Consumers’ perception towards online shopping in Lalitpur

District

By
Sujan Luitel

TU Regd No: 7-2-25-1302-2016

Exam Roll no. : 17078/16

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

At the
Nepal Commerce Campus
Tribhuvan University

New Baneshwor, Kathmandu

Janaury 2020

i
 DECLARATION

I hereby declare that I have completed the Summer Project entitled Consumer
Perception towards Online Shopping under the guidance of Prof. Pramod Raj
Sharma in partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University. This is
my original work and I have not submitted it earlier elsewhere.

………………………..
Sujan Luitel
February 2020

ii
 CERTIFICATE FROM THE SUPERVISOR
 
This is to certify that the summer project entitled Consumer Perception towards
Online Shopping in Lalitpur District is an academic work done by Sujan Luitel
submitted in the partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University under my
guidance and supervision. To the best of my knowledge, the information presented by
him in the summer project report has not been submitted earlier.

______________________

Signature of the Supervisor

Name: Prof. Pramod Raj Sharma

Designation:

Date:

iii
 ACKNOWLEDGEMENTS

My paramount gratitude goes to the Tribhuvan University for including this Project
Work in the syllabus of BBA, which I think is very helpful in developing practical
knowledge of the student. I would like to extend thanks to many people, who so
generously contributed to the work presented in the research.

I would like to extend my sincere gratitude and appreciation to Prof. Pramod

Sharma, my Summer Project Supervisor for his invaluable guidance and persistent
help during the entire period of preparation of this business research report. I would
like to express my sincere thanks to the respondents in Lalitpur. The primary data
provided by them have contributed towards making this project as comprehensive as
possible

I am also immensely appreciative to my friends and all those unknown persons who
helped me in completing my questionnaire during the research.

Sujan Luitel
Nepal Commerce Campus

iv
Table of content
Chapter 1.......................................................................................................................1

1 Introduction...........................................................................................................1

1.1 Context information.........................................................................................1

1.2 Objectives of the study....................................................................................2

1.3 Significance of the study.................................................................................2

1.4 Literature review.............................................................................................3

1.5 Methodology of the study................................................................................4

1.5.1 Research design........................................................................................4

1.5.2 Sources of data collection........................................................................4

1.5.3 Study of population..................................................................................4

1.5.4 Sample size...............................................................................................4

1.5.5 Sampling method.....................................................................................4

1.5.6 Data collection instrument.......................................................................5

1.5.7 Data analysis tools....................................................................................5

1.6 Limitation of the study....................................................................................5

Chapter 2.......................................................................................................................6

2 Data Presentation and Analysis...........................................................................6

2.1 Respondent’s Profile.......................................................................................6

2.1.1 Gender of respondent...............................................................................6

2.1.2 Age of respondents...................................................................................7

2.1.3 Profession of respondent..........................................................................8

2.1.4 Income level of respondents.....................................................................9

2.2 Descriptive analysis.......................................................................................10

2.2.1 Preference of online shopping over traditional shopping......................10

2.2.2 Frequency of doing online shopping......................................................11

2.2.3 Types of product....................................................................................12

v
 2.2.4 Attracting feature...................................................................................13

2.2.5 Satisfaction from the use of online shopping sites.................................14

2.2.6 Discouraging factors of online shopping...............................................15

2.2.7 Problems faced while doing online shopping........................................15

2.2.8 Perception towards online shopping......................................................16

2.2.9 Priority in choosing online shopping sites.............................................17

2.3 Major findings and discussions.....................................................................18

Chapter 3.....................................................................................................................20

3 Conclusion and action implications...................................................................20

3.1 Conclusion.....................................................................................................20

3.2 Actions and implications...............................................................................21

4 References............................................................................................................22

5 Appendices...........................................................................................................23

5.1 Appendix: Questionnaire...............................................................................23

vi
List of tables

Table 2. 1: gender of respondent....................................................................................6

Table 2. 2: age level of respondent................................................................................7
Table 2. 3: profession of respondents............................................................................8
Table 2. 4: income level of respondents.........................................................................9
Table 2. 5: preference of online shopping over traditional shopping..........................10
Table 2. 6: frequency of doing online shopping..........................................................11
Table 2. 7: types of product..........................................................................................12
Table 2. 8: attracting features of online shopping........................................................13
Table 2. 9: satisfaction from online shopping..............................................................14
Table 2. 10: discouraging factors of online shopping..................................................15
Table 2. 11: problems faced while doing online shopping..........................................16
Table 2. 12: perception towards online shopping........................................................16
Table 2. 13: priority in choosing online shopping sites...............................................17

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List of figures

Fig 2. 1: pie chart showing composition of female and male........................................7

Fig 2. 2: bar graph showing age level of respondent.....................................................8
Fig 2. 3: pie chart showing the profession of the respondents.......................................9
Fig 2. 4: bar graph showing income level of respondents............................................10
Fig 2. 5: bar graph showing respondents preference towards online shopping...........11
Fig 2. 6: bar graph showing the frequency of doing online shopping..........................12
Fig 2. 7: pie chart showing the types of product..........................................................13
Fig 2. 8: bar graph showing attracting features of online shopping.............................14
Fig 2. 9: dough nut showing the satisfaction from online shopping............................14
Fig 2. 10: discouraging factors of online shopping......................................................15
Fig 2. 11: bar graph showing the problems faced while doing online shopping.........16
Fig 2. 12: perception towards online shopping............................................................17

viii
Executive Summary
The study is based on the perception of consumer towards online shopping in Lalitpur
District. The main aim of the study is to analyze about the perception of the
consumers towards online shopping. Similarly, it also has an objective of finding out
the satisfaction from shopping online and problems encountered in online shopping of
people in lalitpur district.

The research report includes three phases: Introduction, Data Presentation and
Analysis and Conclusion. The first part comprises about the introduction of online
shopping. It also constitutes purpose of study, method of performing research activity
and limitations regarding the research project. The second part constitutes respondents
profile and presentation of collected data about income level, encouraging and
discouraging factors of online shopping, problems faced by consumers, satisfaction
level and perception towards online shopping. Third chapter includes summary,
conclusion and action implication of the study. The action implication contains some
suggestions and recommendations for overcoming their problem. The data are
collected from 100 respondents residing in Lalitpur.

Most of the respondents prefer online shopping over traditional shopping. They find
online shopping as the time saving medium of shopping which provides wide range
and variety of products. It highlights the satisfaction level of consumers which
suggests that most of the people are satisfied from online shopping. Some of the
problems are encountered by the consumers which needs to be considered by the
retailers.

ix
Chapter 1

1 Introduction

1.1 Context information

Online shopping is the form of electronic commerce which allows people consumers
to buy goods and services directly from a seller over the internet using a web browser.
Generally, it is also known as internet buying, electronic shopping, online purchasing
or internet shopping. A consumer can purchase varieties of goods and services by
visiting the website of the seller. Consumer doesn’t have to physically visit the retailer
to purchase products. The quality and feature of the product is published in the
webpage .Online shopping websites are used by the consumer to buy the desired
products as well as to compare prices and to know about the features of the product.
Online shopping eliminates the inconvenience of standing for long time in the queue
to buy products.

An online shop evokes the physical analogy of buying products or services at a

regular "bricks-and-mortar" retailer or shopping center; the process is called business-
to-consumer (B2C) online shopping. When an online store is set up to enable
businesses to buy from another businesses, the process is called business-to-business
(B2B) online shopping. A typical online store enables the customer to browse the
firm's range of products and services, view photos or images of the products, along
with information about the product specifications, features and prices.

Online stores typically enable shoppers to use "search" features to find specific
models, brands or items. Online customers must have access to the Internet and a
valid method of payment in order to complete a transaction, such as a credit card, a
debit card, or a service such as PayPal. For physical products (e.g., paperback books
or clothes), the e-tailer ships the products to the customer; for digital products, such
as digital audio files of songs or software, the e-tailer typically sends the file to the

1
customer over the Internet. The largest of these online retailing corporations
are Alibaba, Amazon.com, and eBay.

The growth of the internet as a secure shopping channel has developed since 1994,
with the first sales of Sting album 'Ten Summoner's Tales'. Wine, chocolates and
flowers soon followed and were among the pioneering retail categories which fueled
the growth of online shopping. Researchers found that having products that are
appropriate for e-commerce was a key indicator of Internet success. Many of these
products did well as they are generic products which shoppers didn't need to touch
and feel in order to buy. But also importantly in the early days there were few
shoppers online and they were from a narrow segment: affluent, male, 30+. Online
shopping has come a long way since these early days and -in the UK- accounts for
significant percents (depending on product category as percentages can vary).

Statistics show that in 2012, Asia-Pacific increased their international sales over 30%
giving them over $433 billion in revenue. That is a $69 billion difference between the
U.S. revenue of $364.66 billion. It is estimated that Asia-Pacific will increase by
another 30% in the year 2013 putting them ahead by more than one-third of all global
ecommerce sales.

The use of internet technology and ecommerce platform for purchasing products is
increasing day-by-day. There are various ecommerce platforms available in Nepal
that offers varieties of products like clothing, fast food, vegetables, electronics, etc.
daraz.com, metro-tarkari.com, sastodeal.com, hamrobazar.com, muncha.com,
nepbay.com, etc are some of the ecommerce sites that are providing platform to buy
products online.

1.2 Objectives of the study

The major objectives to study the research topic are:
Basic Objective
 To know about the perception of consumers towards online shopping.

2
Specific Objectives
 To know about the encouraging and discouraging factors of online shopping.
 To identify the problems faced by the consumers in online shopping.

1.3 Significance of the study

The study will make clear about the perception of consumer towards online shopping
of people of lalitpur district. It aims to find out the problems faced by the consumers
while shopping online, barriers of online shopping. The problem diminishes the
satisfaction level of the consumers. It will present the condition of online shopping in
Lalitpur district. The study is relevant because it will help the sellers to improve the
quality of service by reducing the problems. It eventually helps to attract more
customers and meet their level of satisfaction.

1.4 Literature review

Isaac J. Gabriel (2007) studied online consumers’ risk perceptions and will reveal a
“cognitive map” of their attitudes and perceptions to online risks. It was accomplished
by composing a master list of online hazards and activities, measuring current level of
perceived risk, desired level of risk, and desired level of regulation associated with
them, composing a master list of online risk characteristics, determining online risk
dimensions,/ and revealing position of each online hazard or activity in the factor
space diagram. A factor space diagram captures a graphical representation of the
results of the factor analysis. This study is still in progress and results are not
available yet.

Soonyong Bae, Taesik Lee (2010) they investigates the effect of online consumer
reviews on consumer’s purchase intention. In particular, they examine whether there
are gender differences in responding to online consumer reviews. The results show
that the effect of online consumer reviews on purchase intention is stronger for
females than males. The negativity effect, that consumers are influenced by a negative
review more than by a positive review, is also found to be more evident for females.

3
These findings have practical implications for online sellers to guide them to
effectively use online consumer reviews to engage females in online shopping.

Wang (2006) conducted a research to examine the current use and predict future
Web-based marketing activities of U.S. convention and visitor bureaus. A survey was
sent to 600 randomly selected American convention and visitor bureaus with a focus
on assessing the applications included in the bureaus „Websites, their Website
promotion techniques, and customer relationship management programs in relation to
these Websites. The results indicate that most bureaus‟ Internet marketing activities
are relatively limited, focusing on providing travel information to prospective visitors.

Know and Lee (2003) explored consumers’ concerns about payment security and its
relationship to online shopping attitude and actual purchases. They observed a
negative relationship between attitude towards online shopping and concerns about
online payment security. Consumers with a positive attitude seem to be less
concerned about payment security.

Kanwal Gurleen (2012) focuses on the understanding of demographic profiles of

adopters and non-adopters of online shopping. For this purpose the data from 400
respondents was collected in the form of questionnaires. The study has been
conducted in 3 cities of Punjab, a sample of urban respondents were selected from the
Jalandhar, Ludhiana and Amritsar The paper also analyses the various reasons for
adoption and non-adoption of online shopping.

1.5 Methodology of the study

This section discusses about the research methods that includes research design, study
population, sampling method, sample size, nature of the data, data collection
instrument and data analysis tools. Each of them has been explained below:

1.5.1 Research design

4
The study is based on the structured questionnaire, which has been developed and
distributed to the targeted respondent to get the opinions about the impact of language
and culture to tourist guide. The information has been collected and appropriate
statistical tools have been applied to analyze the situations. So, the research design is
descriptive research designs.

1.5.2 Sources of data collection

Structured Questionnaire is used as the primary source of information. Respondents are

provided with the list of complete structured questions from which the responses are collected
and recorded. Previous research, journals, articles, internet are used as secondary sources of
information.

1.5.3 Study of population

Population is the collection of well-defined collection of individuals that is known to have

similar characteristics from where the sample is selected .  All individuals or objects within
a certain population usually have a common, binding characteristic or trait . The
population from where the information are collected are the people residing in Lalitpur
District.

1.5.4 Sample size

Research sample is the collection of selected respondents from whom the responses are
collected. The sample should be representative of the population to ensure that we can
generalize the findings from the research sample to the population as a whole. Out of

5
the total population, 100 samples are selected and information were gained through structured
questionnaires.

1.5.5 Sampling method

The respondents are selected by convenience sampling method where questionnaire

have been distributed to respondents based on time, availability, willingness to
participate, or nearby respondents. Efforts are made to make the sample representative
of the population by including consumers from the different age group, sex, and
educational background.

1.5.6 Data collection instrument

Survey method is used for generating data and information from the targeted
participants. The questionnaire includes Likert scale, multiple choice question, informant’s
personal information, open ended questionnaire as a part of suggestions from the respondent.

1.5.7 Data analysis tools

The data obtained through survey are organized by dividing according to the age group and
gender. Data analysis is done on the basis of data collected from the respondents with the help
of questionnaire. The convenient samples collected from various respondents are analysed
using various statistical tools. Various statistical tools like bar diagram, pie charts, and tables
are used to clearly present and analyze the collected data.

1.6 Limitation of the study

The limitations of the study are:

6
  Less sample size as it is done with just 100 respondents.
 It is too difficult to analyze the topic within the given period of time which
was very short.
 The sample chosen for the survey does not provide accurate or reliable data
due to lack of interest.

Chapter 2

2 Data Presentation and Analysis

This section presents the presentation and analysis of the data that were collected
through the research process. This chapter is composed of descriptive result of key
variables, which are presented via pie chart, bar diagram, line chart and so on. The
required information was collected from the professional, non-professional and local

7
people of study area. To obtain the participants’ response, structured questionnaires
were made and data was collected, and their responses were analyzed. The data
collected was then arranged, classified and presented in the form of tables, graphs and
bar diagrams in the later part of the report.
The information gathered from respondents was recorded in spreadsheet for
organizing and computing the information which has been introduced in this segment
of the exploration report. The data accumulated has been exhibited in tabular and
graphical structures as it would be prudent to take the benefit of visual systems for
passing on the outcomes. The primary purpose of this section was data presentation
and analyses from the information that has been gathered through survey
questionnaires. For the purpose of detailed depiction of information collected, the
entire chapter has been devised into two main sections. The first section presents
component wise analysis of the information and the section presents the key findings
and discussions.

2.1 Respondent’s Profile

Respondents were randomly selected from total population using convenient

sampling method to obtain required information for the research. Respondents profile
is shown below on the basis of different traits: gender and age, education, profession.
All the respondents’ common traits is that they are all living in Lalitpur district. All
the respondents’ information are collected with their consent.

2.1.1 Gender of respondent

8
This section deals with the gender of the respondent. This section of research deals
with finding out the perception of different gender regarding the online shopping.
This can dealt with saying that the better perceiver involves more in their field of
interest. This section includes two category i.e. male and female.

Table 2. 1: gender of respondent

Gender No of respondent Percentage

Female 56 56

Male 44 44

Total 100 100

(Source: field survey, 2020)

Table 2.1 shows that the number of female respondent is more than male respondents
where female represents 56% whereas male represents 44% of the total respondents.
This table shows that more number of females have been involved in online shopping
in the lalitpur district. Although the data is collected by taking a sample of 100
respondents it represents higher involvement of females in the online shopping. The
above data can also be shown in the diagram below:

9
 percentage
female male

44%

56%

Fig 2. 1: pie chart showing composition of female and male

Fig 2.1shows that out of the total respondent, 56% were female respondent and 44%
of the respondents were male. It shows the higher participation of female than male
respondents. This resembles the higher involvement of female in the household
activities and also that the female are being more active in the internet world. It also
means that more number of females are aware about the online market than that of
male in the Lalitpur district.

2.1.2 Age of respondents

This section deals with the age level of the respondents. It helps to know that people
of which age group are more attracted and involved in online shopping activities. It
helps to find out the level of involvement in online shopping of people from different
age group. Age has a direct link to the level of involvement in online shopping in

10
lalitpur. Online retailers yet have a responsibility to gain the trust of different age
group of people.

Table 2. 2: age level of respondent

Age level No of respondent percentage

18-28 37 37

28-38 26 26

38-48 28 28

49 and above 9 9

total 100 100

(Source: field survey, 2020)

Table 2.2 shows that the number of respondents representing age group 18-28 is high
representing 37% of the total respondents. This means that the younger generation
highly trusts the online shopping compared to the other age groups. The age group
from 28-38 and 38-48 has similar involvement in the online shopping. The least
number of respondents in the research is representing age group 49 years and above
with 9% of the total sample size. The above data can also be presented in the diagram
below:

11
 40

35

30

25
no of respondents

20

15

10

0
18-28 28-38 38-48 49 & above
age level

Fig 2. 2: bar graph showing age level of respondent

Fig 2.2 shows there are higher no of respondents of age group 18-28 with 37%.
Similarly, there are 26%, 28% and 9% of respondents in age group 28-38, 38-48 and
49 & above respectively. Moreover, the younger generation is attracted towards the
online shopping than the older generation. The age group of 38-48 come to the second
place in the consciousness and active participation in the online shopping in the
lalitpur district. The age group of 28-38 also has a good number of participation
whereas the people from age above 49 are very unlikely to shop online. The trust level
of this age group is very low towards the online shopping in lalitpur.

2.1.3 Profession of respondent

This section deals with the occupation or profession in which the respondents are
involved in. This portion of the study deals with people with which profession are

12
more involved in the online shopping. This section also helps to find out about the
knowledge of online shopping to different professional people. The profession of
respondents includes student, business person, professional and self-employed.

Table 2. 3: profession of respondents

profession No of respondents percentage

student 38 38

professional 15 15

Business person 34 34

Self employed 13 13

total 100 100

(Source: field survey, 2020)

Table 2.3 shows that the highest number of respondents is student representing the
38% of the total respondents. This study shows that students are highly motivated
towards online shopping whereas the self-employed people are very unlikely to trust
the online retailers. Even the business people have a good involvement in the online
shopping. The least numb i.e. 13% of the respondents are self-employed also
professional people perceive online shopping as not good. The above given data can
also be presented in the diagram below:

13
 self employed
13% student
38%

business person
34%

professional
15%

Fig 2. 3: pie chart showing the profession of the respondents

Fig 2.3 shows that that the 34% of the respondents are students. This implies that the
student’s involvement in online shopping is very high. Similarly, the no of
professionals, business person and self-employed are 15%, 34% and 13%
respectively. This also concludes that the business persons are very likely to perform
online shopping very frequently. Although many professional and self-employed
people seem unsatisfied with these services. These research is based on a very small
sample due to which the result obtained could be false.

2.1.4 Income level of respondents

This section deals with information about the monthly income level of the
respondents. Sample has been done with different people with different level of
incomes. This study also helps to find out about the effect of income level on the
online shopping participation. People with different income levels have different
perception on the online shopping. The income level includes category up to 15000,
15000-30000, 30000-45000 and above 45000.

14
 Table 2. 4: income level of respondents

Monthly Income level No of respondents percentage

Up to 15000 34 34

15000-30000 22 22

30000-45000 14 14

Above 45000 30 30

Total 100 100

(Source: field survey, 2020)

Table 2.4 shows that highest number of respondents have income less than 15000
representing 34% of the respondents. This implies that the lower income groups have
a higher involvement in the online shopping in lalitpur. People seem to be involved in
online due to cost effective shopping. Also this statement could be proven false since
the second highest involvement of people is the highest income levels group.The least
number of respondents have income 30000-45000 i.e. 14% of the total respondents.
The above data can be presented in the diagram below:

15
 40

35

30

25
no of respondents

20

15

10

0
upto 15000 15000-30000 30000-45000 above 45000
monthly income level

Fig 2. 4: bar graph showing income level of respondents

Fig 2.4 shows that there are highest number of respondents in the income level up to
15000 with 34%. The graph shows that the people with income below Rs.15000 has
the highest involvement in online shopping. Similarly, the number of respondents (%)
with income level 15000-30000, 30000-45000 and above 45000 are 22%, 14% and
30% respectively. It also shows that people with income above Rs.45000 have the
second largest participation in online shopping.

2.2 Descriptive analysis

This section deals about the descriptive analysis of the collected data. It includes the
samples collected through questionnaire regarding the perception of respondents
towards online shopping. This section actually deals with the actual objectives of the
research. This section of the research focuses on the objectives of the research. It finds
out about how the people perceive online shopping in Lalitpur district. The main
focus of this research is to find out the perception of the respondents towards online
shopping in lalitpur district. It highly focuses on the people’s perception rather than
the level of involvement. Since the data is collected is from convenient sampling the
information collected might represent the 100% truth.

16
2.2.1 Preference of online shopping over traditional shopping

This sections presents the preference and importance given by the respondents to
online shopping over traditional type of shopping practices. It explains about people’s
perception on online shopping to that of the traditional shopping process. Traditional
shopping is the way of shopping stuffs by visiting the store physically whereas online
shopping is visiting the store virtually. This section of the study focuses on preference
of online shopping over the traditional shopping in lalitpur district.

Table 2. 5: preference of online shopping over traditional shopping

Prefer online shopping Frequency percentage

Yes 40 40

No 35 35

Can’t say 25 25

Total 100 100

(Source: field survey, 2020)

17
Table 2.5 shows that highest number of respondents prefer online shopping over
traditional shopping representing 40% of the total respondents. This means that more
of the sample population prefer online shopping over the traditional shopping. One
fourth of the people are neutral about the preference rather consider both as same.
Almost 35 % of the sample population prefer traditional shopping over online
shopping. Similarly, the least number of respondents are neutral representing 25% of
total respondents.

40

35

30

25

20

15

10

0
yes no can

Fig 2. 5: bar graph showing respondents preference towards online shopping

Fig 2.5 shows that the number of respondents preferring online shopping rather than
traditional shopping is highest with 40% of total respondents. The bar graph shows
that the higher number of people prefer online shopping over traditional shopping.
Also quite a bigger sample population prefer traditional shopping over the online
shopping in lalitpur. Also almost 25% of the total sample population are neutral to
their answer regarding their preference to online or traditional shopping. Similarly,
35% of respondents prefer traditional shopping whereas 25% of respondents were
neutral to the topic.

2.2.2 Frequency of doing online shopping

18
This section deals with the frequency of online shopping so as how often do the
respondent is involved in online shopping. It includes categories regularly, sometimes
and rarely. This section of study clarifies the frequency of purchase online. Here the
number of times the people have been involved in online shopping is discussed. This
section highly focuses on number of times people have involved in virtual shopping.
This section clarifies about the online buying pattern and habit of the respondents.

Table 2. 6: frequency of doing online shopping

frequency Frequency Percentage

Regularly 19 19

Sometimes 48 48

Rarely 33 33

Total 100 100

(Source: field survey, 2020)

Table 2.6 shows that more number of respondents shop online sometimes representing
48 % of the total respondents. Very high number of sample population are involved in
online shopping a fewer times. Almost half of the sample population have involved in
online shopping sometimes. Whereas, almost 20% of the sample population are likely
to shop on a regular basis. Also 33% people rarely or never shop online. Likewise,
least number of respondents shop online regularly representing 19% of the total
respondents. The tabulated data can be presented in the diagram below:

19
 50 48

45

40

35 33

30

25
19
20

15

10
4 4
5 3 3
2 2
1 1

0
regularly sometimes rarely

Fig 2. 6: bar graph showing the frequency of doing online shopping

Fig 2.6 shows that the majority of the respondents sometimes shop online i.e. 48%.
This section clarifies that a lower number of people are shopping online regularly.
Only 19% of the total sample population are shopping online regularly whereas the
percentage of people shopping online sometimes is almost 48%. Likewise 19% of the
respondents shop online regularly and 33% of the respondents buy products online
rarely. The least number of people are involved in virtual shopping regularly
comparing to those that shop online sometimes and very rarely.

2.2.3 Types of product

This section deals with the types of product that are bought mostly by the
respondents. The various products bought by the respondents were related to
electronics, food items and clothes. This section helps to find out the respondents
product of interest in online shopping. It includes information about the products that
are given more priority by the respondents to buy online.

20
 Table 2. 7: types of product

Products Frequency Percentage

Electronics 35 35

Food items 17 17

Clothes 48 48

Total 100 100

(Source: field survey, 2020)

Table 2.7 shows that the maximum number of respondents purchase clothing items
mostly from online shopping sites with 48% of the total respondents. This means that
more of the sample population are involved in online shopping of clothes. Most of the
respondents prefer to shop clothes online. Additionally, 35% of the respondents shop
electronic items from online shopping sites. Also quite many people prefer to shop
electronics online. Very few people buy food products online. The data can be
presented in the diagram below:

21
 electronics
35%

clothes
48%

food items
17%

Fig 2. 7: pie chart showing the types of product

Fig 2.7 shows that higher number of respondents buy clothes online with 48%. This
shows a higher number of people buying clothes comparing to the people buying food
products and electronic appliances online. Only a small number of people perceive
buying food products online as wrong. Most of them consider the quality of online
products are compromised. Likewise, 35% of the respondents buy electronics and
17% buy food items through online shopping sites.

2.2.4 Attracting feature

This section deals with the features by which the respondents are attracted in online
shopping and which drags them to online shopping sites. This section of the study
shows how many of the people are attracted towards buying products online
considering the features of the products. This section finds out people buying online
on the basis of features of the product offered by the online retailers. The features
attracting online shoppers are low price, discount offers, variety of product and time
saving.

22
 Table 2. 8: attracting features of online shopping
Features Frequency Percentage

Variety of product 16 16

Discount offers 17 17

Time saving 57 57

Low price 10 10

Total 100 100

(Source: field survey, 2020)

Table 2.8 shows that 57% of the respondents is attracted to online shopping because it
saves time by facilitating shopping from home and office. Most people are attracted
by the time saving feature of online shopping. Also some of the respondents are
attracted by the variety, discounts and price factors of the online shopping. Although
the number of people buying products because of the price feature but in context of
lalitpur district it seems it is false. Similarly, the least percentage of respondents i.e.
10% of the respondents are attracted to online shopping due to the availability of
products and services in low price.

4
low price 4
10

3
time saving 3
57

2
discount offers 2
17

1
variety of product 1
16

0 10 20 30 40 50 60

23
Fig 2. 8: bar graph showing attracting features of online shopping
Fig 2.8 shows that maximum of the respondents are attracted by the time saving
feature of online shopping which incorporates 57% of the total respondents.
Respondents consider time saving feature of online shopping most important factor
for purchasing goods online. Very few people consider price factor as an important
factor for motivating online shopping in lalitpur district. Similarly, low price attracted
10% likewise, discount offers and variety of product attracted 17% and 16% of the
respondents respectively.
2.2.5 Satisfaction from the use of online shopping sites
This section deals with the satisfaction level of the respondents. The respondents
responded in two categories yes and no. in this section the respondents’ satisfaction
from buying online has been studied. How satisfied are the costumers practicing
online shopping in lalitpur district has been explained in the table and figure below.

Table 2. 9: satisfaction from online shopping

Responses Frequency Percentage

Yes 57 57

No 43 43

Total 100 100

(Source: field survey, 2020)

Table 2.9 shows that 57% of the respondents are satisfied from online shopping
whereas 43% are not satisfied. Most of the respondents are satisfied with the service
provided by the online retailers in lalitpur district. Almost 43% people are not
satisfied with the product and service provided by the online retailers.

24
 no
43%

yes
57%

Fig 2. 9: dough nut showing the satisfaction from online shopping

Fig 2.9 shows that more respondents are satisfied from online shopping.57% of the
total respondents are satisfied whereas 43% are not satisfied from online shopping.
This shows that consumers are satisfied from online shopping despite of the problems
incurred. This concludes that there are a number of customers that are satisfied with
the products and services provided by the online retailers but they have the
responsibility to do much more in order to satisfy the unsatisfied respondents. Also
they have to work very hard to win the trust of the costumers to compete in the
markets.

2.2.6 Discouraging factors of online shopping

This section deals with the factors that discourages the respondents to involve in
shopping online. The discouraging factors as per the respondents are no physical
examination and high speed internet requirement. Here we discuss those factors that
have more probability that will demotivate the costumers to buy online. We find out
such factors that hamper the process of the online shopping. Various factors that play
a part to discourage the costumers are discussed with the table and figure.

25
 Table 2. 10: discouraging factors of online shopping

Factors Frequency Percentage

No physical examination 89 89

High speed internet 11 11

requirement

Total 100 100

(Source: field survey, 2018)

Table 2.10 shows that maximum numbers of respondents are discouraged to shop
online because there is no possibility of physical examination. This means that the
costumers have a doubt about the quality of products offered online. They are
discouraged because they do not have the feasibility for physical examination of the
products. Another factor discouraging the consumers to buy online is requirement of
high speed internet. Almost 11% of people think that the requirement of high speed
internet discourages the consumers to buy online. One cannot feel the product before
buying. Likewise, remaining 11% of respondents are discouraged because it requires
high speed internet connectivity.

100 1
90
80
70
60
50 89
40
30
20 2
2
10 11 3 4
3 4
0
n t
tio en
a m
in re
am qui
x re
le et
sica rn
y te
ph in
no ee
d
sp
gh
hi

Fig 2. 10: discouraging factors of online shopping

26
Fig 2.10 shows that 89% of the respondents are discouraged from doing online
shopping because of no physical examination. Most of the respondents have the
insecurity of the quality of the products offered online. The physicality of the product
discourages the purchases online. People consider physical availability is assurance of
the quality of the product. Similarly, 11% are discouraged because of high speed
internet requirement.

2.2.7 Problems faced while doing online shopping

This section deals with the problems faced by the respondents while doing online shopping.
The problems faced by the respondents are products not delivered in time and not
delivered as per order. Here we discuss about our specific objectives about various
problems faced by the respondents in buying online. Various problems arise in the
process of buying online. Some of the problems are discussed below with the
responses of the respondents in the table and figure.

Table 2. 11: problems faced while doing online shopping

Problems Frequency Percentage

Not delivered in time 29 29

Not delivered as per 71 71

order
Total 100 100

(Source: field survey, 2020)

Table 2.11 shows that 29% of the total respondents have faced the problem of not
receiving the product in stated time whereas 71% of the respondents faced the
problems of not receiving the products not receiving as per the ordered quality and
quantity. The biggest problem of the online buyers have become the wrong quality
and quantity of products delivered. Most respondents stated that the quality of the
products have been compromised in the online markets. Also the costumers have
faced the problem of untimely delivery of the products in the online shopping.

27
 80 71
70

60

50

40
29
30

20

10 2 2 3 3 4 4
1 1
0
e r
tim r de
d
in ero
re p
v e as
eli ed
td iv er
no el
otd
n

Fig 2. 11: bar graph showing the problems faced while doing online shopping

Fig 2.11 shows that 29% of the respondent were not delivered product in time. Here
most of the customers complained about the lower quality of the products the
promised one as one of the biggest problem. Also people complained differentiated
quantity of products than the ordered quantity as the problems of online shopping.
Also some of the respondents said the untimely delivery of products as the biggest
problem of the online shopping. Similarly, 71% of respondents were not delivered
product as per order. It presents a clear view about the problems that that the
consumers are facing while shopping online.

2.2.8 Perception towards online shopping

This section deals with the perception of respondents towards online shopping. it
presents the general perception of consumer towards online shopping. The consumers
perceived online shopping as low price, low quality, variety of product and time
saving. In this section we talk about the people’s perception towards online shopping
in lalitpur district. Her we collect the respondent’s perception about different factors
of online shopping.
Table 2. 12: perception towards online shopping

28
 Response Frequency Percentage

Low price 16 16

Low quality 8 8

Variety of product 32 32

Time saving 44 44

Total 100 100

(Source: field survey, 2020)

Table 2.12 shows that highest number of respondents perceive online shopping as
time saving which represents 44% of the total respondents. Most of the respondents
perceive online shopping as the time saving process. Also many respondents perceive
online shopping as the store for variety of products. Likewise, least number of
respondents perceive online shopping as low quality which represents 8% of total
respondents.

frequency

low price
16%
low quality
time saving 8%
44%

variety of product
32%

Fig 2. 12: perception towards online shopping

29
Fig 2.12 shows that highest number of respondents i.e. 44% perceive online shopping
as time saving. Likewise, 32% perceive it as variety of product. Similarly, 16% and
8% respondents perceive online shopping as low price and low quality respectively.
Different people have different perception about the online shopping. In this process
of the research most of the respondents perceived online shopping as a time saving
process, others perceived it as variety of products and also others perceived as the low
price store.

2.2.9 Priority in choosing online shopping sites

This section deals with the features on which respondents give more priority while
choosing online shopping sites. In this section we discuss about how the respondents
priorities their purchase behavior in online shopping. Various features have influence
over the decisions regarding the purchase of goods and services online. The features
are presented in the Likert scale to analyze the result.

Table 2. 13: priority in choosing online shopping sites

Level of agreement

Features Strongly Agree Neutral Disagree Strongly Total Weighted Weighted

agree disagree value mean

Price of 43 15 19 15 8 100 230 2.3

the
product

Quick 28 40 11 21 100 227 2.27

delivery

30
 Exchange 27 31 15 19 8 100 250 2.5
facility

Variety 19 31 15 19 16 100 282 2.82

of
product

(Source: field survey, 2020)

Table 2.13 shows that the level of agreement is high in the statement: variety of
product 2.82 and exchange facility 2.5. Most of the respondents find it important to
consider variety of the products available at the online market. Also second comes
exchange facility, if there is exchange facility people are more likely to increase the
number of times they purchase online. Similarly, the level of agreement is low in the
statements: price of the product 2.3 and quick delivery 2.27. People also priorities
online buying on the basis of quick delivery it provides. It shows that the consumers
focus on the variety of product and exchange facility of online shopping sites.

2.3 Major findings and discussions

The research was conducted with the main objective of knowing about the perception
of consumers towards online shopping. The major findings are:
 Majority of the respondents(40%) preferred online shopping.35% respondents
were in favor of traditional shopping
 Similarly, 19% of the respondents were involved in online shopping regularly
whereas 33% respondents rarely used online sites for shopping.
 Most of the respondents (48%) used to buy clothes online. Likewise, 35% of
the respondents buy electronics and 17% buy food items through online
shopping sites.

31
  It shows that maximum of the respondents are attracted by the time saving
feature of online shopping which incorporates 57% of the total respondents.
Similarly, low price attracted 10%.likewise, discount offers and variety of
product attracted 17% and 16% of the respondents respectively.
 As per the research findings, it was found that more respondents are satisfied
from online shopping.57% of the respondents are satisfied whereas 43% are
not satisfied from online shopping.
 The study shows that 89% of the respondents are discouraged from doing
online shopping because of no physical examination. Similarly, 11% are
discouraged because of high speed internet requirement.
 From the research, it is concluded that 29% of the respondents were not
delivered product in time. Similarly, 71% of respondents were not delivered
product as per order. It presents a clear view about the problems that that the
consumers are facing while shopping online.
 It was found that highest number of respondents i.e. 44% perceive online
shopping as time saving. Likewise, 32% perceive it as variety of product.
Similarly, 16% and 8% respondents perceive online shopping as low price and
low quality respectively.
 The study shows that the level of agreement is high in the statement: variety of
product 2.82 and exchange facility 2.5. Similarly, the level of agreement is
low in the statements: price of the product 2.3 and quick delivery 2.27.

Chapter 3

3 Conclusion and action implications

3.1 Conclusion
Online shopping is the emerging terminology in Nepal and the whole world. Slowly
and gradually, the online shopping habit of the people is developing. Online shopping
helps to purchase products and services through internet without physically visiting
the physical retail and wholesale stores.

32
The research was conducted with the aim of finding out the clear picture about the
general perception of consumers towards online shopping. it was also conducted with
the view of knowing about the problems faced by the consumers and their level of
satisfaction.
From the research, it is concluded that that the most of the people perceive online
shopping as the technology that saves time which help to reach the global retail stores
from home and office. They also perceive it as technology that give access to the
variety of product. Different stores of product can be visited from a single site. It
makes available wide range of product to the consumers. It helps consumer to
purchase the latest product with quality high quality. It is also found that there are
many problems prevailing in the online shopping. Consumers are facing many
problems while purchasing products online. The problems are somehow distracting
the people from online shopping. The online retailers do not deliver the products and
services at the stated time and as per the stated quality and quantity.
Although there are many benefits and features of online shopping, certain drawbacks
or limitation are discouraging people to purchase online. Since, the products are
published in the retailer’s websites, one can’t physically feel the product before
buying. It also requires high speed internet connectivity in order to access the online
shopping sites.
Despite of the problems and drawbacks of online shopping, most of the people are
satisfied and prefer it over traditional shopping. It is the good sign for the
development of online shopping. It shows that there is good prospect for the
development of online shopping.

3.2 Action and implications

The findings of this research can be very helpful for online retailer to make marketing
strategies to attract more customers towards online shopping. The online retailers can
make proper marketing strategies to attract more customers in food items and
electronic items too as majority of consumers are willing to buy clothes online. They
can provide discount offers, warranty, etc. to attract more customers to buy electronic
items.
The study can be helpful for online retailers to know about their weakness and try to
improve their business operations to encourage more customers to buy online. The

33
consumers are facing the problems of not receiving products at time and as per
ordered quality and quantity. The online retailers can make proper strategy to reduce
these problems and meet their level of satisfaction. It also helps to find out the
priorities of the buyers that they prefer before buying goods and services online.
This study also plays an important role to assist the local government of lalitpur
district to ensure consumers safety and digitalized district. The municipality will be
assisted to make rules and regulations in order to protect the rights of the consumers
of lalitpur districts. This study directly affects the policy makers regarding the online
market in the lalitpur district.
Similarly, this study can also be helpful to know about the need of the customer. It
will help online retailers to know that to which feature of online shopping site
consumers focus more. It also plays an important role in making various decisions for
online retailers to provide better services to the costumers. This facilitates them to
concentrate on the addition of new feature or to improvise the existing features.
Additionally, it also facilitates the new entrant in online retailing to know about the
perception and preferences of customers. It serves as the basis to adopt suitable
marketing strategies. Various online retailers are facilitated to make decisions that
favor their growth as well as ensure consumer satisfaction which boosts the consumer
loyalty in the online market.

34
4 References

Bae,S ,& Lee,T. (2011) Gender difference in consumer’s perception of online

consumer reviews. Electronic commerce research, 11(2)

Wang (2006) .Sales and Marketing Management.

Know, K., & Lee, J. (2003). Concerns about payment security of Internet purchases:
A perspective on current on-line shoppers, Clothing and Textiles Research Journal,
21 (4), 174-184.

Kanwal,G. (2012). Consumer perception towards online shopping- The case of

Punjab, International journal of management and information technology.1(1).

Gabriel, I.J. (2007), “towards understanding risk perception of online consumer SAIS
2007 Proceedings. 39

https://en.wikipedia.org/wiki/Online_shopping

xi
5 Appendices

5.1 Appendix: Questionnaire

Dear Sir/Madam,
My name is Sujan Luitel. I am student of BBA from Nepal Commerce Campus. I
would like to request you for spending few minutes to fill this questionnaire. This
survey aims to study about” Consumer Perception towards Online Shopping in
Lalitpur. The information will be used for only academic purpose and will be kept
confidential. Your valued information will be highly appreciated.

I. Respondent’s Profile
a) Name (optional):

b) Gender:

c) Age level
18-28 years
28-38 years
38-48 years
49 years and above

d) Profession
Student professional
Business person self employed

e) Income level
upto 15000 15000-30000
30000-45000 above 45000

1. I prefer online shopping rather than traditional shopping.

Yes No

2. What type of product do you buy online?

Electronics food items
Clothes others ……

xii
xiii
Appendix : questionnaire continue

3. How often do you shop online?

More often often
Sometimes rarely
Never

4. What feature in online shopping attracts you?

Variety of product discount offers
Time saving low price
Others…..

5. Are you satisfied from online shopping?

Yes no

6. What are the discouraging factor in online shopping?

No physical examination expensive
High speed internet requirement
Others...

7. To which factors do you give more priority while choosing online shopping
sites?
Features Strongly Agree Neutral Disagree Strongly
agree disagree
Price
Quick
delivery
Exchange
facility
Variety of
product

8. Have you ever faced any problem while shopping online?

Yes no

xiii
Appendix : questionnaire continue

9. What problem have you faced while shopping online?

Product not delivered in time
Product not delivered as per order
Others…

10. How do you perceive online shopping as?

Low price
Low quality
Variety of product
Time saving

xiv