ACKNOWLEDGEMENT

Firstly,I would like to thank Pokhara University for providing us such project word
to broaden our theoretical knowledge into real practical life. And I also want to
thank Er Shankar N. Adhikari, Mr. Dhruba Pd. Subedi, and Mr. Prakash Kumar
Gautam for cooperating with me in providing visit required material during
survey.
The success and final outcome of this report required a lot of guidance and
assistance from many people. I am extremely fortunate to have got this all along
the completion of my project report with the help of Mr. Prakash Kumar Gautam.
Whatever I have done is only due to such supervision and I would not forget him.
I am extremely grateful to all the respondents who participated in research and
provided m ethe required information based on which project report is done. I
would also like to appreciate our teacher Prakash Kumar Gautam for teaching us
SPSS.
Lastly, I would also like to thank all my classmates and friends, who helped me
during research and while preparing the report in various way. And thank them
for all their encouragement and their constant motivation.

Sincerely,
Pramina Pandey
 DECLARATION
I hereby declare that the project work report entitled “COVID-19 Pandemic On
Customer Preferences Towards Online Shopping’’ submitted to the faculty of
management, Pokhara University, Lekhnath-Kaski is an original piece of work
under supervision of Mr. Prakash Kumar Gautam, Atlantic College and is
submitted in partial fulfillment of the requirements for awards of the degree of
Bachelor of Business Administration (BBA). This project work report has not been
submitted to any other university or institution for the award of any degree or
diploma.

…………………………..
Pramina Pandey
Kathmandu, 2021
 ABSTRACT
This report provides the comprehensive information about the “COVID-19
Pandemic On Customer Preference Towards Online Shopping”. The Main
objective of this study is to highlight impact of COVID-19 pandemic on customer
preference towards online shopping.
This study includes background, statement of the problem, objective of the study,
questions of the study, review of literature, research design, nature and sources
of data, data collection and processing technique, presentation and analysis of
data. For this purpose descriptive research design is used to deal with the
fundamental issues. For the selection of sample respondent, convenience
sampling has been used. The total sample respondents are 122. Questionnaire
survey was designed to understand the view of respondents regarding the topic.
After the collections of data the information are tabulated, pie-chart and graph
diagram is used to analyze the data.
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
 CHAPTER 1
INTRODUCTION
1.1 Background of the study
During December 2019 coronavirus disease (COVID-19) was detected firstly in
Wuhan, China. Later it has been spread worldwide tremendously and WHO has
declared it as a pandemic. The indication of pandemic doesn’t necessarily mean
that the virus has become disastrous but it is an indication that the virus has been
globally spreading. Trade and commerce in this situation has faced a great
downfall. Millions of the workers are affected by this situation and man workers
had to leave their jobs.
The COVID-19 pandemic has forever changed online shopping behaviors. The
pandemic has accelerated the shift towards a more digital world and triggered
changes in online shopping behaviors that are likely to have tasting affects. The
main reason people are shifting towards online shopping is due to safety reasons
to not enter in the crowded reason. While there are many other factors such as
time factor, product factor, price factor, security Factor etc.
Shopping behavior of customers has evolved during the ongoing COVID-19
pandemic. During the early stages, a large number of customers were either in
containment zones or there were limited options available for making their
necessary and discretionary purchases. This led to consumers trying out new
channels, products and brands, which in turns has resulted in changes to
consumer’s shopping habits and their path to purchase.

The survey, entitled “COVID-19 and E-commerce”, examined how the pandemic
has changed the way consumers use online and digital solutions. Following the
pandemic, more than half of the survey’s respondents now shop online more
frequently and rely on the internet mor for news, health-related information and
digital entertainment.

During the pandemic, online consumption habits of consumers have changed

significantly, with a greater portion of internet users buying essential products,
such as foods and beverages, cosmetics and medicines. Increase in online
shopping during COVID-19 differ between countries, with the strongest rise noted
in China and Turkey and the weakest in Switzerland and Germany, where more
people were already engaged in E-commerce.
COVID-19 has been accompanied by a lot of uncertainty and at times
contradictory information. When people are hearing different advice from
multiple sources, they have a greater instinct to over-, rather the under-, prepare.
Also there have been crowd’s mentality, seeing other people buying up the
shelves and then seeing a scarcity of necessary products validates the decision to
stock up.

1.2 Statement of Problem

Online shopping is the electronic transactions, which can be expressed as the
buying and selling of product and services. People prefer online shopping rather
than an other types of shopping during pandemic because it is easy and also saves
time. But customers preferences towards online shopping depends on various
factors such as price factor, product factor, time saving factor, payment factor,
security factor and psychological factor. Also the government and WHII has now
suggested people to be less present in the crowded area to help lessen the spread
of the virus. In this regard, the study is to examine “COVID-19 pandemic in
customers preference towards online shopping”.

1.3 Objective of study

The main objective of research is to investigate “COVID-19 pandemic in customer
preferences towards online shopping”
 To analyze what effect does covid-19 pandemic has on customer
preferences towards online shopping
 To explore the most effective factors that influences customers
towards online shopping
 To examine how covid-19 has affected online shopping
 To explore the impact of covid-19 on buying behavior
 To examine the health, price, product, trust and place aspect on online
buying behavior in face of corona virus disease(covid-19) pandemic
situation

1.4 Review of Literature

Neger. M, Uddin. B.(2020). Factors Affecting Customer’s Internet Shopping
Behavior During COVID-19 pandemic. It aims to explore the factors affecting
consumers’ Internet Shopping Behavior during Covid-19pandemic. The study
found few influences of the independent variables, such as product factor, price
factor, payment factor, Security Factor, administration and psychological factor. In
the research Consumers Shopping Behavior regarding online perspective in terms
of noticeable factors has been required to choose. Therefore, at a first explanatory
research has been conducted. The research has used five point Likert scale to
stimulate the responses. All the questions used in questionnaire are closed. Non-
Probability sample has been used and for the study it is relevant to be able to
obtain a sample of around 230 respondents. The research collection Data from
may 10, 2020 in personal interview by online survey. The statistical tools used are
Reliability statistical analysis and multiple regression analysis.

Alam. J. (2020). Buying behavior under coronavirus diseases(COVID-19) Pandemic

situation. A online perspective case in Bangladeshi shoppers. The broad objective
of the research is to investigate buying behavior in face of coronavirus Diseases
(COVID-19) pandemic situation. Finding are revealed that four out of five aspects,
health aspect, price aspects, product aspects, and place aspect have positive and
significant influence on the online buying behavior due to COVID-19. This
investigation design was used in descriptive way and the nature of investigation
was quantitative for the primary data the online interview has been accompanied
from the secondary data sources, the review of literature have been advanced.
Structural Questions have organized, consisting of 18 items for data gathering.
Applying the online simple random sampling method, with the survey 155 buyers.
The statistical tools are KMO & Bartlett’s test, uncorrelated aspects and reliability
analysis and multiple regression analysis..
Sharma. A. (2020). Changing consumer behaviors towards online shopping, 24, 1-
10. This study is an attempt to identify the impact of this crisis on online shopping
platforms and hoe the changed spending behavior of customers is going to sustain
in future. As global of economies are facing huge losses in revenue, So the future
actions
were taken by marketing experts and consumers preferences will decide the order
of the new leader, survivor and laggards financial uncertainty among economies,
business, staff and the outlook of a simple and long term future recession that will
set back to backdrop the economy for the long run.
Sheth. J. (2020). Impact of COVID-19 on consumer behavior will the old habits
return or die? The main purpose of this research was to examine the impact of
COVID-19 pandemic on consumer behavior and to analyze will the consumers
permanently change the behavior. This research is an collection of the qualitative
data and secondary sources as well as questionnaire. In conclusion of the research
the researcher has found, As consumers adapt to the house arrest for the
prolonged period of time, they are likely to adopt newer technologies which
facilitate work study and consumption is more efficient and convenient manner.
Lim and Dubinsky, 2004; Prasad and Aryasri,(2009) Online store ensures
customers Online advantages by conveniently providing different types of
products. Previously, the transaction was difficult but e-commerce (online
shopping) made it easier than any other time.
Lim & Dubinsky, (2004) when online shopping consumers cannot be able to touch
and feel the product before purchase but online service provide more information
related to their product and services, so that customers may judge the product
when they need.
Wang, 4e, 2Hang and Nguyen(2005) conducted empirical research on online
shopping and found that the convenience of a internet put a significant influence
on consumers minds to purchase online.
Lui, Xiao, Lim and Tan(2017) the core essential factor for consumers online
purchase behavior is website quality. It works as a first impression on consumes to
make online purchase.
Pan & Zinkhan,(2006) product quality can be able to form retailers reputation that
impact consumers purchase decision.
Satit, Tat, Rasil, Chin, and Sukati(2012) argue that, among the product, price, place
and promotion, price is the only element influencing consumers more during their
buying decision in most cases.
1.5 Conceptual Framework

Dependent Variable Independent Variable

Customers preference Consumer Behavior

towards online shopping -Frequency
-Necessity
-Method of payment
-Price
-Availability of price and
service

Moderating Variable

Methid of payment

Demographic variables
-Gender
-Age
-Income
-Qualification

Figure 1: Conceptual Framework

1.5.1 Operational definitions of variables

Frequency

It is a number of times that a customer makes a purchase in a given period of

time. Frequency of customer purchasing online during COVID-19 pandemic is
whether same to other days purchase or is bit different is analyzed.
Necessity

Necessity is the situation of being required or the state o being unavoidable. It is a

situation enforcing a certain course of action.
Method of payment

The way one pays for a transaction. The three most basic methods of payment are
cash, credit, and payment-in-kind (or bartering).
Price

The amount of money expected, required, or given in payment for something.

Availability of price and service

The clear explanation about the price of the product and the service provided.
Demographic variables

Demographic variables are independent variables by definition because they

cannot be manipulated. Demographical variables include gender, race, marital
status, education, qualification etc.

1.6 Research Hypothesis

Frequency

H0: there is no significance relationship between frequency and customers

preference towards online shopping
H1: there is significance relationship between frequency and customers
preference towards online shopping
Necessity

H0: there is no significance relationship between necessity and customers

preference towards online shopping
H1: there is significance relationship between necessity and customers preference
towards online shopping
Method of payment

H0: there is no significance relationship between method of payment and

customers preference towards online shopping
H1: there is significance relationship between method pf payment and customers
preference towards online shopping
Price

H0: there is no significance relationship between price and customers preference

towards online shopping
H1: there is no significance relationship between price and customers preference
towards online shopping
Availability of price and service

H0: there is no significance relationship between availability of price and service

and customers preference towards online shopping
H1: there is no significance relationship between availability of price and service
and customers preference towards online shopping

1.7 Significance of the study

The major significance of the study is that it helps understand COVID-19 impact
on customers preference towards online shopping, the study attempts to
understand customers satisfaction through online shopping. This research is very
important for future researchers.

1.8 Research Methodology

Research methodology is the systematic theoretical analysis of the methods
applied to a field of study. It comprises the theoretical analysis of the body of
methods and principles associated with a branch of knowledge. Typically it
encompasses concepts such as paradigm, theoretical model, phases and
quantitative and qualitative techniques.

1.8.1 Research Design

To serve the purpose of research paper descriptive research design is used.
Primary data is collected with the help of close ended questionnaire.

1.8.2 Sources of data collection

This study is mainly based on the primary data. So here the main tool used for the
data collection used is questionnaire. Questionnaire is the set of written questions
with a choice of answers, devised for the purpose of the survey or statistical
study. It is designed to secure the opinions and activities or behavior of
respondents. Likert scale method is used as the method oof questionnaire with
different options for the respondents to either strongly disagree or, disagree
neutral, agree or strongly agree.

1.8.3 Sample Size

The study involves sample size of 122 respondents. The study is taken from the
people through online form. Convenience sampling is used for the study.

1.8.4 Data analysis

Here for the analysis of the data both, descriptive and inferential statistics was
used. SPSS ver.20 software was used for different statistical analysis to process
the collected data. Similarly, ms-excel was used for various calculation, creating
pie-chart and analysis of data.

1.9 Limitations of the study

The study has following limitation
 The sample size is 99 respondents, so the findings cannot be generalized
 limited statistical tools are used
 time constraint
 biasness in response of respondents
 CHAPTER 2
DATA INTERPRETATION, PRESENTATION AND ANALYSIS
2.1 Introduction
The objective of this chapter is to give the results of the data analysis and
interpret the data into findings. Besides, it also answers the research questions
and tests the proposed hypotheses. Mainly, the statistical methods of analysis
were discussed, which included descriptive analysis, correlation analysis and
independent sample test, a correlation analysis through SPSS version 20.

2.2 Background Information from Respondents

Questionnaire were distributed online to about 150 respondents. However, 122
responses were valid with complete answers. The demographic characters include
Age, gender, qualification of the respondent. This aspect of analysis deals with the
personal data on the respondents of the questionnaires given to them.
The table below shows the details of background information of the respondents.

2.3 Frequency Analysis

Frequency analysis is a part of descriptive statistics. In statistics, frequency is the
number of times an event occurs. Frequency analysis is an important area of
statistics that deals with the number of occurrences (Frequency) and analyzes
Measures of central tendency, dispersion, percentiles, etc.
2.3.1 Age of respondents
Table 1
Age of the respondents
Age Frequency Percent
below 20 49 40.2
21-30 58 47.5
above 30 15 12.3
Total 122 100

70

60

50

40

30

20

10

0
below 20 21-30 above 30

Series1 Series2

Figure 2: Age of respondents

From the table 1 and Figure 2 we notice that 40.2% of the respondents are within
the age group below 20, 47.5% of respondents are within the age group 21-30,
and 12.3% of respondents are within the age group of above 30.
2.3.2 Gender of respondents
Table 2
Gender of the Respondents
Gender Frequency Percent
male 45 36.9
female 58 47.5
prefer not to say 19 15.6
Total 122 100

16%

37%
male
female
prefer not to say

48%

Figure 3: Gender of respondents

The table 4 and figure 3 we notice that 37% of the respondents are male, 47% of
the respondents are female while 16% of the respondents prefer not to say their
gender.

2.3.3 Education of the Respondents

Table 3
Education of the respondents
Education Level Frequency Percent
high school 64 52.5
undergraduate 51 41.8
postgraduate 7 5.7
Total 122 100

140

120

100

80

60

40

20

0
high school undergraduate postgraduate

Figure 4: Education of respondents

From the table 3 and figure 4 we notice that 52.5% of respondents are in high
school, 41.8% of respondents are undergraduate and 5.7% of the respondents are
postgraduate.
2.3.4 Income of respondents
Table 4
Income of Respondents
  Frequency Percent
dependent(parents) 96 78.7
independent 26 21.3
Total 122 100

1
2

Figure 5: Income of respondents

From table 4 and figure 5, 78.7% of the respondents are dependent to their
parents while 21.3 percent of the respondents are independent.
2.3.5 Devices used by respondents for online shopping
Table 5
Devices used by respondents
Device used Frequency Percent
smart phone (applications) 16 13.1
computer (websites) 43 35.2
both 63 51.6
Total 122 100

13%
smart phone (applications)
computer (websites)
both
52%
35%

Figure 6: Device used by respondents

From Table 5 and Figure 6, 13% of the respondents use smartphone for Online
shopping, 35% of the respondents use computer for online shopping, while 52%
of the respondents use both smartphone and computer for online shopping.
2.3.6 Frequency of online shopping (before Covid-19 pandemic)
Table 6
Frequency of online shopping before pandemic
  Frequency Percent
routine 33 27
occasionally 42 34.4
on the basis of
requirement 45 36.9
other 2 1.6
Total 122 100

50

45

40

35

30

25

20

15

10

0
routine occasionally on the basis of requirement other

Series1

Figure 7: Frequency of online shopping (before COVID-19 pandemic)

From table 6 and figure 7, 27% of the respondents used to shop routinely, 34.4%
used to shop occasionally, 36.9% used to shop on the basis of requirements while
remaining 1.6 used to shop other, before COVID-19 pandemic.
2.3.7 Frequency of online shopping (after COVID-19 pandemic)
Table 7

Frequency of online shopping after pandemic

  Frequency Percent

routine 36 29.5

occasionally 26 21.3

on the basis of requirement 42 34.4

other 18 14.8

Total 122 100

45

40

35

30

25

20

15

10

0
routine occasionally on the basis of requirement other

Series1

Figure 8: Frequency of online shopping after COVID-19 pandemic

From table 7 and figure8, 29.5% of the respondents used to shop routinely, 21.3%
used to shop occasionally, 34.4% used to shop on the basis of requirements while
remaining 14.8%used to shop other, before COVID-19 pandemic.
2.3.8 Main motivation of buying over internet during COVID-19
pandemic
Table 8
Main motivation of buying over internet
  Frequency Percent
safety measure 90 73.8
for saving time 32 26.2
Total 122 100

100
90
80
70
60
50
40
30
20
10
0
1 2

safety measure for saving time