of their salary, 54 % prefer personal investment for liquidity and safety, 52 % prefer online investment for convenience, 58 % opined that the online investment experience is Good. 46 % used only Net banking as their payment mode.Chi-square test applied to find the changes in investment behavior between personal investment and online investment, on choosing Investment avenues.

The result revealed that there is no change in behavior. The research concluded that working people prefer life insurance policy as the best avenue of investment both on personal and online behavior, E-commerce system provide more advantages in an investment activity through internet but it did not provide any change in behavior in choosing investment avenues. The researcher recommends for the creation of awareness of E-Commerce among working people in Tirupattur town about various other best investment opportunities and E-payment facilities.

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Keyword: E-commerce, Investment Behaviour, online behaviour, Investment Avenue.

Introduction

Investment behavior is defined as how the investors judge, predict, analyse and review the procedures for decision making, which includes investment psychology, information gathering, defining and understanding, research and analysis. The whole process is “Investment Behaviour” by Slovic 1972, Alfedo and Vicente, 2010. E-Commerce also known as electronic commerce or internet commerce. E commerce is used for buying and selling of goods or service using the internet and transfer of money. The history of E-commerce begins with the first ever online sale on 11th Aug 1994. In order to analyse an effect of E-commerce on Investment behavior of working people in Tirupattur Town 2018, a study was conducted.

Statement of the Problem

In present scenario, Internet play very important role in everybody day to day activities, every working people have their Internet on the mobile phones; it changes the behavior in each and every thing. This study enables us to understand the changing behavior of investment due to effect of E-Commerce.

Review of Literature

The Following Research papers have been studied from various journals and published papers.

Hisashi kaneko’s (2004) Research focused on investment trusts and debated the behavior of individual investors. Research concluded that investment trusts are only one means of managing assets and the investors have a strong preoccupation with purchase price and tend to sell rapidly when unit price exceeds purchase price.

Anders Hasslinger (2007) studied consumer behavior in online shopping through a survey that was conducted on students at the University of Kristian stad. Researcher plan to study the factors influencing the consumer behavior in purchasing books through online, Factors such as Price, Trust, Convenience. The Research concluded that the factor price is of the highest concern than trust and convenience.

Marimuthu Selvakumar (2015) studied Investment behavior of household, through interview schedule from 200 household investors of Virudhunagar District by using convenient sampling. The suggestions of the study given that, most of the investment is on insurance only and investment objective of the Investor based on analysis of various investment avenues. The study recommended various financial institutions to adopt a broad advertising strategy to create awareness among household investors. The socio economic factors education and income have influencing relationship on investment.

Ms. Preeti Sharma (2010) studied the performance of internet Banking service and their scope. Researcher used Non-probabilistic convenience sampling for collecting primary data and secondary data. A study results in many threats to E-Banking, such as loss of customer faith in technology, Bank Reputation Threat, loss of business, profit, profitability and loss of consumers.

Aabibur Rahman and Lilithan (2011) studied customer satisfaction in E-commerce related to China and Bangladesh. Consumer satisfaction survey analysis show change in customer need and preference, so in need of E-Commerce business as new technologies, competitors change, etc.,

Conclusion

An Effect of E- Commerce on investment behavior among working people in Tirupattur Town, is analyzed through this study. The working people prefer Life Insurance Policy mostly both on personal and online investment behaviour. Online Investment activities provide more convenience, Time saving, more information etc. On the basis of analysis, the researcher ascertained that E-Commerce provide more advantages for investors though there is no change in the behavior in selecting the investment. It is also suggested that the awareness should be created among the prospective investors about E-Commerce. If this suggestion is taken in to account more investors will opt electronic mode.

Reference

1. Anders Hasslinger, Selma Hodgic, “Consumer Behaviorin online shopping”, Kristianstad University, Department of Business studies in Nov 2007.
2. “Build, “Drive and Earn E-commerce Growth for Retail Success”, IRi Growth delivered Times and Trends January 2017.
3. Habibur Rahman and Lilihan, “Consumer Satisfaction in E- Commerce, A case study of China and Bangladesh” Master’s Thesis in International Business 2011.
4. Hisashi Kaneko, “Individual Investor Behaviour”, Security Analysts Association of Japan,2004,.
5. “Mobile and E-commerce are reshaping consumer behaviour”, White Paper in Fidelity Worldwide Investment, July 2013.
6. M. Selvakumar and N. Manicka Mahesh, “A study of Investment Behavior of Households in Virudhunagar District”, SDMIMD Journal of Management Vol.6 Issue 2, Sep 2015, Print ISSN:0976-0652, online ISSN:2320-7906.
7. Preeti Sharma, “Paper on E – Banking”, CBS, Landran CBS E- Journal, Big n Bytes, Vol. 6, Dec 2010 ISSN:0976-0458.
8. Qiujun Lan, “Individual Investment decision behavior based on demographics characteristics: Case from China”, PLOS ONE 9th Aug 2018.
9. Yu-Je-Lee,The Investment Behaviour, Decision Factors and their effects towards Investment performance in the Taiwan stock Market”, Dept. of Marketing management, Taking University of Science and Technology, Gao-Liang Wang 2017.