"Study On Perception of Consumers Towards Online Shopping": Master of Business Administration

KARNATAK UNIVERSITY, DHARWAD.
KOUSALI INSTITUTE OF MANAGEMENT STUDIES
MAJOR CONCURRENT PROJECT

A REPORT ON
“STUDY ON PERCEPTION OF CONSUMERS

TOWARDS ONLINE SHOPPING”
A Project Report Submitted to the Karnatak University, Dharwad

For partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION

During the academic year 2019-20
Submitted by:
Miss. SHRUTI S. KHAVASI
18MBA042
UNDER THE GUIDENCE OF
Dr. Ramesh R. Kulkarni

Director, Professor,
Kousali Institute of Management Studies,
Karnatak University, Dharwad.
Name: SHRUTI S. KHAVASI
Reg No: 18MBA042
MBA: 4th SEM
Batch: 2018 – 2020
KIMS, KUD
DECLARATION
I hereby declare that the dissertation titled “Study on CONSUMERS

PERCETION TOWARDS ONLINE SHOPPING” has been carried out by me
during the academic year 2019-20, under the guidance of Dr. Ramesh R.
Kulkarni, Professor at Kousali Institute of Management Studies, Karnatak
University Dharwad.
I am submitting this project report to Karnatak University, Dharwad as the

partial fulfillment of the MBA degree
I also declare that, this project report or part of it has not been previously submitted
for the award of any other degree.
(SHRUTI S.KHAVASI)
Acknowledgement
The satisfaction and joy that accompanies the successful completion of my

MAJOR CONCURRENT PROJECT would incomplete and short-lived
without the mention of people made it possible..
First and foremost, I would like to express my heartfelt thanks to our

beloved guide and director of KIMS Dr. Ramesh R. Kulkarni for
providing constant guidance and support in successful completion of this
project and helping me in every possible way & guiding me throughout the
progress of this project. I am very thankfully for immense help and moral
support.
It greatly contributed to the successful completion of this project.
I would like to express my gratitude from the bottom of my heart to our

all teaching and non-teaching staff members of KIMS, Karnatak
University, Dharwad. Also heartily thanks to internal guide and others
for assisting me in all the aspects of my project.
Thanks to everyone who has been a great source of strength directly and
indirectly all through this work.
SL.NO
INDEX PAGE NO
CHAPTER - 1 INTRODUCTION 3-6
CHAPTER - 2 LETERATURE REVIEW 8 - 12
CHAPTER - 3 OVERVIEW OF THE INDUSTRY 14 - 23
CHAPTER - 4 THEORIES OF THE STUDY 25 - 34
CHAPTER - 5 RESEARCH METHODOLOGY 36 - 42
CHAPTER - 6 DATA ANALYSIS 44 - 63
CHAPTER - 7 FINDINGS, SUDGGESTION & 65 - 70

CONCLUSSION
A study on consumers perception towards online shopping
Executive summery
Internet has changed the traditional way of customers shopping and buying goods and
services. In this rapidly changing age and time, going digital is the new trend. Every brick and
mortar shop is now trying to create its online presence to stay ahead of the competition.
Consumers use the internet not only for online shopping, but also to compare prices, product
features and after sale service facilities. Online shopping also known as e-shopping is a form of
electronic Commerce which allows Consumers to directly buy goods or services from a seller
over the Internet using a web browser.
Customers are purchasing the goods and services online because it saves time, and more
selection, for goods is available as compare to offline shopping. And most important thing there
is no need to go anywhere one can receive goods at his / her home. The main objective of this
research study is to explore & investigate consumer perception towards online shopping.
The present research paper has used Quantitative method to study the consumer preferences
towards online shopping. The data was collected through Questionnaires. This research also
aims to find out the key factors like age, gender that affects the consumer behavior towards
online shopping.
Kousali Institute of Management Studies, Karnatak University Dharwad. Page 1

CHAPTER – 1
INTRODUCTION

INTRODUCTION
Internet is changing the way consumers shop and buys goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with the aim
of cutting marketing costs, thereby reducing the price of their products and services in order to
stay ahead in highly competitive markets. Companies also use the Internet to convey,
communicate and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of online business.
In addition to the tremendous potential of the E-commerce market, the Internet provides a unique
opportunity for companies to more efficiently reach existing and potential customers. Although
most of the revenue of online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence. It has been more
than a decade since business-toconsumer E-commerce first evolved. Scholars and practitioners
of electronic commerce constantly strive to gain an improved insight into consumer behavior in
cyberspace. Along with the development of E-retailing, researchers continue to explain E-
consumers’ behaviour from different perspectives. Many of their studies have posited new
emergent factors or assumptions that are based on the traditional models of consumer behaviour,
and then examine their validity in the Internet context.
Online shopping is definitely a great way to shop with everything available on the websites.
From clothes, gift items, food, home needs, medicines, and many more, this mode of shopping
allows one to shop conveniently without hassle on spending hours in a supermarket or shopping
areas. The Internet with its wide array of information nooks, allows the customer to go through
various reviews of the product or service before actually heading for purchases. These online
shopping websites also have daily deals for the customer looking for discounts and store
offerings

SIGNIFICANCE OF THE STUDY
In recent years, online shopping has become very popular. The growth of technology has made
these a part and parcel of everyday lifestyle. The advent of plastic money or the debit /credit card
and the smooth access to the World Wide Web has brought the shops from around the world to
the desktop. We personally have seen many of our friends surfing through various online
shopping sites and purchasing things. Student community has become so strong that even the
parents seek the help and advice of their children before conducting big purchases. This is solely
because of their exposure to web and social media. Moreover, while it comes to personal
purchases, students are very particular that they get best products available in the market and
seek all the possible ways to secure the best products. This is where the role of online shopping
sites emerges. Students who are well versed in the use of internet and active in social media,
know about online markets and have tried at least some of them.
The study is very relevant because it can give a clear picture of the future of online markets in
India and the emerging trends in this particular field. The various factors that influence online
shopping habits and its merits and demerits are also dealt with.The study also tries to have a
comparison of online shopping habits among different age group as well as income group.
Objective of the Study

The objective of this research study is to investigate online consumer behavior, which in turn
provides E-marketers with a constructional framework for fine-tuning their E- businesses’
strategies. The specific objectives of this research are:
1. To know the consumers awareness and perception about the products and services provided
on internet.
2. To know how it provides products and services and satisfies their customers.
3. To know how it reduces the uncertainty in purchase decision process.
Scope of the Study

The theoretical scope of the study includes the popularity of online shopping, the need of virtual
markets, their role in influencing the consumption pattern and habits, merits and demerits of e-
markets, major players in online retailing etc.

We can listed the scope as below :
1. The Study was conducted among the Internet users.
2. The Geographical area covered was Sambalpur.
3. The Study was based on a Schedule of Questions.
4. To analysethe consumer interest on online marketing.
5. To determine the factors affecting online buying.
6. To evaluate the growth of online marketing.
7. To forsee the demand of online shopping in india.
8. To study the impact of traditional retailer over the online retailer.
9. To gather information regarding growing sector for online purchasing.
10. To understand the barriers of online marketing.
11. To know the consumers awareness and perception about the products and services provided
on internet
12. To examine what the consumer had bought and what they want to purchase in the near
future.
13. The scope of internet shopping
RESEARCH OBJECTIVE
LIMITATIONS OF THE STUDY
Utmost care has been taken with regard to the collection, classification and analysis of data.
However, the study is subjected to the following limitations:
There were hardly any previous studies on the topic and it was a great challenge to deal with
a fresh topic.
1. Lack of environmental support for the study on the topic.

2. Less sample size, as it is just survey with 100 respondent
3. Basically based on primary data , hence we can not argue that the research is applicable
in each condition,time& place.
4. Short time duration, with in such short span of time it is too much difficult to analyse the
topic.
5. Lack of customer support, while asking the consumer they were behaving rudely
and not responding to the questions.

CHAPTER- 2
LETERATURE REVIEW

CHAPTER-2
REVIEW OF LITRETURE
A literature review is a select analysis of existing research which is relevant to your topic,
showing how it relates to your investigation. It explains and justifies how your investigation may
help answer some of the questions or gaps in this area of research.A literature review is not a
straightforward summary of everything you have read on the topic and it is not a chronological
description of what was discovered in your field.
NATIONAL REVIEW OF LITREATURE
Rajeev Kamineni (2004) in his study finds that World Wide Web can change humanbehaviour
and human interactions to a very large extent. Web based shopping behaviour is one major
example to point out the trends in this direction. This study is of a very exploratory nature and it
intends to establish the differences between several web-based shoppers from different parts of
the world. Several critical factors associated with online shopping behaviour have been explored.
A cross cultural data set has been collected and an illustrative description of the shoppers has
been provided. As a final step the cross cultural differences between several shoppers explored.
ArchanaShrivastava, UjwalLanjewar, (2011) in online buying, the rate of diffusion
andadoption of the online buying amongst consumers is still relatively low in India. In view of
above problem an empirical study of online buying behavior was undertaken. Based on literature
review, four predominant psychographic parameters namely attitude, motivation, personality and
trust were studied with respect to online buying. The online buying decision process models
based on all the four parameters were designed after statistical analysis. These models were
integrated with business intelligence, knowledge management and data mining to design
Behavioral Business Intelligence framework with a cohesive view of online buyer behavior.
For better understanding the factors of internet and consumer shopping behaviours towards
internet shopping, this chapter would provide academic research reviews and relative ideas
expressed in the literature that associated with this subject. Furthermore, a number of hypotheses
will be tested to answer the research questions that mentioned already in the introduction. Due to
the recent research shows that internet shopping becomes a full and effective business model
(Black, 2005), therefore there are several studies that already investigated more or less related on
internet shopping and consumer behaviour. In the following chapter, some point of view will be
taken from literatures, and needs careful review to achieve them as the basis of the subsequent
research investigation.

J.SINHA 2010The number of people engaged in various online activities is increasing every
day. While the number of online shoppers is increasing, it is not proportional to that of brick-
and-mortar shoppers. Research has tried to explain the dismal performance of online shopping as
compared to the physical shopping format. Reasons for the lower level of Internet sales have
been cited as being perceived risk in carrying out an online transaction, socio-psychological
factors (Like - influence of friends and relatives) and infrastructural limitations (Availability of
Internet, computers, credit-cards, cyber laws etc.). Under the purview of aforementioned factors
this study tried understanding the online shopping behavior of Indian consumers. Socio-
psychological factors and infrastructure have been found influential factors while the perceived
risk surprisingly is not significant as a whole but at gender level there was significant difference
between the online behavior of male and female due to risk perception.
Lal studied the determinants of adoption of Information Technology (IT) in India. The study was
based on 59 electrical and electronic goods manufacturing firmssituated in NOIDA. Semi-
structured questionnaire were used to collect the data. The study examined the factors
influencing the degree of IT adoption by firms. The factors included are entrepreneur
characteristics measured by entrepreneur’s qualification, importance given to market share, R&D
and quality consciousness, firm’s international orientation factors measured by import and export
intensity, work force skill and firm size. The sample firms were divided into four categories
depending on their intensity of IT.
INTERNATIONAL REVIEW OF LITREATURE

E-Business probably began with electronic data interchange in the 1960s (Zwass, 1996).
However, (Melao, 2008) suggests that it was only in the 1990s, primarily via the Internet, that e-
Business has emerged as a core feature of many organizations. In his opinion, the hope was that
e-Business would revolutionize the ways in which organizations interact with customers,
employees, suppliers and partners. Some saw e- Business as part of a recipe to stay competitive
in the global economy.
Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan,

MoezLimayem,(2002) The topic of online consumer behavior has been examined under
variouscontexts over the years. Although researchers from a variety of business disciplines have
made significant progress over the past few years, the scope of these studies is rather broad, the
studies appear relatively fragmented and no unifying theoretical model is found in this research
area. In view of this, provide an exhaustive review of the literature and propose a research

framework with three key building blocks (intention, adoption, and continuance) so as to analyze
the online consumer behavior in a systematic way. This proposed framework not only provides
us with a cohesive view of online consumer behavior, but also serves as a salient guideline for
researchers in this area.
Burke, R.R. (2002), Trust is a key factor that determines the success of Business toConsumer
(B2C) e-commerce transactions. Previous researchers have identified several critical factors that
influence trust in the context of online shopping. This research focuses on available security
measures which assure online shopper_s safety and great sales promotions and online deals
which stimulate customers to shop online.
Abel Stephen (2003) in his paper represents the findings of research studies that address e-
commerce design and associated consumer behavior. The innovation of e-commerce has affected
not only the marketplace through the facilitation of the exchange of goods and services, but also
human behavior in response to the mechanisms of online services. Researchers have identified
and hypothesized on relevant subject matters ranging from Web usability, marketing channels
and other factors influencing online buying behavior. Though researchers have focused on what
appear different aspects of online buying behavior, their studies may be shown to be interrelated
and interdependent, even to the extent of revealing constructs upon which e-commerce, in terms
of future design and research, could be built. Balasubramanian, S., Konana, P. and Menon,
N.M. (2003), In this environment, sometraditional service quality dimensions that determine
customer satisfaction, such as thephysical appearance of facilities, employees, and equipment,
and employees responsiveness and empathy are unobservable. In contrast, trust may play a
central role here in enhancing customer satisfaction. Model trust as an endogenously formed
entity that ultimately impacts customer satisfaction, and we elucidate the linkages between trust
and other factors related to the performance of the online service provider and to the service
environment.
The classic consumer purchasing decision-making theory can be characterized as a continuum

extending from routine problem-solving behaviors, through to limited problem- solving
behaviors and then towards extensive problem-solving behaviors [Schiff man et al., 2001].
The traditional framework for analysis of the buyer decision process is a five-step model. Given
the model, the consumer progresses firstly from a state of felt deprivation (problem recognition),
to the search for information on problem solutions. The information gathered provides the basis
for the evaluation of alternatives. Finally, post-purchase behavior is critical in the marketing

perspective, as it eventually affects consumers’ perception of satisfaction/dissatisfaction with the
product/service.
This classic five stage model comprises the essence of consumer behavior under most contexts.
Nevertheless, the management of marketing issues at each stage in the virtual environment has to
be resolved by individual E-marketers. Peterson et al. [1997] commented that it is an early stage
in Internet development in terms of building an appropriate dedicated model of consumer buying
behavior. Decision sequences will be influenced by the starting point of the consumer, the
relevant market structures and the characteristics of the product in question. Consumers' attitude
towards online shopping is a prominent factor affecting actual buying behavior. (Source:
Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and NO.2, 2005)
Todd [1997] proposed a model of attitudes and shopping intention towards Internet shopping in
general. The model included several indicators, belonging to four major categories; the value of
the product, the shopping experience, the quality of service offered by the website and the risk
perceptions of Internet retail shopping. In the research conducted by Vellido et al. [2000], nine
factors associated with users' perception of online shopping were extracted. Among those factors
the risk perception of users was demonstrated to be the main discriminator between people
buying online and people not buying online .Other discriminating factors were; control over, and
convenience of, the shopping process,
affordability of merchandise, customer service and ease of use of the shopping site. In another
study, Jarvenpaa et al. [2000] tested a model of consumer attitude towards specific webbase
stores, in which perceptions of the store's reputation and size were assumed to affect consumer
trust of the retailer. The level of trust was positively related to the attitude toward the store, and
inversely related to the perception of the risks involved in buying from that store. Jarvenpaa et al.
[2000] concluded that the attitude and the risk perception affected the consumer's intention to
buy from the store.
Consumer risk perceptions and concerns regarding online shopping are mainly related to aspects
involving the privacy and security of personal information, the security of online transaction
systems and the uncertainty of product quality. Trust is interwoven with risk [McAllister, 1995].
One of the consequences of trust is that it reduces the consumer’s perception of risk associated
with opportunistic behavior by the seller [Ganesan, 1994]. Lack of trust is frequently reported as
the reason for consumers not purchasing from Internet shops, as trust is regarded as an important
factor under conditions of uncertainty and risk in traditional theories.

Mayer et al. [1995] developed a model which combines traditional marketing philosophy on
consumer motivation to buy and the trust model. In this model, trust propensity; which is a
personality trait possessed by buyers; is an important antecedent of trust. In Internet shopping,
there is not much information available to the buyer regarding the seller, prior to purchase. A
buyer with a high propensity to trust will more likely be a potential customer than a buyer with a
lower propensity.
Purchase decisions are ultimately guided by consumers' perceptions of the product or service. Of
course, the critical nature of perceptions as they relate to purchase behaviour has been repeatedly
demonstrated in advertising and marketing research. Negative perceptions of the product,
service, brand, or company almost always translate to a lost sale or, at a minimum, expressed
lower intentions to purchase the advertised product or service. If the goal is to increase online
spending among consumers, particularly female consumers, then consumers' perceptions of
online shopping are ultimately matters the most. Presumably, the more positive consumers
perceive the online buying experience the more likely they will make online purchases. The
primary construct that we believe will have a bearing on perceptual differences between male
and female internet shoppers is emotion. Related to emotion are two additional constructs, trust
and convenience. (Robertson , Zielinski and Ward, 1984).

CHAPTER -3
OVERVIEW OF THE INDUSTRY

OVERVIEW OF THE INDUSTRY
ONLINE SHOPPING IN INDIA
The birth and growth of Internet has been the biggest event of the century. E-commerce in India
has come a long way from a timid beginning in the 1999-2000 to a period where one can sell
and find all sorts of stuff from a high end product to a meager peanut online. Most corporations
are using Internet to represent their product range and services so that it is accessible to the
global market and to reach out to a larger range of their audience.
Computers and the Internet have completely changed the way one handles day-to-day
transactions; online shopping is one of them. The Internet has brought about sweeping changes
in the purchasing habits of the people. In the comfort of one's home, office or cyber cafe or
anywhere across the globe, one can log on and buy just about anything from apparel, books,
music and diamond jewellery to digital cameras, mobile phones, MP3 players, video games,
movie tickets, rail and air tickets. Ease, simplicity, convenience and security are the key factors
turning the users to buy online.
E-commerce revenues in the country are projected to reach Rs 2,300 crore in the year 2006- 07,
growing at 95 per cent over 2004-05(Source: Internet and Mobile Association of India, IAMAI).
This pertains to the business-to-consumer (B2C) segment. It may be too early to do a
comparison with the e-commerce scenes in countries such as the US where billions of dollars are
spent online but the business in India is growing exponentially every year, albeit from a smaller
base, the total revenues have reached a respectful size.
Recent Developments
The number of users logging on to the Internet is growing by leaps and bounds. The number of
Indians who are online is expected to touch to 100 million by 2007-08, from the present 38.5
million according to the research conducted by IAMAI. The numbers indicate a growing sense
of comfort with the use of Internet for shopping. Accompanying this growth, there is an
increasing maturity in the way people use the Internet. It's a classical curve. Online users
typically start by using e-mail, gradually move on to browsing for news, information and
entertainment, and finally graduate to shopping and conducting business online. Online sales
have registered a huge jump and what was a concept five years ago is now beginning to hit the
mainstream levels. Roughly 10 percent of the world's population more than 627 million people

have shopped online at least once, in India it is just sprouted and beginning to perish. Internet is
now going beyond the simple exchange of information to a shopping paradise. This medium is
far bigger than expected, but many retailers and marketers are not using it to its full potential.
Indian customers are increasingly getting comfortable with online shopping, and there is a
higher acceptability for the concept. India has 25 million Internet users and more is now turning
to online shopping. There has been an influx of online shopping sites in India with many
companies hitching onto the Internet bandwagon. The revenues from online shopping are
expected to more than double by 2006-07. According to IAMAI, the average number of
transactions per month in India has gone up from 2 lakh in 2003-04 to 4.4 lakh in 2004-05 and
has doubled to 7.95 lakh transactions per month in the year 2005-06. The online sales during the
festival season had increased rapidly especially during Diwali and Ramzan which recorded a
sales of Rs115 crore, a 117 per cent increase from the Rs53 crore in the year 2004- 05(source
IAMAI). These figures clearly show that online shopping has truly come of age and
consumers are keen to shop on the net. Effective customer communication on products plus
reduced shipping costs and timely delivery has helped online marketers to seize a slice of the Rs
115 crore sales.
Online shopping has become the latest trend among shoppers. Indians are becoming more
comfortable with e-commerce. The consumer’s attitude has been evolving towards online
purchases. It has become increasingly positive over the years. The attitudes that drive people to
shop online, such as convenience, price comparison and choice are improving tremendously in
India.
Though a miniscule amount in the global context, the Indian online shoppers’ population would
make its presence felt quite remarkably. The potential of the Indian e-market can be gauged from
the fact that 16 percent of Indian consumers want to buy online in the next six months, making it
the third most online-potential country after Korea (28 percent) and Australia (26 percent)
(Source:IMRB). This is an indication of a growing breed of Indian consumers who are not only
better equipped but also more confident of the online transactions. Indian businesses have also
grown mature enough to move up the IT curve and they are considering Business to consumer
(B2C) e-commerce a viable revenue model. Some of the companies that have benefited are
baazee.com, indiatimes.com, rediff.com, indiamart.com, fabmart.com, traveljini.com and
sifymall.com.

Indiamart.com has witnessed a growth of more than ten times in just two years in its online gifts
domain. In the online travel domain, the company was able to generate an average $8,000
worth of room bookings/month for its premium client. It is expected to touch $15-
20,000/month/client by the year-end, which is over 100 percent growth (Source:Indiamart).
Brick-and-mortar businesses are also building up e-commerce revenues. In the year 2005-06.
Samsung India recorded a 120 percent jump in online buying from its site over the year 2004-05
(Source: Samsung). Nirula’s witnessed more than double growth in its B2C e-commerce
revenues in the year 2005-06 and is positive for the next one to two years (Source: Nirula’s).
Companies like eBay India have seen a large increase in the number of sellers and buyers
from B and C cities and in a year the eBay community (buyers and sellers) base has increased to
1.7 million users, which shows that more Indians are shopping online (Source:
eBay).Online sales are currently marked by a single digit growth, but the leading garment
retailers like Pantaloon, Shoppers’ Stop and Globus have already made business strategies to
enter into the world of e-retailing. Famous apparel brand Zodiac has already started online
stores. The main motive of these retailers through online sales is to reach the global markets and
the small towns where they do not have the outlets. Thus the India's Internet shopping sector is
preparing for a massive growth, which is fuelled by increasing broadband usage and growing e-
commerce.

GAINT PLAYERS IN INDIAN ONLINE SHOPPING
Flipcart.com
Flipkart.com is an e-commerce website founded by SachinBansal and BinnyBansal in 2007.

Both are from IIT Delhi Alumni and also worked in Amazon.com.
Flipkart.com ranks #502 in world according to Alexa traffic rankings. In Google page it ranks
#6. It forms advertising revenue of $4.8 million. It receives 2.2 million page views in a day
and generates $6,574 in advertising revenue every day. Moreover it has certain losses 0.60% in
traffic ranking. Loading time of an average page is 2.1 sec as it is much faster than 29% of
sites around the world. The mode of payments include Credit card, Debit card, Net banking, e-
gift vouchers, cash on delivery.

Ebay.in
eBay is an online shopping website a consumer to consumer corporation which helps the people
and businessman to buy and sell products worldwide. It is operated to almost 30 countries.
eBuy ranks #544 among Alexa Traffc ranking. In google it has pagerank #6. The advertising
revenue inculcated was about $4.4 million. Moreover it receives 2 million pageviews per day
which generates $6,066 in the advertisement revenue. Recently it has shown 15.13% growth in
traffic rank. The pageloading time is upto 2 sec which is likely faster than 24% sites across the
world.

Snapdeal.com
Snapdeal deals with online marketing of products including Mobiles, Electronics, Fashion
accessories, Apparel, Footwear, Kids, Home and Kitchen, Sports, Books; and services like
Restaurants, Spas & Entertainment. It was launched by kunalbahl, a Wharton gradute and
rohitbansal, alumnus of IIT Delhi, in February 2010.
It ranks #576 in the world as per Alexa traffic ranking.It ranks # 5 in Google PageRank. The
advertising revenue is about $4.2 million. It receives 1.9 million page views in a day and
generates $5,729 in advertising revenue. It has suffered loss of 4.16 % in traffic ranking. The
loading time of an average page is 1.6 sec which is faster than 46% of sites across the world.

It is an online shopping commerce for Home; Lifestyle & Fashion e-retailer founded in 2009
BigShoeBazaar.com has a user base of about 1.5 million people. Yebhi.com offers lifestyle
& Home products and products from a range of some 250 brands to its customers dealing in
Shoes, Apparels, Bags, Mobiles, Cameras, Sunglasses, Watches, Home furnishing, Home
decor, Home ware, Lingerie and Fragrances.
It ranks #1,782 among Alexa traffic ranking. It ranks #4 in Google page ranking. Advertising
revenue is about $1.4 million. It receives 617,284 page views per day generating $1,852 in
advertising revenue. It has recently shown 6.70 Growth among traffic ranking. The page loading
is about 2 sec which is faster.than 39% of sites around the world.

The International giant eCommerce retailer recently stepped into India with a Indian version site
www.amazon.in, since the launch, amazon.in has seen a nice growth in the customers .
Amazon.com too had a huge number of Indian customers even before it launched store in India.
The store hosts wide range of products like Electronics, Mobiles, Laptops, Books, Fashion,
Jewellery, Kitchenware And more.
Myntra is an Indian ecommerce site. It is regarded as India’s top 3rd online site to shop
products. Myntra allows its users to chose varieties of dress. One can choose any type
of dress of any brand from Myntra. The best thing about Myntra is its product quality and
service. Now, Myntra is merged into Flipkart to compete Amazon, but myntra.com is still
running as a separate website and entity. Buying clothes and gifts online can be best done via
Myntra.

A reputed online shopping retail website having headquarter in Gurgaon,Shopclues.com

Maintains more than 12,000 merchants who are registered with the company. It is one of the top
ecommerce websites in India, which deals in more than 2 million products. They guarantee
authenticity of products, warranty and even ensure lowest price. They even have a record of
catering to more than 42 million online visitors. The company has even more than 350
registered employees across the country. They offer wide range of branded products to
consumers from every corner of the country. Shopclues.com initiate free delivery services at the
doorsteps of customers through reputed courier services to nearly 10,000 cities across
the country. They even initiate a 30-day return guarantee if unable to meet customer satisfaction.
One of the leading online shopping companies in India Shopclues.com accepts online payment
through major credit and debit cards, including net banking services. The online shopping
website service employs more than 400 personnel for effective handling of the business and is
even funded by national institutional investors.

HomeShop18 is the online and on-air retail marketing and distribution venture of Network18
Group that was launched as India’s first 24 hour Home Shopping TV channel on April 9, 2008.
Home shop 18 offers innovative, differentiated and demonstrative retail experiences on TV and
internet and has emerged as the largest multimedia retailer in India with a user base of 2.5
million users and some prestigious awards. HomeShop18 is a venture of the Network18
Group, India’s fastest growing media and entertainment group that operates India’s leading
business news television channels like CNN-IBN, CNBC Awaaz . TV18 and CNBC.

CHAPTER -4
THEORIES OF THE STUDY

INTRODUCTION TO THE STUDY
The Internet has entered the mainstream consciousness over the past decade. This has
happened primarily because the web has got a graphical interface and Internet has moved
from governmental control to private hands. The activities which are happening on the
Internet are email and instant messaging, general web surfing or browsing, reading news,
hobby searches, entertainment searches, shopping and buying online, medical information
searches, travel information searches, tracking credit cards, and playing games.
Communication i.e. email, chat or instant message is the basic activity for which Internet is
used. It is the single most important reason for people to go online. E-mail provides the
opportunity to communicate more often with a much broader circle of people than one can
reach by telephone or by mail in a convenient way. In India too email constitutes the major
activity on the Internet. It was found that more elderly people are increasingly using email as
compared to the younger generations.
In India the top five online activities are e-mail, surfing, chatting, search and job search.
Some of the sites, which are commonly used for these particular activities, are:
 Yahoo -Most preferred communication portal, tops for email and chat
 Indiatimes –Best event and sports news provider.
 Naukri-Best recruitment portal
 Google-Best information domain
 Shaadi-Best for matrimonial services
 eBay-Best online shopping portal
 Rapid growth of cybercafés across India
 Access to Information

 The increase in number of computer users
 Reach to net services through broadband
 Middle-class population with spending power is growing. There are about 200 million
of middle-class population good spending powers. These people have very little time to
spend for shopping. Many of them have started to depend on internet to satisfy their
shopping desires.
The figures from IAMAI show that the internet users in India will grow to 200 million by
2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the
26-35-year range.
 Indian online matrimonial sector is worth around $230 million.
 Worldwide e-commerce is only growing at the rate of 28%, since India being a younger
market, the growth of e-commerce is expected at 51% in the coming years.
 In line with global trends finally India has also started shopping online these days. As per
the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522
million in 2008 and it is expected to rise above $700 million by end March 2010.
 Indians are also Shopaholics like other Asians. There is a strong booming young adult
population in India with good levels of disposable income.
In India
Over $50 Billion and growing rapidly - Most popular online shopping products include: books
(45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (35%), apparel
(35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music downloads
(21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools (16%), home
appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), etc.

Payments
Online shoppers commonly use a credit card to make payments, however some systems enable
users to create accounts and pay by alternative means, such as:
 Billing to mobile phones and landlines
 Cash on delivery (C.O.D., offered by very few online stores)
 Cheque/ Check
 Debit card
 Direct debit in some countries
 Electronic money of various types
 Gift cards
 Postal money order
 Wire transfer/delivery on payment
Some sites will not accept international credit cards, some require both the purchaser's billing
address and shipping address to be in the same country in which site does its business, and still
other sites allow customers from anywhere to send gifts anywhere. The financial part of a
transaction might be processed in real time (for example, letting the consumer know their credit
card was declined before they log off), or might be done later as part of the fulfillment process.

AIDA PRINCIPLE IN ONLINE MARKETING :
1. ATTENTION
2. INTREST
3. DESIRE
4. ACTION
A – ATTENTION
In the point where your brand and/or business is recognized and acknowledged.
I – INTREST
Centering thoughts and discussion about your brand.
D – DESIRE
Communicate your message through the use of social media and email marketing.
A - ACTION
The stage where the conversion is complete and back to the interest stage to retain them.
Your website is responsible for this stage.
PORTER 5 FORCE ANALYSIS IN ONLINE SHOPPING
Porters Five Forces is a framework for describing factors that affect the profitability and
attractiveness of industries. Named after Michael E. Porter, this model identifies and analyzes 5
competitive forces that shape every industry, and helps determine an industry's weaknesses and
strengths.
1. Supplier Power
2. Buyer power
3. Competitive Rivalry
4. Threat of Substitutes
5. Threat of New Entry

1. supplier power
Here we assess how easy it is for suppliers to drive up prices. This is driven by the number of
suppliers of each key input, the uniqueness of their product service, their strength and control
over us, the cost of switching from one supplier to another, and so on. The fewer the supplier
choices we have, and the more we need supplier’s help, the more powerful the suppliers are.
2. Buyer Power
This is driven by the number uof buyers, the importance of each individual buyer to one’s
business, the cost to them of switching from one’s products and services to those of someone
else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms
to you .
3. Competitive Rivalry
What is important here is the number and capability of your competitors. If you have many
competitors, and they offer equally attractive products and services, then you'll most likely
have little power in the situation, because suppliers and buyers will go elsewhere if they don't
get a good deal from you. On the other hand, if no-one else can do what you do, then you can
often have tremendous strength.
4. Threat of Substitutes
This is affected by the ability of your customers to find a different way of doing what you do –
for example, if you supply a unique software product that automates an important process,
people may substitute by doing the process manually or by outsourcing it. If substitution is easy
and substitution is viable, then this weakens your power
5. Threat of New Entry

Power is also affected by the ability of people to enter your market. If it costs little in time or
money to enter your market and compete effectively, if there are few economies of scale in
place, or if you have little protection for your key technologies, then new competitors can
quickly enter your market and weaken your position. If you have strong and durable barriers to
entry, then you can preserve a favorable position and take fair advantage of it.

Porter’s five forces for Online Retailer
Supplier power:
Here, suppliers are the manufacturers of finished products. For any product, there are many
suppliers online, so they can’t show power on online retail companies. For example, if you take
computers category, there are many suppliers like Dell, Apple, Lenovo, and Toshiba everyone
wants to sell their products through online retails like Flipkart,Amazon,Snapdeal etc. Selling
online saves a lot of money for the manufacturers, and as many people nowadays prefer
purchasing product through online stores, Companies cannot afford to lose this channel. So, in
this industry the supplier power is low.
Buyer power:
Buyers in this industry are customers who purchase products online. Since this industry is
flooded with so many players, buyers are having lots of options to choose. With many
competitors like Amazon.com, eBay, Snapdeal etc. Customers get a wide range of choices.
Customer would prefer the one who would provide goods at reasonable price, deliver it fast and
provide them with other benefits like Cash on Delivery, EMI facilities, other offers etc. Here
Buyers have more power.

Competitive Rivalry:
Competition is very high in this industry with so many players like Jabong, Snapdeal,
Amazon, Homeshop18 etc. Many competitors means more choices for the customer to choose
from. This also increases the cost incurred by the company to stay in the customer’s mind i.e. on
Promotions and Advertisements etc. Giving the customer better deals, making customer’s
experience delightful and continuous innovation can help a company to stay at top even with
tons of competitors around.
Threat of New Entrants:

Threat of new entrants is very high in this online retail industry because of following reasons:
a. Indian government has allowed 51% FDI in multi-brand online retail and 100% FDI in
single brand online retail. So, this means foreign companies can come and start their own online
retail companies.
b. There are very less barriers to entry like less capital required to start a business, less
amount of infrastructure required to start business. All you need is to tie up with suppliers of
products and you need to develop a website to display products so that customers can order
products, and a tie up with online payment gateway provider like bill desk.
c. Industry is also going to grow at a rapid rate. It is going to touch 76 billion $ by 2021.
Industry is going to experience an exponential growth rate. So, obviously no one wants to miss
this big opportunity.With the new entrants like Jabong, Snapdeal etc. rapidly racing towards the
top Position.
Threat of substitutes:
i.Substitute for this industry as of now is physical stores. Their threat is very low for this industry
because customers are going for online purchases instead of going to physical stores as it will
save time, effort, and money. With the advent and penetration of internet and smart phones,
future in retail belongs to online retail.
ii.When we compare relative quality, relative price of product a person buys online with physical
store, both are almost same and in some cases, online retail store offers more discounts and this
attracts the customer to purchase products online.

MARKETING MIX OF ONLINE SHOPPING :

The elements of marketing mix are also being applied for online marketing. Marketing mix is
essential for analysing the business. Marketer analyses the parameters then select appropriate
strategy in order to face the market complexion effectively. The 7Ps of marketing is being
applied in the online marketing industry. The effect of marketing mix is being explained below
diagram :

MODELS OF ONLINE SHOPING:
By:Mary Ann Eastlick
This chart shows how consumer attitude toward online shopping can lead either to approach
coping (wanting to shop online) or to avoidance coping (deciding not to search or shop online).
Someone who is optimistic toward the benefits of online shopping will develop approach coping.
A person who is pessimistic toward online shopping will think of the drawbacks to it and decide
to purchase in physical stores instead, which is avoidance coping.

FRAMEWORK FOR CONSUMERS’ INTENTIONS TO SHOP ONLINE
Source: research by Emerald
Kousali Institute of Management Studies, Karnatak University Dharwad.

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CHAPTER – 5
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
Research Objective
To know and understand the consumer’s perception and awareness about internet marketing/
shopping. This will help to know the attitude and perception of consumers towards online shopping
and what are the factors which shape the consumer’s perception towards online shopping. Also
what are key concerns from the point of view of consumer while online shopping.
Determination of information needs and sources
The following was the information required:
 What is consumer’s attitude towards online shopping?

 What are the key concern areas for consumers while online shopping?
 Which factors shape the consumer’s attitude towards online shopping?
 How has been recent shift taking place in online shopping?
Research Framework
Eleven different factors were identified by studying the existing models of consumer
attitudes(Refer Annexure 1, 2) that play an important role in online purchase, then a model was
proposed leading to online shopping.
The data was collected only through Questionnaires. The sample size was 100. And random
sampling was done among the internet users.
Proposed Model
After examining the 10 empirical studies, we identify a total of eleven interrelated factors for
which the empirical evidences show significant relationships. These ten factors are perceived
usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security
and privacy, quality of internet connection, attitude towards online shopping, intention to shop
online, online shopping decision making, online purchasing, and consumer satisfaction.

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Six (perceived usefulness, perceived ease of use, perceived enjoyment, information on online
shopping, security and privacy, quality of internet connection )are found to be ordinarily
independent and five (attitude toward online shopping, intention to shop online, decision making,
online purchasing, and consumer satisfaction) are ordinarily dependent variables.
Consumer satisfaction is considered to be a separate factor in this study. It can occur at all possible
stages depending on consumer’s involvement during the online shopping process. The
relationships between satisfaction, attitude, intention, decision making and online purchasing are
proposed to be two-way relationships due to the reciprocal influences of each on the other. In
addition, three of the antecedents, perceived usefulness, perceived ease of use, perceived
enjoyment , have been found to have direct impact on consumer satisfaction.
Perceived Usefulness
Perceived usefulness is defined as the degree to which a person believes that using a
particular system would increase his or her job performance. It is an important factor affecting
acceptance of an information system, because the ultimate aim of any person is the superior job
performance.
Perceived Ease of Use
This is an important factor that affects the acceptance of a particular information system. It is
defined as the degree to which a person believes that using a particular information system would
be free of effort. Hence an application perceived to be easier to use would more likely be accepted
by the user.
Perceived Enjoyment
Enjoyment refers to the extent to which the activity of using a computer is perceived to be
enjoyable in its own rights. This is seen as an intrinsic source of motivation to use a particular
application.

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Amount of Information
Amount of information is defined as the information which is available for the product which a
person wants to buy through online shopping. This factor eases the decision of the user to actually
buy the product or not, or which product to buy. This factor becomes even more important in case
of High Involvement product.
Security and Privacy
Security and privacy are the main factors which hinder the growth of online shopping. The user is
concerned about his ID and Password which can be stolen by persons with wrong intentions and then
misuse it. At the same time they are concerned that their personal information may be sold to the
third party which poses a serious threat to their privacy.
Quality of Internet Connection
Not only is the presence of internet connection necessary but also its Quality is important to shop
online. This is an important factor which determines whether the user would shop online or not
because presence of internet is a basic necessity for this mode of shopping
Attitude and perception towards online shopping
Consumer’s attitude and perception toward online shopping have gained a great deal of attention
in the empirical literature. It is believed that consumer attitudes will affect intention to shop online
and eventually whether a transaction is made. It refers to:-
1) The consumer’s acceptance of the Internet as a shopping channel
2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers think that
shopping at this store is appealing).

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Intention to shop online
Consumer’s intention to shop online refers to their willingness to make purchases in an Internet
store. Commonly, this factor is measured by consumer’s willingness to buy and to return for
additional purchases. The latter also contributes to customer loyalty. Consumer’s intention to shop
online is positively associated with attitude towards Internet buying, and influences their decision-
making and purchasing behavior. In addition, there is evidence of reciprocal influence between
intention to shop online and customer satisfaction.
Online shopping decision making
Online shopping decision-making includes information seeking, comparison of alternatives, and

choice making. The results bearing on this factor directly influence consumer’s purchasing behavior.
In addition, there appears to be an impact on user’s satisfaction. Though it is important, there are
only five studies that include it.
According to Haubl and Trifts (2000), potential consumers appear to use a two-stage process in
reaching purchase decisions.
Initially, consumers typically screen a large set of products in order to identify a subset of promising
alternatives that appears to meet their needs. They then evaluate the subset in greater depth,
performing relative comparisons across products based on some desirable attributes and make a
purchase decision.
Online purchasing
This is the most substantial step in online shopping activities, with most empirical research using
measures of frequency (or number) of purchases and value of online purchases as measures of online
purchasing; other less commonly used measures are unplanned purchases
Online purchasing is reported to be strongly associated with the factors of personal characteristics,
vendor/service/product characteristics, website quality, attitudes toward online shopping, intention to
shop online, and decision making (Andrade 2000; Bellman et al. 1999)

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Consumer satisfaction
It can be defined as the extent to which consumer’s perceptions of the online shopping experience
confirm their expectations. Most consumers form expectations of the product, vendor, service, and
quality of the website that they patronize before engaging in online shopping activities.
These expectations influence their attitudes and intentions to shop at a certain Internet store, and
consequently their decision-making processes and purchasing behavior. If expectations are met,
customers achieve a high degree of satisfaction, which influences their online shopping attitudes,
intentions, decisions, and purchasing activity positively. In contrast, dissatisfaction is negatively
associated with these four variables (Ho and Wu 1999; Jahng et al. 2001; Kim et al. 2001).

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Information on
online shopping
Attitude
towards to shop Decision Online
Security & Privacy Making
online online
Purchase
shopping
Perceived Usefulness
Perceived Ease of use
CONSUMER SATISFACTION
Perceived Enjoyment
Data Collection Method-

Primary Data
It is original primary data, for specific purpose of research project. For this project, I have to use
following common research instrument or tool
Questionnaire-
Questionnaire development is the critical part of primary data collection method. For this I will
prepare a questionnaire in such a way that it will be able to collect all relevant information
regarding the project. The questionnaire was designed using various scaling techniques. The
questionnaire was used mainly to test the model proposed for consumer perception towards
online shopping. Likert five point scales ranging from Strongly Agree to strongly disagree was
used as a basis of Questions. The data collection was done over a period of 8 weeks This was
done by ONLINE SURVEY through watsapp and other communication medias.

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Secondary Data
It will be collected to add the value to the primary data. This may be used to collect necessary
data and records by different websites, magazines, annual reports, journals, reference books, and
newspapers, etc.
sample Design
Sample Unit
For studying consumer perception on online shopping, samples were selected from karnataka
Sample Media
The respondents in the samples are reached through online survey.
Sampling Methods
Sampling methods fall under two broad categories-
a) Non-probability sampling methods.
b) Probability sampling methods.
Sample size- 100
Research place- allover karnataka
Sample Design
I have prepared this project as descriptive type, as the objective of the study.

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CHAPTER – 6
DATA ANALYSIS

Page 43
DATA ANALYSIS
THE INTERNET USAGE
The objectives of the research were studied with respect to a regular online shopper who shopped
more than once because they would be the right respondent to give an insight about the online
shopping. Therefore it is firstly important to understand who is a regular online shopper. In the
survey the respondents where asked the following questions which helped to know about a regular
shopper.
1. Q.1 Do you use Internet?
Yes 100%
No 00%
yes
no
100%

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INTERPRETATION
The above pie -chart represent that 100% consumers had used the internet. The uses of internet is a
vital thing in todays competitive era. The rapid uses of computer has make the internet well known
to others. While as the influence of social media and mobile internet makes the uses of internet more
popular. The 100 % people were uses the internet from the study of 100 individual respondent.

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Q02. How long have you been using Internet?
A) Less than 1 year B) 3 – 5 years

C) 1 – 3 years More than 5 years
Less than 1 year 12%
3-5 years 33%
1-3 years 25%
More than 5 years 30%
less
than
one
year
more than 5 years 12%
30% 1-3 years
25%
3-5 years
33%
INTERPRETATION
The diagram shows that shopping has increased with the usage of Internet over the years.
Regular shoppers who have been using Internet for more than one year had shopped to 88% and
regular shoppers who have been using Internet for more than five years have shopped to 30%.
Internet is not a new concept for these regular online shoppers and they have been using it for
more than 5 years now. The increased usage over the years has lead to an increase in shopping,
as these regular shoppers are able to make use of the various e-commerce activities.

Page 46
Q.3 On the average, how much time (per week) do you spend in surfing the
Web?
A) 0 – 5 hours B) 16 – 20 hours
C) 6 – 10 hours D) More than 20 hours
E) 11 – 15 hours
0-5 hours 45%
16-20 hours 5%
6-10 hours 30%
More than 20 hours 8%
11- 15 hours 12%
8%
5%
0-5 hrs
12% 6- 10 hrs
45.00%
11-15 hrs
16-20 hrs
more than 20 hrs
30%

Page 47
INTERPRETATION
The research shows that 8% of the online shopping had been done who use Internet for more
than 20 hours a week and 55% of the shopping has been done by regular shoppers who have
been using Internet for more than 5 hours a week. As more the regular online shopper are using
the Internet it is seen that they end up buying more also. This shows that Internet is becoming an
integral part of the daily activity of the regular online shopper. The regular online shoppers who
have been using Internet for more than 20 hours are more comfortable and confident as a result
they purchase more online as compared to who use Internet for less number of hours.The study
shows that the growing usage of Internet has lead to increase in online shopping as seen above.
There is a positive relation between increase usage of Internet and online purchase. The
marketers should capture this enormous growth, which can be brought by the penetration of
broadband and lowering the prices of computers. Thus increase in usage of Internet over the
years and the more time spent has lead to an increase in shopping. But one needs to know
whether online shopping is an integral part of regular shoppers or not this understood as follows.

Page 48
Q4. Have you purchased anything online ever?
 Yes
 No
Yes 97%
No 3%
3%
yes
no
97%
INTERPRETATION
The research showed that 97% of the Internet users had shopped online while 3% had not bought
anything. This is mainly because of the changing lifestyle and taste patterns. As the life is getting
more and more fast paced more people are moving on to shop online mainly because of
convenience. This shows that a more Internet users are using it as a shopping medium and there
is a huge potential in this sector but one should not be carried away by this figures. There could
be a possibility that only a small section of the online shoppers are shopping or only a particular
category of good had brought about this huge number. As a resultthe entire analysis was done
incase of a regular online shopper to understand the shopping behavior of the online
shoppers.The following question helped to understand who is a regular online shopper among the
97% who had indulged into online shopping.

Page 49
The web online activity
The following classifications are done to study the online activities in case of a regular
online shopper.
Communication 50%
Information 19%
Entertainment 25%
Finance 3%
shopping 3%
Online Activities
3%
3%
communication
25%
information
50% entertainment
finance
shopping
19%
The Internet offers four basic services communication (socializing service with peer
group or core group (email) or with new groups of people (chat), information services,
entertainment services and commerce services and shopping. The research shows 50% of
the regular online shoppers use Internet for communication while only 3% uses it for
shopping which shows that communication still forms the major activity among the
regular online shoppers.
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Online Activities by Age

Below 18 6%
18-30 years 92%
31-40 years 2%
Above 40 years 0%
100%
90%
80%
70%
60%
50%
系列1
40%
30%
20%
10%
0%
below 18 18-30 31-40 41-50 above 50
This classification further provides an insight that Internet is mainly used as a means of
communication in respect all the age groups of the regular online shoppers. It contributes
to 92% of the major activity among the regular online shoppers who lie between the age
group 18-30 years. It could be seen that shopping as a basic activity on the Internet
contributes to the minimum. Internet as a medium of shopping is maximum used by
regular online shoppers between the age group18-30 years, which is while above 50 years
it is used just to 0%. The increase in usage among the 18-30 years is basically due to high
awareness. The marketers should focus mainly on the age group between 18-30, as they
are the main drivers for growth. Thus the research shows that though the regular shoppers
Page 51
are using the Internet for quiet some time now but shopping still remains a small part
of the major activity
Online Activities by Time
60%
50%
40%
30%
20%
10%
0%
0-5 hrs 6-10 hrs 11-15 hrs 16-20 hrs more than 20
hrs
It is evident that regular online shoppers also spend a major part of their time in communication
unlike the occasional online buyers. In 0-5 hours a week they spend 50% of their time in
communication, which includes email, and chat as the major activity with shopping which does
not seem to exist at all. Information search constitute 19% of the time. The information search
increases as the regular online shoppers tries to figure out ways to surf the Internet and access the
information they require. It is true that more regular online shoppers use Internet shopping sites
to gather information about products rather than to make a direct purchase. But it is to be noticed
that as the time spend increases communication falls and other activity picks up like
entertainment and finance. One could see from the graph that between 16-20 hours a week
communication falls further but information search also falls as the regular online shoppers
becomes more focused in their information search rather than wandering aimlessly in the Internet
space. They continuously use search engines for routine information needs. The time spent on
entertainment increases marginally to 25%. As the people spend more time it has been seen that
activities like shopping and finance related needs increases. The regular online shoppers who use
the Internet for more than 20 hours a week has shown that they have indulged into more

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shopping i.e.3%. It is true that as the regular online shoppers spends more time on the Internet
there is a possibility that they would end up buying more as they are ease with the use of internet.
Increased usage of Internet is positively related to the buying behavior on the Internet.
Analysis-
It is true that increase in internet has lead to an increase in the online shopping as 78% of the
online shopping has been done by the regular online shopper who have been using internet for
more than five years and 36% of the online shopping have been done among the regular shopper
who uses the Internet for more than 20 hours a week. Thus increase in usage of Internet has lead
to an increase in online shopping. But shopping still constitute a small amount of the major
activity on the internet as 32% of the regular online shoppers uses Internet for communication
while only 10% uses it for shopping. Communication still constitutes the major activity on the
Internet.
Demographic Factors
Online behavior is affected by demographics i.e. by gender, education and income.
Hypotesis
1. More male Internet users are frequent online buyers than female Internet users.
2. Regular online buyers are better educated than occasional online buyers.
3. Income is higher in case of a regular online shopper than occasional online

buyer.

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Online Shopping & Gender
Male 35%
Female 65%
35%
male
female
65%
Among the 97% of the online shopping, males (35%)had purchased more as compared to women
(65%). This shows that it is true that more males are shopping online as compared to women.
This is mainly because women still like to feel, see and touch the product before buying. It was
noticed that some of them felt shopping as a reason to go out with the family and spend time
together, which was not possible in case of online shopping. As more and more Indian women
are flocking to Internet there is a possibility that they might end up in a purchase. Also an
increase in the spending power in the hands of the women might lead to an increase in the online
shopping. The research showed that 65% of the women who shopped online fall mostly in the
service and executive class with an income above Rs10,000. The marketers should make sure
that they produce the item keeping in mind the needs of the women. population as they still
continue to be an important decision maker when shopping for the family.

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Online Shopping & Educational Qualification
Non matriculate 3%
Matriculate 8%
Graduate 35%
Post graduate 54%
3%
8%
Non matriculate
54% 35% Matriculate
Graduate
Post graduate
Educational difference is a significant demographic variable, which shows that regular shoppers
who were better educated made more purchases online. 89% of the shopping has been done by
the regular shopper whose is educated with a graduate or postgraduate degree. This shows that
frequency of purchase is more in case of a higher educated regular shopper as compared to a
online shopping done by a regular online shopper with matriculate (8%) and non matriculate
(3%).

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Online Shopping & Income

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
less than 5000 5000-10000 10000-25000 25000-50000 above 50000
Income and buying behavior are positively related. It was seen that a regular online shopper with
a higher income had purchased more online as compared to lower income online shopper. This
trend was seen in all segment of the population. It is true that more the income in the hands of
the population they would indulge in shopping. The service class had done the major purchase in
all the various levels of income. It can be seen that hardly any purchase is done among the
regular online shopper whose income lies below Rs5000.
Analysis-
Thus three hypotheses stated were true in case of the regular online shopper and it can
interpreted that online shopping is effected by demographics like gender, education and income
levels. Among the 65% of the online shopping, males (72%)had purchased as compared to
women (28%). There is a positive relation between education and income of the online shoppers.
89% of the online shopping was done among the regular shoppers who were educated with a
graduate or postgraduate degree compared to 11% shopping who were matriculate and non-
matriculate. A 60% of the shopping was done by the regular shopper who had income more
than Rs 25,000 than 40% who had income less than Rs.25,000.

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Motivating & Satisfaction Factors
To identify the factors which Internet users choose to buy or not buy online and how frequently
they make such purchases. Analyzing the importance of satisfaction level in the online
purchasing environment.
Hypothesis
Consumers who make frequent online purchases are higher in convenience orientation than
those who purchase occasionally.
Online Shopping & Motivating Factors

Convenience 32%
Price 23%
Saves time 26%
Superior selection 12%
Product comparisoion 7%
7%
12% 32%
Convenience
Price
26% Saves time
Superior selection
23%
Product comparisoion

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It is believed that consumers whether online shoppers or non-online shoppers value price
to convenience but the study contrast this popular belief. The study showed that 32% of
the shopping had been done by the regular shopper who think convenience is the main
driving force while 23% of the shopping had been done for whom price was the main
orientation for shopping online. Other motivating forces, which had lead to online
shopping, were saves time (26%), product availability and superior selection (12%), and
product comparison (7%). Convenience here is characterized as ease of purchase, home
delivery and ability to shop 24x7. These factors motivate the regular online shopper to
buy over the Internet and regular online shoppers who value convenience are more likely
to buy on the web, as compared to occasional online shoppers. Every connection is a
potential for net shopping. Therefore the companies should attract and retain its regular
online shoppers, as the Internet is a tangled jungle of web sites, which is possible at a
click of a mouse. They should design strategies and develop products keeping in mind the
convenience factors.

Page 58
Barriers to Shopping Online
3% 3% 3%
don’t want to expose
4% personal information
15%
don’t have credit card
7%
9%
don’t like to give credit
card no
11%
6%
don’t want purchase with
someone
2%
3% I enjoy going out
5% 10% 21%
I like to see and touch
The main areas for concern in respect of the regular online shoppers while shopping were
privacy and security (6%). Most of them still preferred the conventional method of
shopping like the touch and the feel factor (10%). They felt that it is possible to see, feel,
touch and try the products before buying in a shopping store as compared to Internet
shopping. Other reasons that concern the regular online shoppers were inability to reach
the customer service (45%), hassle of returning the product (15%), technical foul –ups,
hesitant in purchasing from an unfamiliar source and person and delivery costs. The
marketers should formulate such strategies so that the privacy and security concern can
be taken care off.

Page 59
Convenience- The Motivating Factor
It has been seen that there is a positive correlation between the frequency of purchase and
the convenience factor for buying in the Internet arena. The regular online shopper who
had purchased more than 6 times (16%) for them convenience is the most important
motivating factor (98%) for shopping on the Internet. Convenience has been
characterized as ease of purchase, home delivery and ability to shop 24x7. The online
shopper believes that large amount of information about the product and the ability to
compare prices is available at a click of a mouse thus making the entire shopping
experience very convenient. Thus the marketers to should keep the convenience factor in
mind while providing the goods and services.
Satisfaction Index
It is important to understand the satisfaction level among the regular online shoppers, which had
lead to online shopping. This could be understood by the satisfaction index and the frequency of
purchase among the shoppers.
Satisfaction Index
5% highly satisfied
8% 13%
satisfied
neither satisfied nor

dissatisfied
dissatisfied
highly dissatisfied
73%

Page 60
A 73% of the regular online shoppers were satisfied with 5% dissatisfied. An important thing to
be noted is that only 13% of the regular online shoppers were highly satisfied while 8% of the
regular online shoppers were neither satisfied nor dissatisfied. This shows satisfaction level plays
an important role in online shopping with more regular shoppers falling under the category of
satisfied. This shows that they were overall satisfied by the experience of shopping online. But
the companies should take measures so that the dissatisfied and the neither satisfied nor
dissatisfied category of regular online shoppers could be moved to satisfied or highly satisfied. A
note should be taken that only 13% of the regular online shoppers are highly satisfied which
shows that there are still concerns, which poise the regular shoppers from using the Internet
frequently as a shopping medium.
Satisfaction level can also be measured by the frequency with which the online shoppers
purchase online. According to human psychology it is true that frequency of purchase depends
upon the satisfaction level received. According to the figure 2 (already explained), a 46% of the
regular online shopper has purchased 2-4 times and 16% had purchased more than 6 times
indicating that an increase in the confidence level and accepting the Internet as a shopping
medium. The increase in the frequency of shopping was mainly because they were overall
satisfied by the entire shopping experience.
Analysis-
It is seen that the main orientation for buying among the regular online shoppers were
convenience (44%), saves time (29%), price (12%), product availability and superior selection
(12%), and product comparison (3%). The hypothesis stated that convenience is major factor
motivating the regular shopper was true as 16% of the regular online shoppers who have shopped
more than 5 times felt it was necessary as compared to 72% who shopped less than 5 times.
The barriers to online shopping as stated by the regular online shopper were privacy and security
(15%), inability to touch and feel the product (10%), customer service problems (21%), hassle of
returning the product (24%), purchasing from unfamiliar source and person (12%) and other
problems (18%).

Page 61
Satisfaction level plays an important role in online shopping, as 55% of the regular online
shoppers that are satisfied tend to purchase more. It can also be seen that 46% have shopped
more 2-4 times and 12% had shopped more than 5 times showing that satisfaction level plays an
important role in online shopping.
Future and growth of Online Shopping

This can be understood by the categories of good bought by the regular online shoppers presently
and the future of the various categories.
Present & future categories of Goods
50%
45%
40%
35%
30%
25% 系列1
20%
系列2
15%
10%
5%
0%
books railwy tickets electronic any other
materials
It is seen that any other category is the most popular categories among the online shoppers
followed by books and electronic gadgets. This is the main category, which is bringing about
online shopping culture among the regular online shoppers. The companies should bring out
innovative ways so that there is a growth in other categories of goods also. The entire shopping
culture among the regular shoppers is brought mainly by the travel categories followed by
electronic gadgets. The graph shows that online shopping is tend to grow in the coming years as
consumers want to buy more in the future.

Page 62
Table 1 Future Categories of Goods

Books 27%
Home appliances 19%
Fashion 42%
Electronic goods 12%
The table I shows that shows that there is a future growth in the fashion goods and book
categories also apart from home appliences, which continues to be on the priority list.
There is a growth in these categories other forms of direct mail but toady online shopping
serves a convenient means of distribution channel. which lure the consumers to buy
these products. These goods do well because consumers are not bothered much about the
touch and feel factors, which generally drive the shopping in India unlike categories like
apparels and groceries where it still remain an important factor while purchasing. It is
difficult to change the set mindset of consumers for certain categories of goods but still
companies should keep innovating and find means and ways to attract more online
shopping.
Analysis-
There is a future growth in online shopping which can be especially seen in books buying
about 27%, electronic gadgets (12%)and fashion (42%%). Gifts also seem to show a
growth in the coming years. Thus the marketers should mainly focus on these growing
categories of goods, which would drive the online shopping in the future.

Page 63
CHAPTER -7
FINDINGS, SUDGGESTIONS AND CONCLUSION

Page 64
FINDINGS
The findings show that Internet usage has increased over the years and it is leading to an increase
in online shopping and also shows the consumers attitude and perception towards online
shopping. Communication still forms the major activity among the large number of online
shoppers as 32% of regular online shopper use Internet for communication as compared to
shopping (10%).
Online shopping is affected by demographics as it has been seen that more males are shopping
online as compared women online shoppers and there is a positive relation between education
and income levels with respect to the increased online shopping behaviour.
The most important motivating factor, which influenced the online shopping, was convenience
followed by time saving and price. Regular online shoppers considered convenience as the main
motivating factor while buying and were less price sensitive. But the online marketers should
attempt to differentiate their products or services making the comparison easier. The marketers
should bring out innovative ways so that the consumers can do more online shopping while
taking the full advantage of rich information, easy access and convenience of the Internet.
One of the main concerns among the online shoppers was privacy and security. Another reason
that hindered online shopping was the touch factor. Consumers still preferred the experience they
get from traditional stores like feeling the store’s atmosphere, interacting with a salesperson, and
seeking sensory stimulation. This might hinder the use of certain goods like grocery and apparel,
as the touch factor is the main factor, which drives the shopping for these goods. The future of
online shopping is bright especially in the categories of travel, books, electronic gadgets and
gifts.

Page 65
SUGGESTION
Online shopping in India is poised for greater acceleration as PC and Internet penetration
grows. It is becoming one of the top Internet activities and there is a huge growth in this
business as more manufacturers and providers are integrating the Internet into their sales
model. But there are many things that need to occur in online shopping to generate higher
revenues and the key to it lies in the hands of the marketers. To make online shopping a boom
following methods can be followed.
 India has a strong research and development (R&D) capability so companies should
innovate rapidly to take care of the security issues. Technology like text to speech softwares
should be innovated to take care of the security concern.
 In India the total ownership of credit cards is small as compared to its population and
there are also hesitant in using it as a mode of online payment therefore alternative methods of
payment like cash on delivery (COD) where the end user pays cash after the product is delivered
and debit cards where the bank accounts are directly debited should be used. Other technologies
like encryption technologies trusted third-party certifications; digital ID systems and prepaid
cards should be used.
 The consumers should be made aware that one of the safety aspect of using credit
cards online is that in case of disputed credit card payments for online transactions the onus is on
the merchants to prove that the transaction actually took place, as online users don't physically
sign a credit slip. As a result online users are protected from fraudulent use of credit cards.
 There is a growth in the cellular phone market in India, more merchants should make
use of this device allowing the customers to access the Internet and use it as mode of
payment thereby obviating the need for PCs and credit cards.
 It is not only important to pay strong attention to the security issue and create
new, innovative safeguards that protect consumers but the merchants should promote
these safeguards to the marketplace and make the prospective consumers aware that the

Page 66
communications, personal data, credit card accounts, and transaction information can be
protected.
 One of the factors that hinder Internet penetration in India is access. More companies
should adopt click and mortar model with the real world operations to complement its
online presence for e.g. customers can walk to the office to access its services.
 Merchants should provide goods and services that offer the right value for money.
There should be transparency in policies (returns, privacy, shipping, etc), insurance
against fraud and a good after sales services should be provided to consumers making it
an enjoyable experience.
 Consumers today demand a better, more efficient and less cumbersome way to
compare and buy products online. Innovative service should be provided to consumers so
that they can compare products, which are available online using their mobile phones.
 Online shopping today is an incomplete, fragmented, and sometimes frustrating

process. Therefore merchants should set themselves apart from their competitors by
factors other than price, constantly innovate and move towards creating customer
confidence to trade online. They should provide massive selection at lower prices, offer a
personalized customer experience and their web sites should deliver a shopping
experience that addresses all of the consumer needs like recommendation about the
products, feedback from other customers, etc.
 Vendors should educate the customers about e-commerce like educating them on
safety tips like reading the item description, looking for a seller’s feedback score and
asking questions, detecting spoof mails and informing them about the new online crimes
which happen regularly.
 In India still the penetration of Internet has not happened the way it should have been
which hampers online shopping. Ecommerce revolution can be brought about by

Page 67
providing more broadband connections at affordable prices.

 There is a huge market for business in the rural India therefore efforts should be such
that to bring these people also into experiencing online shopping. Companies should
create more Indian language software or content as Internet still is a primarily English
language world and language could be a barrier in rural India. Only few language portals
like webduniya.com exist today.
 Most of the Indians still like to see the product before buying; efforts should be made
to change this mindset of the people by making them aware of the benefits of online
shopping.
 To make online shopping big the shopping web sites should give the customers the
convenience to shop anything on a single site like ordering pizzas, movie tickets,
groceries, etc rather than in scattered places. The site should not only provide information
content but also tools to navigate and evaluate this information. The information on the
site should be just sufficient for the consumers to make a decision and not to overload
them with information, which results in confusion.
 Convenience and time saving are the main reason to shop online. Therefore Business
to Consumers (B2C) sites should be designed in such a way that consumers spend less
time in finding information they are looking for as delays in searching or loading a web
page might turn the consumers to other sites which have faster download and display
times.
 Since consumers control the experience they receive from shopping over the Internet,
there is a need to find ways of managing the amount of information available over the
Internet. Sites that are able to offer this information and present it in a simple way to
understand will become the preferred destination for online shopping.
 The key to selling to a customer which cannot be seen is to get the customer to trust

Page 68
the website with which they have electronic transactions.
 Active participation from consumer marketing companies to manufacturing industries is

required to make online shopping a booming sector.
Some of the things, which the consumers should take into considerations while online shopping,
are:
 Use a secure browser. The browser should comply with industry security standards, such as
Secure Sockets Layer (SSL).
 Consumers should shop with the known companies, as it is easy to set up a shop online under
any name. If they are not familiar with a merchant they should ask for paper catalogue or
brochure to get a better idea about the merchandise and services and should find about the
company’s refund and return policies. Consumers should also search for the reviews of the
company.
 Read the privacy policy on the site of the companies before shopping as this helps to know
what information is being collected and how it would be used.
 Keep a print record of the transactions this would come handy in case of any fraud.
 One should find out how the company secures the financial and personal information before
paying the bills.
 The personal information should be kept private like address, telephone numbers, email, etc.
One should avoid using telephone numbers or date of birth for establishing a password instead
should use a combination of numbers, letters and symbols.
 Proper research should be done about countries shopping laws and merchant when
shopping from other countries.

Page 69
CONCLUSION
This research shows that online shopping is having very bright future in India. Perception
towards online shopping is getting better in India. With the use of internet, consumers can
shop anywhere, anything and anytime with easy and safe payment options. Consumers
can do comparison shopping between products, as well as, online stores.
This study is mainly focus on the factors from the Internet and examines those factors
that affect the consumer’s online shopping behaviours. The research focus on the Internet
shopping (include the nature of Internet shopping, E-commerce website, and online
security, privacy, trust and trustworthiness) and online consumer behaviours (include
background, shopping motivation and decision making process). Those factors were
looked at, and examined to reveal the influence at online consumer behaviours. In
addition, the previous researches were used to help researchers understanding more
comprehensively. Moreover, the customer’s purchase decision making process was also
examined to identify the potential factors. The information search is the most important
factor that helps the customers find the suitable products or services for their needs.
Therefore, the online retailers have to enhance and improve the information supporting
such as provide much detailed product information and use internal search engine in
order to increase the efficient of information search. For the evaluation stage, customers
more think a lot of the reputation from the E-commerce website, and the payment
security for the purchase stage. At the post-purchase stage, the factor of after services
which is the most concerned about. Overall, the factors from the Internet that influenced
or prevented online consumer behaviours need to be carefully concerned by the online
retailers, who can utilize the appropriate marketing communications to support the
customer’s purchase decision making process and improve their performance.

Page 70
BIBLOGRAPHY
1) Ramaswami&Namakumari, Marketing Management-Planning, Implementation and

Control, MacMillan India Ltd, New Delhi
2) Bhatnagar, A, Misra, S., and Rao, H. R., ‘Online risk, convenience, and Internet shopping
behavior,’ Communications of the ACM 2000
3) Alexandru M. Degeratu, ArvindRangaswamy and Jianan Wu (2000) Consumer

ChoiceBehaviour in Online and Traditional Supermarkets: The Effects of Brand Name, Price,
and other Search Attributes, International Journal of Research in Marketing, Vol. 17, No.1, p.
55-78. Available at: http://www.smeal.psu.edu/ebrc/publications/res_papers/1999_03.pdf
4) Aron M. Levin, Irwin P. Levin, and C. Edward Heath (2003) PRODUCT

CATEGORYDEPENDENT CONSUMER PREFERENCES FOR ONLINE AND OFFLINE
SHOPPING FEATURES AND THEIR INFLUENCE ON MULTI-CHANNEL RETAIL
ALLIANCES, Journal of Electronic Commerce Research, VOL. 4, No. 3. Available
at:http://www.csulb.edu/web/journals/jecr/issues/20033/paper1.pdf
5) Ali S S, Models in Consumer Buying Behaviour, Deep & Deep Publications.
6) Kothari C. R., Research Methodology Methods and Techniques, WishwaPrakashan, New

Delhi.
7) www.wikipedia.com
8) www.amzon.com
9) www.flipkart.com

Page 71
QUESTIONAIRE
Kindly highlight/bold your answers.
1. Do you use Internet?
a) Yes b)No
2. How long have you been using Internet?
a) Less than 1 year c) 3 – 5 years
b) 1 – 3 years d) More than 5 years
3. On the average, how much time (per week) do you spend in surfing the Web?
a) 0 – 5 hours d) 16 – 20 hours
b) 6 – 10 hours e) More than 20 hours
c) 11 – 15 hours
4. Have you purchased anything online ever?
a) Yes b)No
5. Which category (ies) of goods have you bought through Internet?
a) Books c) Railway tickets
b) Electronic Gadgets d) others 
6. When did u shop for the first time?
a) Last 6 months
b) 6 months- 1year
c) 1-3 year

Page 72
d) 3-5 year
e) More than 5 year
7. How frequently did you purchase online?
a) Only once
b) 2-4 times
c) More than 5 times
d) More than 6 times
8. Overall, were you satisfied with your experience of online shopping?
a) Highly Satisfied
b) Satisfied
c) Neither satisfied nor dissatisfied
d) Dissatisfied
e) Highly Dissatisfied
9. Where do you most often access the Internet?
a) Home c) Cyber-cafes
b) Office / College d) Any other, specify………
10. What are the activities that you use Internet for? (Kindly rank them
between 1 to 5,with 1=most used, 2=used to a large extent, 3=used to a good
extent, 4=used sometimes, 5=rarely used)
a) Communication (E-mail, Instant Messaging, Bulletin Boards, News
Groups, Chat, etc.) Information Gathering (Research, News, Sports scores,
Search for employment, etc.)
b) Entertainment (Games, Adult entertainment, Entertainment sites, Sports,

Music, Web page design, etc.)
c) Finance (Investment portfolio, financial research, online banking, check

Page 73
stock/fund quotes, trading, etc.)
d) Shopping (Researching purchases, purchasing, auctions, Selling, Classifieds, etc.)
11. Which category (ies) of goods are you planning to buy through internet in
the near future?
a) Books c) Railway tickets
b) Electronic Gadgets d) others 
12. What is your main motivation for buying through Internet?
a) Convenience (ease of purchase, home delivery, ability to shop 24x7)

b) Price
c) Saves time
d) Superior selection/Availability
e) Product comparison
f) Any other, specify………………
13. What, according to you, are the most important barriers to purchase online?
a) I am worried about giving out my credit card number
b) I don’t have a credit card
c) I don’t like providing personal information
d) I don’t want to purchase from someone with whom I am not familiar
e) I enjoy going out to do my shopping
f) I like to see/touch the product in person, before I buy it
g) Internet is too slow / Pages take too long to load
h) I am worried about the cost/hassle of returning the product
i) Delivery costs are too high
j) Prices are too high
k) Technical foul-ups prevent transactions from going through

Page 74
l) I can’t find anything that I want to purchase on the Internet
m) I don’t know how but I am uncomfortable about purchasing through Internet
n) The process is expensive due to cost of access
o) Any other, specify…………
PERSONAL DETAILS
14. Age:
a) Below 18 yrs
b) 18 - 30 yrs
c) 31 - 40 yrs
d) 41 – 50 yrs
e) Above 50 yrs
15. Educational Background:
a) Non-Matriculate
b) Matriculate
c) Graduate
d) Postgraduate
16. Occupation:
a) Business/Self Employed
b) Service/Executive
c) Student
d) Any other, specify………………
17. Gender:
a) Male
b) Female
Page 75
18. Average Monthly Income:
a) Less than Rs. 5,000
b) Rs. 5,000 – Rs. 10,000
c) Rs. 10,000 – Rs. 25,000
d) Rs. 25,000 – Rs. 50,000
e) Above Rs. 50,000
Name:
City:

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KARNATAK UNIVERSITY, DHARWAD.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

MAJOR CONCURRENT PROJECT

“STUDY ON PERCEPTION OF CONSUMERS

A Project Report Submitted to the Karnatak University, Dharwad

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDENCE OF

Dr. Ramesh R. Kulkarni

I hereby declare that the dissertation titled “Study on CONSUMERS

I am submitting this project report to Karnatak University, Dharwad as the

The satisfaction and joy that accompanies the successful completion of my

First and foremost, I would like to express my heartfelt thanks to our

It greatly contributed to the successful completion of this project.

I would like to express my gratitude from the bottom of my heart to our

CHAPTER - 1 INTRODUCTION 3-6

CHAPTER - 2 LETERATURE REVIEW 8 - 12

CHAPTER - 3 OVERVIEW OF THE INDUSTRY 14 - 23

CHAPTER - 4 THEORIES OF THE STUDY 25 - 34

CHAPTER - 5 RESEARCH METHODOLOGY 36 - 42

CHAPTER - 6 DATA ANALYSIS 44 - 63

CHAPTER - 7 FINDINGS, SUDGGESTION & 65 - 70

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 1

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 2

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 3

SIGNIFICANCE OF THE STUDY

Objective of the Study

3. To know how it reduces the uncertainty in purchase decision process.

Scope of the Study

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 4

We can listed the scope as below :

1. The Study was conducted among the Internet users.

2. The Geographical area covered was Sambalpur.

3. The Study was based on a Schedule of Questions.

4. To analysethe consumer interest on online marketing.

5. To determine the factors affecting online buying.

6. To evaluate the growth of online marketing.

7. To forsee the demand of online shopping in india.

8. To study the impact of traditional retailer over the online retailer.

9. To gather information regarding growing sector for online purchasing.

10. To understand the barriers of online marketing.

LIMITATIONS OF THE STUDY

1. Lack of environmental support for the study on the topic.

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 5

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 6

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 7

NATIONAL REVIEW OF LITREATURE

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 8

INTERNATIONAL REVIEW OF LITREATURE

Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan,

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 9

The classic consumer purchasing decision-making theory can be characterized as a continuum

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 10

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 11

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 12

OVERVIEW OF THE INDUSTRY

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 13

OVERVIEW OF THE INDUSTRY

ONLINE SHOPPING IN INDIA

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 14

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 15

Kousali Institute of Management Studies, Karnatak University Dharwad. Page 16

GAINT PLAYERS IN INDIAN ONLINE SHOPPING

Flipkart.com is an e-commerce website founded by SachinBansal and BinnyBansal in 2007.