Project Dissertation On Consumer Behavior In Online Shopping

Submitted To Lovely Professional University In partial fulfillment of the requirements for the award of degree of BACHELOR OF BUSINESS ADMINSTRATION

Submitted by: Group No-46 Supervisor: Kuljeet Minhas Prashant Priyadarshi Roll no-17 Nitish Arora Nandni Kashyap Roll no-15 Roll no-20

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2010-11) 1

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report entitled “Consumer behavior in online shopping-carried out by Nitish Arora, (S/O) Satish Kumar Arora, Prashant Priyadarshi, (S/O) Sanjay Kumar Mishra, Nandni Kashyap, and (D/O)Sham lal kashyap has been

accomplished under my guidance & supervision as a duly registered BBA (H) student of Lovely Professional University Phagwara. This project is being submitted by them in the partial fulfillment of the requirements for the award of the master of business Administration from Lovely Professional University. .There dissertation represents their original work and is worthy of consideration for the award of the degree of bachelor of Business Administration.

KULJEET MINHAS LECTURER IN MANAGEMENT LHSB Lovely Hons. School of Business Date: 17/5/2010

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Declaration

I, Nitish Arora, Prashant Priyadarshi , Nandni hereby declare that the project report entitled Study on Consumer Behavior in Online Shopping has been written and submitted under the guidance of Miss kuljeet Minhas. I further declare that it is original work done as a part of our academic course and has not been submitted elsewhere. The conclusions and recommendations written in this project are based on the data collected by me while preparing this report.

Prashant Priyadarshi 10803272

Nitish Arora 10806134

Nandni Kashyap 10809033

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3 Factors that Boot Online Shopping in India 1.1 Online Shopping in India 1.2 Rising connectivity 1.3.3.No Particulars Chapter Page number 1 1.5 Changing Attitude Towards Online Shopping 16 4 .3 Theoretical Foundation 1.TABLE OF CONTENTS S.Introduction (Theoretical Foundation.3. Evolution of subject and its Dimensions 1.3.2 Introduction 1.3.1 Executive summary 1.4 Few Facts about Online Shopping 12 10 12 14 14 14 15 1.

4 Descriptive research method 3.Scope & Methodology 3.3.4 Sample Design 36 36 36 37 39-44 45-58 63-67 63 64 5 34 35 18-32 33-36 4 Data analysis [factor analysis through spss] 4.2 Research Methodology 3.3 Scope of Study and Methodology 3.3.Limitations & Recommendations 5.1 Summary .2 Objective 3.2 3 Review of literature Need.1 Pie charts 5 Summary .3 Research Strategy 3.1 Need 3.Objectives .Conclusion .3.1 Scope of Study 3.3.

6 Fig 1.0 Fig 2.NO Particular Chapter 4 Page no Fig 1.8 Fig 1.Documents.2 Fig 2.1 Fig 2.9 Fig 2.2 Conclusion 5.5 Fig 1.2 Fig 1.1 Fig 1.7 Fig 1.4 Fig 1.(Questionnaire.Terms.Financial Statements 65-69 69-73 74-78 Table of figures S.3 Limitations& Recommendations 6 7 References Appendix. Abbreviations.Performa.3 Fig 1.3 6 40 40 41 42 43 44 45 46 47 48 49 50 51 52 .5.1 Fig 2.

No Particular Page No.10 Table 1.9 Table 1.5 Table 1.Table of Figures S.8 60 60 60 60 60 60 Table 1. Tables No .11 62 62 62 62 7 . 1 Table 1.6 Table 1.4 60 60 60 60 60 Table 1.5 Table 1.2 Table 1.7 Table 1.3 Table 1.1 Table 1.

13 Table 1.Table 1.12 Table 1.14 63 63 63 8 .

CHAPTER-1 INTRODUCTION TO SUBJECT 9 .

and the relationships between these factors and the type of online buyers. Companies also use the Internet to convey. Consumer behavior is said to be an applied discipline as some decisions are significantly affected by their behavior or expected actions. Many companies have started using the Internet with the aim of cutting marketing costs. thereby reducing the price of their products and services in order to stay highly competitive markets. If E-marketers know the factors affecting online Indian behavior. while retaining existing online customers. and has rapidly evolved into a global phenomenon. Customers use the Internet not only to buy the product online.1. but also to compare prices. to take feedback and customers.1Executive summary The growing use of Internet in India provides a developing prospect for online shopping. perceived usefulness. also to conduct satisfaction surveys with ahead in to sell the product. communicate and disseminate information. The online purchasing behavior of online shoppers and factor influencing online shopping behavior and its future perspective. Internet is changing the way consumers shop and buy goods and services. product features and after sale service facilities they will receive if they 10 . perceived enjoyment and security/privacy are the five dominant factors which influence consumer perceptions of Online purchasing. This project is a part of study. ease of use. and focuses on factors which online Indian buyers keep in mind while shopping online. This research found that information. The two perspectives that seek application of its knowledge are micro and societal perspectives. then they can further develop their marketing strategies to convert potential customers into active ones.

and then examine their validity in the Internet context. 11 . Many of their studies have factors or assumptions which are based on the traditional models of consumer behavior.purchase the product from a particular store. In addition to the tremendous potential of the E-commerce market. researchers continue to explain Econsumers‟ behavior from different perspectives. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. It has been more than a decade since business-toconsumer E-commerce first evolved. Although most of the revenue of online transactions comes from business-to-business commerce. Many experts are optimistic about the prospect of online business. Along with the development of E-retailing. the practitioners of business-to-consumer commerce should not lose confidence. the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers.

Although most of the revenue of online transactions comes from business-tobusiness commerce. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior.1. to take feedback and also to conduct satisfaction surveys with customers. 12 .2 Introduction Internet is changing the way consumers shop and buy goods and services. the practitioners of business-to-consumer commerce should not lose confidence . Many companies have started using the Internet with the aim of cutting marketing costs. thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. researchers continue to explain E-consumers „behavior from different perspectives. to sell the product. Customers use the Internet not only to buy the product online.It has been more than a decade since business-to-consumer E-commerce first evolved. product features and after sale service facilities the will receive if they purchase the product from a particular store. Along with the development of E-retailing. the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. and has rapidly evolved into a global phenomenon. Companies also use the Internet to convey communicates and disseminate information. and then examine their validity in the Internet context. In addition to the tremendous potential of the E-commerce market. but also to compare prices. Many experts are optimistic about the prospect of online business.

Price. E-commerce has now identified.1. Certain characteristics are making it more convenient for the consumer compared to the traditional way of shopping. Trust and Convenience were identified as important factors. The internet is relatively a new medium for communication and the information exchange that has present in everyday life. The rapid increasing is explained by the consumer behavior. Online shopping is the process of consumer go through the when they decide the shop on the internet. The number of internet user is constantly increasing which is also signifies that online purchasing is increasing. This has created a need to under how the consumers perceive online purchasing. Price was considered as to be a most important factor for a majority of the students. A consumer is no longer bound to opening a times or specific location. The internet has created a paradigm shift of the traditional way people shop. Using the internet to shop online has become 13 . The internet has developed into a new distribution channel and the evaluation of this channel. The internet is considered a mass medium that provides the consumers with purchase characteristics as no other medium. such as the ability to any time view and purchase products visualize the needs with products and discuss products with other consumers. So he can become active at virtually any time any place and purchase the products or services.3Theoretical Foundation The Internet has developed an into a new distribution channel and online transaction are rapidly increasing.

it is getting doubled year by year. Due to the rapid development of the technologies surrounding the Internet. There is a huge purchasing power of a youth population aged 18-40 in the urban area. to take feedback and Customers use the Internet not only to buy the product online. The usage of internet in India is only 4% of the total population. The cost of internet usage is also getting lower. a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition. This will increase the usage as it goes more on wireless internet.1Online Shopping In India It is a fact that a great online shopping revolution is expected in India in the coming years. product. Since there are so many potential consumers. to sell the also to conduct satisfaction surveys with customers. Indians are proving every 14 . but also to compare prices. product features and after sale service facilities they will receive if they purchase the product from a particular store. communicate and disseminate information.2Rising Connectivity If we observe the growth of Internet Subscribers from the above graph. 1. with good competition among the providers. it is of the out most importance to be able to understand what the consumer wants and needs. 1.3. Many experts are optimistic about the prospect of online business. Therefore internet develop the h Companies use the Internet to also convey. Wi-Fi & Wimax system has also started in India.one of the primary reasons to use the internet combined with searching for products and finding the information about them.3. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing.

More and more Indians are going to online shopping and the frequency of India„s online buying is crossing the overall global averages. and 46% are in the 26-35 year range. since India being a younger market.time that they can beat the world when it comes to figures of online shopping.3. 1. Many of them have started to depend on internet to satisfy their shopping desires 1. These people have very little time to spend for shopping.3Few Factors That Boost Online Shopping in India  Rapid growth of cybercafés across India  Access to Information  The increase in number of computer users  Reach to net services through broadband  Middle-class population with spending power is growing.3.  Indian online matrimonial sector is worth around $230 million  Worldwide E-commerce is only growing at the rate of 28%. There are about 200 million of middle-class population good spending powers. the growth of e-commerce is expected at 51% in the coming years.4 Few Facts about Online Shopping The figures from IAMAI show that the internet users in India will grow to 200 million by 2010. Around 25% of regular shoppers in India are in the 18-25 age groups. 15 .

5 Changing Attitude towards Online Shopping: “Awareness. how is it that there are people buying these items online? In India there are some segments of people who have not yet tried purchasing over internet. 16 . even of some electronic items. travel bookings and even books and movies seem fine to buy online.3. Ticketing. It was never thought that Indians would go in for e-shopping in such a big way. Future Demand Focus for Emerging Markets & Current Issues” Malls springing up everywhere and yet people are E-shopping! And not in small numbers either. Knowing that in India sizes vary from brand to brand and quality is inconsistent. Consumers are more rational nowadays and have ability to get the choices from the market. Awareness among the consumers is spread through internet. 1. The number of internet users is increasing day by day which attracts people who have an option to buy online. As per the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522 million in 2007 and it is expected to rise above $700 million by end March 2010. In line with global trends finally India has also started shopping online these days.

CHAPTER-2 Review of Literature 17 .

18 .1 Review of literature Petrovic Dejan (2006) in his study on Analysis of consumer behaviour online explained that the most relevant behavioural characteristics of online consumers and examine the ways they find. The purpose of this report is to translate these findings into a set of implementation activities on strategic and technological level.2. Execution of these recommendations will result in better conversion of visitors into customers and encourage customer loyalty and referrals. compare and evaluate product information.The focus group of this study will be young adults aged between eighteen and thirty-four interested in buying a mobile phone or a related product . Comparison of the newly collected survey data with the existing consumer behaviour theory resulted in detection of a number of issues related to a specific consumer group.

electronics and music. A high level of technological confidence within this group tends to be an encouraging factor when it comes to product information research online. focus group results and behavioural theory in a parallel fashion divided into two main research topics: Information Retrieval and Search Patterns Perception of Product Information Online These two areas is mutually dependent and particularly important in a market where consumers have the power to choose the right 19 . Most products in the mobile phone family belong to this category. which are more likely to be sold online such as software.Daily updated collection of music videos and lyrics.Shun &Yunjie (2006) in their study showed that there are product types. Majority of young adults interviewed for purpose of this research tend to be active information seekers. Lyrics . Chowdhury. According to the recent research on consumer behaviour on the Internet users (Cotte. Ratenshwar& Ricci. books. one does not require personal inspection and most. can be outlined in the product description and images. Reason for this is that when purchasing these types of products. 2006). there are four distinct consumer groups with different intentions and motivations:     Exploration Entertainment Shopping Information Music Videos.The following analysis presents both. if not all features.

Claudio Opazo (2008-02-01) in their study they showed that developed into a new distribution channel and online transactions are rapidly increasing. Primary data was collected through a survey that was conducted on students at the University of Kristianstad.product from a number of competing suppliers. Trust and Convenience were identified as important factors. The purpose of this dissertation was to examine if there are any particular factors that influence the online consumer.Price. Furthermore. Well-structured product information that cannot be found easily online is as much of a problem as is having easily accessible information that does not meet the consumer's expectations Anders Hasslinger. three segments were identified. This has created a need to understand how the consumer perceives online purchases. Through these segments we found a variation of the different factors importance and established implications for online book stores 20 . Price was considered to be the most important factor for a majority of the students. High Spenders. Price Easers and Bargain Seekers. Selma Hodzic.

remains high (the potential online shopping dollars impacted by transaction problems rings up at $47.from approximately 87% in all previous Tealeaf surveys to 80% in 2009.Harris Interactive (2009)in their study of online customer experience.The survey sheds light on forces driving this accelerated online customer experience focus. It also examines consumer behavior when transacting online. at 80%. including the down economy and increased consumer power due to experience-sharing via social media. The survey found that online customer experience reached an inflection point in 2009. travel and financial services 21 . While the percent of consumers experiencing online transaction problems. insurance. this improvement points to a growing business focus on delivering better customer experiences. call center behavior related to online issues and mobile commerce. The percent of consumers who have experienced problems when conducting transactions online showed its first substantial decrease in five years -. Verticals represented in the findings include retail.6 billion).

online customer experience is still very much a work in progress. This improvement over prior years may be attributed to a growing business focus on delivering better online customer experiences. In 2009. The survey found that 48% of U. online adults say that they are now conducting more online transactions than they did in the past given the current economic climate.com/Harris]. Previous Tealeaf surveys have consistently shown that approximately 87% were affected. $47. today announced the results of the 5th annual survey of online consumer behavior. as 32% of those who experience issues when conducting transactions online would simply take their business elsewhere (to either an online or offline competitor) or abandon the transaction entirely.6 billion 22 .tealeaf. commissioned by Tealeaf and conducted by Harris Interactive® [results available at www. the resulting business impact is significant. However. The percentage of consumers affected by issues such as error messages (38%). CA – 6th October 2009 .San Francisco. endless loops (19%) and login problems (28%) is still extremely high.S. 80% of adults who have conducted an online transaction in the past year experience problems when doing so in 2009. 1 Further. While this reported decline in online transaction issues is good news.the leader in online Customer Experience Management software (CEM).

will potentially be impacted by online transaction problems. In India online shopping is considered as a relevant alternative channel for retailing and it is now an important part of the retail experience. The sample has been selected from the youth population as this group of people actually use internet to buy online. The study highlights that reliability. It is innovative and creative because marketers can experiment with it in form. visibility and availability. Similarly. This research study is an empirical study to find out the motivators and decisional influencers of online shopping.S. on U. reluctance and preference are the two decisional factors which influence the decision. accessibility and convenience are the major motivator factors which motivate the Indian consumer to buy online. shopping websites alone. content. 23 . Bikramjit Rishi (2010) in their study on Online shopping is an innovative option of distribution available in the hands of marketers.

many 24 . Atanasov (2001) in their study it is anticipated that the worldwide market for businessto-business and business-to-consumer e-commerce will total $3. music.1 billion by 2006 (Kamali & Loker. While it is clear that many more consumers are electing to shop online than in the past a shift in behavior that may be due to the sense that online shopping is safer and more secure than it was initially and to the adoption of alternative shopping avenues. These researchers and others reported that online buyers are also concerned about security issues when making online purchases.1 trillion in 2004 as compared to $350. which Schmerken (2001) considers to have generated a wave of corporate spending on e-commerce. The Internet and its myriad e-commerce or marketing sites. and travel (Schmerken. represents what researchers believe to be the security concerns of online shoppers and potential shoppers. Lepkowaska-White and Russell . Among the most profitable products and services sold online are consumer goods such as books. 2001). E-commerce or electronic commerce saw sales revenues grow 12. 2002). Other profitable sectors include investment transactions. arguing that browsers become buyers in cyberspace as perception of safety. computers and other tech products. Though many consumer concerns regarding the inherent safety of financial transactions online have been resolved through the development of sophisticated encryption programs. product quality. videos.Kamali and Loker (2002).1 percent in 2001 to $31. and retailer reliability increase an idea also advanced by Li.4 billion a figure expected to reach $81. This essay will examine these issues.4 billion in fiscal 2000-2001. Luo. in their study Internet retail sales represent a new and increasingly vital commercial milieu.

Alan Hirst (2006) in their study they evaluates women's attitude as an overall inclination towards apparel shopping online via e-mail questionnaire. information risk. 25 . Generally. The implication for online retailers is that they should focus on making the experience of online shopping more accommodating and more user-friendly. some Internet shoppers still avoid using credit cards online. Retailers who offer their products online are therefore advised to emphasize product disclosure and retailer disclosure and reduced information risk in their e-commerce sites. 'ease of use'. but these features do not deter them from buying online. Other security issues that were identified by Mauldin and Arunachalam (2002) focus on retailer disclosures. Ogenyi Ejye Omar. This is important because the positive features of online shopping ('convenience'. Mauldin and Arunachalam (2002) found that intent to purchase rather than merely browsing online increases in direct association with a sense of security and comfort. and 'efficiency') appear to be more important than the negative features ('lack of security'. product risk. 'usefulness'. Though most online retailers do provide clear descriptions of security procedures. and familiarity with the retailer and the product. Overcoming resistance to this fear is one of the key tasks that must be under taken. Its findings suggest that women generally show positive attitudes towards shopping online for apparel. 'privacy of information' and 'online fraud'). Women who shop for apparel online are aware of some of the discouraging features of online shopping.consumers require additional assurance that their financial data will be held in confidence.

Evidence is presented that 26 .Ruiliang Yan. A game theory model is developed to determine the optimal strategies for online and traditional retailers. EShoppers are profiled using a tertile split of the CCI. We also find that consumer online purchase costs have a greater impact on the retailer's profits in a Stackel berg competitive system than in a Bertrand competitive system. Each tertile's demographics. managerial implications are discussed and probable paths of future research are identified. John Wang (2009) in their research it provides a useful framework to help business marketers identify the effect of consumer online purchase costs on firm performances in online and traditional channel competition. computeroriented lifestyles. Allred. and further show that consumer online purchase costs always have a much more valuable impact on firm profits whenever the traditional retail transaction costs and the product web-fit change. Based on our results. computer activities. It proposes that online shopping is a discontinuous innovation whose adoption rate is influenced by several of Rogers' (2004) diffusion deterrents. Smith. We demonstrate that consumer online purchase costs always have a valuable impact on firm profits. A new 12-item 'Computer Competence Index' (CCI) is proposed and tested using data from an internetadministered US probability study of 1800 online users. William R. Chad R. Scott M. and online purchase activities are reported. Swinyard(2008) in their research paper they discusses online shopping in context of diffusion of innovation theory.

The findings would help the marketers to design their offerings based on the demographic profile of online consumers and would help the online marketers to identify and segment the online consumers which will enhance their focus and eventually leads to financial growth. Sakkthivel (2009) in their research paper aims to identify the impact of demographics on consumer buying behaviour towards online purchase of different products based on the involvement and investment (High.M. Medium and Low). It would help the marketers to identify the demographic profile of consumers which is otherwise not known due to the intangible nature of internet. 27 . It attempts to unearth the impact of the demographics on online purchase which is at present relatively limited.concepts related to the diffusion of innovation may explain resistance in the growth of online shopping A.

28 . the term “brand” authenticates that its products belong to a high-class. and opportunistic bidders. such as payment information and return information.Jianwei Hou. namely. All the online shopping websites dealt with branded products where there is greater emphasis on the trustworthiness of online shops or products.” However. Takashi Oguchi (2009) in their study to investigate what kind of information contributes to trust formation in online shopping. focused bidders. experiential bidders. information about the shop and its procedures and services. The results show that information described on the websites was classified into two categories. Cesar Rego (2007) in their study in traditional auctions. The profile and performance of each group are also discussed. The purpose of this paper is to explore the types of online bidders based on their real bidding behaviour in the context of consumer-to-consumer online auction market. since most online bidders are average consumers instead of professional bidders.The term “brand” originally refers to a “description or trademark which indicates a type of product made by a particular company. Twenty-seven female undergraduate students were recruited and asked to evaluate the trustworthiness of 20 online shopping websites. Tomomi Hanai. in modern Japanese society it refers to those branded products that are perceived to have a higher quality than other similar products. we suspect that online bidders are a heterogeneous group. Secondly. goal-driven bidders. the concrete information necessary for the consumption process. firstly. Thus. A cluster analysis is employed and four types of online bidders are finally identified in a private value auction. which heightens the reliability of these shops. However. it is often assumed that bidders are a homogenous group.

and surfers are now looking for spring sale bargains. rather than cost. Freeman. they tend to refrain from purchasing these products via online shopping due to their distrust of it. 1976). branded products among female young people. it becomes more and more important to analyse what kind of information contributes to trust formation in online shopping. Thorne. & Sloan. Consequently. the percentage of people who usually buy new branded products is about 20% among females under 20 years of age and more than 10% in females in their twenties. Borden. It also shows that the relationship between traditional and online retailing outlets needs to be more unified E-shopping has changed the face of retail. Walker. time-efficiency and personal control are the key drivers for consumers to search online. young females are especially interested in branded products.2006) in their research carried out by a consumer behaviour researcher at Henley Management College has investigated what drives people to search online. However.02. . especially female undergraduate students in Japan. Although branded products generally attract the attention of various kinds of people. Infoplant (2007) revealed that more than 60% of females under 20 years of age and nearly 80% of females in their twenties have purchased some branded products. David Anderson (02. Infoplant (2007) showed that nearly half of all people are interested in some branded products. where Internet shopping soared almost 50% during the 10-week run-up 29 to Christmas 2005 (IMRG).and the people who possess these branded products are regarded as “exclusive people” through the “basking-in-reflected glory process” (Cialdini. The branded products interest female young people and recently they have been more inclined to purchase them via online shopping. who are the target group of this study. and ownership of. Furthermore. we introduce several surveys for determining the attitude towards. The findings reveal that convenience. Female Undergraduate Students‟ Attitudes toward Branded ProductsFirst. This is following a bumper e-Christmas.

that analyses data from 304 electrical goods Internet shoppers. The research found that the expectation of getting a good financial deal is still a strong motivator to seek out products online. said: “What motivates online shoppers is the ability to shop. the new findings reveal that convenience and personal control are the key drivers for consumers to search online. Dr Susan Rose.this is key to contemporary customer service. provides businesses with a guide to getting the information highway buzzing with potential customers. when and how they like. A clear divide is appearing between the occasional online shopper and the regular experienced user. yet buy from a traditional high street retailer. Factors such as how much the medium challenges us mentally and our confidence to navigate and understand the technology can turn us on or off the idea of browsing online for products. For businesses there are some steps to help them embrace the Internet revolution with success. then take their search online. The research. from Henley Management College. Nowadays people can shop over their Shreddies in the morning. where. will the online shopping 30 . many people steer clear of electronic buying because of security worries. it is essential for retailers who operate both on and off line to ensure that they embrace a joined up process that appears seamless to the customer. Big-ticket items such as digital TVs. Some retailers have still to successfully unite the two retailing methods . or iPods now feature on our eshopping list. The Internet frees time and makes the information search process.However. but for occasional users etailingsites need to be easy to navigate.A key factor driving Internet use for „online window shopping‟ is its usefulness in our personal lives. Websites must be accessible and operate efficiently. but this is secondary to the importance but. Concerns about how easy the system is to use have almost disappeared for online shopping enthusiasts. or look around for goods in shops. Only once online retailers can reassure customers about fraud and privacy. The Internet provides a rich source of information about brands and retail channels that enable us to search and find information to help us with our final purchase decision. cameras.Research suggests that people search online for some goods. In turn.

Now more than ever. the promise of electronic commerce and online shopping will depend to a great extent upon the interface and how people interact with the computer. Several critical factors associated with online shopping behaviour will be explored. 31 . there are some inherent difficulties in maintaining an online inventory. This study is of a very exploratory nature and it intends to establish the differences between several webbased shoppers from different parts of the world. Web based shopping behaviour is one major example to point out the trends in this direction. in terms of financial transaction and privacy remain. This is a privilege that cannot be extended to the online retail store. As a final step the cross cultural differences between several shoppers will be explored. Worries about the risk involved. “Will the traditional consumer behaviour theory and research be altered by the advent of web based shopping?” There is a huge difference between a physical store and its electronic counterpart. Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change human behaviour and human interactions to a very large extent.curve really take off. In a regular store. A cross cultural data set will be collected and an illustrative description of the shoppers will be provided. At the same time. the managers can pull out a product from the shelf if they feel that it is not fast moving or has no demand. One question which will run as a theme throughout the course of this paper is. The familiar layout of the physical store becomes a maze of pull down menus. A move from „big brands‟ to „bargains‟ may only take place once. product indices and search features. A help button on the home page of the web-shopping site replaces the sales clerks‟ friendly advice and service.

It is the abbreviated version of “electronic retailing” which essentially constitutes business to consumer transaction. Every e-tailer wants his/her share of domain amidst the vast World Wide Web galaxy.) The E-commerce industry plays a vital role in its growth and development. (Also termed as online stores. The idea of online retailing or e-tailing which almost every net-savvy individual is familiar with. online retailers or e-tailers get to expose and sell their products to a global audience through their e-stores. web shops etc. As consumers today are well-informed. Therefore. e-tailing is just not restricted to putting up products for sale for consumers to buy. offers a convenient mode of shopping online and the consumer gets to choose from a diverse range of products and services as opposed to the analogous physical shopping experience. it is understood that they would make a well informed decision as well. as advanced e-commerce applications act as a potent catalyst in the development of e-tailing. The consumer or buyer is usually provided with detailed information and description of the product which helps them make a judicious choice before making an online purchase. Due to the intense competitory quotient involved. For consumers who face a paucity of time or want a diverse range of products to choose from. every e-tailer out there wants to offer their customer/buyer a smooth and pleasant shopping experience. internet shops.Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the internet. e-tailing proves to be an ideal option. This involves a fair amount of product research. Furthermore. price comparison and checking the credibility of the e-store 32 . While the concept of online retailing or etailing is no longer in its nascent stage. it continues to evolve.

CHAPTER-3 NEED. SCOPE & METHODOLOGY 33 . OBJECTIVES.

a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition.1 Scope of the study At any given time there are millions of people online and each of them is a potential customer for a company providing online sales.3 Scope of the Study and Methodology 3. Since the Internet is a new medium for there have been new demands set by the consumer. it is of the out most importance to be able to understand what the consumer wants and needs. That is why it is crucial for the online retailers to know what influences 34 . Due to the rapid development of the technologies surrounding the Internet. 3. Since there are so many potential consumers.1 Need The need of this research is to identify and get insight into what main factors the online consumer takes into consideration when most he buy products on internet what affects their shopping behaviour.3.2 Objective of the study  To study the online shopping behavior of customers  To study the factors influencing online shoppers and consumers  To study the customer‟s level of satisfaction with regard to online shopping  To examine whether customers prefer online shopping to physical stores. 3.3. basic need of this research is to find out what are the main factors affect the online consumer when considering and making a purchase over Internet. The importance of analyzing and identifying factors that influence the consumer when he or she decides to purchase on the Internet is vital.

. The renowned marketing expert Philip Kotler has published several works on the topic of consumer behavior theories. We took around eleven different factors by studying the existing models of consumer attitudes that play an important role in online purchase. The sample size was 100.3.the online consumer. shows some factors that consumers consider these factors need to be identified and taken into account by online retailers in order to satisfy consumer demands and compete in the online market.The Questionnaire (shown in Annexure) was used Mainly to test the model proposed for Attitude towards online shopping. Likert five point scales ranging from Strongly Agree to strongly disagree was used as a basis of Questions. but also create a marketing strategy that will attract the consumer efficiently Hence. Analyzing consumer behavior is not a new phenomenon. understanding and identifying the consumer is closely related to the directions a company will take with their marketing strategy. and then proposed a model leading to online 35 . 3. some distinctions must still be made when considering traditional consumer behavior and online consumer behavior. one must identify what influences the online consumer. The type of research was both exploratory as well as Descriptive. Since online retailing is a new retailing medium and online consumer behavior is diverse from traditional consumer behavior. Analyzing the process that the online consumer goes through when deciding and making a purchase over the Internet. These theories can also be applied to identify the online consumer and to create certain consumer segments. These theories have been used for many years not only to understand the consumer. However.2Research Methodology Data for this study was collected by means of a Survey conducted in Lovely Professional University.

Usually when a study is Conducted. Price.shopping. 3.3Research Strategy When collecting data to approach the purpose of a research there are two ways in which the data can be collected. secondary data is primarily used and is one of the ways by which data can be collected. We will also be discu ssing which different types of Methodologies that were u sed. and Convenience In order to be able to find and establish Online Consu mer Segments.3. This model was then tested in our research by the mode of factor analysis in SPSS. By doing so we found the factors Price. Trust and Convenience. secondary data is not su fficient enou gh and needs to be completed with primary data which is collected by the research. The second way to collect data is the primary data collection. 3. We then collected primary data through a survey. In order to acquire a General knowledge about the topic. The segments were u sed in order to further 36 . The main purpose of the survey was to collect data about Online Consu mer Behavior and the significance of the established factors. Trust. Consu mer Traits and Online Behavior had to be identified. Since our research is of descriptive character our primary intention was to collect seconda ry data and analyze it.4Descriptive Research Method We will condu ct our research in order to collect primary data and reach the objective of the Dissertation.3.

We decided that the sample size should contain over 100 respondents and we collected answers from100 respondents. The sampling method for students took also place on a Convenience basis since the students that agree to answer the questionnaire are those that were chosen Type of Research:  Descriptive Research. a specific Population had to be identified in order to generalize and create relevant segments. We will attempt to collect as many respondents as possible but since we will be studying students we assume that there will be little variation in the population making it more approved to generalize the response rates. Tru st. 3. and Convenience have on Online Consu mer Segments.4Sample Design The factors that we intended to examine can be applied to and investigated at any population that u ses the Internet and bu ys online produ cts Online.identify what impact the factors Price. Since there are time and resource res traints.  Sample Size: 100 37 . The populations for this research are university students at the Lovely Professional University the University was chosen on a convenience basis. Convenience sampling involves using samples that are the easiest to Obtain and is continu ed until the sampling size that is need is reached.

4 DATA ANALYSIS 38 .CHAPTER.

543 Bartlett's Test of Sphericity Approx.000 39 . . 190 .989 df Sig. Chi-Square 349.FACTOR ANALYSIS KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

000 1.576 .521 .000 1.717 .000 1.550 Extraction Method: Principal Component Analysis.713 .778 .584 .688 .000 1.500 .570 .625 .000 1.000 1.000 1.638 .000 1.000 1.000 1.781 .688 .000 1.Total Variance Explained Communalities Initial q1 q2 q3 q4 q5 q6 q7 q8 q9 q10 q11 q12 q13 q14 q15 q16 q17 q18 q19 q20 1.000 1.000 1.000 1.718 .766 .000 Extraction . 40 .562 .000 1.000 1.669 .000 1.589 .616 .000 1.000 1.

042 % of Variance Cumulative % 15.240 Extraction Method: Principal Component Analysis.910 57.279 Initial Eigenvalues % of Variance Cumulative % 15.875 .396 15.994 90.546 7.377 4.328 1.501 .009 53.433 97.325 .075 1.165 40.000 Extraction Sums of Squared Loadings Total 3.345 5.657 10.087 3.150 95.368 47.894 4.563 1.309 .454 19.331 % of Variance Cumulative % 10.456 36.373 9.839 6.510 77.685 .345 5.979 .002 33.427 3.815 7.059 98.926 1.633 1.271 44.373 25.009 53.677 5.598 81.203 6.269 1.283 1.269 1.673 6.457 .368 1.354 59.641 6.629 .891 1.091 1.641 6.042 .144 2.Comp onent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total 3.633 1.354 59.926 1.240 69.651 2.423 84.583 64.328 1.826 3.165 40.677 5.373 25.545 1.135 1.644 93.604 100.002 33.208 4.560 1.208 15.441 1.135 1.203 6.910 28.368 47.765 .071 50.456 8. 41 .629 8.032 64.075 1.800 6.441 1.530 .240 Rotation Sums of Squared Loadings Total 2.626 1.133 73.163 7.850 87.629 8.032 64.335 1.454 9.373 9.505 2.817 .709 1.163 7.

158 -.013 -.207 .085 .360 .197 .363 .293 -.000 .321 .473 .181 -.143 .107 .120 .400 .141 -.318 -.146 .098 .238 .261 -.388 3 -.148 .264 .289 .051 .213 .014 -.458 .188 .074 .193 .088 -.217 .Component Matrix a Component 1 q1 q2 q3 q4 q5 q6 q7 q8 q9 q10 q11 q12 q13 q14 q15 q16 q17 q18 q19 q20 .670 .389 -.071 .487 .263 -.156 .105 .326 .058 . a.344 -.195 .174 .175 -.523 -.227 -.309 .623 .370 .547 .335 .574 .012 -.314 .007 -.284 .274 .185 .423 .189 .095 .151 .228 .344 -.060 -.294 -.579 .287 -.102 -.235 .256 .003 .310 .396 -.557 .116 -.262 -.547 -.355 .098 -.575 -.577 .116 -.064 .350 -.411 .411 -.236 -.114 .143 .626 .278 -.265 -.508 2 -.072 .081 .526 .032 -.229 5 .132 -.327 .042 -.290 -.134 .333 .203 .125 -.461 .106 .072 .582 .282 -.146 -. 42 .249 .118 -.174 .047 .030 .073 . 8 components extracted.308 -.185 -.250 -.082 Extraction Method: Principal Component Analysis.180 .034 8 .031 4 -.286 .005 -.314 -.181 .148 -.461 -.041 6 .025 .281 7 -.117 .117 .127 -.128 .130 .549 -.089 -.359 .094 -.181 .261 .403 .329 .158 .299 .018 -.064 -.075 .315 -.003 -.097 .

644 .135 8 -.005 -.371 . Rotation Method: Varimax with Kaiser Normalization.701 .133 -.112 -. 43 .105 .037 -.249 .115 .042 .007 .241 -.040 .056 .581 .030 .046 -.093 .565 .Rotated Component Matrix Component 1 q1 q2 q3 q4 q5 q6 q7 q8 q9 q10 q11 q12 q13 q14 q15 q16 q17 q18 q19 q20 .152 .039 .072 .332 .094 .004 .170 .059 -.665 -.024 5 a 6 .108 -.003 .186 .179 -. a.104 .140 -.006 .297 -.137 -.235 -.220 .134 .091 .305 -.071 .069 .027 -.100 .111 .032 .003 .368 .058 -.113 -.114 .673 .469 .145 -.009 -.089 -.325 .585 .009 .671 -.216 -.095 .305 .030 .032 .111 .327 Extraction Method: Principal Component Analysis.017 .005 .823 .055 .169 -.125 -.027 .205 .141 -.005 .018 .125 .073 .036 .202 .066 .006 .421 2 .106 .087 -.026 -.811 -.757 -.077 .188 .123 .319 .588 .093 -.062 .015 .297 .181 .057 .107 .342 3 .091 .202 .235 .146 .698 .046 .112 -.288 .257 4 .209 .710 .122 .004 .014 .726 .030 -.003 .134 -.098 .013 -.148 -.639 .180 -.265 .259 -.088 -.008 .010 -.062 .092 .111 .203 7 -.122 -.340 .821 -.043 .281 .291 .376 .099 -.328 .636 -.003 .172 .087 -.314 . Rotation converged in 13 iterations.155 .183 .401 -.169 -.337 .226 .

258 -.517 .273 -.286 .184 .439 -.663 .248 .302 -.253 -.300 -.643 .179 -.051 2 .408 .149 .178 6 .077 3 .556 Extraction Method: Principal Component Analysis.517 -.271 .303 .338 7 -.186 .490 .010 .435 -.815 -.285 -.365 . 44 .324 .120 4 . Rotation Method: Varimax with Kaiser Normalization.637 .309 -.204 .281 .480 -.159 .287 .181 .330 -.040 .719 .350 5 .284 -.027 .201 -.289 .370 .097 .188 -.050 .332 -.670 .086 .Component Transformation Matrix Compo nent 1 2 3 4 5 6 7 8 1 .086 .153 .314 .084 .528 -.023 -.163 .066 .633 8 .

As it shows that from age 15-20 the number of respondents are31 % and from age of 20-25 it is 48 % and from 25-30 it is 14% this is the above data which is shown by the this pie chart 45 .Q1. TO KNOW THE AGE OF THE REPONDENTS? AGE 0% 14% 7% 31% AGE 15-20 20-25 48% 25-30 30-ABOVE Figure 1.1 INTERPRETATION The above diagram shows us the percentage in the age of respondents.

Q2 TO KNOW THE GENDER OF THE RESPONDENTS? GENDER 14 MALE 86 FEMALE Figure 2. we use to get more data from males as they were ready to give their experiences. it this graph itself is showing more percentage of males rather than females. the percentage of male respondents is 86% and percentage of female respondents is only 14%.2 INTERPRETATION As our respondents are mostly from the hostel of Lovely professional University and the campus of university itself. 46 .

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR URBAN AREA? ADDRESS 24 RURAL 76 URBAN Figure 3. 47 .3 INTERPRETATION The above diagram is showing the percentage of demography of respondents and what is the percentage of respondents who lives in rural or urban region.. the above diagram is showing that 76% of the respondents are from urban areas and 24% of the respondents are from urban area.

48 .4 INTERPRETATION This graph help us to know the occupation of the respondents.EMPLOYEE 90 SELF EMPLOYED OTHER Figure 4. the above graph shows that the segment of the students i. 90% of the students are using internet and use to buy online products. this is to know that which segment of people are buying more products on the internet whether they are the segment of students o government employees or professional .e.Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS? 0 4 10 5 OCCUPATION STUDENT PROFESSIONAL GOVT.

TO KNOW THE MONTHLY INCOME OF THE REPONDENTS? MONTHLY INCOME 3 3 LESS THAN10000 10000-20000 20000-30000 94 30000-40000 40000ABOVE Figure 5. and it show that less than 10000 income respondents have buyed more online products because most of them are students and they use to buy music Cds. 49 . gadgets.5 INTERPRETATION This above graph shows the percentage of monthly income of the different respondents. laptops .Q5.

6 INTERPRETATION This graph show us the percentage of respondents who have their own internet connections. 50 . its shows that 65% of respondents have their own internet connections and 35% people don‟t have their internet connection.Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET CONNECTION? 35 DO YOU HAVE YOUR INTERNET CONNECTION 65 YES NO Figure 6.

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING WHAT MOTIVATES YOU TO BUY ONLINE Column1. NO TRAVEL TO SHOP. 51 . as from above result we found out that no travel to shop is the main thing which motivates the people to buy products online.7 INTERPRETATION This graph shows us what motivates the people to buy internet. 46. 47% 37 EASY PAYMENT NO HIDDEN COST WIDE RANGE OF PRODUCTS NO TRAVEL TO SHOP 5 10 Figure 7.

And result shows 67% of people says that it provides competitive prices and only 27% people says no.8 INTERPRETATION This diagram shows us that whether online marketers are giving competitive price or not and result which is came is that most of the people thought that online marketers are providing competitive prices than physical stores.Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE Do you feel that the online marketers are providing competitive prices? 6 27 YES 67 NO CANT SAY Figure8. 52 .

53 .Q9 WHAT PRODUCTS DDO YOU BUY ONLINE? WHAT PRODUCTS YOU BUY ON INTERNET? 20 25 BOOKS MUSIC CD'S 23 20 12 T-SHIRTS MOBILE LAPTOP Figure 9.9 INTERPRETATION The above graphs gives result that most of time people use to buy books25% but the margin with other things is very less as music Cds have percentage of 20 and mobile 23%So this graph shows us this useful data .

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL STORE DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK AND MORTAR STORE? 0 12 45 YES 38 NO CAN'T SAY Figure 10. The percentage of people who says online shopping is better is 45% and the people who says it not good is 38 %.1 After analyzing the above graph shows that the people are in favour of that online shopping is better than physical store. Still the percentage of people who says yes is more than other who says no. 54 .

com because % of people who buys books is more than any other products so people mostly visits amazon. 55 .1 INTERPRETATION This graph shows that 35% people use to visit e-bay for online shopping.40% use to go at amazon.com.Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE 10 4 35 e-BAY YAHOO SHOPPING 40 16 AMAZON BEST BUY OTHER Figure 11. 16 % people do at yahoo shopping and for other people use to visit at BestBuy and others.

And they attracted towards it and start getting products from there.WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING? WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING? 3 18 10 17 SEARCH ENGINE PERSONAL RECOMMENDATION SPECIAL OFFERS ON SITES 32 20 ONLINE ADVERTISING TV ADVERTISING OTHERS Figure 12. And 20% people decision is affected by special offers by the offers and the discounts given by the sites.1 INTERPRETATION This diagram shows us what affects people to buy products on internet and it shows that 32% people came to know about shopping sites through online advertisements. 56 .

1 INTERPRETATION This diagram shows that mostly people uses credit card to pay their payments 78% people use to pay by credit/debit card and 5% through bank transfer and 15% through pay pal and 2 from paypal. 57 .Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET ? 15 5 CREDIT CARD/DEBIT CARD BANK TRANFER 78 PAYPAL ANY OTHER 2 Figure 13.

4 This graph shows that whether people faces any problem while doing online shopping or not and the result shows that 48% people says that they have faced problem while buying online and 28% people says that they don‟t face any problem and 14 says that we can‟t say 58 .Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE 14 28 YES 48 NO Figure 14.

employee Self employed Others Fig 4 Income of respondents Respondents 76 24 No of respondents 31 48 14 0 % of respondnts 31 48 14 7 Respondents 86 14 No of respondents 90 4 5 1 % of Respondents 59 .List of Tables Age 15-20 20-25 25-30 30 and above Fig 1 Gender Male Female Fig 2 Address Rural Urban Fig 3 Occupation Student Professional Govt.

say Fig 8 What products you buy on internet Books Music t-shirts Mobile Laptop % respondents 67 27 6 % Respondents 24 25 12 23 20 60 .LESS THAN 10000 10000-20000 20000-30000 30000-40000 40000ABOVE 94 3 3 Fig 5 Internet connection Yes No Fig 6 WHAT MOTIVATES YOU TO BUY ONLINE EASY PAYMENT NO HIDDEN COST WIDE RANGE OF PRODUCTS NO TRAVEL TO SHOP % respondents having internet connection 65 35 % of Respondents 37 5 10 46-47 Fig 7 Do you feel that the online marketers are providing competitive prices Yes No Cant.

say Fig 10 Which of the following stores have you visited online e-bay Yahoo shopping Amazon Best buy Others Fig 11 What factors help you to decide which site is use for online shopping Search engine Personal recomdations Special offers on sites Online advertising TV advertising Others Fig 12 How do you make your payments online Credit card/debit card Bank transfer Pay pal Any other Fig 13 Have you face any problems while shopping online % Respondents 45 38 12 % of Respondents 35 16 40 10 4 % of respondents 18 10 20 32 17 3 % of respondents 78 5 15 2 % of respondents 61 .Fig 9 Do you feel that online shopping is better than shopping at physical brick mortar store Yes No Cant .

Yes No Cant .say Fig 14 48 28 14 62 .

Limitations. conclusion.CHAPTER-5 Summary. Recommendations 63 .

Other segment was mainly price and convenience oriented therefore took the most consideration to the opinions and experiences of the Reference groups. As they low disposable income and were somewhat convenience oriented when acquiring information about low prices. People used to do online shopping because of its convenience rather than its pricing. CONCLUSION Increased Internet penetration. In addition to above. and introducing Internet kiosk. But the main thing which is very common in the most of the people about online shopping is its risk of privacy i. and that second factor was trust was closely followed by convenience. efforts need to be taken to educate the online 64 .Summary The three segments that were found show a significant difference in the primary factor of concern. a hassle free shopping environment and high levels of Net saviness see more and more Indians shopping online. The goal is not to convert all shoppers to online purchasing.e. computers and other aids in stores. but to show them it„s an option. We found that most of the time youngster who are from the age of 20-25 shops a lot on the net rather than other age limits. But at the same time the companies need to reduce the risks related to consumer incompetence by tactics such as making purchase websites easier to navigate. hacking of account number getting passwords and all. When we segmenting the respondents through the different variables we found that segment one were mainly trust oriented and the respondents had a high positive attitude towards purchasing books online. The general distribution showed that the factor price was the primary factor for the entire population sample. we chose to label them price easers.

Owing to time limitation. In addition. it would be very interesting to compare IS literature to other disciplines that study online shopping attitudes and behavior. the feedback of an online buyer should be captured to identify flaws in service delivery. Moreover. This may leave some other prominent empirical studies out. While current trends point to increased e-commerce growth in India. the buyer is at a higher risk of frauds.buyers on the steps that need to be undertaken while making an online purchase. While such hurdles as limited broadband access and security concerns remain. Limitations of the Study Limitation of the study is the selection of the existing studies. Thus. 2007 A Survey by Indian research organization Juxtconsult found that more and more Indian Internet users are opening their wallets online. Report Finds Heavy Spenders Driving Sales By Devin Comiskey August 16. the report finds there are currently more than 10 million shoppers online in India. the online retailing raises more issues than the benefits it currently offers. I only searched a few number of journals. The quality of products offered online and procedures for service delivery are yet to be standardized. owing to the multidisciplinary nature of online shopping. Indian E-Comm. This can be done through online communities and blogs that serve as advertising and marketing tools and a source of feedback for enterprises. Juxtconsult's survey found that 40 percent of all urban Internet users 65 . the online marketplace in the country of more than 1 billion people is still relatively small. Till the same is done. I found that it is a challenge for E-marketers to convert low frequency online buyers into regular buyers through successful website design and by addressing concerns about reliable performance.

) The report also found that buying and search patterns among Indians differ between genders.000 users. tackling and countering the issue of online safety figures as an imminent challenge for net marketers." (1.. Convenience of shopping '24x7' and home delivery are other major incentives. "It is interesting to note that two out of every three heavy spenders are also 'netholics. with almost 55 percent of them voicing their concern.000 rupees per month while the (remaining) 75 percent bill less than 1. "However." says the report. only 31 percent of urban female users are consumers as well. "The single biggest motivation for buying online for net users is saving time.buy online. only 25 percent are spending more than 1. Women tend to search more." states the report." it says." says Juxtconsult.000 Indian rupees is currently equal to approximately $23 US. but users fear compromised personal information is still a great risk when it comes to ecommerce. Defying their more common attitude towards shopping. CDs Top the List 66 . Security Fears Persist Juxtconsult says the motivation for Indian users to make purchases online varies. The survey was conducted in April 2007 and sampled more than 30." Books.. Clearly. "This section of buyers spends 5. "While 43 percent of male users buy online. nine percent to 25 percent are buying online. the concern of possible misuse of credit card or personal information is extremely significant among online buyers. whereas 33 to 47 percent are searching the net for product information. Thirty-two percent of them look to shop online with this purpose.Of all those who buy online.000 rupees per month.000 rupees or more per month on the net. while 42 percent of the sales originate through just five percent of consumers. "Depending on the product type.' those who are on the net for more than three hours per day. women are more guarded when it comes to the online market.

LATEST . A Meta search engine searches all the online travel sites (including the airlines sites as well) and displays the best deals for the user." says the report. Ixigo and Ezeego are two players in this space.A new trend in this space is that of Meta search engines. Barriers to the Growth of the Market: Consumer Bias 67 . "Ironically.making up 25 percent of all online purchases. computer hardware and software. The Internet is still being used more for searching than buying products and services.The products that are purchased most online in India. according to Juxtconsult. such as Make My Trip India Pvt. despite having the home advantage are among one of the least bought products online. are books and CDs . Ltd. with only 13 percent buying them." says Juxtconsult. 1000 crore for the financial year ending March 2008. the online market in India is blossoming but is yet to take off in a considerable way. at present only a small tribe among them is driving online shopping momentum. Though a noticeable proportion of net users are also net consumers.000 crores ($400 million) religious travel market Opportunity in Online Travel Industry: $2billion Online travel company MakeMyTrip (MMT) has recorded sales of Rs. Ltd and Yatra Online Pvt. essentially. Travel websites. as per a release. "In sum. are battling to win over India„s Rs16.

A few would risk buying expensive jewelry from an unknown jeweler online. it is sometimes a lengthy process to get a faulty or the unsuitable product changed.August to February is the peak seasons for sale. occasions that drive the sales are Diwali. On these occasions younger generations prefers buying and sending gifts online. Christmas. the value of the products sold is continuously falling owning to high competition and leaner margins. are. although the number of transactions is increasing. As told by an Industry player. New Year. Seasonality E-Commerce Market is faced by seasonal fluctuations. Thus. the competing online players are adopting all means to provide products and services at the lowest prices. Credibility in Payment System 68 . Thus products of brands with a favorable bias will score over the products of less popular brands. Rakhi.. During the peak season. unless the deliverables are as per the customers „expectations. Mounting Competitive Pressures To attract customers.Consumers often display a bias for brands that they know well and have had a good experience in the past. Valentine‟s Day. Thus. Mother„s Day. Lack of „Touch –Feel-Try‟ Experience The customer is not sure of the quality of the product unless it is delivered to him and post-delivery of the product. . who in turn surf various websites to spot the lowest price for the product. Friendship Day etc. This has resulted in making the consumers choice-spoilt. it is hard to infuse more credibility in the e-Tailing market. while March to July is the dry seasons for sale.

so retailers have to give more discounts to their customers so that they can visit again and again to their site .Online frauds and breach are the biggest barriers to online sales. Following implications should be followed     Discount prices A transfer and reliable retailer Fast transactions Focus on customer satisfaction 69 . and one more thing is that there should be transaction of money is very slow they have to make it fast so that customer don‟t have to face much problem to pay for the product. prospective buyers prefer staying away from revealing their credit card and bank details. Untimely Delivery of Products It might take a few minutes to search. and it also helps to make people more aware about the low rick shopping of the net. Recommendations As we came to know after researching on this topic we recommend that. but the delivery of the product may take unreasonable time. if customer is going to face some problem he is not going to visit our site and buy product . and as people are coming on their sites and they are buying their products . the online sellers have to make their payment transparent. book and pay for products and services online. As a result.

CHAPTER-6 70 .

metapress. 169 .linkingpublicationresults.journal.com/search/index. No.com/Harris/[12april] http://inderscience.2 pp.com/article_analysis_of_consumer_behaviour_online.2 pp.php?action=record&rec_id=32383&prevQuer y=&ps=10&m=or1m[12 may 2010] (International Journal of Business Innovation and Research 2010 .com/search/index.com/viewpaper/1693412.html [11april 2010] http://www.REFRENCES http://analogik.15.2. 1.182) http://www. 169 .6.3 pp.1[11april 2010] http://www.40.inderscience. 4.asp?referrer=parent&backto=is sue.inderscience. No.essays.182) 71 .com/app/home/contribution.Vol.lotsofessays.tealeaf.com/search/index. No.php?mainAction=search&action=record&rec_ id=11032&prevQuery=&ps=10&m=or[2 may 2010] (International Journal of Electronic Marketing and Retailing 2006 .Vol. 195 209) http://www.asp [27april 2010] http://www.se/essay/e1fb0c636f/ [13april 2010] http://www.1:110844.inderscience.php?mainAction=search&action=record&rec_ id=11032&prevQuery=&ps=10&m=or[22april [11april 2010] ( International Journal of Electronic Marketing and Retailing 2006 . 1.Vol.

php?mainAction=search&action=record&rec _id=14847&prevQuery=&ps=10&m=or [ 16 april2010] (International Journal of Electronic Marketing and Retailing 2007 . 302 .php?mainAction=search&action=record&rec_ id=27851&prevQuery=&ps=10&m=or [2 may 2010] (International Journal of Electronic Finance 2009 .com/search/index.html 22april 2010] 72 .Vol.338) http://www.innovations-report.php?mainAction=search&action=record&rec_ id=10096&prevQuery=&ps=10&m=or [8 may 2010] (International Journal of Electronic Marketing and Retailing 2006 .com/html/reports/social_sciences/report-54694.inderscience.3 pp.php?cisloclanku=2009111002&article=6#authors[2 2 may 2010] http://www.Vol.com/search/index. No.http://www.eu/view. No.Vol.1 pp. No. 3.php?mainAction=search&action=record&rec _id=19151&prevQuery=&ps=10&m=or (International Journal of Internet Marketing and Advertising 2008 .com/search/index. No.com/search/index. 1.cyberpsychology. 4. 322 .http://www. 1.Vol.http://www.4 pp.327) [1 may 2010] http://www. 284 .inderscience.4 pp.inderscience.296) .inderscience. 67 82) .

CHAPTER-7
APPENDIX

73

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled “ Consumer Behaviour In Online shopping . In this regards your kind cooperation is needed in filling the questionnaire herewith. Further, I assure you that all the information provided by you would be kept strictly confidential and will be used for academic purpose only.

Thanks With regards NAME Prashant Priyadarshi Nitish Arora Nandni Kashyap BBA 4th SEM Specialization: Marketing ROLL.NO Q1808A17 Q1808A15 Q1808A58

74

QUESTIONNAIRE
1. Name ___________________ 2. Age 1) 15-20 Q3. Gender 1) Male Q4. Address 1) Rural 2) Urban 2) Female 2) 20-25 3) 25-30 4) 30 above

Q5. What is your occupation? a) Student e) Other Q6. What is your monthly income? a) Less than 10000 d) 30000 to 40000 b) 10000 to 20000 e) More than 40000 c) 20000 to 30000 ÿ à b) Professional c) Govt.employed d) Self Employed

Q7. Do you have your own internet connection? a) Yes b) No

Q8. How frequently do you purchase online?

75

a) Once a week b) More than once a week d) more than once in a month Q9.It takes more time to search specific product 6.I can customize the products according to my specification 13.It does not require travelling to far off distance 3.It takes a long time to deliver products 5.Speed of internet affects your online shopping 7.It saves your time 2. What motivates to buy products online? a) Easy payment d) Wide range of products b) No hidden cost c) once a month c) No travel to shop e) other [Please specify] ____________ Q10.Shopping 24x7 9. I cannot negotiate prices on internet.It gives me ease of shopping at home 8. 76 .Anywhere any time shopping 4.I do not think that online shopping results in monetary benefits Agree Can‟t say Disagree Strongly Disagree 12.Ease to make payment assistance 10.Do you feel that the online marketers are providing competitive prices? a) Yes b) No c) Can‟t Say 1 2 3 4 5 Strongly agree 1.I get better discounts & offers on internet 11.

The actual products do no match the products shown on site. 17.Wide choices of brands to choose 18. Lack of physical evidence affects my purchase decision. What factors help you to decide which site to use for online shopping? a) Search engine d) Online advertising b) Personal recommendation e) TV advertising c) Special offers on sites f) other_________ Q15.How do you make your payments on internet? a) Credit card/Debit card other______ b) Bank transfer c) PayPal d) any 77 .14. What products you buy on internet? a) Books e) laptop f) Other [specify] ___________ Q12. 19. I can shop from stores located at any part of the world.I feel difficulty to choose a product because of intangibility Q11.I have access to Global brands 16.I do not get much variety in products 20.Which of the following stores have you ever visited for shopping online? a) e-bay b) Yahoo shopping e) Other [please specify] c) Amazon d) Best buy Q14. Do you feel that online shopping is better than shopping at physical brick & mortar store? a) Yes b) No c) Can‟t say b) Music CDs c) T-shirt d) Mobile Q13. 15.

Have you face any problems while shopping online? a) Yes b) No c) Specify _________________________ 78 .Q16.

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