Impact of Online Shopping on Traditional Retail Stores: A Survey-Based Study of Consumer Perceptions
Author
Kodi.Manasa Sai,Dr. Venkateshwara Rao. Podile,Guduri Nagaveni
Abstract
Online shopping platforms like Amazon, Flipkart, Myntra and Meesho have altered the landscape of consumer buying behavior, and traditional retail stores are now in competition with them to attract the same customers. This paper investigates the consumers' perception of the impact of online shopping on traditional retail stores. A descriptive cross-sectional survey design was employed, and a structured online questionnaire was administered to 34 respondents between 17 September and 3 October 2026. The questionnaire gathered information on demographics and usage patterns, reasons for choosing each channel, and 13 five-point Likert statements. Three independent variables were created from the three sets of statements: Price and Discount Advantage (PD), Online Convenience and Product Variety (CV), and Traditional Store Strengths (TS). The dependent variable was Perceived Impact on Traditional Retail Stores (IMP). The reliability of the measurement instrument was satisfactory (Cronbach's alpha 0.75 to 0.86 for all four constructs; 0.93 for the 12 statements). Respondents rated price and discounts highest (mean 3.86), followed by convenience and variety (3.80) and traditional store strengths (3.72); perceived impact on traditional stores had a mean of 3.65. All three factors were strongly correlated with perceived impact (r = 0.65 to 0.84, p < 0.001). In a multiple regression (R² = 0.726, F(3, 30) = 26.46, p < 0.001), only Online Convenience and Product Variety was a significant independent predictor (B = 0.846, p < 0.001). Physical inspection of products (58.8%), immediate purchase (50.0%) and trust (47.1%) were the main reasons for visiting traditional stores, and 61.8% of respondents preferred both channels equally. The sample is small and mostly young, female and student, so the findings are preliminary.
Keywords
Online shopping, Traditional retail stores, E-commerce, Consumer perception, Convenience, Price and discounts, Product variety, Omnichannel retailing.
Full Text:
Download Paper PDF
References
- Bell, D. R., Gallino, S., & Moreno, A. (2018). 1. Demand and operational benefits of offline showrooms in omnichannel retail. Management Science, 64(4), pp.1629-1651.
- Brynjolfsson, E. and Smith, M. D. 2000. Trade minus friction? Comparison of internet vs traditional retailers. Management Science, 46(4), 563-585.
- Cao, L., & Li, L. (2015). The impact of cross-channel integration on retailers’ sales growth. Journal of Retailing 91(2) 198–216
- Chiu, C.-M., Wang, E. T. G., Fang, Y.-H., & Huang, H.-Y. (2014). Understanding repeat purchase intentions of customers in B2C e-commerce: The roles of utilitarian value, hedonic value and perceived risk. Information Systems Journal, 24(1), 85-114.
- Chocarro, R., Cortiñas, M., & Villanueva, M.-L. (2013). Online versus offline channel choice: the role of situational variables. Electronic Commerce Research and Applications 12(5), 347-361.
- Chu, J., Arce-Urriza, M., Cebollada-Cavalero, J.-J., & Chintagunta, P. K. (2010). Empirical study of grocery shopping behaviour across online and offline channels. Journal of Interactive Marketing, 24(4), 251-268.
- Dholakia, R. R. and Uusitalo, O. (2002). Switching to electronic stores Shopping benefits perceived by consumers and consumer characteristics International Journal of Retail & Distribution Management 30 (10) 459-469.
- Forman, C., Ghose, A., & Goldfarb, A. (2008). Competition between local and electronic markets: How the benefit of purchasing online depends on your location. Management Science, 55(1): 47-57 .
- Gefen, D., Karahanna, E., & Straub, D. W. (2003). An integrated model of trust and TAM in e-shopping. MIS Quarterly, 27(1), 51-90.
- Grewal, D., Roggeveen, A. L., & Nordfält, J. (2017). Retailing for tomorrow. Journal of Retailing, 93(1), pp. 1–6.
- Jiang, L., Yang, Z., & Jun, M. (2013). Measuring consumer perceptions of online shopping convenience. Journal of Service Management, 24 (2). 191-214.
- Kacen, J. J., Hess, J. D., and W.-Y. K. Chiang. Clicks or bricks? Consumer attitudes toward traditional and online stores Global Economics and Management Review, 18(1), 12-21.
- Nunnally JC . Psychometric Theory (2nd ed. ). McGraw-Hill.
- Pauwels & S. A. Neslin (2015). The impact of opening physical stores on revenue in a multichannel environment: Building with bricks and mortar. Journal of Retailing, 91(2), 182-197.
- Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model International Journal of Electronic Commerce, 7(3), pp. 101-134.
- Rapp, A., Baker, T. L., Bachrach, D. G., Ogilvie, J., & Beitelspacher, L. S. (2015). The impact of perceived customer showrooming on retail salespersons’ self-efficacy and performance. Journal of Retailing, 91(2), pp. 358–369.
- Rohm, A. J., & Swaminathan, V. . Internet shopper typology. Journal of Business Research, 57(7), 748-757.
- Sinha J., Kim J. . (2012). Factors affecting online purchase behaviour of Indian consumers. Innovative Marketing, 8(2), 46–57.
- To, P.-L., Liao, C., & Lin, T.-H. (2007). Shopping motivation on the Internet: A study based on utilitarian and hedonic value. Technovation, 27(12), 774-787.
- Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). Editorial: Special Issue on Multi-Channel Retailing: From Multi-Channel to Omni-Channel Retailing. Journal of Retailing, 91(2), 174–181.
- Verhoef, P. C., Neslin, S. A., & Vroomen, B. (2007). Multichannel customer management: The research-shopper phenomenon. International Journal of Research in Marketing, 24(2), 129–148.
Share your valuable work from Social Media Buttons