Pakistani Consumer Buying Behaviour Towards E-Commerce

Abstract

The world of business has continuously evolved over time in different ways. However there are certain major shifts that leave a considerable mark over how the business community works and operates. The transition from barter system to use of coins and paper money, the concept of globalization and the latest the advent of e-commerce which has turned the business world from bricks to clicks, to cite a few. Making the concept of ‘Global Village’ a reality, internet has today surpassed countless borders to become an integral part of the age old buying and selling process. Thus, taking into the account the power that internet holds today, it becomes very necessary to understand how is it that the consumer of today has embraced the concept of e-commerce, especially in Pakistan that has only recently warmed up to the concept. Hence, for the purpose of this project two major e-commerce giants in Pakistan were selected, Daraz.pk and Jomo.pk. While the former is responsible for converting the majority of the Pakistan population from hesitant one time users to regular internet buyers, the latter managed to make a space for itself when the competition in the e-commerce market was huge. Daraz.pk, with its concept of cash-on-delivery managed to eliminate the main fear that the Pakistan consumer had i.e. risk of online money fraud. Similarly, Jomo.pk also introduced a whole new concept of try and buy and eliminated the fear that consumers had that the online product will not match the actual product. For this purpose the consumers of various age and income segments were interviewed and a descriptive, qualitative analysis was carried out to find how the consumer behaviour is influenced by e-commerce. The major findings of the analysis are as follow: 1. There has been considerable growth in the field of online retail. 2. There has been a positive change in consumer behaviour regarding online retail. 3. Daraz.pk and Jomo.pk have understood consumer psychology to target consumer fears through their marketing campaigns. On the basis of the analysis carried out and our understanding of the whole process, certain recommendation were put forth regarding the ways in which e-commerce sites can further boost their business. The major recommendations have been cited below: 1. Online retail should launch using a unique strategy that caters to specific consumer benefits 2. Online retail should look for user friendly approach through easy navigation and easy payment 3. Online retail should look for offline advertisements after establishing themselves online. 4. Online retail should work on enhancing post-purchase experience as well.