Consumer Satisfaction in Online Shopping
Consumer Satisfaction in Online Shopping
CHAPTER 1
INTRODUCTION
INTRODUCTION
retrieve all the product information with just few clicks in few minutes.
Plus, purchasing can be done anywhere, anytime according to their
preferences.
The consumer only has a limited amount of information concerning the product,
which is provided by the trader on the website, moreover he/she cannot physically
check or try the product, whether the actual characteristics are matching the stated
ones referred to on the website or not, and its quality is the same as expected.
In short, online shopping is a current phenomenon which has developed a
great importance in the modern business environment. The evolution of online
shopping has opened the door of opportunity to exploit and provide a competitive
advantage over firms. Online shopping brings optimum convenience to the
consumers.
Internet has changed the way consumers purchase goods and services at the same
time many companies have started using the Internet with the objective of cutting
marketing costs, thereby reducing the price of their product and service in order to
stay ahead in highly competitive markets.
Primary Objective
To find out the satisfaction level of the customer for online purchase.
Secondary Objective
To know the specific reasons for which purpose customers purchase in
online.
To find out the consumers’ satisfaction level for services provided by
the online shopping.
To study the risk related to online shopping
To know the future scope of online shopping.
Respondents may not fully aware of their reasons for any given answer because of
lack of memory on the subject, or even boredom.
CHAPTER-2
REVIEW OF LITERATURE AND
THEORETICAL REVIEW
REVIEW OF LITERATURE
The typical Internet user of the twentieth century is young, professional, and affluent
with higher levels of income and higher education (Palumbo and Herbig,1998).
They value time more than money which automatically makes the working
population and dual-income or single-parent households with time constraints
better candidates to be targeted by non-store retailers (Burke, 1997).
Actually, both demographics and personality variables such as opinion
leadership or risk evasiveness are very important factors that are considered in
studies trying to determine the antecedents of Internet purchases (Kwak et al.,
2002). Confirmatory work shows that income and purchasing power have
consistently been found to affect consumers’ propensity to shift from brick-and-mortar
to virtual shops (Co-mor, 2000)
Those consumers using the Internet for a longer time from various locations and for a
higher variety of ser-vices are considered to be more active users (Emmanouilides
and Hammond, 2000)
Consumers with high levels of privacy and security concerns have lower
purchasing rates in online markets but they balance this characteristic with their
quest for making use of the information advantage of the environment.
(Kwak et al., 2002; Miyazakiand Fernandez, 2001)
Many studies frequently mention that there isa vast amount of window shopping
taking place online but the number or the rate ofsurfers who turn into purchasers
or regular buyers are very low (Mayer, 2002; Betts,2001; Oliver, 1999).
THEORETICAL FRAMEWORK
Online shopping is a form of electronic commerce which allows consumers to
directly buy goods or services from a seller over the Internet using a web
browser. Consumers find a product of interest by visiting the website of the
retailer directly or by searching among alternative vendors using a shopping
search engine, which displays the same product's availability and pricing at
different e-retailers. As of 2016, customers can shop online using a range of
different computers and devices, including desktop computers, laptops, tablet
computers and smart phones. An online shop evokes the physical analogy of
buying products or services at a regular "bricks-and-mortar" retailer or shopping
center; the process is called business-to-consumer (B2C) online shopping.
When an online store is set up to enable businesses to buy from another
businesses, the process is called business-to-business (B2B) online shopping. A
typical online store enables the customer to browse the firm's range of products
and services, view photos or images of the products, along with information
about the product specifications, features and prices.Online stores typically
enable shoppers to use "search" features to find specific models, brands or
items. Online customers must have access to the Internet and a valid method of
payment in order to complete a transaction, such as a credit card, an Interac-
enabled debit card, or a service such as PayPal. For physical products (e.g.,
paperback books or clothes), the e-tailer ships the products to the customer; for
digital products, such as digital audio files of songs or software, the e-tailer
typically sends the file to the customer over the Internet. The largest of these
online retailing corporations are Alibaba, Amazon.com, and eBay.
factors. This was different for offline shoppers, who were more motivated by
time saving and recreational motives.
Customers Online
Customers must have access to the Internet and a valid method of payment in
order to complete a transaction. Generally, higher levels of education and
personal income correspond to more favorable perceptions of shopping online.
Increased exposure to technology also increases the probability of developing
favorable attitudes towards new shopping channels.
The introduction and implementation of internet technologies has created new market
for manufactures and service providers and also has provided new arena for
innovative marketing strategies by the professionals. There are various reasons for
shifting the customers buying patterns towards online retail shops. The facility of
comparing your product with competitive products on the basis of price, color, size
and quality is one of the biggest benefits of online shopping. Moreover the product
remains at its place even you purchase it. The other popular names of online shopping
are virtual store, e-shop, internet shop, web- store and online storefront etc.
Convenience
Better product selection
Useful delivery mode
Easiness of availability
Variety of products
Saves time
Wider chance
Comparison of price
Consistency between advertised price and site price
More offers available
Ease in merchandise cancellation
PAYMENT
Online shoppers commonly use a credit card or a Payment account in order to make
payments. However, some system enables users, to create accounts and pay by
alternative means, such as:
Billing to mobile phones
Cash on delivery
Cheque
Debit card
Direct debit
Electronic money
Gift cards
Postal money order
Delivery on payment
Invoice
Crypto currencies
Bit coin
Some online shops will not accept international credit cards. Some require
both the purchaser’s billing and shipping address to be in the same country as the
online shop’s base of operation. Other online shops allow customers from any country
to sent gifts anywhere.
Once a payment has been accepted, the goods or services can be delivered in the
following ways for physical items:
Shipping
Drop shipping
In-store pick-up
Digital distribution
E-mailing for items such as admission tickets
Will call, COBO, at the door pickup
Electronic commerce is more than just buying and selling products online. It
also includes the entire online process of developing, marketing, selling, delivering,
servicing and paying for products and services. India has shown tremendous growth in
e-commerce segment.
A recent report by Morgan Stanley projected that by the year 2020, India will
have almost 320 million online shoppers. That’s 4 times more than the estimated 80
million shoppers we had back in 2016. The current estimated value of the Indian retail
sector is about $300 billion and is expected to reach $1.3 trillion by 2020, on the back
of factors like rising incomes and life style changes by middle class and increased
digital connectivity. While the overall retail market is expected to grow at 12% per
annum, modern trade would expand twice as fast at 20% per annum and traditional
trade at 10%. Factors driving the organized retail sector include the following:
Higher income driving the purchase of essential and non essential products.
Evolving consumption patterns of Indian customers.
New technology and life style trends creating replacement demand.
Save time: with just couple of clicks of the mouse, you can purchase your
shopping orders and instantly move to other important things, which can save time.
Save fuel: one of the advantages of online shopping is that there is no need for
vehicles, so no purchase of fuel necessary.
Save energy: in online shopping, you do not need to waste your precious energy
when buying.
Comparison of prices: the advanced innovation of search engine allows you to
easy check prices and compare with just a few clicks.
24/7 availability: online shopping stores open round the clock of 24/7 hours.
No waiting in lines: when buying through online, there are no long lines to you
endure.
Too ashamed to buy: in online shopping, you do not need to be ashamed; your
online transactions are basically done privately.
Easy to search products you want to buy: it is easy to product anything you
want through online. And in addition it is easy to determine whether the products
are available or out of stock.
DISADVANTAGES
Personally check the item: there is no scope to check the product personally
at online shopping.
Diminished instant satisfaction: unlike buying at retail stores, you are able to
use the product instantly after you buy it, which can be satisfying. In online
shopping the instant satisfaction is not possible because, there take time to get
the product that we purchased.
Lack of interactivity: in online shopping there is no interaction between buyer
and the seller.
Frauds in online buying: Some time customers who are hitch in the online
frauds.
SHOPPING SITES
www.amazon.com
www.flipkart.com
www.myntra.com
www.snapdeal.com
www.ebay.com
www.bestbuy.com
www.redbus.in
www.naptol.com
www.shop.com
www.target.com
www.paytm.com
www.jabong.com
www.khadiindia.com
WORKING OF E- SHOPPING
1. Web hosting: the foundation of a good online store is a good web server to
host it on. Some shopping carts come packaged with a specific hosting provider
or product. Others, such as shop site, can run on a variety of web servers and
are offered by a wide range of hosting providers.
2. Merchant interface: the merchant interface is the tool you use to manage your
online stores. It’s what you use to set up and use all the other tools. It’s more
important to have a usable merchant interface than having a fancy looking
complex interface.
3. Product catalog: it is the part of online store where want to invest the majority
of time and effort. Like printed catalog, online catalog consists of products and
pages. The pages are also one of the main ways to present product information
to customers.
4. Shopping cart: shopping cart is what customers will use to place orders.
Customers add the products they want to purchase to the cart provide
information about shipping and payment then submit the order.
5. Payment processing: accepting payments is the back bone of any online store;
without it, customers can’t place orders. Online payment process is used for
payment method.
6. Shipping: once get an order, need to gather the products, prepare them for
shipping, then send them to the customers.
7. Tax calculation: calculating, collecting and paying appropriate sales tax is
another part of your online that need to consider.
Advertising: drawing customers to web site is a critical part of any online store, and
good shopping cart software includes features to help with the task. One key element
of advertising an online store is making sure it shows up in the popular
ONLINE SHOPPING HURDLES
Online shopping problems were in two categories; general problems and after
sales problems. Online shopping problems are great barriers to the online purchase
intention of customers. General problems includes possibility of having credit card
data intercepted, the difficulty to confirm reliability of the provided products and the
possibility to buy that it would not value as much as customer pay for it. After sales
problems, involved difficulty to change defective product with a new one and
products guarantee are not assured. Online shopping has various disadvantages as
compared to shopping at a physical shop.
Lack of touch and feel merchandise.
There is delivery time.
Shipping charges.
Lack of close quality examination.
Security concerns.
Privacy concerns.
Lack of personal attention from a sales man.
Unable to try the merchandise on.
More chance to encounter fraud.
More chances for mistakes in ordering the wrong item.
Verification of credit owner less rigorous.
CHAPTER- 3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
For this study exploratory research has been used. Exploratory research
means there are certain studies for which comprehensive or in-depth analysis or
investigation is required to drive solution for problems. This method is adopted
when the results are not obtained on observation basis.
SOURCES OF DATA
Both primary and secondary sources are used for data collection.
Primary Data:
Secondary Data:
RESEARCH DESIGN
Descriptive Research
SAMPLE DESIGN
A sample design is the theoretical basis and the practical. It is mean by we inter,
characteristics of some population by generalizing from the characteristics of
relativity few of the units comparison population.
POPULATION
SAMPLE SIZE
SAMPLING DESIGN
It is the incumbent on the researcher to clearly define the target population.
It is the procedure for selecting sample members from a population.
This study is completed by choosing convenience sampling, a non-probability
sampling technique where the subjects are selected because of their convenient
accessibility and proximity to the researcher.
Diagrams are used when aggregate and division to be shown together. The
aggregate is shown by means of a circle and the sectors of a circle.
2. TABLES
The collected data were coded, edited, tabulated and presented in the form
of tables.
3. PERCENTAGE ANALYSIS
This is the simplest way to present different types of data. In this method,
we can found out the percentage of single data with to total.
DURATION OF STUDY
CHAPTER -4
DATA ANALYSIS AND
INTERPRETATION
ONLINE SHOPPING
Yes 96 96
No 4 4
Total 100 100
Yes
No
96
Interpretation
The above diagram shows that 96% of respondents have well knowledge about
online shopping and 4% of respondents have little knowledge.
Preference No. %
Online shopping 76 76
Traditional shopping 24 24
Total 100 100
80
70
60
50
40 76
30
20
24
10
0
Online shopping Traditional shopping
Interpretation
It reveals that 76% of customers give priority to online shopping and 24% of
customers give priority to traditional shopping.
Website No. %
Flipkart 62 62
Amazon 18 18
Myntra 16 16
Others 4 4
100 100
70 62
60
50
40
30
18
16
20
4
10
0
Flipkart Amazon Myntra Others
Interpretation
It shows that 62% of customers choose the website Flipkart, 18% of customers
choose Amazon, 16% of customers choose Myntra and 4% of customers choose other
online stores.
Product No. %
Electronics 20 20
Books 14 14
Clothing and accessories 40 40
Home appliances 10 10
Others 16 16
Total 100 100
16
20
10 Electronics
Books
Clothing, accessories
14 Home appliances
Others
40
Interpretation
From the above diagram we can understand that 40% of customers buy clothing
and accessories, 20% of customers buy electronics, 14% of customers buy books, 10%
of customers buy home appliances and 16% of customers buy other type of products
through online.
Awareness No. %
Branded 70 70
Un branded 30 30
30
Branded
Un branded
70
Interpretation
From the above diagram we can conclude that 70% of customers prefer branded
products and 30% of customers prefer un branded products.
1000-5000 48 48
5000-9000 8 8
9000-Above 10 10
Total 100 100
50
45
40
35
30
48
25
20 34
15
10
8 10
5
0
Below-1000 1000-5000 5000-9000 9000-Above
Interpretation
From the above diagram we can conclude that 34% of customers are spend for
online shopping below 1000 Rs, 48% of customers are spend1000-5000 Rs, 8% of
customers are spend 5000-9000 Rs and 10% of customers spend 9000-Above Rs for
online shopping.
Reasons No. %
Low price 40 40
Better service 24 24
Easiness of availability 28 28
Others 8 8
Total 100 100
40
40
35 28
30 24
25
20
15 8
10
0
Low price Better service Easiness of availability Others
Interpretation
From the above diagram we can conclude that 40% of customers prefer online
shopping due to low price, 24% of customers prefer due to better service, 28% of
customers prefer due to easiness of availability and remaining 8% of customers prefer
online stores due to other reasons.
TIMELY DELIVERY
Yes 88 88
No 12 12
100
90 88
80
70
60
50
40
30
20
12
10
0
No Yes
Interpretation
It clear that 88% of customers mention that online shopping ensures timely
delivery of product and 12% of customers mention that online shopping does not
ensure timely delivery.
PRODUCT
Quality No. %
Excellent 32 32
Good 28 28
Average 36 36
Poor 4 4
Total 100 100
PRODUCT
4 32
36
Excellent
Good
Average
Poor
28
Interpretation
From the above diagram we can conclude that 32% of customers consider online
products have excellent quality,28% of customers consider online products have good
quality, 36% of customers consider online products have average quality and 4% of
customers consider online products have poor quality.
Opinion No. %
Yes 80 80
No 20 20
Total 100 100
20
Yes
No
80
Interpretation
From the above diagram is clear that 80% of online customers agree that they get
cash reimbursement and 20% of customers do not agree upon cash reimbursement
getting through online buying.
30
30
30
25
22
20 18
15
10
Interpretation
From the above diagram we can conclude that 30% of customers say that within
5 days cash is repaid by online shoppers,18% of customers say within 10 days they
repaid money,22% of customers say that within 15 days they repaid money and 30%
of customers say that within 1 month or more takes to repay money.
Cash on delivery 66 66
Online payment 24 24
EMI 6 6
Others 4 4
Total 100 100
4
Others
6
EMI
24
Online payment
66
Cash on delivery
0 10 20 30 40 50 60 70
Interpretation
It reveals that 66% of customers pay by cash on delivery, 24% of customers pay
by online payment, 6% of customers pay EMI and 4% of customers pay by other
methods.
Reliability No. %
Yes 86 86
No 14 14
Total 100 100
86
90
80
70
60
50
40
30
20 14
10
0
Yes No
Interpretation
From the above diagram clear that 86% of customers think that online shopping
is reliable and 14% of customers do not trust it.
OF CUSTOMERS
OF CUSTOMERS
40
36
35
30 28
25
20 18 18
15
10
0
Puma Adidas Nike Others
Interpretation
It reveals that 18% of customers select Puma products for online shopping, 36%
of customers select Adidas products,18% of customers select Nike products and 28%
of customers select other brands for online shopping.
Home delivery 68 68
Post office 18 18
Others 14 14
Total 100 100
68
70
60
50
40
30
18
14
20
10
0
Home delivery Post office Others
Interpretation
From the above diagram we can conclude that 68% of customers use Home
delivery for online shopping, 18% of customers use post office delivery and 14% of
customers say that products are delivered by other methods.
ONLINE SHOPPING
Starting No. %
Below 1 year 42 42
1-3 years 24 24
3-5 years 20 20
Above 5 years 14 14
Total 100 100
ONLINE SHOPPING
45
42
40
35
30
25 24
20
20
15 14
10
0
Below 1 year 1-3 years 3-5 years Above 5 year
Interpretation
From the above diagram reveals that 42% of customers started online buying
within 1 year, 24% of customers started between 1-3 years, 20% of customers started
between 3-5 years and 14% of customers started online buying above 5 years ago.
ONLINE SHOPPING
Yes 96 96
No 4 4
Total 100 100
ONLINE SHOPPING
120
100 96
80
60
Sales
40
20
4
0
Yes No
Interpretation
It clear that 96% of customers agree that there is a future scope of online
shopping and 4% of customers does not agree to the future scope of online buying.
Yes 72 72
No 28 28
Total 100 100
80 72
70
60
50
40
30 28
20
10
0
Yes
No
Interpretation
From the above diagram we can conclude that 72% of customers prefer middle
man in online shopping and 28% of customers do not need middle man when online
buying.
Opinion No %
Yes 88 88
No 12 12
Total 100 100
90
80
70
60
50 88
40
30
20
10 12
0
Yes No
Interpretation
It clear that 88% of customers have the opinion that they get the correct ordered
product when buying through online and 12% of customers oppose that.
Users No. %
Children 10 10
Youngsters 48 48
Old 2 2
Total 100 100
60
50 48
40
40
30
Sales
20
10
10
2
0
Children Youngsters Middle age Old
Interpretation
From the above table we can conclude that 10% of online customers are
children, 48% of online customers are youngsters, 40% of online customers are
middle age and2% of online customers is old.
Opinion No. %
Yes 78 78
No 22 22
70
60
50
40
30
22
20
10
0
Yes
No
Interpretation
It reveals that 78% of customer’s opinion that they get the correct design as ordered
and 22% of customers does not get the correct design of product.
CHAPTER-5
FINDINGS, SUGGESTIONS
AND CONCLUSION
FINDINGS
Flipkart and Amazon are the most preferred online store for shopping
compared with other stores.
Clothing, accessories and electronics are the most buying product through
online.
Customers are demanded for branded products.
Majority of respondents agree that products are meets average quality.
The low price of products is the main reason for preferring online purchase.
Majority of customers agree that online shopping ensures timely delivery.
Most of customers prefer online shopping than traditional shopping.
Majority of customers says that there is getting cash reimbursement, if they
return the product.
Within 5 days or 1 month and above takes to get the repaid money.
From the study we can understand that online shopping is trustable.
Majority of customers choose cash on delivery method for payment of
consideration.
Majority of customers choose the home delivery for purchase the product.
Most of customers started online buying since below one year.
Majority of customers agree that there is a future scope for online buying.
Youngsters and middle aged people are the main users of online shopping.
Most of people are get the knowledge about online shopping from internet.
Women are not much interested to buy through online.
Men are interested to buy through online.
Majority of customers agree that they get the correct design and correct ordered
product while online shopping.
Customers are preferred to the service from middle man.
Adidas is the most preferred brand for customers.
Most of customers need average cost of products from online.
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS
Bellman, S., Lohse, G., Johnson, E.J., “Predictors of Online Buying Behavior”,
Association for Computing Machinery.
Deepali “Study on Growth of online Shopping in India “, Journal of Computer
Science and Information Technology.
Zorayda Ruth B. Andam “E-commerce and E-business”.
Li, N., and Zhang, P., “ Consumer Online Shopping Attitudes and Behavior:
An Assessment of Research
WEBSITES
www.wikipedia.org
www.google.com
www.ETRetail.com
www.flipkart.com
APPENDIX
QUESTIONNAIRE
1. Name:
2. Gender:
a) Male b) Female
3. Age group:
c) 22-26 yrs
4. Educational qualification:
c) Degree d) Others
5. Source of money:
c) Others
a) Yes b) No
a) Flipkart b) Amazon
c) Myntra d) Others
a) Electronics b) Books
e) Others
a) Branded b) Unbranded
11. How much do you spend per month for online buying?
a) Below-1000 b) 1000-5000
a) Yes b) No
14. Did the online purchased products meet the expected quality?
a) Excellent b) Good
c) Average d) Poor
a) Yes b) No
16. Within how many days you get the repaid money
c) EMI b) Others
a) Yes b) No
c) Others
a) Yes b) No
a) Yes b) No
a) Yes b) No
REMARKS:
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................