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Research Proposal

Consumer Behaviour toward
Online Shopping in Bhimtal

Submitted by Submitted to
Pradeep Singh Dr H.K Pant

1. Introduction
2. Literature Review
3. Objective of the study
4. Research Methodology
1. Research Design
2. Sampling Design
3. Sample Size
4. Sampling Technique
5. Data Collection
5. Data Analysis Techniques
6. References
Online 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. Consumers find a
product of interest by visiting the website of the retailer directly or by searching among
alternative vendors using a shopping search engine, which displays the same product's
availability and pricing at different e-retailers.
Trend of e-commerce has been increased rapidly in the recent years with the development of
internet and due to the easy accessibility of internet usage. Easy access to internet has driven
consumers to shop online.

India has an internet users base of about 450 million as of July 2017, 40% of the population.
Despite being the second-largest user base in world, only behind China (650 million, 48% of
population), the penetration of e-commerce is low compared to markets like the United
States (266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate,
adding around 6 million new entrants every month. The industry consensus is that growth is
at an inflection point. India's e-commerce market was worth about $3.9 billion in 2009, it
went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About
70% of India's e-commerce market is travel related.
According to a study done by Indian Institute of e Commerce, by 2020 India is expected to
generate $100 billion online retail revenue out of which $35 billion will be through fashion e-
commerce. Online apparel sales are set to grow four times in coming years.
But the penetration of e-commerce is low compared to developed markets and one of the
main reasons for this is low rural and sub-urban market penetration. But now the Indian rural
and semi urban population which counts to 71% of the total population is now well connected
and used to online business. Hence the scope of business in India is developed by a huge
amount and the true potential of India’s online shopping will only be unlocked if Indian
retailers can figure out ways in which to reach out to the often underserved rural market that
is a fast gaining currency is a viable online market.
This study aims to know the behaviour of people living in bhimtal region

Literature Review
A good quantity of research has been done on the same issue to know the actual behaviour
of a customer regarding the online purchase. The results and conclusions are varied as per
place, time, and income level of the respondents. Here in this part the references of these
efforts are being taken.
Kanchan, Kumar & Gupta8 (2007) in their research A Study of Online Purchase behaviour of
Customers in India have found that the gender, age differences, income and educational level
has a positive correlation with the online shopping behaviour. Whereas, the concern for
security is one of the major negative aspects for online shopping.
International Journal of Scientific Research and Management (IJSRM) in their research A Study
of the Behaviour of Semi-Urban Youth Customers towards Online Shopping in India have
analysed the behaviour of Indian customers towards online shopping and found out that
online shopping business in India is increasing day by day. The main reasons for increased
business is ease of access, comparison, cash on delivery, variety, are the reasons which saves
time and creates convenience for customers. Fear for misuse of information, fear for money
loss, fear for not getting promised products are some of the reasons for not using online
shopping in India.
Sharma, R. Mehta, K. & Sharma, S.11 (2014) have attempted to study the behaviour of online
shoppers in their research Understanding Online Shopping Behaviour of Indian Shoppers. In
this paper they have analysed various reasons for favourability of online shopping. It was
found that the convenience provided by the online shops for 24x7 has created a major impact
for addicting the Indian customers. At the same time, it was also found that the Indian market
is still not developed at the total possibility. It shows future prospects. By improving the after
sales services, payment security, timely delivery, etc. this scope can be achieved. The majority
of the customers who are using online shopping are youths and hence the sale of related
products is in boom. Fear for security is again a major reason for not going online in India.

The main limitation of these studies is that they mainly considered the urban population and
neglected the semi urban areas such as bhimatal. Consumer behaviour of urban consumer is
different from the semi urban or rural consumers. They could have different reasons for
buying goods online, as compared to urban consumers.

Objective of Study
This study aims to know the consumer behaviour of people living in Bhimtal region toward
online shopping and identify the main factors the consumers takes into consideration when
purchasing online.

 To study the consumer behaviour toward online shopping in Bhimtal.

 To find main factors affecting the online consumers when and purchasing over internet.
 To find how these factors influence the consumer when purchasing online.
 To find the consumer’s level of satisfaction with regard to online shopping.

Research Methodology
Research Design- Descriptive Research design will be used for this research.
Sampling Design
The study population consists of people living in bhimtal region.
Judgemental sampling technique will be used for this research.
Sample Size-
Total population of Bhimtal according to 2011 census is 7700.
A sample size of 365 people is considered for this study (Confidence Level = 95%, Margin of
Error = 5%)

Data Collection – the data for this study is collected from the primary sources well as
secondary sources.
Primary data -is collected from the sample with the help of a questionnaire.
Secondary data- is collected from various articles, research paper, Wikipedia and books.

𝐻0 there is a significant difference between the consumer behaviour of rural/sub urban and
urban consumers.
𝐻1 there is no significant difference between the consumer behaviour of rural/sub urban and
urban consumers

Data Analysis
Appropriate stastical tools will be used to analyse data received from the respondents.
Pearson's chi-squared test will be used to test the null hypothesis.

 Prof. Vikram H. Shinde, IJSRM Volume 5 Issue 07 July 2017 []
 Dr. Sharma, R. Dr. Mehta, K & Sharma, S. (2014). Understanding Online Shopping
behaviour of Indian Shoppers. IJMBS, Vol. 4, Issue 3. July-Sep, ISSN : 2231-2463.
 Kanchan, U. Kumar, N. & Gupta, A. (2007). A Study of Online Purchase Behaviour of
Customers in India.