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CONSUMER PERCEPTION TOWARD ONLINE SHOPPING.doc

CONSUMER PERCEPTION TOWARD ONLINE SHOPPING.doc

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INTRODUCTION OF INDUSTRY

A process in which images or listings of goods and services are viewed remotely via electronic m e a n s , e . g . v e n d o r ’ s Web site, i t e m s a r e s e l e c t e d f o r p u r c h a s e , a n d t h e t r a n s a c t i o n i s completed electronically with a credit card or an established credit account. Various encryption schemes may be, and usually are, used to reduce the risks of sending information, such as credit-card numbers, over the Internet or other telecommunications facility. IN A wallet is a small software program used for online purchase transactions. Many payment solution companies, such as Cyber Cash, offer free Wallet software that allows several methods of payment to be defined within the wallet (for example, several different credit cards). Here ‘s h o w i t w o r k s : W h e n y o u o r d e r s o m e t h i n g , t h e o r d e r i s s e n t t o t h e m e r c h a n t . T h e m e r c h a n t (actually, the merchant's server) sends back an invoice and asks the consumer to launch the Wallet in his computer (or to download it quickly if the consumer doesn't have it yet).When the consumer selects "Pay," the Cyber Cash software on the merchant server sends a message back to the consumer's PC that activates the "Wallet" software. The consumer selects one of the cards defined in the Wallet and clicks. The transaction includes real-time credit card authorization. Cyber Cash says" "Coin" Soon system we will incorporate an electronic "Cash" and to use

for transactions that are considered small for credit cards. Online shopping is the process consumers go through to purchase products or services over the Internet. An online shop, e-shopping, e-store, internet shop, web shop, web, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a mall. The metaphor of an catalog is also used, by analogy with mail catalogs. All types of stores have retail web sites, including those that do and do not h a v e p h y s i c a l s t o r e f r o n t s a n d p a p e r c a t a l o g s . 1

HISTORY History of online shopping starts not so long ago. Amazon started operation. one of the largest online shopping mall now. Not only does online shopping offer really good deals. the use of 2 . Another development was opening of online pizza shop by Pizza hut. Online bank. In the same year Netscape introduced SSL encryption to enable encryption over the data transferred online. In 1998 witness use of electronic postage stamps. This later became the necessity of online shopping. In 1999 the first online shop in UK launched IN INDIA India has more than 121 million internet users out of which one-half opt for online purchases and the number is rising sharply every year. Moreover.Online shopping is a type o f electronic commerce used for business-to-business (B2B) and business-to-consumer (B2C) transactions. Tim Berners-Lee created “The World wide Web Browser” in 1990. In 1994 few other developments took place. The growth in the number of online shoppers is greater than the growth in Internet users. The capability of purchasing without leaving your place is of great interest to many consumers. indicating that more Internet users are becoming comfortable to shop online. the first of its kind opening this year. where people can download and print postal stamps after paying nominal fee. In 1995. but also brings optimum convenience to the consumers. Then in 1996 eBay started its online shopping portal. The term " Web shop " also refers to a place of business where web development. web hosting and other types of web related activities take place (Web refers to the World Wide Web and “shop" has a colloquial meaning used to describe the place where one's occupation is carried out).

the market is estimated at Rs. but also brings optimum convenience to the consumers. consumer durables are being purchased online. It is a fact that a great online shopping revolution is expected in India in the coming years. At present. Until recently. rail or movie tickets. indicating that more Internet users are becoming comfortable to shop online. India has more than 100 million internet users out of which one-half opt for online purchases and the number is rising sharply every year. For this purpose. but now more and more offline product like clothes . as they can purchase their desired products in the lowest available price. T-shirts shoes.On the contrary.Internet tools for price searching and comparison provides an additional advantage in consumers’ final decision. With nearly half of the Indian population being young and net savvy. The recent growth in the mall culture in the country has in fact made consumers more aware about different options and encouraged them to search and eventually purchase online. resulting many people to browse the Internet for informational matters than for buying online. there has been an extra ordinary rise in the numbers of online shoppers. the consumers generally visit online to reserve hotel rooms and buy air. The capability of purchasing without leaving your place is of great interest to many consumers. The two most commonly cited reasons for online shopping have been convenience and priced.46000 cr. as they can purchase their desired products in the lowest available price . Not only does online shopping offer really good deals. privacy and security have been the great concerns. kurtis. Moreover. The growth in the number of online shoppers is greater than the growth in Internet users. the data from 100 respondents was collected in the form of questionnaires. There is a huge purchasing power of a youth population aged 18-40 in the urban area. and is growing at 100 percent per year. and designer lingerie. the use of Internet tools for price searching and comparison provides an additional advantage in consumers’ final decision.saris. This project focuses on the understanding of perception of online purchase in India. books and gadgets and gizmos. 3 .

There are about 200 million of middle-class population good spending powers.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. There is a strong booming young adult population in India with good levels of disposable income. since India being a younger market. Around 25% of regular shoppers in India are in the 18-25 age groups. . Worldwide e-commerce is only growing at the rate of 28%. These people have very little time to spend for shopping. • • Indian online matrimonial sector is worth around $230 million. Many of them have started to depend on internet to satisfy their shopping desires. Few Facts about Online Shopping The figures from IAMAI show that the internet users in India will grow to 200 million by 2010. the growth of e-commerce is expected at 51% in the coming years. 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. • Indians are also Shopaholics like other Asians. 4 . • In line with global trends finally India has also started shopping online these days. and 46% are in the 26-35 year range.

toys (16%). railway tickets (38%). There are over 121 million people online in India and this is expected to grow to 200 Million by the end of 2015 5 . movie downloads (21%).INDIA .Most popular online shopping products include: books (45%). health and fitness products (12%). beauty products (12%). electronic gadgets (42%). apparel gift certificates( 11%) and sporting goods (7%). accessories apparel (35%).Over $50 Billion and growing rapidly . movie ticket (15%). music downloads (21%). tools (16%). airline tickets (28%). hotel rooms (22%). computer and peripherals (32%). home appliances (16%). magazines (18%). apparel (35%). gifts (34%). jewelry (17%).

The major threat stems from airlines and wholesale travel companies offering their products and services directly to the customer without the assistance of travel agencies. given the existence of extensive marketing plans. such as income. LITERATURE REVIEW Bellman et al (1999) investigated various predictors for whether an individual will purchase online. Following a brief comparison with a similar US study. have a modest impact on the decision of whether to buy online. education and age. Standing (1999) stated that traditionally retail travel agencies have acted as intermediaries between airline companies and wholesale travel companies and the consumer. It was found that most hotels seemed to have embraced the marketing concept. Leong (2001) examined the marketing strategies adopted by local hotel establishments in the competitive hospitality industry. It also analyses the adoption and role of information technology in strategic marketing. whereas the most important determinant of online shopping was previous behavior. Although most hotels appeared to have successfully incorporated information technology into their marketing campaigns. Large online agencies have gained significant attention in the travel industry and provide some evidence of a restructuring of the travel industry sector. the level of commitment seemed to be insignificant. Using this 6 . such as earlier online purchases. Parasuraman (2002) Stated that the motivations for this special issue and propose a conceptual framework pertaining to the issue’s theme.1.INTRODUCTION OF STUDY 2. The Internet and the World Wide Web provide a whole new set of challenges and opportunities for this business sector. the paper concludes that there are only minor differences between US and Singapore hotels in terms of their marketing practices. These authors concluded that demographic variables.

This empirical study aims to fill in this gap. They conclude by highlighting research avenues for augmenting our understanding of marketing to and serving customers through the Internet. Know and Lee (2003) Explored consumers’ concerns about payment security and its relationship to online shopping attitude and actual purchases. and the online auction concept may be defining a totally new and unique distribution alternative.frameworks a backdrop. little is still known on how the new medium is transforming marketing concepts/practices and their effectiveness. The data in this study indicate that whilst there is great diversity among businesses that utilize online auctions. Ryan (2004) conducted a research on the mosaic of institutional issues associated with gaining credibility for internet marketing standards. Bechrer (2004) stated that Internet marketing is a field hat is continuing to grow. They observed a negative relationship between attitude towards online shopping and concerns about online payment security. This research examines the internet auction phenomenon as it relates to the marketing mix of online auction sellers. they then offer an overview of the remaining articles by segmenting them into categories and discussing their relationship to the framework. distinct cost leadership and differentiation marketing strategies are both evident. Strong claims for a predominantly self-regulatory approach are reviewed in 7 . Very few studies have examined auction sellers and their internet marketing strategies. This article first analyzes the Internet's capabilities and features as well as the new virtual market space that Internet advances have fostered. These two approaches are further distinguished in terms of the internet usage strategies employed by each group. Consumers with a positive attitude seem to be less concerned about payment security. After reviewing models and strategies for Internet marketing. an Internet marketing mix is proposed based on the Internet strategies of hotels in Greece that were investigated. Sigala (2003) stated that despite the exponential growth of e-commerce on the Internet.

S. Chin ting (2010) stated that few school or educational studies have simultaneously explored both internet marketing and organizational commitment. and customer relationship management programs in relation to these Web sites. A survey was sent to 600 randomly selected American convention and visitor bureaus with a focus on assessing the applications included in the bureaus’ Web sites. their Web site promotion techniques. focusing on providing travel information to prospective visitors. convention and visitor bureaus. The results of analysis show that composition of factors on which firms base their decision to adopt advanced Internet-based marketing operations varies significantly with firm size. such adoption might destroy investments in present market channels and thus has the characteristics of radical innovation. namely: competing internet worldviews. only direct effects were examined. The results indicate that most bureaus’ Internet marketing activities are relatively limited. 8 . This study clarifies the relationship between school organization’s internet marketing and teachers’ organizational commitment by examining the mediating role of teachers’ job involvement and job satisfaction. However. especially as regards moral dimensions of notions of regulation and self-regulation.conjunction with other factors that inhibit credibility. weak moral coherency and offline ambiguity about respective institutional roles. and of those that have. Wang (2006) conducted a research to examine the current use and predict future Web-based marketing activities of U. Bengtsson (2007) stated that adopting the Internet for advanced marketing operations opens up challenging opportunities for firms of all sizes.

PROBLEM STATEMENT “A study on comparison of customer perception of online shopping with respect to Ahmadabad and Anand city” 2.3. 2.4.2.2. HYPOTHESIS 9 .  To know the difference between self-employee and salaried people’s perception toward online shopping with respect of Ahmedabad and Anand city. OVERVIEW OF THE PROJECT PRIMARY OBJECTIVE  To compared customer perception of online shopping with respect to Ahmedabad and Anand city SECONDARY OBJECTIVES  To know the difference between educated and none educated people’s perception toward online shopping with respect of Ahmedabad and Anand city.

2. DATA COLLECTION TOOLS Primary Data through Questionnaire method  I had used questionnaire tool to collect the information in my marketing research.3.1. Descriptive research design is used to know about market characteristics.” it specifies the details of the procedures necessary for obtaining the information needed to structure or solve marketing research problem.RESEARCH METHOLOGY 3. Source of Data Primary Data  I had used questionnaire tool to collect the information in my marketing research.  Internet. 3. 3.  I used descriptive research to collect data. Secondary Information  Reference books. I have framed the questionnaire on the basis of 400 Internet 10 . RESEARCH DESIGN “A research design is a framework or blueprint for conducting the marketing research project.

3. 3. 3. SAMPLING SIZE  Sample size of 400 Internet user of Gujarat state.4.users. 3.7.6.5. SAMPLING METHOD  The sample is selected by using convenience sampling method. POPULATION  The population consists of all internet user of Ahmadabad and Anand city in Gujarat state. 11 . SAMPLING UNIT  In this study the sampling unit is individual internet user.

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