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INTRODUCTION
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INTRODUCTION
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. As of 2016, customers can shop online using a
range of different computers and devices, including desktop computers, laptops, tablet
computers and smartphones.
Consumer behavior has undergone a drastic change during the last decade the
important among them is online shopping. The replacement of traditional shopping by
visiting showrooms by online shopping is an inevitable necessity in the busy modern world.
People prefer online shopping because of its convenience, availability of multiple brands at
low rates with all advantages and guarantee of shop purchasing. Decisions can be made from
home at ease looking at various choices and prices can be easily compared with the
competitor’s products to arrive at a decision. The major difference between traditional and
online selling is the extent of interaction between the consumer and the seller. There is much
more electronic interactivity with the consumer in the form of emails. It is very important for
businesses to understand the customer satisfaction because customer satisfaction is necessary
for the long term growth of the firms.
The study of customer preference and perception towards online shopping among the
people with special reference to Vadakara locality and also to find out how it will affect on
people. So that the result from different people can be compared.
STATEMENT OF PROBLEM:
Customers use online sites for making purchases of different types of products.
Online shopping is one of the modern concepts in shopping which aims at providing better
convenience to the consumers and help them to buy branded product at low cost. Almost all
types of goods are available through online. But all customers are not making use of it. That
may due to many reasons. Some of them are still not aware of online shopping, Reluctant to
change from traditional shopping and fear associated with online shopping are the other
important reasons. This study aimed at verifying the customer satisfaction of online shopping.
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SCOPE OF THE STUDY:
This study is all about the customer’s perception towards the online shopping and to
what extent people prefer online stores for purchasing various items. The study helps the
online shops to carry out their business successfully by understanding customer’s perception,
taste and preference towards product and service offered through online shopping outlets and
channels. This study is conducted at Vadakara area in Kozhikode district.
The product that are sold online most are in the tech and fashion category, including
mobile phone, I pads accessories, Mp3 players, Digital Camera, Home and kitchen
appliances, life style accessories, to like watches, books,
This study is an attempt to understand the customer response toward online shopping
among the people of Vadakara area in Kozhikode district.
OBJECTIVES OF STUDY:
RESEARCH METHODOLOGY:
Research Design:
The research design is the determination and statement of general research approach
of strategy adopted for particular product. It is the heart of planning which the design adheres
to the research objected which ensure that the needs will be served.
Sample Design:
The process of extracting a sample from population is called sampling process. The
selection of sample to conduct research depends on the nature and scope of the study along
with objective to be achieved.
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Sample Size:
Due to time constraints the sample size for the study was restricted to 30 customers.
1. Type of data.
The study makes use of both primary and secondary data.
2. Sources of data.
Primary data.
Data are collected from respondents of different age groups and having different
educational qualifications. Convenience sampling is used in data collection. Pre tested
questionnaires are used for collecting primary data.
Secondary data.
Secondary data are collected from books, journals and internet.
Data collected are grouped and tabulated for presentation. Percentage is used for
analysis. Diagrams are also used for clarity of presentation.
Analytical Tools:
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CHAPTER-2
REVIEW OF LITERATURE
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REVIEW OF LITERATURE
The studies on consumer’s perception on online shopping and other rented topic in the
Indian context are limited as the online shopping has entered into the market only a few years
only. The literatures so far reviewed relates to the studies conducted outside India especially
in the United States where the online shopping is a big hit. As taken the case of Indian
scenario where the online shopping has just entered into the market and already it has
climbing the ladder. Though there are certain literature reviews by the context of Indian
consumers.
Benedict et al (2001) study reveals that perceptions toward online shopping and
intention to shop online are not only affected by ease of use, usefulness, and enjoyment, but
also by exogenous factors like consumer traits, situational factors, product characteristics,
previous online shopping experiences, and trust in online shopping.
A Commerce Net/Nielson Media Research Survey found out that 73% users used
the Net to window shop, 53% used the Net to make purchase decision, but only 15% bought
online.
According to a NFO Interactive (1999) study released in May 1999 by online market
research firm NFO Interactive, 24.1% of online consumers believe that their internet/online
shopping use will decrease the amount they spend on products and services at walk-in type
neighborhood or regional retail stores, by the end of 1999.The survey also found that 23.8 %
of online shoppers said their internet/online purchasing has increased to the total amount of
money they have typically spent in a year or products & services.
An OFT Market Study (2007) study establishes the scale and growth of internet
shopping is impressive. In 2005, the most recent year for which reliable figures are available,
sales to households were over £21bn – a fourfold increase during the previous three years. It
is benefiting millions of people and thousands of businesses. Over 20 million UK adults
shopped online in 2005, with 56 per cent of internet shoppers we surveyed having spent over
£500 each during the year. In the same year, an estimated 62,000 UK businesses were selling
online to households. We found that people shopped online because they find it convenient, it
increases their choice and helps them to hunt for lower prices. Retailers sell online to reach
more customers, to sell around the clock and in reaction to competition from rivals.
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Susan Rose, Neil Hair and Moira Clark (2011) identified online purchase in
particular continues to rise, as adoption and penetration levels of Internet technology
continuously increase. By 2007, European Internet penetration stood at 43% of the population
with a 231% usage growth year on year. In North America, penetration was at 71% of the
population with 120% growth (Internet World Stats 2007). This is also evidenced by
increasing levels of online sales, which in the US reached US$128.1bn in 2007 and were
projected to reach US$165.9bn by 2009 (source: US Census Bureau 2009).
Haver (2008) identified Today’s younger, more ‘green’ shoppers aren’t going to
waste precious money and gas going from store to store looking for just the right item. They
shop online whenever they can, narrowing their choices to one or two items then go to the
store to touch, feel , bounce and check out the actual product to see if it looks the way it was
represented online.
Kodandarama Setty (2013) stated that “We are facing some threat from online stores
in these electronics categories, however, in the big market of consumer durables we are safe
for now”.
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CHAPTER-3
THEORETICAL BACKGROUND
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ONLINE SHOPPING – THEORETICAL VIEW:
Internet is one component which has recently become the key ingredient of quick and
rapid lifestyle. We use it for communication or exploration, connecting with people or for
official purpose; internet has become the central-hub for all. Resultantly, internet growth led
to a host of new development such as decreased margin for companies as consumer turn more
and more to the internet to buy goods and demand the best price. Online shopping offer the
customer a wide range of products and services wherein he is able to compare the price
quoted by different suppliers and chooses the best deal from it.
History:
While the conventional shopping method has its own advantage, online shopping can be
attributed to handy, hassle free, all time convenience. Following are the advantages of online
shopping.
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The product quality can be analysed in detail with the help of customer
recommendation, ratings etc.
Product information can be easily obtained from online catalogues, product
description etc.
Accessible any time of day or year.
Quick delivery is possible most internet sites are able to deliver within a few days.
The web is today a powerful tool in the selling arsenal. The researchers Phau and Poon
found out that the suitability of the web for product selling depends to a large extent on the
characteristics of the product and services and is limited to certain product categories such as:
However, attracting and retaining audience attention today requires you to cut through the
clutter of competing websites. To increase sales via the web, in-depth analysis into factors
that affect purchase behavior must be conducted. This calls for a detailed study on online
sales psychology.
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People buying online tend to exhibit similar psychology. The way they see, feel and
perceive a thing determines their buying decisions. It is therefore important to create a site
that is not liked, but which also prompts a response. Strike the right chord with your
customers, through your site’s message, style, colors, graphics and overall quality. The
necessary things to remember are:
The site should reflect a group opinion in the form of forums, statistics and surveys,
as group behaviours generally sways people.
The site should satisfy the emotions and needs of people by a need-based offering via-
avis a features-based offerings, as features are only secondary drivers. Google’s
tremendous success can be attributed to its ability to address knowledge needs.
To sustain audience interest, it is needed to provide them with free information, at
least until the emotional and logical requirement are fulfilled.
A site can be successful in generating sales, only if the offering is genuine and the
transaction easy and transparent.
Attempts to understand customer’s psychology in an online selling environment, and
incorporating the above guidelines in your website can aid in making the site more
productive.
Customer/e-customers:
Online customers also have different attitudes to both acquiring information and
buying online. On top of this, the same person may both think and behave differently online
than offline. Generally higher levels of education and personal income correspond to more
favorable perceptions of shopping. Increased exposure to technology also increase the
probability of developing favorable attitude towards new shopping channels.
1. Find out why people buy and what are their aspiration and expectation.
2. Reflect the reason, aspiration and expectation in your communications. This way you
give customer what they want instead of what you want.
Existing offline customer can be encouraged to go online before they are besieged by
other competitive online offerings. Remember someone, somewhere is analyzing and
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targeting your market right now. Tempt customer by offering channel choice and something
customer can’t get elsewhere, the Online Value Proposition (OVP). Tell them how it works
and how they can use it. Other motivation such as the social aspect can be used. For home
users and sometimes for business users also, it is an important social tool enabling
conversations with participants known and unknown, from near and fear. Also useful
members-get-member promotions amongst existing customers help members to help other
with useful information about interesting offers. Word of mouth and referrals is a powerful
tool.
Online customers have raised expectations. They expect higher standards in terms of
service, convenience, speed of delivery, competitive prices and choice. They also want, if not
expect, to be in control, secure and safe. The problem with raised expectation is the firstly,
they are crushed more easily and secondly they can damage the brand if not fulfilled. Online
customers expect fast service and fast delivery. The internet and everything associated with it
suggests speed. If online business do not deliver speedily then online customer are
disappointed, annoyed, angry and sometimes vociferous. Even if delivery takes the same time
as the retail store, the online customer often expect a little more (whether price discount,
wider choice or whatever). This is the problem with expectations.
Now consider a customer’s expectation when buying a book online. Top of the list of
online customer expectation is minimizing the time on site and delivering what is promised,
but there are many other requirements such as.
Online customer quite reasonably, expect thing to work-they expect to find what they
want easily and buy what they want easily. The internet is a quagmire for the destruction of
both raised expectation and even ordinary expectations.
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Managing customer expectation:
Customer expectation can be managed, met and exceeded. Here are three stages.
1. Sing in or register:
Sometimes a website will ask you to ‘sing in’ or register first. This is usually free.
You may ask for a password. An account will be created for you and remembered the
next time you access the website. They may ask for customer e-mail address for
further contact.
2. Make your selection:
Usually you can get quite ‘gemmed up’ about an item before you buy it. Some
website provides customer reviews, others let you view mini movies or listen to sound
tracks before you buy.
3. Add it to shopping cart:
Once you have decided to buy, you click a button telling you to add to basket. You
can now buy more items from other pages within the website and everything will be
added to the same basket.
4. View the shopping basket:
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At any stage, you can see what you have in your basket. You can remove an item as
and when required.
5. Proceed to Check out and make payment:
The checkout is where you will be asked to how you would like to pay. The safest
way is by credit card. E.g.: Visa, Electron or Delta. Avoid paying by Switch. You
should never provide your bank details, sort code or account number. You may be
asked your email address.
6. Confirmation of order:
Your order will be confirmed immediately or by email.
Payments:
Online shopping commonly uses a credit card or a pay pal account in order to
make payments. However some system enable users to create account and pay by
alternative mean such as.
The best web site designs take into account how customer process information.
Good e-marketers are aware of how the message are processed by the customer and of
the corresponding step can take to ensure the correct message received.
The first stage is exposure. This is straight forward. If the content is not
present for long enough, customers will not be able to process it. Think of splash
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pages, banner adverts or shockwave animation. If these change too rapidly the
message will not received.
The second stage is attention. The human mind has limited capacity to pick
out the main messages from a screen full of single column text format without
headings or graphics. Movements, text size and color help to gain attention for key
message.
Comprehension and perception are the third stages. They refer to how the
customer interprets the combination of graphics, text and multimedia on a website.
Thee design will be most effective if it uses familiar standard or metaphors since the
customer will interpret them according to previous experience and memory. Once
relevant information is found, visitors sometimes want to dig deeper for more
information.
Finally, retention- how well the customer can recall their experience. A clear,
distinctive site design will be retained in the customer’s mind, perhaps prompting a
repeat visit when the customer thinks, ‘where did I see that information?’ and then
recalls the layout of the site. A clear site design will also be implanted in the
customer’s memory as a mental map which they will be able to draw on when
returning to the site, increasing their flow experience
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Online relationships and loyalty:
Retaining existing customer is five times more profitable than acquiring new
customer. All marketers know that building long-term relationship with the ‘ideal
customer’ is essential for any sustainable business. Failure to build relationship largely
caused the dotcom failures. Recent research shows that by retaining just 5% more
customers, e-companies can boost their profit by 25 to 95%. This section describes
techniques to build and maintain relationship with customer using a combination of
online and offline techniques.
Some customer are more likely to be loyal than others. Companies need to
focus on those ideal customers that are likely to become loyal rather than the
promiscuous, loss making, customer who grab incentives and run. Many companies
now only proactively market to ‘ideal’ customer since research suggests that 20% of
existing customers are ‘ideal’ and generate most of your profits. Some customers
break even, while other, disloyal, promiscuous, customers are loss makers. They cost
you money. Low loyalty has cost.
Developing loyalty:
First, target and acquire the right type of customer- the ideal customer. Second,
delight them. Don’t just satisfy them. Ground-breaking research by Xerox some years
ago revealed that between 65 and 85% of customer who defected from Xerox were
actually ‘satisfied customer’.
The five ‘primary determinants of loyalty’ identified by Reicheld and Schefter (2000):
1. Extra service and added value. There are a host of other opportunities
constantly to delight and surprise the customer. Start by asking, ‘what interests,
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passions and needs do my customer have? How can I help them? Then see how
you can add value.
2. Personalization. Personalization and mass customization can have a high
value. They can be used to tailor information in both the web site and opt-in e-
mail. Extranets can be used to provide value-added services for key accounts.
3. Community creation. Community creation can engage the customer and
provide a hook that keeps their returning. It can be used to create a new form of
added value built around the brand.
4. Integration. Integration into the customer’s own system (e.g. ERP) reducing
duplication of work and increasing ‘lock-in’ which creates a switching cost
should a customer ever want to leave.
Communities:
Sales promotion:
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The American Marketing Association defines sales promotion as,” those
marketing activities other than personal selling, advertising and publicity that
stimulate consumer purchasing and dealer effectiveness such as display ,shows,
exhibition, demonstration and various non- recurrent selling efforts not in the ordinary
routine”.
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Sales promotion techniques are used to create a distinct brand image in the
minds of the customer about product.
Attracts customer
Sales promotions are very effective in creating interest in a product. Creating
interest is considered as the most important use of sales promotion. Appealing
sales promotions increase attraction of the consumers to the products.
Motivation of the existing brand
The most important use of sales promotion is to build demand by convincing
customers to make a purchase. Special promotions, especially those that lower
the cost of ownership to the customer, can be employed to motivate customers.
1. Sales promotions measures are usually offered for a short period of time.
2. Lack of support from middleman involved.
3. Consumer may suspect the quality of the product. There is a belief among the
customer that incentives are given for sub standard products and old stock.
4. Consumer may postpone their purchase decisions in anticipation of incentives
and discounts from the dealers and companies.
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Online sales promotion techniques:
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Discounts: When a company sells products and use price reductions it is called
discounts. These cannot be permanent and are only existing for a short time
since they are suppose to make people more eager to buy, which does not
happen when a price reduction is used all the time. These discounts can be
offered to all customers or only frequent buyers, this is a decision that needs to
be made by the retailer.
Online advertising:
Online advertising is a form of promotion that uses the internet and World
Wide Web to deliver ad messages to attract customers. Different forms of online
advertising are contextual ads on search engine results pages, banner ads, blogs, and
social network advertising. A major benefit of internet advertising is the immediate
publishing of information that is not limited by geography or time.
Advantages:
Disadvantages:
Internet advertising reaches people who have access to computers and internet.
Consumers can avoid or bypass most of the ads in internet.
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Ads in internet may create a negative impact on the consumer by distracting
them when they browse internet seriously.
The internet consists of numerous websites. It is not possible for the advertisers
to broadcast their ads in all websites.
Overload of ads is major problems of internet. When people see too much ads
they choose to ignore them.
1)Flipkart:
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni
of the Indian Institute of Technology Delhi. They had been working forAmazon.com
previously. During its initial years, Flipkart focused only on books, and soon as it
expanded, it started offering other products like electronic goods, Air Conditioners,
Air coolers, stationery supplies and life style products and e-books. Flipkart now
employs more than 4,500 people and is ranked among the top 20 Indian websites. It is
head-quartered in Bangalore, Karnataka. Flipkart's offering of products on Cash on
Delivery is considered to be one of the main reasons behind its success. Flipkart also
allows other payment methods- Credit or Debit card transactions, net banking, e-gift
voucher and Card Swipe on Delivery. According to Alexa Internet, Flipkart's website
is one of the top 20 Indian websites
Flipkart has launched its own product range under the name "DigiFlip" offering
camera bags, pen-drives, headphones, computer accessories, etc. In October and
November 2011. Flipkart acquired the websites Mime360.com and Chakpak.com.
Later in February 2012, the company revealed its new Flyte Digital Music Store.
Flyte, a legal music download service in the vein of iTunes and Amazon.com, offered
DRM-free MP3 downloads. But it was shut down on 17 June 2013 as paid song
downloads did not get popular in India due to the advent of free music streaming sites.
Co-Founder of Flipkart Sachin Bansal got Entrepreneur of the Year Award 2012-
2013 from Economic Times, leading Indian Economic Daily. Flipkart.com was
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awarded Young Turk of the Year at CNBC TV 18’s ‘India Business Leader Awards
2012’ (IBLA).
2)Snapdeal:
3)Amazon.com:
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The company was founded in 1994, spurred by what Bezos called his "regret
minimization framework", which described his efforts to fend off any regrets for not
participating sooner in the Internet business boom during that time. In 1994, Bezos
left his employment as vice-president of D. E. Shaw & Co., a Wall Street firm, and
moved to Seattle..
Jeff Bezos incorporated the company (as Cadabra) in July 1994 and the site
went online as Amazon.com in 1995. Amazon has separate retail websites for United
States, United Kingdom, France, Canada, Germany, Italy, Spain, Australia, Brazil,
Japan, China, India and Mexico, with international shipping to certain other countries
for some of its products. The company's global headquarters are in 14 buildings in
Seattle's South Lake Union neighborhood. The European headquarters are in
Luxembourg's capital, Luxembourg City. In Seattle, as of 2013, a 3-tower
headquarters near Amazon's existing buildings with a capacity of 12,000 employees
was under construction.
4)eBay:
Jeffrey Skoll was hired as the first president of the company in early 1996. In
February 2002, the company purchased iBazar, a similar European auction web site
founded in 1998 and then bought PayPal on October 14, 2002. Millions of
collectibles, decor, appliances, computers, furnishings, equipment, domain names,
vehicles, and other miscellaneous items are listed, bought, or sold daily on eBay.
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In 2006, eBay launched its Business & Industrial category, breaking into the
industrial surplus business. Generally, anything can be auctioned on the site as long as
it is not illegal and does not violate the eBay Prohibited and Restricted Items policy.
Controversy has arisen over certain items put up for bid. For instance, in late 1999, a
man offered one of his kidneys for auction on eBay, attempting to profit from the
potentially lucrative (and, in the United States, illegal) market for transplantable
human organs.
5)Myntra.com
Myntra.com was announced as a winner of the Red Herring Global 100 award.
Red Herring announced its Global 100 awards in recognition of leading private
companies from North America, Europe, and Asia, celebrating these startups'
innovations and technologies across their respective industries. CNBC - TV18
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awarded Myntra.com as one of the Hottest Internet Companies of the Year at the
Mercedes - Benz CNBC - TV18 Young Turks Awards. Myntra.com won IAMAI's
Best Ecommerce Website of the year award for 2012 at the 7th India Digital Summit,
2013.
6)Jabong.com
Jabong has an exclusive partnership with the Spanish casual clothing brand
Desigual. In November 2013, Jabong entered into a partnership with the brand Jack &
Jones, to sell merchandise for the band Above & Beyond. Jabong follows both
inventory model and a managed marketplace model. Jabong received the award for
the ‘Most Impactful Launch of the year’ at ‘Pitch Brands 50 Awards 2013’. According
to The Brand Trust Report India Study - 2013 by Trust Research Advisory, Jabong
ranked among the top 25 trusted online brands in India.
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CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
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ANALYSIS AND INTERPRETATION
Table 4.1
above 40 0
30_40 0
20-30 0.33
Below 20
0.67
0 0.1 0.2 0.3 0.4 0.5
0.6
0.7
INTERPRETATION
The above table shows that 67% of respondents use online shopping in the age
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2. GENDER BASED DISTRIBUTION
Table 4.2
Male 10 33
Female 20 67
TOTAL 30 100
Fig.4.2
female
male
INTERPRETATION
The above table shows that 67% of respondents are female and remaining 33% are male.
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3. EDUCATOINAL LEVEL
Table 4.3
Below sslc 0 0%
Sslc 0 0%
Plus two 20 67%
Ug & pg 10 33%
Others 0 0%
TOTAL 30 100%
Source: primary data
Figure 4.3
Educational level
others
Ug & pg
Plus two
Sslc
Below sslc
0
0.2
0.4
0.6
0.8
INTERPRETATION
The above table says that 33% of respondents who make online shopping are in the
education level of UG& PG Remaining 67% are in the educational level of plus two.
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4.OCCUPATION
Table 4.4
Occupation
others
Private employee
Self employed
0
0.1
0.2
0.3
0.4
Fig 4.4
INTERPRETATION
The study reveals that 30% of respondents who making online shopping are private
employees, 40% are self employed and another 30% are doing other occupations.
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5.INCOME BASED DISTRIBUTION
Table 4.5
Fig 4.5
Above 75000
50000 – 75000
25000 – 50000
0
0.2
0.4
0.6
0.8
INTERPRETATION
The above table reveals that 27% of respondents have the income level between
25000 – 50000. 67% have less than 25000 , 6% have between 50000 – 75000 and no one is
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6.BASED ON THE USERS OF INTERNET
Table 4.6
Fig 4.6
INTERPRETATION
The above table shows that 67% of respondents are using internet, remaining 33%
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7.BASED ON RESPONDENTS MAKE ONLINE SHOPPING
Table 4.7
Figure 4.7
no
yes
0
0.2
0.4
0.6
0.8
INTERPRETATION
The above table shows that 67% of respondents are made online shopping and the
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8.FREQUENCY OF MAKING ONLINE PURCHASE
Table 4.8
Figure 4.8
Once a month
Once a week
0
0.1
0.2
0.3
0.4
INTERPRETATION
The above table shows that 34% of respondents make online shopping once a week
,another 34% more than once a week. 12% are more than once a month and only 20% are
once a month.
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9.FACTORS MOTIVATED TO MAKE ONLINE SHOPPING
Table 4.9
Percentage
Factors NUMBER OF RESPONDENTS (%)
Easy accessibility 11 37%
Lower price 10 33%
Wider choice 9 30%
High quality 0 0%
Others 0 0%
TOTAL 30 100%
Source: primary data
Fig 4.9
Wider choice
Easy accessibility
0
0.1
0.2
0.3
0.4
INTERPRETATION
The above table specifies that 33% of respondents are making online shopping because
of lower price. 37% are motivated by easy accessibility and the remaining 30% are because
of wider choice. And no one is there motivated by high quality.
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10. DEMOTIVATING FACTORS FOR ONLINE SHOPPING
Table 4.10
Percentage
Fig 4.10
INTERPRETATION
The above table shows that 30% of respondents are demotivated because of low
quality. 50% are demotivated by lack of knowledge and the remaining 20% are by tough
procedures.
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11. MOTIVATING PERSONS FOR ONLINE SHOPPING
Table 4.11
Percentage
Friends 9 30%
Advertisement 17 57%
Relatives 4 13%
Others 0 0%
Total 30 100%
Fig.4.11
Relatives
Advertisement
Friends
INTERPRETATION
The above table shows that 30% of respondents influenced by the friends for using
online shopping. 57% are motivated by advertisement and remaining 13% are motivated by
relatives.
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12.PRODUCT PURCHASED ONLINE
Table 4.12
Fig 4.12
Electronic device
Books
0
0.1 0.2
0.3
0.4
0.5
INTERPRETATION
The above table shows that 50% of respondents use online shopping for purchasing
chappel and shoes. 34% for dress and jewels. Only 6% and 10% for electronic device and
books respectively.
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13.WEBSITE VISITED FREQUENTLY FOR SHOPPING
Table 4.13
Fig 4.13
0
0.1
0.2
0.3
0.4
INTERPRETATION
The above table specifies that 34% of respondents are made online shopping through
the websites Amazon another 34%through Flipkart. 20% are through Myntra and only 12%
use through other websites.
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14.FACTORS CONSIDERED WHILE DECIDING SITE FOR ONLINE SHOPPING
Table 4.14
Percentage
Factors Number of respondents (%)
Search engine 4 13%
Personal
recommendation 8 27%
Special offers on site 3 10%
Online advertisement 15 50%
Total 30 100%
Source: primary data
Fig: 4.14
INTERPRETATION
The above table shows that 50% of respondents selected site for online shopping by
considering online advertisement provided by site. 27% are selected by the personal
recommendation,13% are by search engine. Only 10% are selected by special offers on site.
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15.RESPONDENTS OPENION TOWARDS THE BETTERNESS OF ONLINE
Table 4.15
Percentage
Response Number of respondents (%)
Yes 15 50%
No 15 50%
Total 30 100
Source: primary data
Fig: 4.15
INTERPRETATION
The above table shows that 50% of respondents opinion is that online shopping is
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16. PROBLEM FACED WHILE ONLINE SHOPPING
Table 4.16
Percentage
Problems Number of respondents (%)
Network errors 11 37%
Misleading 10 33%
Poor quality 9 30%
Others 0 0%
TOTAL 30 100%
source :-primary data
Figure 4.16
Poor quality
Misleading
Network errors
0
0.1
0.2
0.3
0.4
INTERPRETATION
The above table shows that 37% of respondents are problem faced by network errors .
33% are faced misleading and remaining 30% faced poor quality problem.
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17.MODE OF PAYMENT
Table 4.17
Number of
Mode of payment respondents Percentage (%)
Cash on delivery 15 50%
Credit card 8 27%
Fund transfer 7 23%
Other 0 0%
Total 30 100
source :-primary data
Figure 4.17
Mode of payment
0.6
0.5
0.4
0.3
0.2
0.1
0
Cash on delivery Credit card Fund transfer Other
INTERPRETATION
The above table shows that 50% of respondents are making payment through cash on
delivery . 27% are through credit card and remaining 23% are through fund transfer.
44
18. BITTER EXPERIENCE WHILE ONLINE SHOPPING
Table 4.18
Figure4.18
no
yes
0
0.2
0.4
0.6
0.8
INTERPRETATION
The above table shows that 67% of respondents have bitter experience while online
45
19. RESPONDENTS LEVEL OF SATISFACTION TOWARDS SERVICE AND OFFERS
Table 4.19
Percentage
Response Number of respondents (%)
Highly satisfied
0 0.1 0.2 0.3 0.4
0.5
Fig 4.19
INTERPRETATION
The above table shows that 50% of respondents are highly satisfied with service and
offers provided by online shopping website. 33% are satisfied and. Only 16% are not
satisfied.
46
20.MEDIA USED FOR EXCHANGING INFORMATION WHILE ONLINE
SHOPPING.
Table 4.20
Percentage
Media Number of respondents (%)
SMS 10 34%
Email 3 10%
Telephone 16 54%
Others 1 2%
Total 30 100%
Telephone
SMS
0
0.2
0.4
0.6
Fig 4.20
INTERPRETATION
The above table shows that 54% of respondents are used telephone as a media for
exchanging information while online shopping. 34% are through SMS, 10% are through
47
21.RECOMMENDATION TO ANYONE TO PURCHASE ONLINE
Table 4.21
Percentage
Response Number of respondents (%)
Yes 15 50%
No 15 50%
Total 30 100
Fig 4.21
Recommendations to anyone to
purchase online
0.6
0.4
0.2
0
yes
no
INTERPRETATION
The table specifies that 50% of respondents are recommended others for online
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CHAPTER 5
49
FINDINGS
50
SUGGESTIONS
1. Educate the people regarding the advantages of online shopping.
2. Create awareness among the people that, it is the safest and convenient method of
shopping.
3. Give proper advertisements about different types of products available at online
shopping.
4. Internet will be the key media in times to come. Flexible of marketing and speed of
interaction will certain] give a boost to its usage.
5. The global acceptance of credit card could prove a catalyst in the virtual shopping
system strong product branding on the Internet can provide marketers with a powerful
advantage over their advertisements have virtual reality.
6. Advertising has to be more appealing and specific on its target. This could be
achieved when the advertisements have virtual reality.
7. Online shopping should offer fast delivery to their customer. So the customers get
products on time
8. Online shopping should provide a wider choice of product all over world.
51
CONCLUSION
The consumer’s perception on online shopping varies from individual to individual
and the perception is limited to a certain extent with the availability of the proper
connectivity and the exposure to the online shopping. The perception of the consumer also
has similarities and difference based on their personal characteristics.
The study reveals that mostly the youngsters are attached to the online shopping and
hence the elder people don’t use online shopping much as compared to the younger ones. The
study highlights the fact that the youngsters between the ages of 20-25 are mostly poised to
use the online shopping. It is also found that the majority of the people who shop online buys
books online as it is cheaper compared to the market price with various discounts and offers.
The study also reveals that the price of the products have the most influencing factor on
online purchase. The second most influencing factor is the security of the products, the third
most influencing factor on online purchase is Guarantees and Warrantees followed by
delivery time and the next most influencing factor is reputation of the company, privacy of
the information and nice description of goods.
The study highlights on the easy navigation and access on the internet with people
liking for easy to access the online shopping and to be more convenient. The study also
reveals that majority of the respondent’s buys clothes from flipkart.com which is thus one of
the leading online shopping websites in India. On top of that the most products purchased
online by the respondents are the books followed by tickets (railway, movie, concerts).
52
CHAPTER 5
53
BIBLIOGRAPHY
Books:-
Websites:-
1) http://www.Flipkart.com
2) http://www.ebay.co.uk/
3) http://www.searchfit.com/Online Shopping Features
4) http://en.wikipedia.org/wiki/Online shopping
5) http://www.Snapdeal.com/About us
6) http://en.wikipedia.org/wiki/Advantages & Disadvantages
7) http://www.Amazon.com/About Us
8) http://en.wikipedia.org/wiki/Amazon/history
9) http://en.wikipedia.org/wiki/.Flipkart
10) http://en.wikipedia.org/wiki/Myntra.com
54
APPENDIX
55
APPENDIX
For the project on the topic ‘A study on customer perception towards online shopping'
QUESTIONNAIRE
1. Name : ………………….
2. Age :
4. Education level:
5. Occupation:
6. Monthly Income:
Above 75000
Yes No
Yes No
yes No
56
Once a week More than once a week Once a month
High quality
Friends Advertisement
Relatives Others
Amazon Flipkart
Myntra Others
16. .What factor help you to decide which site to use for online shopping ?
57
Search engine Personal recommendation
17. Do you feel that online shopping is better than direct shopping ?
Yes No
18. Problem faced while online shopping ?
Network errors Misleading
Poor quality Others
19. how do you make your payment on internet
Cash on delivery Credit card
Fund transfer Other
20. Do you face any bitter experience while online shopping ?
Yes No
21. Are you satisfied with facilities available of online shopping websites
Highly satisfied Satisfied
Not satisfied
58