E-COMMERCE PLATFORMS AND CONSUMER BUYING BEHAVIOUR: AN EMPIRICAL STUDY IN SELECTED TIER-2 CITIES OF KARNATAKA

Abstract

E-commerce has emerged as a transformative force in India’s retail landscape, reshaping the way consumers search, evaluate, and purchase products. While major metropolitan cities have been at the forefront of online shopping growth, Tier-2 cities are increasingly becoming the next frontier due to rising internet penetration, affordable smartphones, and growing digital awareness. This study explores consumer buying behaviour in selected Tier-2 cities of Karnataka, specifically Mysuru, Hubballi-Dharwad, and Mangaluru, to understand the key factors driving online purchase decisions. Data was collected from 450 respondents through structured questionnaires covering demographic, behavioural, and technological variables. The analysis was carried out using statistical and machine learning approaches, including multiple linear regression, chi-square tests, and clustering algorithms, to evaluate patterns and predict consumer intentions. Results indicate that trust in online platforms, ease of use, digital literacy, and price sensitivity significantly influence consumer behaviour. Further, segmentation through clustering reveals distinct groups such as price-sensitive buyers, trust-driven buyers, and convenience-oriented buyers, each with unique purchasing motivations. These findings provide critical insights for e-commerce platforms to design strategies tailored to semi-urban consumers, such as enhancing user interfaces, ensuring secure payment systems, and offering competitive pricing. The research contributes to both academic literature and industry practice by highlighting how consumer preferences in Tier-2 cities can shape the future growth trajectory of India’s e-commerce sector.