Prepared by Paras Shah (AMA-PGPIBM 2008-10

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Objective  Situation analysis-Background  Research findings  Conclusions  Recommendation

The purpose of this research study is to investigate online consumer behaviour, which in turn provides Emarketers with a constructional framework for finetuning their E-businesses strategies. Specific Objectives:   1. To identify key factors influencing online shopping purchase behaviour. 2. To identify the factors that can explain the differences in online buying behaviour of Indian Consumer and Foreign Consumer.

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. Internet is no longer a niche technology, as it is an integral part of modern life, consumers turn to this option as it is more convenient and buyers can also carry out research before buying any product

Research: Exploratory research
◦ Exploratory as well as descriptive ◦ Develops concepts more clearly, establish priorities and improve the final research design. ◦ Done mainly through questionnaire and interviewsQualitative technique ◦ Questionnaires send by email to consumers outside India.

Non-probability-Convenience sampling
◦ Unrestricted sampling ◦ Choosing from friends & random people found on internet

This research found that information, perceived usefulness, ease of use, perceived enjoyment and security/privacy are the five dominant factors which influence consumer perceptions of online purchasing. Increased Internet penetration, a hassle free shopping environment and high levels of Net savviness see more and more Indians shopping online. The goal is not to convert all shoppers to online purchasing, but to show them it’s an option.

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 quality of products offered online and procedures for service delivery are yet to be standardized.

Efforts need to be taken to educate the online buyers on the steps that need to be undertaken while making an online purchase. Proper security should be assured to the people making online purchases. Government should play a bigger role in encouraging online shopping.