Factors influencing consumers to switch purchases between online and offline platforms

Abstract

Due to the Covid-19 pandemic, and the resulting nation-wide lockdown, Indian consumers have increased their online purchases because of health concerns and social distancing norms. The number of first-time-users or FTUs increased dramatically, and firms like Big Basket and Grofers found it difficult to meet the unprecedented rise in demand. Studying the consumer journeys, factors that affect consumer search and purchase intentions and behaviour, the impact of Covid-19 on intent and behaviour, and the nature of impact/change have significant managerial implications. Of particular interest is the impact on Generation X consumers i.e. those aged 40+, as several of them are shifting online for the first time. This leads us to formulation of our research questions and hypotheses. We hypothesize that the proportion of people in the 40+ age bracket who conduct online searches has increased after Covid-19. We do this separately for three product categories: shopping products, luxury products and essential products. Next, we hypothesize that health and safety concerns from covid-19 is a significant variable in explaining consumer switching behaviour to the online mode (for those aged 40+) for purchases in these three categories. Finally, we hypothesize that other factors that drive consumer purchase decisions have remained unchanged before and after Covid. Our survey results support all our hypotheses, and we obtain conclusive evidence that these are true for each of the three product categories. Considering the implications that arise from our analysis, we recommend firms to consider adopting the direct-to-consumer channel for sales, deploy digital marketing tools such as social media and micro-influencers to advertise their offerings, utilize WhatsApp Business to connect with their client base, and witch to healthier and safer alternatives, not just in terms of products, but additional facets such as packaging. Researchers can consider building further on this topic by exploring whether the shift to the online mode is temporary or permanent in nature. In addition, the impact on various service industries such as hospitality, tourism, IT and so on, can be studied.