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BEHAVIOUR TOWARDS
ONLINE SHOPPING”
GROUP MEMBERS :
Internet is changing the way consumers shop and buys goods and services, and has rapidly
evolved into a global phenomenon. 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. Companies also use the Internet to convey,
communicate and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of online business.
In addition to the tremendous potential of the E-commerce market, 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-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence.
It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars
and practitioners of electronic commerce constantly strive to gain an improved insight into
consumer behavior in cyberspace. Along with the development of E-retailing, researchers
continue to explain E-consumers’ behavior from different perspectives. Many of their studies
have posited new emergent factors or assumptions that are based on the traditional models of
consumer behavior, and then examine their validity in the Internet context.
PROBLEM STATEMENT
SET 1
H0: Online Shopping is Safe
H1: Online Shopping is not Safe
SET 2
H0: Online Shopping saves a lot of time
H1: Online Shopping does not save time
SET 3:
H0: Online Shopping gives Good Experience
H1: Online Shopping does give Good Experience
RESEARCH DESIGN
Causal and Descriptive Research method will be used for conducting the research project.
Secondary data are those which have already been collected by someone else and which already
had been passed through the statistical processes. I will collect secondary data through
Magazines, Websites, Newspapers, Books, Journals, etc.
Primary data are those, which are collected afresh and for the first time, and thus happen to be
original in character. I will collect Primary data by conducting surveys through Questionnaire,
which include both open-ended and close-ended questions.
Sampling Plan:
Sampling can be defined as the section of some part of an aggregate or totality on the basis of
which the judgment or an inference about aggregate or totality is made The sampling plan helps
in decision making in the following areas: -
Sampling units-
Sampling procedure-
N=(Z*S/E)*(Z*S/E)
So,
N= (0.95*0.58/0.05)*(0.95*0.58/0.05) = 140
LITERATURE REVIEW
INTRODUCTION
The Indian retail industry is one of the most vibrant industries in the country. It is currently
ranked at 20th position among the top 30 developing countries identified by management
consulting firm AT Kearney in its 2014 Global Retail Development Index (GRDI).
India remains an appealing, long-term retail destination for several reasons starting with its
demography – half of India’s population is less than 30 years of age and roughly one-third of the
population lives in cities. The disposable income of Indians is increasing - allowing them to
spend more and try new products, brands, and categories.
Online shopping (sometimes known as e-tail from "electronic retail" or e-shopping) is a form
of electronic commerce which allows consumers to directly buy goods or services from a seller
over the Internet using a web browser. Alternative names are: e-web-store, e-shop, e-store,
Internet shop, web-shop, web-store, online store, online storefront and virtual store. Mobile
commerce (or m-commerce) describes purchasing from an online retailer's mobile optimized
online site or app.
An online shop evokes the physical analogy of buying products or services at a bricks-and-
mortar retailer or shopping centre; the process is called business-to-consumer (B2C) online
shopping. In the case where a business buys from another business, the process is called
business-to-business(B2B)online shopping
MARKET SIZE
India’s retail market is likely to touch a whopping Rs 47 trillion (US$ 738.71 billion) by 2016-
17, expanding at a compounded annual growth rate of 15 per cent, a Yes Bank-Assocham study
says.The retail market, which comprises both organised and unorganised segments, stood at Rs.
23 lakh crore in 2011-12.“Favourable demographics, increasing urbanisation, nuclearisation of
families, rising affluence amid consumers, growing preference for branded products and higher
aspirations are other factors which will drive retail consumption in India
Further, Indian online retail market is estimated to grow over 4-fold to touch USD 14.5 billion by
2018 on account of rapid expansion of e-commerce in the country. According to research and
consultancy firm RNCOS, the online retail market is projected to grow at a compound annual
rate of 40-45 per cent during 2014-18.
Due to changing demographics, the retail industry in India is on a growing trend. Presently, a
large and growing middle class in India is not only buying luxury goods and services but also
redefining the luxury market. About 40 per cent of the luxury goods purchase in India occurs
from the non-metros which in itself is a healthy sign for the countries investing in this sector.
Furthermore, with the trend of e-commerce picking up, many online retailers have launched their
business in the country.
Better Prices: Another thing which fascinates me is the cheap deals and better prices I
get from online stores because products come to you direct from the manufacturer or
seller without middlemen involved. Many online shops offer discount coupons and
rebates. Apart from this, the Online Store is only required to collect sales tax if they have
a physical location in our state even if we buy from a store across the world.
Variety: The choices you can get for products are amazing. One can get several brands
and products from different sellers at one place. You can get in on the latest international
trends without spending money on airfare. When you shop online, you can shop from
retailers in other parts of the country or even the world without being limited by
geographic area. These stores offer a far greater selection of colors and sizes than you
will find locally. Apart from that, How many times have it happened that you spend your
money reaching a local shop only to find that the product you need is out of stock?
Fewer Expenses: Many times when we opt for conventional shopping we tend to spend a
lot more than the required shopping expenses on things like eating out, travelling,
impulsive shopping etc.
Comparison of Prices: Online shops make comparison and research of products and
prices possible. Online stores also give you the ability to share information and reviews
with other shoppers who have first hand experience with a product or retailer.
Buying Old or unused Stuff at low prices: Online Shops make it possible for us to buy
old or unused stuff at rock bottom prices. If we want to buy antiques there is no better
options than online stores.
Discreet Purchases: Some things are better done in privacy. Online shops are also best
for discreet purchases like adult toys, sexy lingerie and so on. Online Shops enable me to
purchase under garments and lingerie without the embarrassment that there are several
people watching me and my choices.
Infinite choice: Shelf space in a brick and mortar store is limited, which means that your
variety of goods is limited. Not so with an online store. Plus, if you don't see what you
want in one store online, you can simply move on to the next one - you've got the power
to do that.
DETERMINANTS OF CONSUMER MOTIVATION TO BUYING ONLINE:
Product motivation:
Lack of availability of products also drives customers to go for online shopping. In
Products like CDs, books and air tickets consumers are more likely to go for online
shopping with no fear and apprehension about the need to feel, try, smell or touch the
1product. High level of customization is also being offered to the customers with huge
price discounts and which is not possible in normal buying process.
The internet provides a platform to view products with detailed information regarding
competitive prices from international locations and thereby help consumers in learning
about new trends. Consumers can also interact with user groups and find out about latest
fads and fashion. A consumer’s motivation to shop online can be for various reasons,
such as Utilitarian Motive or problem solver.
Demographic motivation:
Demographic parameters are another factors that motivates customer to go for online
shopping. Study suggest that different demographic factors like Age, Income and
Education that make customers inclined toward online shopping. Young professional
with high income group are directly related with online buying.
Social Motivation:
From the study we come to know that online buyer are getting influenced by their social
environment. Buying decisions are mainly influenced by people living around the buyer
like Supportive social environment, perceived norms, family and friends. Human beings
acquire new behavior by observing others.
Situational Motivation:
Consumers with hectic time schedule are more tend to buy online because it saves time.
Situational factors such as time pressure, geographical distance, lack of mobility,
attractiveness of alternatives and need for special items positively influence online
buying of consumers. Who are immobile can also shop online. Furthermore, there is no
need to travel long distances for shopping. The need for special items which are generally
not available in local markets also drives consumers to buy online.
Employment
Today online job search market is expanding tremendously. According to IAMAI the
number of online job seekers had reached 6.5 million in 2005-06 and is expected to
across 9.2 million in the year 2006-07. The market size of the Indian online recruitment
industry in 2005-06 was 145 crore and it is estimated to reach Rs 241 crore for 2006-07
(source IAMAI) this is mainly because of the increase in the internet penetration which
has lead to an increase in the users for whom net has become a convenient way to meet
their needs.
Matrimonial
As the popular adage goes, "Marriages are made in heaven" but today with so many
matrimonial portals in the market they help one find the best match for themselves. Some
of the popular marriage portals are shaadi.com, bharatmatrimony.com, Yahoo India
matrimony, MrnMrs.com, Matricorp.com and jeevansaathi.com.
Online Ticketing
The growth in the online travel business today is phenomenal. The Indian online travel
business is worth $350-400 million and is growing at 40-50 per cent year by year, as the
online population of the country is estimated to be 25 millions (Source: IMRB). There
has been a significant increase in online ticket booking in India with a double-digit
growth, which has also lead to an increase in Indian tourism..
TOP ONLINE CENTRES:
FLIPKART:
Flipkart, is an E-Commerce company established in 2007 by Sachin Bansal and Binny Bansal.
It operates exclusively in India, with headquarters at Bangalore, Karnataka. Flipkart has
launched its own product range under the name "DigiFlip" with products including tablets,
USBs, and laptop bags. Flipkart also has its own range of personal healthcare and home
appliances under the brand "Citron" and apparels under the brand "Flippd".
In May 2014, Flipkart received $210 million from DST Global and in July it raised $1 billion led
by existing investors Tiger Global and South Africa's media group Naspers. Flipkart's last
fundraising round in December had pegged its valuation at $12 billion.They had been working
for Amazon.com previously. The business was formally incorporated as a company in October
2008 as Flipkart Online Services Pvt. Ltd. During its initial years,
MYNTRA.COM
The site started operations in January 2012. It was co-founded by Arun Chandra Mohan, Praveen
Sinha, and Lakshmi Potluri after which Manu Jain, and Mukul Bafana joined the
organization.The managing officers are Arun Chandra Mohan and Praveen Sinha.
.Jabong was one of the most visited e-commerce sites during the Great Online Shopping
Festival 2013. Company representatives claimed that its revenues increased five to six times
compared to a usual day, and that Jabong set a record for sale in the male fashion category.
AMAZON.COM
Infibeam was founded in 2007 by Vishal Mehta, a Cornell and MIT Sloan alumni. After working
for Dell computers and Amazon.com in the US for five years, Mehta returned to India in 2007
and started Infibeam along with a group of ex-Amazon employees. He funded the company by
selling his personal assets rather than opting for external equity funding. The company was
started with an initial capital of 10-15 crores.Infibeam.com started as an automobile portal in
2007, but later turned into an online retailer. In 2010, Infibeam launched 'Pi', India's first e-book
reader.
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, and 46% are in the 26-35-
year range.
Worldwide e-commerce is only growing at the rate of 28%, since India being a younger
market, the growth of e-commerce is expected at 51% in the coming years.
In line with global trends finally India has also started shopping online these days. As per
the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to
$522 million in 2008 and it is expected to rise above $700 million by end March 2010.
Indians are also Shopaholics like other Asians. There is a strong booming young adult
population in India with good levels of disposable income.
Mode of Payments:
Online shoppers commonly use a credit card to make payments, however some systems enable
users to create accounts and pay by alternative means, such as:
A way to overcome surges in traffic is to co-ordinate any promotions with your hosting company
to ensure your disc space and bandwidth are increased intermittently. If you're expecting a more
sustained and long term increase in traffic it may be advisable to look into a more complex
server environment with proxies and load balancers set up.
So if you have plans to offer a festive hemmed gift certificate, be mindful to set aside a budget
for extra graphic design and development, as well as 2-3 weeks to finalise this. Also be sure to
test that the reference codes and checkout payment works well, as you don't want to have a poor
user experience or an increase in complaints when you're busy fulfilling Festive orders.
Just as bricks and mortar stores do, consider hiring Festive casuals to help with menial tasks that
will free you up for more important things. Be sure to have a solid plan in place and
communicate things like response times, returns policy and common postage queries with your
customers clearly and easily on your website.
By being proactive and creative with your communication and offers, even months in advance,
will mean your clients have less reason to shop around and potentially leave you for a
competitor.
Although this is a classic supply chain issue, your ecommerce website has measures in place to
help you manage your stock levels before you sell out. Pull a report on your best selling items in
the last few months to ensure you've ordered the appropriate stock levels in time for Festive.
Also when you do sell out, make it easy for customers to know when it may be back in stock, by
either communicating a date, or allowing them to leave their email address to be notified when
the item becomes available.
Especially for e-commerce businesses, your website is the very first impression customers have
of your product. If you have a poorly designed website, there’s a high chance you’ll lose traffic
and even customers.
To build trust through your website, make sure it’s easy to navigate, include contact information,
create a clean layout, and provide clear descriptions of your product. These basic design
elements will drastically increase the trust between your website and your customers.
In addition to website design, you should also focus on how you build trust with you
customers. Google recently updated its quality ranking guide, which emphasises the concept of
E-A-T (Expertise, Authority, and Trustworthiness). This concept helps businesses make sure
they’re creating content that positions their brand as a trusting expert in their industry.
DATA ANALYSIS
HYPOTHESIS TESTING
SET 1
H0: Online Shopping is Safe
H1: Online Shopping is not safe
Yes
No
SET 2
H0: Online Shopping saves a lot of time
H1: Online Shopping does not saves time
Does online Shopping help in saving time?
Yes
No
Highly Satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
Highly Highly
Particulars Satisfied Satisfied Neutral Dissatisfied Dissatisfied Total
Response in
Number 20 95 21 3 1 140
Response in
Percentage 14.3% 67.9% 15% 2.14% 0.71% 100
FINDINGS
Interpretation 1: 99.3% of total population uses Internet for various uses.
Interpretation 2: Major junk of people have started using internet facilities 5 years ago and thus
must be aware about various services provided by Internet.
Interpretation 3: On an average 50% spend less than 5 Hours per day surfing on Internet.
31.9% spend around 6-10 hours and remaining spend more than 10 hours per day surfing on net.
Interpretation 5: Out of population of 140 samples 73 have already done online shopping that
consist of almost 60% of total population have done online shopping atleast once.
Interpretation 6: 47.1% of people are aware about online shopping through social media and
31.9% are aware through advertisements.
Interpretation 7: Majority have bought Apparels and Electronics items from Online shops.
Interpretation 8: 74.5% pay via cash on delivery an 19.1% pay via credit card.
Interpretation 9: When asked about the security and safety of online payment 51.1% feel safe
about it while 34% said maybe.
Interpretation 10: 83.7% of population believes that online shopping helps in saving time while
11.3% think maybe it does.
Interpretation 11: Overall 67.9% of the population were satisfied with online shopping while
14.3% were highly satisfied with online shopping.
CONCLUSION
India is 3rd largest in using the internet. In online marketing it helps the consumer to save the
time and get the information easily by browsing the internet in any corner of world. In online
shopping there is no need to go to shop and spend the time the products are display in net the
consumer can choose or select any product of his own. Payment mode also easy to made.
Anyone can go to online shopping by using the internet connection.
The e-commerce is one of the biggest things that have taken the business by a storm. It is
creating an entire new economy, which has a huge potential and is fundamentally changing the
way businesses are done. It is believed that electronic commerce will become a huge industry in
the coming years and online shopping is now becoming a significant part of the consumers daily
life to meet their never ending requirements in a convenient way.
Online shopping is picking up and is becoming a trend. More consumers are indulging into
Internet shopping as seen by the research because of the value proposition it offers to a customer
such as convenience, 24x7 shopping, doorstop delivery, a broad product selection and the ever-
expanding range of unique and unusual gift ideas as well as increased consumer confidence in
shopping on the internet is increasing. The main motivating factor seen during the research was
the convenience and customer service which drives the people to online shopping as a result
today they are buying airline and railway tickets, books, home appliances, electronic gadgets,
movie tickets, etc by logging on to a web site, than driving up to a store .As the research suggest
that increase in usage of internet increases the online shopping so there is a need to increase in
broadband penetration as it accelerates the growth of online trade. A huge buyers and sellers
across demographics are shopping online because of the changing lifestyles and shopping habits
but the majority of the users are males. It was seen that despite the immense possibilities
available on the Internet it is mainly used for mailing, chatting and surfing. E-mail applications
still constitute the bulk of net traffic in the country.
Increased Internet penetration, a hassle free shopping environment and high levels of Net
savviness see more and more Indians shopping online
APPENDICES
Survey Questionnaire
Consumer BEHAVIOUR towards Online Shopping
Name:- Age:-
• Yes
• No
• Other:
• Student
• Employed
• Self Employed
• Retired
3. Income
• 1 Lac - 3 Lac
• 3 Lac - 6 Lac
• 6 Lac - 9 Lac
• No Income
• 1-3 Years
• 3-5 Years
• 0 - 5 hrs.
• 6 - 10 hrs.
• 11 - 15 hrs.
• 16 - 20 hrs.
• E- Retailing (online)
• Retailing
• Books
• Electronic gadgets
• Tickets
8. How do you get to know about the product that you purchase online?
• Through friends
• Social media
• Through advertisement
• Other:
• Cash on delivery
• Credit card
• PayPal
• Tez by Google
10. Do you feel safe while making payments online to the service provider?
• Yes
• No
• Maybe
• Yes
• No
• Maybe
12. Overall, were you satisfied with your experience of online shopping?
• Highly Satisfied
• Satisfied
• Dissatisfied
• Highly Dissatisfied
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