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MARCH 2021
1
CERTIFICATE
Place: Irinjalakuda
Date: 30/03/2021
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DECLARATION
I Akshay Kumar K A hereby declare that the project work entitled “CONSUMER
BAHAVIOUR TOWARDS ONLINE SHOPPING: A STUDY BASED ON
THRISSUR DISTRICT” is a bonafide research paper in partial fulfillment of
requirement for the award of degree of Bachelor of Arts in Economics under the
guidance and supervision of Rev. Sr. Rosy V.O, Assistant Professor, Department of
Economics, Christ College (Autonomous) Irinjalakuda. I also declare that this
project report has not previously formed the basis for the award of any degree,
diploma, associateship, fellowship or other similar type of recognition.
PLACE: Irinjalakuda
Date: 30/03/2021
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ACKNOWLEDGEMENT
The investigator acknowledge his profound gratitude and gracious thanks to Rev.
Sr. Rosy V.O, Assistant Professor, Department of Economics, Christ College
(Autonomous), Irinjalakuda for her valuable guidance and encouragement
throughout the preparation of this project report.
The investigator express his sincere thanks to Prof. Sr. Rosy V.O., HoD
Research Dept of Economics and all the faculty members of the Department of
Economics, Christ College (Autonomous), Irinjalakuda for their co-operation
and help.
The investigator acknowledge his sincere gratitude to Fr. Dr. Jolly Andrews CMI,
Principal, Christ College (Autonomous) Irinjalakuda for providing various
facilities.
The investigator owe his gratitude to the library staff of Christ College
(Autonomous), Irinjalakuda.
The investigator would like to express his gratitude to parents, brothers, sisters
and friends for their timely support and co-operation. Above all praise and
thanks to God Almighty who showers his plentiful blessing.
Place: Irinjalakuda
Date: 30/03/21
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CONTENTS
CHAPTER 1
DESIGN OF STUDY
1.1 INTRODUCTION 14
1.2 SIGNIFICANCE OF THE STUDY 15
1.3 OBJECTIVES OF THE STUDY 16
1.4 METHODOLOGY OF THE STUDY 16
1.5 REVIEW OF LITERATURE 17
1.6 LIMITATIONS OF THE STUDY 22
1.7 CHAPTER SCHEME 22
CHAPTER 2
2.1 INTRODUCTION 24
2.2 ONLINE SHOPPING IN THE WORLD 24
2.2.1 INTRODUCTION 24
2.2.2 TYPES OF E-COMMERCE 25
2.2.3 HISTORY OF E-COMMERCE 27
2.2.4 GLOBAL SALES IN ONLINE SHOPPING 28
2.3 ONLINE SHOPPING IN THE INDIA 28
2.3.1 INTRODUCTION 28
2.3.2 EVOLUTION OF ONLINE SHOPPING IN INDIA 28
2.3.3 MODES OF PAYMENT USED IN ONLINE SHOPPING 31
2.3.4 CURRENT SCENARIO OF ONLINE SHOPPING IN INDIA 31
2.3.5 FUTURE OF ONLINE SHOPPING IN INDIA 32
2.3.6 MAJOR ONLINE SHOPPING PLATFORMS IN INDIA 33
2.4 ONLINE SHOPPING IN KERALA 33
5
2.4.1 INTRODUCTION 33
2.4.2 GROWTH OF E-COMMERCE IN KERALA 34
CHAPTER 3
3.1 INTRODUCTION 38
6
3.3.11 CLASSIFICATION ON THE BASIS OF PROBLEMS FACED 50
7
3.3.27 CLASSIFICATION ON THE BASIS OF USE OF FREE COUPONS 65
REWARDED FROM ONLINE PAYMENT PLATFORMS OR
ONLINE SHOPPING METHODS
3.3.28 CLASSIFICATION ON THE BASIS OF UNDERSTANDING OF 66
INFLUENCE OF ADVERTISEMENTS IN SOCIAL MEDIA
PLATFORMS
3.329 CLASSIFICATION ON THE BASIS OF THEIR SHOPPING BASED 67
ON REVIEWS OF YOUTUBER’S RECOMMENDATIONS
CHAPTER 4
4.1 INTRODUCTION 73
4.2 FINDINGS 73
4.3 SUGGESTIONS 75
4.4 CONCLUSION 75
BIBILIOGRAPHY
QUESTIONNAIRE
8
LIST OF TABLES
9
Table 3.19 Distribution of Respondents on the Basis of 57
Specification of Risk Factors in Electronic Payment
During Online Shopping
Table 3.20 Distribution based on consumer`s willingness to prefer 58
online shopping method in the covid-19 pandemic era.
Table 3.21 Distribution based on categories of products purchased 59
most during Covid-19 pandemic.
Table 3.22 Distribution based on amount spend during the Covid 60
19 pandemic
Table 3.23 Distribution based on the consumer`s preference on the 61
appropriate timing for online shopping.
Table 3.24 Distribution based on whether the consumers use social 62
networking sites and online shopping platforms to spot
the latest trends.
Table 3.25 Distribution based on whether the consumers consider 63
reviews or ratings displayed on the product
information.
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LIST OF FIGURES
58
Figure 3.20 Distribution of Respondents on the Basis of
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Specification of Risk Factors in Electronic Payment
During Online Shopping
Figure 3.21 Distribution based on consumer`s willingness to prefer 59
online shopping method in the covid-19 pandemic era.
Figure 3.22 Distribution based on categories of products 60
purchased most during covid-19 pandemic.
Figure 3.23 Distribution based on amount spend during the Covid 61
19 pandemic
Figure 3.24 Distribution based on the consumer`s preference on 62
the appropriate timing for online shopping.
Figure 3.25 Distribution based on whether the consumers use 63
social networking sites and online shopping platforms
to spot the latest trends.
Figure 3.26 Distribution based on whether the consumers consider 63
reviews or ratings displayed on the product
information.
Figure 3.27 Distribution based on factors which makes festive 65
sales in online shopping platforms more attractive to
shop.
Figure 3.28 Distribution of respondents based on use of free 66
coupons rewarded from online payment platforms or
online shopping platforms.
Figure 3.29 Distribution of respondents based on understanding of 67
influence of advertisements in social media platforms.
Figure 3.30 Distribution of respondents based on their shopping 67
based on reviews of you tubers recommendations.
Figure 3.31 Distribution of respondents based on understanding 68
that certain products are cheaper in certain online
shopping platforms.
Figure 3.32 Distribution of respondents based on having 69
subscription in online shopping platforms
Figure 3.33 Distribution of respondents based on benefits they 71
receive from these memberships.
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CHAPTER 1
DESIGN OF THE STUDY
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1.1 INTRODUCTION
Internet has changed the way of consumer’s store and has rapidly developed into a
global perspective. Many companies started using online shopping with the aim of
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reducing marketing costs, that will lead to reduce the price of their products to stay
forward in very highly competitive markets. Companies also use the Internet to
deliver, connect and distribute information and products. Customer uses the Internet
in so many ways not only for buying the products, but also to compare product
structures, prices, warrantees and delivery services. Many specialists are positive
about the future of online marketing business. Along with the development of E-
retailing, scholars continue to explain E-consumers ’behaviour from diverse
perspective. Many of the studies have assumptions which are based on classical
models of consumer behaviour, and then study the validity of e-marketing.
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 the
process is called business to- consumer (B2C) online shopping. As of 2016,
customers can shop online using a range of different computers and devices,
including desktop computers, laptops, tablet computers and smart phones. It is also
popular as e- shop, e-store, online store and virtual store. Earlier food, cloth and
shelter were called as primary need but today one more need is added in that is
“internet”. Due to revolution in telecommunication sector internet has changed the
way consumers shop and buy goods and services. Both domestic companies as well
as MNC’s have started using the Internet with an objective of cutting marketing
costs and thereby reducing the price of their products to stay ahead in heavy
competition. Companies also use the Internet to convey communicates and
disseminate information, to sell the product, to take feedback and 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. In addition to the tremendous potential of the E-business
market, the Internet provides a unique opportunity for companies to reach existing
and potential customers more efficiently.
Online shopping has been recognized as the most easiest and convenient form of
shopping around the world. It saves both the energy and time of the consumers and
also due to the economies of scale consumers are enjoying the added benefits of cost
reduction. The emergence and thriving of online shopping leads to the generation of
more and more employment opportunities and also it widens the size of the market
which is an essential requisition of a stable economy. The emergence of online
shopping brings a healthy competition in the market. The healthy competition is
beneficial to the consumers and increases the transparency and credibility of
consumers. It also lead the producers to boost innovations. When we analyse the
recent era of covid-19 pandemic where social distancing norms are necessary and
mandatory, online shopping is both convenient and safest and also it determines the
access of people towards a better shopping experience. There have been numerable
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studies relate to this topic- consumers behavior towards online shopping. But in the
recent era of pandemic it gained more significance and in the evolving technological
era the study have a great significance. Thus, as an economic student it is very much
necessary to analyse the consumers behavior towards online shopping and to
identify its impact, its problems and providing solution for the betterment of the
economy. Online shopping is gaining more and more relevance in the recent years.
As people are struggling in their busy schedule, they prefer online shopping over
offline shopping. Even though many studies have taken place in this area, the
present study concentrate on consumer patterns and behavior of the consumers to
understand the changing consumer behavior towards online shopping and what are
the improvements needed in online shopping platforms and help them to be aware
of needs and requirements of consumers. And since the study is conducted in the
context of covid-19 pandemic, it focused on the impact of the same in online
shopping.
For achieving the objectives of the present study we have used both primary as well
as secondary data. Thrissur corporation in Thrissur district was selected as the
sample area. The corporation includes 55 wards. Out of the 55 wards one ward
(ward 44) was selected randomly using lottery method. There are 1873 households
in ward 44. 50 households were randomly selected for conducting the survey. The
data was collected through online survey method with the help of Google forms.
The secondary data has been collected from magazines, journals, articles etc. Simple
statistical tools such as percentages, pie diagrams, bar diagrams are used for
analyzing the data.
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1.5 REVIEW OF LITERATURE
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goods from the original source, so they prefer online shopping. Buying online can
be of great benefit to the consumer in terms of convenience, saving time and money.
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the elder people don’t use online shopping much as compared to the younger ones.
It is also found that most of the people who shop online buys books online Followed
by tickets (railway, movie, concerts).
Renuka Sharma, Kiran Mehta, Shashank Sharma (2014) performed a research work
on “Understanding Online Shopping Behaviour of Indian Shoppers”. After the Data
analysis and interpretation, the researcher concludes That Indian customers are also
getting addicted to the online Shopping and they do like various features of online
Shopping as by rest of the world. Most of the internet Users belong to the youngster
category and most Goods and services demanded are related only to these Segments.
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ManishaKinker, N.K. Shukla (2016) performed a Research study on “An Analysis
of Consumer Behaviours towards Online Shopping of Electronic Goods With
special Reference to Bhopal and Jabalpur city”. The findings of the proposed
Research work are as follows as Customer-Oriented Factors “Time Saving‟,
“Product Quality‟, “Product Price‟, “Convenience‟, “Accessibility‟, “Shop
Anywhere and Anytime‟ are the main specific factors influence customers Attitudes
toward electronic product online shopping. The Minor factors that
influencecustomer’s attitudes toward Electronic product online shopping are
technological Factors, assured quality, cash on delivery and various Promotions and
discounts. The attitude towards online Shopping is different in Bhopal and Jabalpur
city. After the Data analysis, the researcher concludes that the electronic Product
online market takes a high percent of individuals shopping on it.
Saban Kumar K.C, Arun Kumar Timalsina (2016) Carried out a research work on
“Online Grocery Shopping Attitudes among the Consumer in Kathmandu Valley”.
As a result of data analysis, the Researchers conclude that majority respondents i.e.,
86% were found to be aware about online shopping. Similarly, 89% of the
respondents were positive about the online Shopping of grocery items whereas the
rest were negative. The Result also depicts that 52% respondents were aware about
existing online portals. The freshness and delivery Timing were given more
importance than payment system and pricing while shopping vegetables and fruit
items Online.
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mostly go for online shopping. There are several factors such as quality of products,
Delivery time, products checking on the spot, return policy Etc. which customer
look before online shopping. So, the online websites must look after those factors to
be Successful and retain the customers. Online shopping among students of
Ludhiana was grown in a positive Manner and decision on demonetization certainly
helped the online shoppers to attract more and more customers.
Simranjit Singh, Sonia Bajwa (2017) had carried out a Research study on “buying
behaviour of consumer towards Counterfeit products: a case study of moga city”. A
structures Questionnaire was used by following the convenience sampling method.
The data were described with the help of Pivot table and pie charts with percentages.
ChaturvediAnd Gupta (2014) also observe the effect of social media on consumers’
purchase Intentions. They conclude that social media is a powerful and low-cost
platform for Sales promotions to attract and reach the maximum number of
consumers.
Vinerean et al. (2013), Forbes and Vespoli (2013), and Leerapong and Mardjo
(2013) analyse the importance of social media and its effects on online purchasing.
Vinerean et al. (2013) state that social media influence online shopping.
Forbes AndVespoli (2013) indicate that people consider the views of opinion
leaders in Social media when they make a purchase and buy both expensive and
inexpensive Products according to their recommendations. Accordingly, they advise
companies to encourage their customers to post on social media. Another
implication is that Consumers desire information now, so there is a shift from
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traditional social media Platforms, such as Facebook, to ‘quicker’ social media
platforms, such as Twitter.
Both primary and secondary data is used in the study. The work is divided into four
chapters. The very first chapter is an introductory chapter, which consists of
significance of the study, research problem, objectives of the study, methodology,
review of literature, limitations and scheme of the study.
The second chapter deals with an overview about online shopping, its origin,
evolution, growth and consumer behaviour pattern towards online shopping etc. in
global, Indian, Kerala context. The third chapter consists of data analysis and
interpretations. The fourth chapter serves as the concluding chapter, a summary of
the findings of study, some suggestions and recommendations and conclusions are
also provided in this chapter.
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CHAPTER TWO
ONLINE SHOPPING AN OVERVIEW
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2.1. INTRODUCTION
Online shopping is a form of electronic commerce which allows consumers to
directly buy goods or services from a seller over the Internet using a web browser.
Alternative names are e-web store, e-shop, e-store, Internet shop, web-shop, web
store, online store, and online storefront and virtual store. Mobile commerce
describes purchasing from an online retailer's mobile optimized online site or app.
An online shop evokes the physical analogy of buying products or services at a
bricks-and-mortar retailer or shopping centre; the process is called business-to-
consumer online shopping. In the case where a business buys from another business,
the process is called business-to-business online shopping. The largest of these
online retailing corporations are Alibaba, Amazon.com, and eBay. Consumer
behaviour can be defined as those acts of individuals (consumers) directly involved
in obtaining, using, and disposing of economic goods and services, including the
decision processes that precede and determine these acts. It is also called buyer
behaviour. Consumer behaviour refers to human behaviours which go in making
purchase decisions. When consumers make decisions, they are engaged in problem-
solving talks, that is, satisfying a perceived need.
2.2.1. INTRODUCTION
Online shopping has obtained very important position in the 21st century as most of
the people are busy, loaded with hectic schedule. In such a situation online shopping
became the easiest and most suitable mode for their shopping. Internet has changed
the way of consumer's store and has rapidly developed into a global perspective. An
online shop arouses the physical similarity of buying products as well as services
from internet shop and this process of shopping is called business-to-consumer
online shopping.
The internet has revolutionized businesses, economies, and societies all over the
globe. It is constantly unleashing new business models, creating new products and
services, changing the way consumers shop and businesses sell their products. The
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increasing number of Internet users every year indicates increased awareness of
Internet’s benefits for the people across the world. As Internet is becoming more
widely used and is playing a very significant role in every sector of human life, for
example in studies, in business, entertainment, social life and in online shopping, the
internet brought a revolution in the human life, it is very helpful in every sector.
Online shopping is also growing tremendously. As many businesses are attempting
to globalize their sales, Internet becomes the primary means of advertising and
selling their products or services worldwide. Many businesses are creating web
pages in addition to their retail stores, and many start their businesses with online
stores alone. Internet is changing the consumer behaviour toward online shopping
because it is easy, and consumers can get huge range of variety and can compare the
prices easily and it is convenient too. Online shopping is getting famous ever than
before and it’s making a great space in the consumer market, and because of this
more consumers attracting toward online shopping everyday all around the world.
Consumer shopping habits have changed drastically over the last few years thanks
to the explosion of Ecommerce. Online shopping is a part of the Ecommerce
activities and we need to know about Ecommerce before moving further forward. E
commerce is the buying and selling of goods or services on the internet. It
encompasses a wide variety of data, systems and tools for online buyers and sellers,
including mobile shopping and online payment encryption. Most business with an
ecommerce presence utilizes an ecommerce store or an ecommerce platform to
conduct online marketing and sales activities and to oversee logistics and fulfilment.
Generally, there are six main models of ecommerce that businesses can be
categorized into 6. Let’s review each type of electronic commerce in a bit more
detail.
1. Business-to-Consumer (B2C).
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For example, when you buy shoes from an online shoe retailer, it’s a business-to-
consumer transaction.
2. Business-to-Business (B2B).
Unlike B2C, B2B ecommerce encompasses sales made between businesses, such as
a manufacturer and a wholesaler or retailer. B2B is not consumer-facing and
happens only between businesses.
3. Consumer-to-Consumer (C2C).
C2C is one of the earliest forms of ecommerce. Customer-to-customer relates to the sale
of products or services between customers. This includes C2C selling relationships,
such as those seen on eBay or Amazon.
4. Consumer-to-Business (C2B).
C2B reverses the traditional ecommerce model, meaning individual consumers make
their products or services available for business buyers.
For example, the iStock Photo business model in which stock photos is available online
for purchase directly from different photographers.
5. Business-to-Administration (B2A)
B2A covers the transactions made between online businesses and administrations. An
example would be the products and services related to legal documents, social security,
etc.
6. Consumer-to-Administration (C2A).
C2A is like B2A, but consumers sell online products or services to an administration.
C2A might include online consulting for education, online tax preparation, etc.
B2A and C2A are focused on increased efficiency within the government via the
support of information technology.
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2.2.3. HISTORY OF ECOMMERCE
Ecommerce was introduced about 40 years ago in its earliest form. Since then,
electronic commerce has helped countless businesses grow with the help of new
technologies, improvements in internet connectivity, added security with payment
gateways, and widespread consumer and business adoption.
Ecommerce Timeline
1979: Michael Aldrich invents electronic shopping. This made it possible for closed
information systems to be opened and shared by outside parties for secure data
transmission — and the technology became the foundation for modern ecommerce.
1994: Marc Andreessen and Jim Clark co-created Netscape Navigator as a web
browsing tool. During the 1990s, Netscape Navigator became the primary web
browser on the Windows platform, before the rise of modern giants like Google.
1995: Jeff Bezos introduced Amazon primarily as an ecommerce platform for books.
By 2000, it would merge with Elon Musk’s online banking company and begin its
rise to fame and popularity.
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With the help of short-text ad copy and display URLs, online retailers began using
the tool in a pay-per-click (PPC) context. PPC advertising efforts are separate
from search engine optimization (SEO). And thus, the requirements for the growth
and establishment of online shopping have been made by the advent of Ecommerce
facilities, described above.
E-commerce sales hit $25.6 trillion globally in 2018, up 8% from 2017. According to
the UNCTAD analysis, the estimated 2018 e-commerce sales value, which includes
business-to-business (B2B) and business-to-consumer (B2C) sales, was equivalent to
30% of global gross domestic product (GDP) that year. The 2017 value of global e-
commerce was estimated at $23.8 trillion, based on a revised methodology.
2.3.1. INTRODUCTION
Online shopping in India had a rather slow and disorderly journey, it has not picked
up as much as it should have primarily since internet penetration itself was quite low
and secondly, the customers were not aware about it as well. It is convenient, faster
and sometimes also cheaper than the traditional buying. Now a day’s buying train
ticket, bus ticket, air ticket all of them have gone through online option as well.
Rather than standing in a long queue and waiting for your turn to purchase a ticket,
people are finding it simpler to log on to a website and buy it. In some instances,
you may have to pay a premium for an online purchase, but it is still preferred
because the convenience factor is much higher.
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online or say the online trading or services that we enjoy today will become a
routine trend in the world and India will also share a good proportion of this success.
Around 2002: IRCTC teaches India to Book ticket online India first came into
interaction with the online E-Commerce via the IRCTC. The government of India
took the initiative and experimented this online strategy to make it convenient for its
public to book the train tickets online. Because of this initiative passengers were
first time encountered with the online ticket booking from anywhere at any time.
This was a great boon to the common man as now they don’t have to wait for long
in line, no issues for wastage of time during unavailability of the trains, no burden
on the ticket bookers and many more. With the advancements in the technology as
the years passed on have been also seen in the IRCTC Online system as now one
can book tickets (tatkal, normal, etc.) on one go, easy payments, can check the
status of the ticket and availability of the train as well. Moreover, you can see there
are lot many things are available on the irctc website like hotel booking, planning
your tour destination, flight booking, cab booking, best deals and discounts in
mydala site, you can make payments using Paytm as well as booking tickets using
cash on delivery facility and all these things you can operate thorough your smart
phone as well. This is a very big achievement in the history of India in the field of
online E-Commerce. Both the snapshots you can see how the site was in 2002 and
how it appears in 2015.
Around 2003: Introduction of Low-Cost Airline with Air Deccan After the
astonishing success of the IRCTC, the online ticket booking system was followed
by the airlines (like Air Deccan, Indian Airlines, SpiceJet, etc.). Airline agency
encouraged, online booking to save the commission which was given to the agents
and thus in this way it made the major population of the country to try online air
ticket booking for the first time. Today, the booking system is not just limited to the
transportation rather hotel bookings, bus booking etc. are being done using the
websites like MakeMyTrip, Yatra, Redbus.in and so on.
Around 2007 and later on: Heavy Discounted Model of Flipkart the recognition of
the ecommerce on a large scale by the Indian people influenced other business
players also to try this technique for their E-businesses and gain high profits.
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Though online shopping has been present in India since the 2000 but it gained
attractiveness only with deep discount model of Flipkart. This was in a way re-
launching of online shopping in India. Very soon other portals like Amazon,
Flipkart, Jabong, and Rediff, India times etc. started hunting India for their
businesses. Earlier the site in 2000 contains lot of information regarding the news
and happenings. Presently if you see the website, it has got various links for
shopping and various promotional activities. Xiaomi (pronounced she-yow-mee) is
one of the fastest-growing tech companies in the world. It’s the sixth-largest handset
maker on earth and No.3 in China, behind Samsung Electronics and Lenovo Group,
according to research firm Canalys. In India they have joined hands with flipkart to
sell their products. Xiaomi's Mi3 smartphone went out of stock on e-commerce
retailer Flipkart, after just 39 minutes of going on sale on 22 July 2014 at 12 PM,
and this they have continued their sale which went out of stock just in few seconds.
They went on with the same strategy for their many other brands like Redmi, mi4
and so on. They found this strategy very attractive. Many other companies like
Lenovo and Micromax also followed this same strategy. The strategy was to make
the mobile models exclusively available only on the flipkart website and nowhere
else. Those who are interested need to register for the same within the specific time
limit and then they would be eligible to buy that model.
Around 2014: Current Scenario Online shopping in its early stage was a simple
medium for shopping with fewer options. The users can just place an order and pay
cash on delivery. But, in last few years this field has been renewed to a high extent
and hence captivated many customers. Today, the online shopping has become a
trend in India and the reason behind the adoption of this technique lies in the
attractive online websites, discounted sales, user friendly interface, bulky online
stores with new fashion, easy payment methods (i.e., secure pay online via gateways
like PayPal, net banking, credit/debit card or cash-on-delivery), no bound-on
quantity & quality, one can choose the items based on size, colour, price, free home
delivery, etc.
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2.3.5. MODES OF PAYMENT USED IN ONLINE SHOPPING
Online shoppers commonly use credit card or PayPal account to make payments.
Some other use Cash on Delivery, Debit Card, Online e-Payment, Mobile Payments,
Bank Transfer. According to the reviews the basic mode of payment used is cash on
delivery (COD) as it is secure.
Early stage of online shopping was a simple medium for shopping with fewer
options. The users can just place an order and pay cash on delivery. But in the last
few years, this field renovated to a high extent and hence fascinated many customers.
Today, the online shopping has become a trend in India and the reasons behind this
technique lie in the attractive online websites, user-friendly interface, bulky online
stores with new fashion, easy payment methods, unrestricted quantity, quality etc.
One can choose the items based on size, colour, price, etc. Despite being a
developing country, India has shown a commendable increase in the e-commerce
industry in the last couple of years, thereby hitting the market with a boom. Though
the Indian online market is far behind the US and UK, it has been growing fast.
Further, discounts, coupons, offers, referral systems, 30 days return guarantee, 1-7
days delivery time, etc. have added a new flavour to the online shopping and the E-
markets Industry. COVID-19 lockdowns which lead to a surge in online orders of
essential items for same day delivery especially in tier-1 cities like Mumbai,
Kolkata, Bengaluru, Chennai and New Delhi.Flipkart will debut a hyperlocal
service called Flipkart Quick in Bengaluru to start 90 minutes deliveries. Amazon
observed spike in page views with four times increase in “Add to Cart” during the
lockdown, leading to doubling of sales. It also started selling auto insurance in
partnership with Acko General Insurance which is available to users through
Amazon app and mobile website. With opening of 10 new warehouses, the count of
Amazon warehouse in India stands at 60 across 15 states that has an area equivalent
to more than 100 football fields.
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Report from software as a service (SaaS) provider Unicommerce shows increasing
penetration of e-commerce beyond tier-1 cities with major growth coming from tier-
2 and tier-3 towns/villages due to increasing vernacular language content and
improving last mile delivery. Consumers are also diversifying their purchasing
option from large scale e-commerce channels like Amazon or Flipkart to specific
retail brand websites. As per Goldman Sachs, three or four players can co-exist in
the e-commerce space given the size of India but travel, food delivery; ride-hailing
services will see a maximum of two players capturing the market. Reliance Jio will
increase competition in grocery, fintech, online retail, food delivery. From February
2020 to June 2020 during the Covid19 lock-down period, e-commerce increased by
117% with the delivery of only essential supplies that is now bigger than the pre-
Covid19 level. Flipkart surpassed 1.5 billion visits per month with 45% growth in
monthly active user while 30% growth in transaction per consumer.
Though the sector has witnessed tremendous growth and is expected to grow, many
e-commerce ventures have faced tremendous pressure to ensure cash flows. But it
has not worked out for all the e-commerce websites. Many of them like Dhingana,
IndiaPlaza.in, eBay-India, Rock.in, Seventy MM amongst others had to close or
change their business models to survive. In March 2020, the Government of India
Closures, restricted online sales of all goods except for critical items including food,
pharmaceuticals, and medical equipment. Many Indian start-ups including Urban
Company, BookMyShow, Pepper fry and Nykaa, which do not feature in the
government’s list of notified essential services, are running at a loss due to COVID-
19 pandemic.
Today online shopping has become a booming industry in India. Today, marketers
can promote their products and services using the Internet over a wide geographical
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area. These days‟ companies collaborate with discounts and daily deals sites to earn
profits upon rising trends of online shopping. Google has estimated that in India
there are more than 100 million Internet users and among them half of the users‟
access Internet for their purchases. India’s plan to rebuild and modernize the Indian
Postal infrastructure will no doubt, boost the e-commerce sector. India’s current
dynamics are like what existed in China like, growing broadband penetration,
acceptance of online marketplaces, and lack of physical retail infrastructure in many
places due to high really costs etc.
Online shopping has grown very fast in India. Only in 2012, online shopping or e-
commerce number has crossed 600 from 100. Best of few online shopping are;
Flipkart.com
Amazon.in
Snapdeal.com
Jabong.com
Mynthra.com
Homeshop18.co m
Shopclues.com
eBay.com
paytm.com
33
about 57% of the mobile subscribers access the Internet (second highest in India)
and Kerala is the forerunner in the adoption of IT Services. Kerala ranked third in
the Internet Readiness among large Indian state category. There is a tremendous
growth opportunity for Kerala in ecommerce. The high internet and mobile
penetration, preference towards consumerism, the high literacy rates and much
higher technical adoption of people of Kerala all are favourable for ecommerce
growth. The steady growth rate of 50 - 60 per cent in Kerala recorded in 2013- 2016
can be continued. As suggested by Shopclues officials, Kerala can easily account for
4% of the overall sale in the country. However, it is important that the state
authorities develop a conducive atmosphere for ecommerce and the regulations need
to be simplified. It is also expected that as GST is introduced, consumer state like
Kerala is going to get a big advantage from ecommerce.
The state of Kerala is well ahead of other states in e-mattersAs per a report that
appeared in the New Indian Express (14th September 2016) the ecommerce sector
in Kerala has recorded a steady growth rate of 50 - 60 percent from 2013- 2016.
Kerala also has a huge potential for growth (New Indian Express, 4th May 2017).
Despite the phenomenal growth of ecommerce in India, studies on ecommerce in
India, especially in Kerala are minimal. The vast potential of conducting business
over the Internet remains largely untapped these days.
34
E-commerce in the Perspective of Kerala Online shopping have become very
common, largely due to the convenience and time saving option. The additional
feature of safe transactions has also attracted more customers. The development of a
dynamic and user-friendly e-commerce website with different features including
search products, customization of products, 24x7 technical support and maintenance,
security features for safe transaction, tracking of orders and info on shipping, track
history, prompt delivery, etc. attracts the customer easily and effectively, and
increases the online sales. The dependence on the e-commerce portals to obtain the
products instantly is increasing worldwide.
35
2.4.4. E-COMMERCE ADOPTION BY SMEs IN KERALA
The e-commerce adoption by SMEs will be a cost effective medium to increase the
global sale. In a study comprising of SMEs in these countries, it was found that
adoption of e-commerce had following benefits including extended market reach,
rise in sales, improved communication with outside world, better company image,
higher speed of data processing, and increased employee productivity. Present day
Kerala has excellent digital connectivity, communication network, highly skilled
human resources and a relatively good industrial infrastructure to support the
growth of the MSME Sector. As on September 17, 2015, Kerala witnessed a total of
2, 57,466 registered and working SSIs/MSMEs with a total investment of 17,
98,646.38 lakh and production of the total value of goods and services worth
67,65,143.93 lakh. This sector by itself generated 13, 18,666 numbers of
employment. The Snapdeal, an online marketplace in partnership with KPMG
published the study titled ‘Impact of E-commerce on SMEs in India', which
examined the macro-impact of e-Commerce sector on the growth of SMEs in India.
According to KPMG, initiatives like seller training programs, seller financing
program to SMEs can help to plug the gaps and could facilitate adoption of e-
commerce by SMEs. The Government of Kerala has conceived plants to develop e-
commerce portals as a virtual showroom to showcase handicraft and other Kerala
specific products. Additionally, the government is encouraging MSME’s to
participate in National & International Trade fairs and B2B meets by providing
subsidies and incentives. Additionally, major e-commerce player Amazon tried to
partner with SMEs in Kerala. In 2015, Chai Cart an initiative was launched to
spread awareness among local SMEs and sellers on the benefits of online sale on the
Amazon India marketplace. Kerala has a market for buyers as well as sellers and
local sellers can trade several items including books, electronics, home, kitchen, and
personal care on the e-commerce portals.
36
CHAPTER THREE
DATA ANALYSIS
37
3.1 INTRODUCTION
In this chapter an attempt has been made to study the consumer behaviour towards
online shopping in Thrissur district, Kerala. The purpose of the study was there for
to establish this by the means of quantitative analysis about the age group, gender of
the online consumers, and type of items purchased by the consumers, most
popularly used online shopping sites, etc.
Thrissur district is situated in the state Kerala in India. Thrissur is known as the
cultural capital of Kerala. Thrissur is a revenue district situated in the central part of
the state. Spanning an area of about 3,032 square kilometres, Thrissur district is
home to over 10% of Kerala’s population. Thrissur district is bordered by the
districts of Palakkad and Malappuram to the north, and the districts of Ernakulam
and Idukki to the south. The Arabian Sea lies to the west and Western Ghats
stretches towards the east. It is situated in south western India (10.52°N 76.21°E)
and is in the central part of Kerala.
According to the 2011 census Thrissur district has a population of 3,110,327. This
gives it a ranking of 113th in India (out of a total of 640). The district has a
population density of 1,026 inhabitants per square kilometre (2,660/sq. mi). Its
population growth rate over the decade 2001–2011 was 4.58%. Thrissur has a sex
ratio of 1109 females for every 1000 males, and a literacy rate of 95.32%.
Thrissur district in consisted of one corporation, 7 municipalities and 255 villages.
The 7 municipalities in Thrissur are Chavakkad, Chalakudy, Irinjalakuda,
Guruvayoor, Kodungaloor, Kunnamkulam and Wadakkanchery.
38
the Government of India's States Reorganisation Act, enforced on 1 November
1956, inaugurated a new state – Kerala – incorporating Travancore-Cochin, Malabar
District, and the taluk of Kasargod, South Kanara.
The city hosts the ThrissurPooram festival, the most colourful and spectacular
temple festival in Kerala. Thrissur has many well-known temples including
the Vadakkumnathan temple, Thiruvambadi Sri Krishna Temple and Paramekkavu
temple, and the Guruvayur temple as well as two churches, the Our Lady of Lourdes
Syro-Malabar Catholic Metropolitan Cathedral and the Our Lady of DoloursSyro-
Malabar Catholic Basilica, the largest Christian church in India. The city has served
as an incubator for many Malayali entrepreneurs and is a major financial and
commercial hub of Kerala. There are many prominent Malayali business groups
from Thrissur like the owners of Kalyan Jewellers, Joy Alukkas; Lulu etc. It flexes
its economic muscle in India as the headquarters of four major scheduled
banks, Catholic Syrian Bank, Dhanalakshmi Bank and ESAF Small Finance Bank,
Ltd and a clutch of Chit funds. The city is also a big centre for shopping
in Kerala for silks and gold jewellery. Thrissur attracts the largest number of
domestic tourists in Kerala.
The District can claim to have played a significant part in fostering the trade
relations between Kerala and the outside world in the ancient and medieval period.
It can also claim to have played an important part in fostering cultural relations and
in laying the foundation of a cosmopolitan and compose culture in this part of the
country. Kodungalloor which had the unique distinction of being the “Primum
Emporium India”, also belongs to the signal honour of having first given shelter to
all the three communities which have contributed to the prosperity of Malabar’.
These three communities are the Christians, the Jews and the Muslims.
39
3.3 DATA ANALYSIS AND INTERPRETATION
Data analysis is very important in every project work. This chapter is mainly
confined to the detailed analysis of available data in order to know about the facts
related to consumer behavior towards online shopping.
In this chapter, 50 households were randomly selected for conducting the survey.
Survey was strictly based on well-structured questionnaire. Percentage analysis and
average test is mainly use for the purpose of analyzing data. Data analysis is a
process used to inspect, clean, transform and remodel data with a view to reach to a
certain conclusion for a given situation. It is a process of obtaining raw data and
converting it into information.
40
3.3.2 CLASSIFICATION ON THE BASIS OF GENDER
Male 23 46
Female 27 54
Total 50 100
Table 3.2 shows that female heads are slightly high in number than male heads. The
female heads constitute 54% while 46% of respondents are male.
41
3.3.3 CLASSIFICATION ON THE BASIS OF RELIGION
42
3.3.4 CLASSIFICATION ON THE BASIS OF MONTHLY INCOME
Table 3.4 shows the income wise classification of the sample households. It can be
observed from the table that 70% of the total individuals have a monthly income
ranging below 10000. 10% have monthly income of 20000-30000. Another 10%
represent individuals having a monthly income of 30000-40000. 4% of them are
settled with a monthly income above 40000 while there is a 6% having monthly
income of 10000-20000. The graphical representation of the classification is
depicted above.
43
Figure 3.5 Distribution of Respondents based on Monthly Income.
From table 3.5, occupation wise classification of the respondents shows that, among
50 respondents whose responses are being analysed, 84% of them are unemployed.
6% of them are government employees while another 6% are private employees.
There is a 2% representation of self-employed individuals. Only 16% of them are
employed with any type of jobs but the rest 84% are unemployed. This category of
individuals includes housewives, students and other people who do not have any
jobs. The classification of individuals based on their occupation is given above.
44
Figure 3.6 Distribution of Respondents based on Employment.
Table 3. 6 shows educational status of households. It can be observed from the table
and pie chart that 40% are holding an undergraduate status, while 38% are entitled
with a higher secondary level of education. 6% of respondents have a postgraduate
while respondents with a diploma and professional course status shares 4% of
representation. While 2% holds SSLC status. It is evident from the above table that
every respondents literate. There are no illiterates participated in this survey.
45
Figure 3.7 Distribution of Respondents based on Educational Qualification.
Yes 44 88
No 6 12
Total 50 100
Table 3.7 shows the proportion of respondents based on their usage of online
shopping. It is to check how much of the respondents have used online shopping
method as a shopping solution. And from the table it is evident that most
respondents 88% of them have experienced online shopping while a small but
significant 12% respondents haven`t done shopping through online.
46
Figure 3.8 Distribution of Respondents based on their usage in Online
Shopping.
Table 3.8 shows that 18% of the respondents purchased electronic goods most.
Clothing was bought by 18%, cosmetics/jewellery was purchased by 6%, books was
shopped by 18% and a 10% bought grocery items. While a significant 24%
purchased all of the above provided commodities.
47
Figure3.9 Distribution of Respondents on the basis Commodities they Purchase
through Online Shopping
Table 3.9 shows consumers’ preference over the available shopping methods. 58%
of the respondents have chosen offline shopping over online shopping. But the rest
42% preferred to purchase through online shopping. The gap between the two
methods is so thin.
Figure 3.10 Distribution of Respondents based on their Preference on
Shopping Method
48
3.3.10 CLASSIFICATION ON THE BASIS OF SATISFACTION LEVEL OF
ONLINE SHOPPING
Table 3.10 Distribution of Respondents based on Satisfaction Level of Online
Shopping
Satisfaction level Frequency Percentage
Yes 30 60
No 20 40
Total 50 100
Table 3.10 shows how much satisfied they are with the usage of online shopping.
We can see that 60% of the respondents were satisfied with the use of online
shopping while the remaining 40% were not satisfied.
49
3.3.11 CLASSIFICATION ON THE BASIS OF PROBLEMS FACED
From the table 3.11 we can derive that cheap quality of product is the major
problem faced by 32% of respondents. While a 14% of respondents go with product
damage as the major problem. 6% of respondents identify delay in delivery as a
bigger issue while a 20% of respondents goes with other problems which are not
described here. 6% of the respondents feel that all the above problems are faced by
them. 22% of respondents admits that they haven`t faced any problems. The
classifications of problem faced by the respondents are described in the graph below.
50
3.3.12 CLASSIFICATION ON THE BASIS OF PROFICIENCY ON THE
INTERNET
Table 3.12 Distribution of Respondents based on Proficiency on the Internet.
Proficiency on the Frequency Percentage
internet
Advanced 18 36
Ignorant 2 4
Intermediate 30 60
Total 50 100
Table 3.12 shows that 36% of respondents possessed advanced proficiency on the
internet while a minute 4% of respondents are ignorant about the internet.
Remaining 60% have an intermediate knowledge in internet usage. The details are
described in the graph below.
51
3.3.13 CLASSIFICATION ON THE BASIS OF FAVOURITE ONLINE
SHOPPING SITES
Table 3.13 shows that 70% of the respondents identify Flipkart as their favourite
online shopping site while only a 26% accepts amazon as their favourite one. 2% of
respondents identified myntra as their favourite site while another 2% chose others
like eBay, etc. The classification based on the respondent’s favourite site is depicted
in the graph below.
52
3.3.14 CLASSIFICATION ON THE BASIS OF AMOUNT OF SPENDING
Table 3.14 Distribution of Respondents based on Amount of Spending.
Amount of spending Frequency Percentage
Below 5000 33 66
5000-15000 9 18
15000-25000 5 10
Above 25000 3 6
Total 50 100
Table 3.14 shows that 66% of the respondents spend an amount below 5000 Rs.
While a 18% spend amount ranging between 5000-15000 Rs. Another 10%
purchased for a value between 15000-25000 Rs. And 6% of the respondents spend
amount greater than 25000.
Figure 3.15 Distribution of Respondents based on Amount of Spending.
53
Table 3.15 shows that 2% of the respondents find a particular brand and an 18% of
respondents identifies price of the product as the criteria focused on online shopping.
22% chose the quality of product and a 12% chose rating and consumer reviews as
the criteria. While a major 46% expressed that all the above criteria are employed
by them during online shopping. The graphical representation of the data is given
below.
54
Table 3.16 tells us that 78% respondents ascertain that there is no risk factor in
electronic payment during online shopping. While a 22% finds a risk factor in the
electronic payments.
Figure 3.17 Distribution of Respondents based on Risk Factor in Electronic
Payment During Online Shopping
Table 3.17 shows that 72% of the respondents rely on cash on delivery as the
payment option. While 14% chose UPI transactions. An 8% of the respondents uses
their respective commercial bank`s net banking and on the other side a minute 4%
utilises their credit/debit cards for conducting transactions. And a 2% uses wallets
for payment activities. The classification of the respondents based on their preferred
payment options are given below.
55
Figure 3.18 Distribution of Respondents based on Type of Payment Preferred
Table 3.18 shows that 6% of respondents identify credibility as the major feature
necessary for an online shopping site. While another 6% goes along with the feature
of design. 16% respondents feel that an online shopping site should be customer
friendly while a 4% suggests it should include multiple payment gateways. An 8%
strongly feels for the privacy and security as the major feature. While 60% of the
respondents maintains a view that all the above features are essential for an online
shopping site. The prescribed classification is depicted in the graph below.
56
Figure 3.19 Distribution of Respondents on the Basis of Features Necessary for
An Online Shopping Site
Cancellation and 5 10
pending due to network
issues
Other Errors 5 10
No Risk 40 80
Total 50 100
Table 3.19 shows that 80% of the respondents identifies no risk in electronic
payment system, while 10% respondents record that they have experienced
cancellation and pending due to network issues. And also 10% of respondents
identifies risks other than the ones described here.
57
Figure 3.20 Distributions of Respondents on the Basis of Specification of Risk
Factors in Electronic Payment During Online Shopping
Table 3.20 shows the willingness of the consumers to prefer online shopping
method over the offline shopping in the covid-19 pandemic era. A large proportion
of the respondents, about 90%, prefers online shopping in the covid 19 pandemic
periods while minute 10% respondents went with the offline shopping method.
58
Figure 3.21 Distribution based on consumer`s willingness to prefer online
shopping method in the covid-19 pandemic era.
59
here while 14% of individuals have bought all the above commodities through
online shopping method. The given date is represented graphically above.
60
Table 3.22 shows the data of expenditure made by the respondents in the covid 19
pandemic period. The data provides with the information that nearly 68% of the
respondents spend an amount below 5000 Rs. While a 20% made an expenditure on
online shopping ranging from Rs. 5000 to Rs. 15000. The percentage of respondents
with an expenditure level between Rs. 15000- Rs. 25000 is 8%. A 4% of
respondents purchased commodities which have value more than Rs. 25000 from
online shopping.
Figure 3.23 Distribution based on amount spend during the Covid 19 pandemic.
Table 3.23 shows the different periods in which the respondents feel as an
appropriate time to go for online shopping. 62% of respondents are convinced that
anytime is preferable. While 26% chose the big offer, sales held by online shopping
platforms like Great Indian Sale in Amazon, Big Billion Days in Flipkart, etc. A
12% preferred to purchase through online on festive seasons like Onam, Christmas,
Diwali, etc.
61
Figure 3.24 Distribution based on the consumer`s preference on the
appropriate timing for online shopping.
62
Figure 3.25 Distribution based on whether the consumers use social networking
sites and online shopping platforms to spot the latest trends.
63
3.3.26 CLASSIFICATION ON THE BASIS OF FACTORS WHICH MAKES
FESTIVE SALES IN ONLINE SHOPPING PLATFORMS MORE
ATTRACTIVE TO SHOP
Table 3.26 Distribution based on factors which makes festive sales in online
shopping platforms more attractive to shop.
Factors Frequency Percentage
Cheap Rate 16 32
Fast Delivery 3 06
Limited Combo 1 02
Offer
More Choices 2 04
More discount 7 14
New Product 5 10
Launch
All the above 16 32
Total 50 100
Table 3.26 shows the different factors for which the consumers find festive sales in
online shopping platforms more attractive to shop. 32% of respondents go with the
cheap rate of products during the particular time frame as the major incentive to
shopping. While 14% finds the increased discount rate to be more attractive. 6% of
respondents went with the fast delivery. 2% and 4% of respondents expressed that
the limited combo offers, and more choices are the major factors. A 10% believed
new product launches during the festive sales are the major reason making the
festive sales more attractive. The data also says that 32% of respondents says that all
the listed factors contribute equally.
64
Figure 3.27 Distribution based on factors which makes festive sales in online
shopping platforms more attractive to shop.
Table 3.27 shows that 48% of respondents use the free coupons rewarded from
online payment or online shopping platforms. While a comparatively higher
proportion of 52% respondents abstains from the use of free coupons.
65
Figure 3.28 Distribution of respondents based on use of free coupons rewarded
from online payment platforms or online shopping platforms.
Table 3.28 shows that 68% of the respondents identifies themselves that the
advertisements in social media are influencing their purchasing habits. While the
remaining 32% are not at all influenced by the advertisements, they come across in
social media platforms.
66
Figure 3.29 Distribution of respondents based on understanding of influence of
advertisements in social media platforms.
Table 3.29 shows that 58% of the respondents do shopping based on the reviews of
youtubers recommendation while 42% of respondents do not consider those
recommendations while shopping.
Figure 3.30 Distribution of respondents based on their shopping based on
reviews of youtubers recommendations.
67
3.3.30 CLASSIFICATION ON THE BASIS OF UNDERSTANDING THAT
CERTAIN PRODUCTS ARE CHEAPER IN CERTAIN ONLINE SHOPPING
PLATFORMS
Table 3.30 Distribution of respondents based on understanding that certain
products are cheaper in certain online shopping platforms.
Noticing that certain Frequency Percentage
products are
cheaper in certain
online shopping
platforms
Yes 39 78
No 11 22
Total 50 100
Table 3.30 shows the classification of the respondents based on their awareness of
price discriminations in different online shopping sites. 78% of the people notices
that certain products are cheaper in certain online shopping platforms compared to
other shopping platforms. While a 22% of respondents didn’t seemed to have
noticed it.
68
3.3.31 CLASSIFICATION ON THE BASIS OF HAVING SUBSCRIPTION IN
ONLINE SHOPPING PLATFORMS
Table 3.31 Distribution of respondents based on having subscription in online
shopping platforms.
Subscription in Frequency Percentage
online shopping
platforms
Yes 22 44
No 28 56
Total 50 100
Table 3.31 shows the classification of respondents by their possession of
subscription plans like amazon prime in the online shopping platforms. Only 46% of
respondents have subscription in online shopping platforms while such subscription
is not taken by a majority of 56%.
Figure 3.32Distribution of respondents based on having subscription in online
shopping platforms.
69
3.3.32 CLASSIFICATION ON THE BASIS OF BENEFITS THEY RECEIVE
FROM THESE MEMBERSHIP
Table 3.32 Distribution of respondents based on benefits they receive from
these memberships.
Receive additional 3 6
coupons, rewards and
discounts
Receiving access to other 1 2
services like Amazon
Prime Video, Amazon
Prime Music etc.
Reduced price rate 13 26
compared to the ordinary
customers
All the above 21 42
Total 50 100
From the above table it is clear that 24% of the respondents identifies fast delivery
as the major benefit received from the membership in online shopping platforms.
While 6% are satisfied from the additional coupons, rewards and discounts received.
Some are interested in the additional memberships to other platforms like amazon
prime video, music, etc. While taking the membership of online shopping sites. A
comparable 26% feels good to have membership as they get commodities at reduced
price rate compared with ordinary customers. 42% of the respondents are interested
in all the above-described benefits. The classification is graphically represented
below.
70
Figure 3.33 Distribution of respondents based on benefits they receive from
these memberships.
71
CHAPTER 4
FINDINGS, SUGGESTIONS AND CONCLUSION
72
4.1 INTRODUCTION
Shopping is an integral part of humans in the social life. In the recent era shopping
method has been shifting more towards to the online method substituting the offline
shopping method. The consumer behaviour towards online shopping is revealing a
positive trend and their confidence on online shopping is increasing. The online
method of shopping is highly convenient form of shopping, it is a time and energy
saving shopping experience, the price of the products are relatively lesser compared
to the retail stores. These makes the consumers more attached to the online shopping
But along with these advantages there are certain disadvantages which discomforts
the consumes like delay in delivery, delivery of bad products and other related
problems. There are so many imperatives and impediments in the consumer
behaviour towards online shopping.
The present study “Consumer behaviour towards online shopping – a study based on
Thrissur district” provides an insight into the consumer behaviour towards online
shopping among the consumers in Thrissur corporation area of Thrissur district. 50
households were randomly selected for conducting the survey. Sample survey has
been conducted based on the prepared schedule of questions which cover various
aspects consumer behaviour towards online shopping. The survey is conducted
through google forms. The objectives of the study were to study the factors affecting
the consumer behaviour in online shopping and its rate of influence, to figure out
the impact of covid 19 in the consumer behaviour towards online shopping, to study
the role of marketing tricks in boosting online shopping.
The study is divided into 4 chapters. First chapter deals with introduction,
significance of the study, statement of the problem, objectives of the study, review
of literature, methodology, scheme and limitations of the study. The second chapter
provides an overview of consumer behaviour towards online shopping. Third
chapter gives the analysis of the sample survey. Findings and conclusion are dealt in
the fourth chapter.
4.2 FINDINGS
The study aimed to know the consumers behaviour towards online shopping with
reference to Thrissur district. Following are the major findings of the study.
● 88% of the respondents have used online shopping.
● 58% of the respondents preferred online shopping over offline shopping.
● 60% of the respondents are satisfied with the usage of online shopping.
73
● There are certain problems faced by the consumers. Among them cheap quality of
the product is the major one. 32% of respondents faced it. 6% of consumers also
faces issues like delay in delivery and 14% faced product damage.
● 60% of the respondents have an intermediate knowledge in internet usage.
● Even though Amazon stands as the world’s best online shopping site, 705 of the
users identifies Flipkart as their favourite one.
● 60% of the respondents consider all the mentioned criteria such as credibility,
customer friendly, design, multiple payment gateway, privacy and secure checkout
as features necessary for an online shopping site.
● 78% of the respondents ascertain that there is no risk factor in electronic payment
during online shopping.
● 78% of the respondents are satisfied with current online payment methods but
72% of them prefer cash on delivery as their payment method.
●46% of the respondents expressed that all the criteria mentioned ( any brand, price
of the product, quality of the product, ratings and customer reviews) are focussed
during online shopping.
● During covid-19 pandemic era, 90% of the respondents preferred online shopping
over offline shopping.
● Electronics was the top purchased commodity during the covid-19 pandemic. It
was purchased by 34% of the respondents.
● 68% of the respondents spent an amount less than Rs 5000 for online shopping
during covid-19 pandemic.
● 62% of the consumers do not have any appropriate time for online shopping. They
do not wait for discount sales and purchases at any time. 38% consider festive sales
and offer periods as an appropriate time to shop online.
● 70% of the respondents use social networking sites and online shopping platforms
to spot the latest trend.
● 92% of the consumers relies hugely on product reviews or rating displayed on
product information in online shopping sites to formulate buying decisions.
● Respondents are almost neutral in the use of free coupons rewarded from online
shopping/payment platforms. While 52% of the respondents abstain from their use,
48% make use of them.
● 68% of the consumers are aware that their buying decisions are influenced by
advertisements.
74
● 78% of the respondents are aware that certain products are cheaper in certain
online shopping platforms.
● 56% of the respondents do not have subscription in online shopping platforms
while 44% have it.
● 42% of the respondents are interested in all kinds of benefits from those
subscription such as fastest delivery, receiving additional coupons, rewards and
discounts, receiving access to services like Amazon prime video etc.
4.3 SUGGESTIONS
Based on the study the following suggestions were formed for the improvement of
online shopping.
Since the consumer couldn’t physically evaluate the product, the authorities
of the online shopping sites should check the quality of the product before
approving the product to put into sales.
The e-commerce companies and the respective courier services linked with
the companies should try to eliminate delay in delivery of the product.
Authorities should avoid delay in refunding, product return and other related
procedures.
4.4 CONCLUSION
From the study, it is clear that though majority of people are familiar with online
shopping and make use of it, still there is a small portion of population who are
unaware about this and doesn’t use it. Even though people are almost satisfied with
the online shopping they are faced with few problems like cheap quality of product
and delay in delivery. Online shopping platforms should take necessary steps to
rectify them. And also we understood that marketing strategies play a major role in
boosting online shopping. Online shopping has increased considerably during the
context of covid-19 and is gaining significance nowadays.
75
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25. Consumer behaviour in online shopping with special reference to Kerala,
Brijesh George John,Mahatma Gandhi University
26. https://shodhganga.inflibnet.ac.in/
28. http://ijamtes.org/gallery/11.oct%20ijmte%20-%201011.pdf
29. ISSN : 2230-9519 (Online) | ISSN : 2231-2463 (Print) IJMBS Vol. 4, Issue 3,
Spl- 1 July - Sept 2014www.jmbs.com International Journal of Management &
Business Studies 9
Understanding Online Shopping Behaviour of Indian Shoppers
1Dr. Renuka Sharma, 2Dr. Kiran Mehta, 3Shashank Sharma
30. https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1514940
31. https://www.ijitee.org/wp-content/uploads/papers/v8i12S/L112710812S19.pdf
32. https://shodhganga.inflibnet.ac.in/handle/10603/218873
78
QUESTIONNAIRE
1. Panchayath/Municipality/Corporations
3. Name
4. Age
5. Gender
Male⃞
Female⃞
Transgender⃞
6. Religion
Hindu⃞
Christian⃞
Muslim⃞
79
Atheist⃞
Others⃞
7. Educational Qualification
SSLC⃞
Higher Secondary⃞
Under Graduate⃞
Post Graduate⃞
Diploma⃞
Professional⃞
Other Courses⃞
8. Employment Status
Government Employee⃞
Private Employee⃞
Self-Employed⃞
Unemployed⃞
9. Monthly Income
Below 10000⃞
10000-20000⃞
20000-30000⃞
30000-40000⃞
Above 40000⃞
11. If you never had online shopping, please specify the reason
80
I don’t know about internet⃞
Shopping risk of credit card⃞
Transaction internet illiteracy⃞
Risk of identity theft⃞
Other reasons⃞
12. What type of commodity did you purchase through online shopping?
Electronics⃞
Clothings⃞
Cosmetic jewellery⃞
Books⃞
Grocery⃞
All of the above⃞
14. Have you felt any problems while purchasing through online shopping?
Yes⃞
No⃞
81
Ignorant⃞
Intermediate⃞
Advanced⃞
18. Select an approximate amount you will spend per year on online shopping?
Below 5000⃞
5000-10000⃞
10000-15000⃞
15000-20000⃞
20000-25000⃞
25000-30000⃞
Above 30000⃞
82
All of the above⃞
21. Have you felt any risk factor in electronic payment during online shopping?
Yes⃞
No⃞
24. Do you prefer online shopping than offline shopping at the present situation
of covid-19 pandemic?
Yes⃞
No⃞
25. Which are the categories of products you purchased most during the covid 19
pandemic?
Electronics⃞
Cosmetic/jewellery⃞
83
Medicines⃞
Books⃞
Clothing⃞
Utensils⃞
All of the above⃞
Others⃞
26. How much did you spend during the covid 19 pandemic for online shopping?
Below 5000⃞
5000-15000⃞
15000-25000⃞
Above 25000⃞
28. What makes festive sales in online shopping platforms more attractive to
shop?
Cheap rate or offer price which is lower than usual selling price⃞
New product launches⃞
Limited combo offers⃞
More discounts⃞
More choices/latest arrivals⃞
Fast delivery⃞
All of the above⃞
29. Do you use social networking sites and online shopping platforms to spot the
latest fashion trends?
84
Yes⃞
No⃞
31. Did you make use of free coupons for online shopping which you were
rewarded from online payment platforms?
Yes⃞
No⃞
Yes⃞
No⃞
33. Did you shop online based on the reviews from famous bloggers or
youtubers from their recommendation regarding certain products?
Yes⃞
No⃞
34. Did you notice that certain products are cheaper in certain online shopping
platforms than other platforms?
Yes⃞
No⃞
35. Did you have subscription in online shopping platforms like amazon prime,
flipkart plus, etc.?
Yes⃞
No⃞
85
36. What kind of benefits do you receive from these memberships?
Reduced price rate compared to the ordinary customers⃞
Fastest delivery compared to ordinary customers⃞
Receive additional coupons rewards and discounts⃞
Receiving access to other services like amazon prime video, amazon prime
music, etc.⃞
All of the above⃞
86