behavior towards byju’s in indiaijrar.org/papers/ijrar2002658.pdf · adaptive flows, quizzes,...

© 2020 IJRAR September 2020, Volume 7, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

IJRAR2002658 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 237

A study on the factors influencing consumer buying

behavior towards BYJU’S in India Mr. Ashwary Kumar

BITM, Sri Balaji University, Pune

ABSTRACT

Technological innovation has radically improved the current learning framework in recent years. Using an

online platform for self-learning has replaced traditional methods for teaching and learning. BYJU’s- The

Learning APP is India’s largest E-Learning App with over 3 million annual subscriptions. Quality learning is

important to prepare students to succeed in the jobs of tomorrow. Yet across the world, a “learning crisis” is

unfolding. In this context, the study seeks to explore the school going students in India who use the BYJU’S

App and their experience of using it so far. The study also seeks to find out the factors which influence the

customer to buy BYJU’S product.

Keywords: BYJU’S, Personalized learning, Technology, E-Learning, Education, Buying behavior

INTRODUCTION

A lot of research exists on the consumer buying behavior and consumer satisfaction. Understanding the

expectation and perception of consumers is gaining more attraction in the current business world. Also, various

researches and studies have been done to understand the learning-teaching methods. The modern approach of

learning-teaching is Constructivism which recognizes the learners' understanding and knowledge based on their

own experiences. The modern methodologies of educating and learning are exceptionally established in

Constructivism. The facilitators build the information through the dynamic cooperation of students. They

direct their students to discover answers for an issue. Educators utilize present- day conveniences like

projectors, various media helps, and online classes for educating.

The way of teaching and learning has been continuously changing in the past few years. The teacher or faculty

is not just content providers, they are now mentored and guide. Students need to develop critical thinking,

analytical, and problem-solving ability to enhance their knowledge. Learning through videos has been a great

way to develop these skills and digital technology is playing a big role in creating and delivering such

interactive videos. There has been a shift in demand in the learning experience, parents and students are more

comfortable with online learning since it can be accessed from anywhere and anytime.

As valuation touches $8B, BYJU’S become the 3rd largest unicorn in India as of January 2020. BYJU’S is

leading the Indian Ed-Tech industry by generating maximum revenue of around

$205M as of March 2019. The company has been growing at a rate of 100% year on year for the last three

years. It has 3 million subscribe users in India. BYJU’S is solving the core problem in the Indian education

system by providing quality content across the nation through the internet which is accessible to most of the

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population. This paper aims at determining the factors which influence the buying decision of consumer for

BYJU’S products. It focuses on a group of primary and higher school going students and analyzes their

feedback on using BYJU’S products. It also focuses on the decision taken by the parents for purchasing this

App for their children.

RESEARCH PROBLEM

E-Learning being completely new to India and growing popularity of smartphones and internet connectivity

has given a platform to digital education. Since traditional and E-learning mode of education are different,

people consider various factors before purchasing any E-learning content. What are the various factors that

consumers keep into consideration for purchasing BYJU’S subscription?

RESEARCH OBJECTIVES

Primary objective

To understand the factors influencing the consumer buying behavior towards E-learning through

BYJU’S APP.

To study the awareness level of the consumer regarding BYJU’S APP

Secondary objective

To understand the effect of advertisement of BYJU’S on consumer buying behavior

HYPOTHESES

H0: Factors have no significant impact on consumer buying behavior H1: Factors

have a significant impact on consumer buying behavior

H0: There is no effect of advertisement of BYJU’S on consumer buying behavior H1: There is an

effect of advertisement of BYJU’S on consumer buying behavior

REVIEW OF LITERATURE & HYPOTHESIS FORMULATION

Sruthi P, Dr. Sangeeta Mukherjee (March 2020)

The technological innovations that are adopted by BYJU’S are highly helpful to students to understand basic

and complex concepts in a very short time. The BYJU’S App uses web-based learning, visual learning, and

personalized learning which altogether provide an immersive learning experience to students. One of the

findings is that the advertisement claims that the App makes an interactive learning experience. The premium

subscription is a bit costly for the average earning Indian consumer.

RR Chavan, Abhishek Shukla (August, 2018)

Using technology as an enabler and unique combination of media and content adopted by BYJU’S helps it to

create a learning app for students. This paper also discusses the approach of e-entrepreneurship taken by the

founder of BYJU’S to start Ed-tech Company to serve maximum students through a digital platform. Also, the

emerging digital technology will provide new opportunities to a new venture in different business sectors.

Mohd Shoaib Ansari (January 2017)




Learning applications are expanding among students. Found that portable learning applications can be

extremely helpful in the advanced education condition. Moreover, the outcomes appeared that the students

have sufficient information and attention to utilize portable innovation and the Web in their instructive

condition. Mobile App for learning is popular in higher education in India. Furthermore, It is also found that

student is aware of mobile Apps which provides learning contents.

Dr. BADA, Steve Olusegun (December 2015)

Found that process of learning is individual to the learner. The learner tries to relate each and everything to the

real world what he or she has learned. Constructivism refers to self-learning

and knows how to learn things more conceptually. It emphasized critical thinking and decision making.

IBEF (April 2019)

Online education in India is growing fast and many student have access to smartphones, computers, and the

internet. Integrating technology is the need of the hour since everything is going digital. India has the largest

K-12 students in the world with over 260 million students. Also, there is a rise in low-cost smartphones,

accessibility to the internet among the students is increasing.

Forbes (October 2019)

I found that the backbone of Byju’s personalized learning is its rich learning profile. Graphs of over one lakh

concepts and relationships that have been created to design personal learning journeys -- videos, questions,

adaptive flows, quizzes, flashcards, correctional learning video, and so on. Additionally, the learning content

is also tagged to multiple other properties and parameters. This content is tagged at the sub-micro concept

level which helps the algorithms create a smooth learning curve for the student so that they feel challenged,

yet motivated.

Financial Times (December 2019)

Found that, Byju’s has around 3 million subscribers who are school going students. BYJU’S has made India

an emerging ground for testing the Ed-tech industry. It is estimated by KPMG and Google that India’s online

learning sector will reach $2B by 2021.

The Indian Express (April 2020)

After nationwide lockdown in India, there was an increase of 150% in new enrollment on the Byju’s App.

Byju’s has also started free live classes on its platform for class 4 to class 12 students in India.

Business Insider, India (December 2019),

Found that Byju’s secret of success is engagement and effectiveness. By adding interactive videos and media

on its platform, it has made the learning fun and interactive. In 2018, Byju’s spend Rs.185.5 crore on

advertising.

RESEARCH METHODOLOGY

A descriptive type of research is followed in this research. The sample population includes the respondents

who are the customers of BYJU’S or aware of the offerings of BYJU’S in India. The sample size of 151 was

selected. The samples were chosen by using the Convenience sampling technique, which is a Non-probability

sampling technique, because the exact population size is unknown, and the accessibility to all the customers is




difficult. The survey method of data collection was used in this research. The primary data were collected

using a structured questionnaire.

DATA ANALYSIS & INTERPRETATION

Software used: MS Excel and SPSS

Statistical Tools/Technique used: Reliability Analysis, Linear Regression, Bivariate Analysis, Correlation and Crosstab & Chi-square

RELIABILITY TEST

Reliability Statistics

Cronbach's Alpha

N of Items

.896 22

Table 4.1

Item Statistics

Mean Std. Deviation N

Content 4.39 .932 147

Price 4.24 .847 147

Problem Solving 4.49 .806 147

Device Compatibility 4.19 .886 147

Internet Speed 4.12 .955 147

Accessibility 4.34 .848 147

Overall Importance 3.79 .675 147

TV 3.88 .898 147

Social Media 3.93 .904 147

Newspaper 3.08 1.057 147

Billboards 2.81 1.207 147

Celebrity Endorsement 3.82 .984 147

Effectiveness 3.92 .903 147

Easy 3.97 .929 147

Engagement 4.09 .776 147

Visual attractiveness 4.35 .873 147

Recommendation 1.27 .443 147

Technology 4.15 .706 147

Lockdown 3.82 1.117 147

Subscription Plan 3.64 1.033 147

Self-Learning 4.10 .982 147

Syllabus completion 4.02 1.010 147

Table 4.2




Inference: From Table 4.1, We can see that Cronbach's alpha is 0.896, which indicates a high level of

internal consistency for scale with this specific sample. From Table 4.2, We can analyze the deviation of

samples from their mean.

LINEAR REGRESSION

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1 .674a .454 .401 .808

a. Predictors: (Constant), Overall Importance, Billboards, City, Celebrity Endorsement, TV, Internet Speed, Price, Technology,

Social Media, Problem Solving, Content, Device Compatibility, Accessibility

Table 4.3

Coefficientsa

Unstandardized Coefficients

Standardized

Coefficients

t

Sig. Model B Std. Error Beta

1 (Constant) -1.359 .643 -2.113 .036

Content -.155 .108 -.138 -1.442 .152

Price .244 .107 .199 2.279 .024

Problem Solving .207 .136 .159 1.524 .130

Device Compatibility -.062 .116 -.052 -.529 .598

Internet Speed .097 .101 .089 .966 .336

Accessibility .024 .122 .019 .196 .845

TV .013 .086 .011 .149 .882

Social Media .233 .087 .203 2.695 .008

Billboards .084 .061 .096 1.376 .171

Celebrity Endorsement .137 .077 .129 1.793 .075

Technology .292 .115 .196 2.548 .012

City -.218 .086 -.170 -2.543 .012

Overall Importance .249 .116 .160 2.153 .033

a. Dependent Variable: Subscription Plan Table 4.4




Inference: Table 4.3 provides the value of R and R- square. The R-value represents the simple correlation and is 0.674 which indicates a high degree of correlation. The R2 value indicates how much of the total

variation in the dependent variable Subscription Plan, can be explained by the independent variable. In this

case, R-square is 0.401.

Table 4.4 indicates the statistical significance of the regression model that was run. Here, p- value which is

less than 0.05, and indicates that, overall, the regression model statistically significantly predicts the

outcome variable (i.e., it is a good fit for the data).

Hence, We can conclude that factors like City, Price, Accessibility, TV, Social Media, Celebrity Endorsement, and Technology impact the Subscription Plan which eventually impacts the buying

behavior of the consumer.

BIVARIATE ANALYSIS

Correlations

Overall Importance

City Pearson Correlation -.191

Sig. (2-tailed) .020

N 149

Content Pearson Correlation .339


N 149

Price Pearson Correlation .258


N 149

Problem Solving Pearson Correlation .402


N 149

Device Compatibility Pearson Correlation .333


N 149

Internet Speed Pearson Correlation .295


N 149

Accessibility Pearson Correlation .367


N 149

TV Pearson Correlation .242


N 149

Social Media Pearson Correlation .248


N 149

Celebrity Endorsement Pearson Correlation .135


N 149

Technology Pearson Correlation .339





N 149

Subscription Plan Pearson Correlation .417


N 149

Syllabus completion Pearson Correlation .428


N 147

Overall Importance Pearson Correlation 1

N 149

Table 4.5

Inference: Based on the result we can conclude from Table 4.5 that factors like Price, Accessibility, and

Technology impact the Subscription Plan and Syllabus completion have a statistically significant linear

relationship (p < 0.01) and it can be concluded that these factors are valid.

The magnitude, or strength, of the association is approximately small to moderate (.1 < | r | <

.5).

CROSSTAB

Price * Subscription Plan

Count

Table 4.6

Crosstab

Subscription Plan

Total Not at all Not very Moderate Quite Very

Price Not Important 0 0 1 0 0 1

Slightly Important 0 0 3 1 0 4

Moderately Important 1 9 9 4 0 23

Important 1 3 20 20 10 54

Very Important 3 2 16 24 24 69

Total 5 14 49 49 34 151




Chi-Square Tests

Value

df

Asymptotic Significance (2-

sided)

Pearson Chi-Square 47.112a 16 .000

Likelihood Ratio 44.466 16 .000

Linear-by-Linear Association 19.174 1 .000

N of Valid Cases 151

a. 14 cells (56.0%) have expected count less than 5. The minimum expected count is .03.

Table 4.7

Social Media * Subscription Plan

Count

Table 4.8

Crosstab

Subscription Plan

Total Not at all Not very Moderate Quite Very

Social Media Very Low 1 1 1 0 0 3

Low 0 0 3 1 0 4

Neutral 3 6 15 10 2 36

High 1 4 23 21 14 63

Very High 0 3 7 17 18 45

Total 5 14 49 49 34 151




Chi-Square Tests

Value

df

Asymptotic Significance

(2-sided)

Pearson Chi-Square 39.806a 16 .001

Likelihood Ratio 38.365 16 .001

Linear-by-Linear Association 26.955 1 .000

N of Valid Cases 151

a. 15 cells (60.0%) have expected count less than 5. The minimum expected count is .10.

Table 4.9

Inference: The chi-square test for independence, also called Pearson's chi-square test or the chi-square

test of association, is used to discover if there is a relationship between two categorical variables.

Here we have taken those factors which were found to be significant in our Linear Regression

Test.

We can see that Pearson's chi-square value in the above tables is less than 0.05, which indicates

that there is a significant association between the factors.

HYPOTHESES TESTING

From the Linear Regression where the dependent variable was Subscription Plan, we found that factors

like City, Price, Accessibility, TV, Social Media, Celebrity Endorsement, and Technology impact the

Subscription Plan which eventually impacts the buying behavior of the consumer.

From Bivariate analysis, we found that factors like Price, Accessibility, and Technology impact the

Subscription Plan and have a statistically significant linear relationship. It can be concluded that these

factors are valid.

Also from Crosstab and Chi-square Analysis, we found that factors like Price, Social media Subscription

Plan have a significant association between them.

SUMMARY OF HYPOTHESES RESULTS




Hypotheses

Result

Factors have no significant impact on

consumer buying behavior

Reject Null Hypothesis

Factors have a significant impact on

consumer buying behavior

Accept alternate Hypothesis

There is no effect of advertisement of

BYJU’S on consumer buying behavior

Reject Null Hypothesis

There is no effect of advertisement of

BYJU’S on consumer buying behavior

Accept alternate Hypothesis

Table 4.10

RESULTS AND DISCUSSIONS

FINDINGS

1. The majority of respondents are aware of BYJUS’S offerings (92%)

Fig. 5.1.1

2. 50.3% of all respondents fall under the age group of 15-24 years and 57.6% of all respondents

are students

Fig. 5.1.2




3. Most of the respondents come from Tier-2 city (44%) and the family annual income of the

majority of respondents falls under 6-15 Lakh (57%).

Fig.5.1.3

4. 73.4% of respondents said that their buying decision has been influenced by the

recommendation of other people.

5. 74.2 of all respondents said that they considered continuing their learning through BYJU'S

APP as academic institutions are shut-down due to the current Pandemic.

6. 91.4% of all respondents said that the course clearly explains what they expected to learn from

the course.

DISCUSSION

The study was conducted to identify the various factors which impact consumer buying behavior for

BYJU’S in India. Research study shows that customer buying behavior for BYJU’S depends on

various factors. Through the data analysis, seven factors have been extracted which has a positive

impact on customer buying behavior.

The study reveals that factors like City category (Tier), Price, Accessibility, TV, Social Media,

Celebrity Endorsement, and Technology have a significant impact on consumer

buying behavior for BYJUS’S APP subscription plan. It is also found that “content” which is also a factor

for purchasing BYJUS’S subscription plan does not have a significant impact on consumer buying behavior.

The research has revealed that many factors are criteria of customer buying decision but it is not important

that all the factors impact the same way to customers.

CONCLUSION

The BYJU’S APP is used by the students for self-learning. There are various factors which consumer take

into consideration before buying BYJU’S APP subscription plan. From this study, it is clear that technology

has been an important factor which influences buying decision. Most of the respondents agree that they give

importance to price and accessibility before purchasing the BYJU’S subscription. The study also reveals

that consumers give importance to the effectiveness of the learning methodology and engagement with the

app for purchasing. BYJU’S APP is striving hard to transform the way of learning scenarios and consumers

are also liking it.

SUGGESTION

1. BYJU’S target audience is students and parents whose kids go to school. It should emphasize

more on social media and TV advertisements rather than billboards and newspapers because the

new generation’s target audience spent more time on social media and TV.

2. BYJU’S should focus on its price which comes out to be one of the important factors in the study.

Tier-3 city has 22% of the total respondent and for these respondents, the price could be one of the

most important factors in buying a BYJU’S subscription plan.




3. Since accessibility is also one of the important factors which come out in the study, BYJU’S should focus

on this factor also to increase its reach in Tier-3 and Tier-4 cities.

REFERENCES

1. Ann M. Casanova (April 2018), BYJU’S: How a Learning App is Promoting Deep

Conceptual Understanding that is Improving Educational Outcomes in India, IFC World

Bank

2. Sruthi P, Dr. Sangeeta Mukherjee (March 2020), Byju’s The Learning App: An

Investigative Study On The Transformation From Traditional Learning To Technology-

Based Personalized Learning, International journal of scientific & technology research

volume 9

3. RR Chavan, Abhishek Shukla (August 2018), New Generation E-

entrepreneurship- A Case study of BYJU's, SUMEDHA Journal of Management

4. Mohd Shoaib Ansari (January 2017), An Investigation of Effectiveness of Mobile

Learning Apps in Higher Education in India, Researchgate

5. Dr. BADA, Steve Olusegun (December 2015), Constructivism Learning Theory: A

Paradigm for Teaching and Learning, IOSR Journal of Research & Method in Education

(IOSR-JRME)

6. IBEF (April 2019), https://www.ibef.org/research/case-study/byju-s- reinventing-

education

7. Forbes (October 2019), https://www.forbesindia.com/article/one-ceo- club/byjus-app-

selflearns-patterns-as-students-spend-more-time-on-it/53465/1

8. Financial Times (December 2019), https://www.ft.com/content/a6dcdf2e- 2198-11ea-

b8a1-584213ee7b2b

9. The Indian Express (April 2020), https://indianexpress.com/article/technology/tech-

news-technology/online- education-covid-19-lockdown-online-classes-6351798/

10. Business Insider, India (December 2019),

https://www.businessinsider.in/advertising/brands/article/byjus-envisions-to- become-the-leader-of-

learning-at-home-category/articleshow/72851550.cms


https://www.ibef.org/research/case-study/byju-s-reinventing-education



https://www.forbesindia.com/article/one-ceo-club/byjus-app-selflearns-patterns-as-students-spend-more-time-on-it/53465/1



https://www.ft.com/content/a6dcdf2e-2198-11ea-b8a1-584213ee7b2b



https://indianexpress.com/article/technology/tech-news-technology/online-education-covid-19-lockdown-online-classes-6351798/



https://www.businessinsider.in/advertising/brands/article/byjus-envisions-to-become-the-leader-of-learning-at-home-category/articleshow/72851550.cms



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