PROPOSED MODEL:

The growing use of Internet in India provides a developing prospect for online shopping. If E-
marketers know the factors affecting online Indian behaviour, and the relationships between
these factors, they can further develop their marketing strategies to convert potential customers
into active ones, while retaining existent online customers. The Technology Acceptance
Model(TAM) has become one of the most widely used theories in information systems research
since proposed by Davis et al. in 1989. The technology acceptance model (TAM) is an
adaptation of the theory of reasoned action (TRA). It is specifically introduced to explain
computer use behavior . TAM suggests that the users’ decisions to accept a new information
technology are based on two rational assessments of its expected outcomes: (1) perceived
usefulness (PU), defined as the users’ expectation that using a new information technology could
result in improved job performance, and (2) perceived ease of use (PEOU), defined as “the
degree to which a person believes that using a particular system would be free of effort.

This study evaluates, nine interrelated factors for which the empirical evidences show
significant relationships. These nine factors are perceived usefulness, perceived ease of use,
perceived enjoyment, information on online shopping, security and privacy, attitude towards
online advertisements, intention to shop online, online shopping decision making, and online
purchasing.

This research identifies that information, perceived usefulness, ease of use, perceived enjoyment
and security/privacy are the five dominant factors which influence consumer perceptions of
online advertisements and purchase behavior. This study propose to develop a model indicating
online shopping behaviour and acceptance among customers in India. This model would then be
tested in our research by the mode of factor analysis in SPSS. Factor analysis technique to
classify these factors that influences the attitude towards online advertising and factors which
buyers keep in mind while shopping online.