Consumer Buying Behaviour Towards Online Shopping

Research Project Submitted in Partial Fulfilment of the Requirements for the

Degree of

BCOM Honours
by
Abhishek Mishra
to the

DEPARTMENT OF COMMERCE
BHOPAL SCHOOL OF SOCIAL SCIENCES

April, 2021
Submitted by Guided by

Abhishek Mishra Dr Smitha Pillai

Associate Professor
 CERTIFICATE

It is certified that the work contained in the project report titled Consumer Buying Behaviour
Towards Online Shopping, by Abhishek Mishra, has been carried out under my/our
supervision and that this work has not been submitted elsewhere for a degree*

Signature of Supervisor: …………….

Name : Dr Smitha Pillai, Associate Professor

Department : Commerce

Bhopal School of Social Sciences

April, 2021
 DECLARATION

I hereby declare that this project report entitled Consumer Buying Behaviour Towards
Online Shopping was carried out by me for the degree of BCOM Honours under the
guidance and supervision of Dr Smitha Pillai Associate Professor of Department of
Commerce, BSSS College. The interpretations put forth are based on my reading and
understanding of the original texts and they are not published anywhere in any form. The
other books, articles and websites, which I have made use of are acknowledged at the
respective place in the text. This research report is not submitted for any other degree or
diploma in any other University.

Place: Bhopal, Madhya Pradesh

Name of the Student: Abhishek Mishra

Class & Section: B. Com Honours 3-A
Date: 30 April 2021
 ACKNOWLEDGEMENT

I would like to thank our Principal Dr. Fr. John P.J. and Vice Principal Dr Sr Sonia Kurien for
their immense support and blessings. I thank our HOD Dr Amit Kumar Nag for his support. I
would like to express my special thanks of gratitude to my research guide Dr. Smitha Pillai,
Associate Professor of Department of Commerce for her valuable suggestions and guidance
and for giving me the golden opportunity to do this wonderful research project on the topic:
“Consumer buying behaviour towards Online Shopping”, Without her help it would have been
difficult for me to have reached this state of completion of my project report. Also, I would
like to thank my parents and friends who helped me a lot in the preparation of this project.

I wish to acknowledge the help of all those who have provided me information, guidance and
other help during my research period.
S. No Content Pages

1 Introduction 7

2 Review of Literature 9

3 Research Methodology 12

4 Research Findings 21

5 Results & Discussion 28

6 References 30

7 Annexure 31
 ABSTRACT

The present research project is focussed on the buying behaviour of the

consumers towards Online Shopping. In today’s scenario there are number of
ways to buy a product, which includes both retail and online. Though nowadays
consumers are preferring online over retail. This statement is backed by few
solid reasons like attractive prices, festive sales, can shop anytime and
anywhere, wide variety and so on. These were few factors which gives Online
shopping an upper hand.

We will be analysing different factors which are used in online shopping

purpose. Specifically, we examine how emotional and cognitive responses to
purchase any product for the first time can influence online consumers' intention
to return and their likelihood to make unplanned purchases. The instrumentation
shows reasonably good measurement properties and the constructs are validated
as a nomological network. A questionnaire-based empirical study is used to test
this nomological network. Results confirm the identity of the online consumer
as a shopper and a computer user because both shopping enjoyment and
perceived usefulness of the site strongly predict intention to return. Our results
on unplanned purchases are not conclusive. We also test some individual and
Web site factors that can affect the consumer's emotional and cognitive
responses. Product involvement, Web skills, challenges, and use of value-added
search mechanisms all have a significant impact on the Web consumer. The
study provides a more rounded, view of the online consumer and is a significant
step towards a better understanding of consumer behaviour on the Web. The
validated metrics should be of use to researchers and practitioners alike.
(www.researchgate.net)
 Chapter 1

Introduction of
the Topic
1.1 Rationale of the Study
Online shopping is the easy solution for busy life in today’s world. In the past
decade, there had been a massive change in the way of customer’s shopping.
Despite consumers’ continuation to buy from a physical store, the users or buyers
feel very convenient to online shopping. Online shopping saves crucial time for
modern people because they get so busy that they cannot or unwilling to spend
much time shopping. In the twenty-first century, trade and commerce have been
so diversified that multichannel has taken place and online shopping has
increased significantly throughout the world. Globally, e-commerce constituted
about 2.29 trillion dollar market (John, 2018) and expected to reach 4 trillion
dollar by 2020 (eMarketer, 2016) due to the double-digit worldwide growth in
sales (15%) and order (13%) (eMarketer, 2018) in all sorts of e-commerce such
as business-to-business (B2B), business-to-consumer (B2C) (Zuroni & Goh,
2012).

Asia Pacific region is leading the growth of online shopping as compared to the
mature market such as the US, UK, Japan and European Countries. The Asia
Pacific recorded massive growth, especially in China. In 2016, Asia Pacific
region made about $1 trillion in online sales and majority came from China
constituting about $899 billion (eMarketer, 2016). With more and more
consumers become increasingly familiar with the Internet and its benefit, online
shopping is becoming popular and getting preference among a group of
consumers seeking better value proposition regarding information, convenience,
cost, choice. Like other young Asian citizens, youngsters in Bangladesh are
experimenting with new ways of shopping that have led to the popularity and
growth of online shopping in Bangladesh. Unlike a physical store, all the goods
in online stores described through text, with photos, and with multimedia files.
Many online stores will provide links for much extra information about their
product. On the other hand, some online consumers are an adventurous explorer,
fun seeker, shopping lover, and some are technology muddler, hate waiting for
the product to ship. Consequently, online consumer behaviour (user action during
searching, buying, using products) became a contemporary research area for an
increasing number of researchers to understand this unique nature of online
shopping.

The primary goal of a business is to offer product and services that best serve
their consumer needs. A business which fulfils the customer needs with
satisfaction very well is more successful than its competitors as satisfied buyers
tend to make a repetitive purchase. Moreover, in Bangladesh, online shopping
has been evolving fast and has the potential to grow exponentially in time to
come, as Internet penetration reaches far and wide across the rural areas.
However, it is also true that Bangladeshi people are traditionally conservative in
their approach to shopping due to modernization and fast-paced life, dependence
on online shopping will increase. Thus, the purpose of this study is to understand
the consumer behaviour towards online shopping, their liking, disliking, and
satisfaction level. (www.tandfonline.com)

1.2 Introduction to Online Shopping Industry

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
or a mobile app. 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 2020, customers can shop online using a range of
different computers and devices, including desktop computers, laptops, tablet
computers and smartphones.

1.3 Justification of the Topic

The rapid growth of the internet and the extent of its penetration has enhanced
the importance of online shopping. Gone are the times of Brick and mortar type
of shopping, E-commerce has laid down a number of opportunities and options
for both buyers and sellers. It provides a very comfortable service for its
customers, by being able to save the item in the personal shopping bag, and buy
it later on. Shopping through the Web simply works for people with a valid credit
card, a debit card or an internet bank account. (medium.com)
Chapter 2

Review of
Literature
2.1 International Reviews
Garcia (1998) shows that the number of online shoppers in six key European
markets has risen to 31.4 percent from 27.7 percent last year. This means that 59
million Europeans use the Internet regularly for shopping purposes. However, not
only does the number of online shoppers grow, the volume of their purchases also
increases over-proportionally. Karayanni (2008) concluded that “enjoyment”
results from the fun and playfulness of the online shopping experience, rather
than from shopping task completion. The purchase of goods may be incidental to
the experience of online shopping. Thus, “enjoyment” reflects consumers’
perceptions regarding the potential entertainment of Internet shopping found
“enjoyment” to be a consistent and strong predictor of attitude toward online
shopping.

Menon (2010). Says that If consumers enjoy their online shopping experience,
they have a more positive attitude toward online shopping, and are more likely to
adopt the Internet as a shopping medium. In our framework, we identify three
latent dimensions of “enjoyment” construct, including “escapism”, “pleasure”,
and “arousal” “Escapism” is reflected in the enjoyment that comes from engaging
in activities that are absorbing, to the point of offering an escape from the
demands of the day-to-day world. “Pleasure” is the degree to which a person feels
good, joyful, happy, or satisfied in online shopping. (Sharma, 2015)

With online shopping, understanding variables that influence the intention to buy
through online needs more attention. This will help companies in identifying
variables that play a major role in influencing customer’s intention to buy there
by helping them in crafting strategies which drives consumers to prefer online
shopping. For instance, if an online retailer understands that perceived risks are
high in certain categories that influence consumer’s intention to buy, retailers can
craft strategies to minimize perceived risks and drive consumers to buy through
online.
Earlier studies paid much attention to this topic in developed nations where
internet penetration is high and consumers are highly evolved. Among these
factors the risk perception of users was demonstrated to be the main discriminator
between people buying online and people not buying online. Other discriminating
factors: control over and convenience of the shopping process affordability of
merchandise, customer service and ease of use of the shopping site. It included
several indicators, belonging to four major categories: the value of the product,
the shopping experience, the quality of service offered by the website and the risk
perceptions of internet retail shopping. Consumer’s attitude towards online
shopping affects their buying decisions Booz & Company (2011).

However, little attention is paid in India where internet penetration is

significantly low and consumers are not so evolved in this space. Hence a need
for such as study is identified by the researcher to see how far these variables are
relevant in India and how much they influence consumer’s intention to buy.

2.2 National Reviews

The e-commerce industry in the country is likely to be worth USD 38 billion by

2016, a 67 per cent jump over the USD 23 billion revenues for 2015, as per
industry body Assocham. India’s e-commerce market was worth about USD 3.8
billion in 2009, it went up to USD 17 billion in 2014 and to USD 23 billion in
2015 and is expected to touch whopping USD 38 billion mark by 2016.
According to Forrester, the e-commerce market in India is set to grow the fastest
within the Asia-Pacific Region at a CAGR (Compound Annual Growth Rate) of
over 57% between 2012 – 16. Expected to grow as much as $56 billion by 2023,
which will be 6.5% of the total retail market, as quoted by e Marketer. India's e-
commerce market grew at a staggering 88 per cent in 2013 to $ 16 billion, riding
on booming online retail trends and defying slower economic growth. Online
travel constitutes a sizable portion (90%) of this market today. Online travel
market in India is expected to grow at a rate of 22% over the next 4 years and
reach Rs 54,800 crores ($12.2 billion) in size by 2016. Electronic Utilities
constitute 5% of total online sale with 3% each to Apparels, Accessories,
Clothing and Jewellery.

ComScore report, (2013) examined that India is now the world’s third largest
internet Population. Younger males and women aged 35-44 emerge as power
users.73.8 million Indians surfed the web via a home or work computer. The work
of Kim and Park (2005) using U.S. samples suggests that their positive attitudes
as well as willingness to search for pre-purchase information leads to a strong
likelihood that they will buy online. Online shoppers, are required to have
computer skills in order to use the Internet for shopping. Hence, those who are
not comfortable with using the computer, will likely do their shopping at the
traditional store, modern shop, or discount store (Monsuwe, 2004) because it will
be faster shopping there than in the Internet shop. Hsieh et al. (2013) stated that
internet is influencing people’s daily life more so as compared to past. People’s
daily activities have gradually shifted from physical conditions to virtual
environment. The shopping and payment surroundings have also changed from
physical store into online stores. Jush and Ling, (2012) defined online shopping
as the process a customer takes to purchase a service or product over the internet.
Goldsmith and Flynn (2004) state that the home catalogue is another traditional
selling channel where people can shop at home because of the varieties of
products offered in the catalogue. They can order through the phone or by mail.
It is convenient except that they are not able to touch and feel products before
purchasing. Christian & France (2005) proves that customers satisfied the most
were privacy (Technology factor), Merchandising (Product factor), and
convenience (Shopping factor); also followed by trust, delivery, usability,
product customization, product quality and security. Surprisingly, security was
chosen as the last choice comparing to others. This was assumed that security is
perceived as a standard attribute in any websites so other attributes take priority
once customers have to choose the site to shop from. David J. Rubinstein (2002)
has studied about factors attracting customers to the site and factors being able to
retain customers by mainly considering the role of price. However, customers
tend to shop at other sites unless the vendors provide them good customer service
and on-time delivery. Interestingly, e-shopping site using low prices or price
promotions to attract customers do mostly tend to draw price-sensitive customers
who are well known as having low loyalty. (Agwan, 2016)
 Chapter 3

Research
Methodology
This chapter focuses on research methodology that was used in the study. It
provides a detailed description of the research approach adopted in the study.
Research Design, target population, research instruments, data collection &
analysis method used were presented in the subsequent section.

3.1 Research Design

This study uses descriptive research. Descriptive research involves gathering

data that describe events & then organizes, tabulates, depicts, and describes the
data collection. It often uses visual aids such as graphs and charts to help the
reader in better understanding of the data distribution and therefore offer a better
clarification on consumer behaviour towards online shopping.

3.2 Data Collection

The research made use of primary data & secondary data, which was collected
using structured questionnaire distributed to the 100 respondents. This research
study was conducted in April, 2021. A sample of 100 respondents was taken, out
of which 10 were in government or semi-government services, while 10 were
taken from private sector employees, 20 were taken from my colleague and the
rest 60 were students of our college. The administered questionnaire was
collected after completion by the respondents on the same day & then responses
used for analysis. The questionnaire had both open-ended questions to enable
guide the respondent through filling of the questionnaire as well as probe them
for more information. The secondary data was collected from articles.

3.3 Objective of the Study

1. To study the factors influencing the consumer to buy products from online
shopping

2. To study the perception of consumers towards online stores

3. To predict its future and its acceptance by Indian citizen.

3.4 Research Hypothesis

• H1 There is significance relationship exists between likeliness of
consumer towards online shopping and services offered by online
shopping platforms

• H0 There is no significant relationship between likeliness of consumer

towards online shopping and services offered by online shopping
platform.
Core Concept of Online Shopping

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
or a mobile app. 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. Online stores usually 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 Interact-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 usually sends the file to the customer over the
Internet. The largest of these online retailing corporations are Alibaba,
Amazon.com, and eBay. (Wikipedia)

Types of E-commerce

➢ B2C – Business to consumer: B2C businesses sell to their end-user. The

B2C model is the most common business model, so there are many
unique approaches under this umbrella.
Anything you buy in an online store as a consumer — think wardrobe,
household supplies, entertainment — is done as part of a B2C
transaction. The decision-making process for a B2C purchase is much
shorter than a business-to- business (B2B) purchase, especially for
items that have a lower value.
 Think about it: it’s much easier for you to decide on a new pair of tennis
shoes than for your company to vet and purchase a new email service
provider or food caterer.
Because of this shorter sales cycle, B2C businesses typically spend less
marketing dollars to make a sale, but also have a lower average order
value and less recurring orders than their B2B counterparts.
And B2C doesn’t only include products, but services as well.
B2C innovators have leveraged technology like mobile apps, native
advertising and remarketing to market directly to their customers and
make their lives easier in the process.

➢ B2B – Business to business: In a B2B business model, a business sells

its product or service to another business. Sometimes the buyer is the
end user, but often the buyer resells to the consumer.
B2B transactions generally have a longer sales cycle, but higher order
value and more recurring purchases.
Recent B2B innovators have made a place for themselves by replacing
catalogues and order sheets with ecommerce storefronts and improved
targeting in niche markets.
In 2020, close to half of B2B buyers are millennials — nearly double
the amount from 2012. As younger generations enter the age of making
business transactions, B2B selling in the online space is becoming more
important.

➢ C2B – Consumer to business: C2B businesses allow individuals to sell

goods and services to companies.
In this ecommerce model, a site might allow customers to post the work they want
to be completed and have businesses bid for the opportunity. Affiliate marketing
services would also be considered C2B.

Elance (now Upwork) was an early innovator in this model by helping

businesses hire freelancers.
The C2B ecommerce model’s competitive edge is in pricing for goods
and services.
This approach gives consumers the power to name their price or have
businesses directly compete to meet their needs.
Recent innovators have creatively used this model to connect
companies to social media influencers to market their products.

➢ C2C – Consumer to consumer: A C2C business — also called an online

marketplace — connects consumers to exchange goods and services and
typically make their money by charging transaction or listing fees.
Online businesses like Craigslist and eBay pioneered this model in the
early days of the internet.
C2C businesses benefit from self-propelled growth by motivated buyers
and sellers, but face a key challenge in quality control and technology
maintenance. (www.bigcommerce.com)

Impact of Covid-19 on Consumer buying behaviour

Empty shelves during COVID 19 have generated severe problems for

the consumers’ (Lufkin, 2020). COVID 19 has forced consumers to
change the way they preferred to shop. There is an increased shift in
consumer buying behaviour from traditional shopping to online
shopping (Reddy, 2020). Apart from the augmented number of
customers indulging into online shopping shift has been observed in the
choice of products being ordered by customers through these online
tools. The majority of the customers have started positively ordering
more personal care and medical kits rather than ordering fashion
products. National Retail Federation (NRF) has surveyed on
consumer’s online shopping behaviour in this epidemic situation and
has briefed certain consumer buying behavioural changes as follows:

1. As per the survey results, 9 out of 10 customers have changed their

shopping practices.
2. Results are supportive that more than 50% of customers have changed
their traditional shopping habits by ordering products online.
3. About 6 out of 10 customers stated that they avoid going to store due
to the fear of being infected and ordering necessary goods from online
marketing tools.

All these behavioural changes are not permanent but few are going to
last permanently. As the society will recover from this survival mode,
this digital- online shopping adoption is likely to become permanent.
So, in the end, this pandemic situation has been classified into two
aspects one is a shift in customer behaviour that avoids public crowded
gatherings and second is more inclination towards digital adoption
(Shashidhar, 2020).

Humans respond to crises in different ways. When faced with an

uncertain, risky situation over which we have no control, we tend to try
 whatever we can to feel like we have some control. Paul Marsden, a
consumer psychologist at the University of the Arts London was quoted
by CNBC as saying: “Panic buying can be understood as playing to our
three fundamental psychology needs.” These needs are autonomy (or
the need to feel in control of your actions), relatedness (the need to feel
that we are doing something to benefit our families), and competence
(the need to feel like smart shoppers making the correct choice). These
psychological factors are the same reasons “retail therapy” is a response
to many different types of personal crises; however, during a pandemic
there are added layers.

While data shows that shopping behaviours are changing based on

generational differences, we’re also seeing variations based on gender.

While survey data shows that women are more likely to be concerned
about the effects of COVID-19, it also shows that men are more likely
to have it impact their shopping behaviors. One-third of men, compared
to 25% of women, reported the pandemic affecting how much they
spend on products. Additionally, 36% of men, compared to 28% of
women, reported it affecting how much they are spending on
experiences (travel, restaurants, entertainment, etc.).

Changes in Revenue Across Ecommerce

As people have embraced social distancing as a way to slow the spread

of the pandemic, there has naturally been a drop-off in brick-and-mortar
shopping. That would seem to mean there would likely be an increase
 in online shopping as people turn to ecommerce to purchase the items
they might have otherwise purchased in person. Has that prediction won
out? In reality, ecommerce sales are not higher across the board,
although some industries are seeing significant upticks. This is
especially true for online sellers of household goods and groceries.
JD.com, China’s largest online retailer, has seen sales of common
household staples quadruple over the same period last year. A survey
by Engine found that people are spending on average 10-30% more
online.

➢ Grocery ecommerce.
Grocery ecommerce soared in the second week of March, after shoppers
turned online to find the goods they needed but weren’t available at their
local grocery stores. The following graph, with data from Rakuten
Intelligence, shows a huge spike in grocery-related ecommerce. The rest
of ecommerce seems like it might be up a little bit, but no drastic peaks
or valleys.
➢ Other ecommerce categories.
In addition to grocery, ecommerce covers a wide number of products,
across categories. Common Thread Collective has been providing
valuable updates with COVID data on ecommerce shopping behaviour,
including the chart below. While ecommerce performance is not
generally up or down, breaking down the data by vertical tells a bit more
of the story.
➢ Subscription services.
While ecommerce sales do not generally appear to be skyrocketing as
one might expect, there are some exceptions. One of these is in
subscription and convenience services, which have seen significant
upward trends in both revenue and conversion. Performance branding
company WITHIN has been tracking the effects of COVID-19 on
ecommerce across a number of specific sectors by monitoring and
comparing data from select businesses year-over-year. This graph
comes from their observations:
Limitation of the study

❖ The sample size taken is less & limited to familiarity behaviour not
random respondents
❖ Sample size doesn’t exactly represent the population.
❖ The study is restricted only to online questionnaire
❖ The information is of the study is on the basis of information
provided by the respondent.
❖ Lack of trained interviewer to clarify & probe can be possible lead
to less reliable data.
Chapter 4

Research
Findings
 4.1 Data Interpretation and Analysis

This chapter present analysis & findings of the study as set out in the
research methodology. The results were presented the consumer
behaviour towards Online Shopping. The study objectives were:

❖ To study the factors influencing the consumer to buy products

from online shopping
❖ To study the perception of consumers towards online stores.
❖ To predict its future and its acceptance by Indian citizen.

The study targeted 100 respondents out of which all 100 respondents responded
and submitted the questionnaire contributing to response rate of 100%. The
response rate was sufficient.

This commendable response rate was due to extra efforts that were made via
courtesy calls made to remind the respondents to fill in & return the questionnaire.
The chapter covers the demographic information, and the findings based on the
objectives. The findings were then presented in graphs & pie charts as appropriate
with explanations being given in prose thereafter.
Primary Data Analysis:

The above pie chart shows the age distribution of the respondents. 73%
of the respondents falls under the age group of 18-30, 16% respondents
falls under the age group of 30-50 whereas 11% respondents falls under
the age group of 18 or under.
The above pie chart shows the interest of the respondents towards
Online shopping, 93.9% of the people liked online shopping whereas
only 5.1% were’nt sure about this. Out of 100 respondent only 1% did
not liked online shopping.

73% respondent believes that Online shopping doesn’t consumes much

time, whereas 18% were neutral about this statement. There were 7%
respondent who were strongly in the favour of this. Only 2% of the
respondents disagreed on this thought.

65% of the respondents feels that it takes less time in evaluating and
selecting a product while shopping online, 21% were neutral regarding
this statement. 11% of the respondents strongly agreed to this statement,
whereas 2% disagreed followed by 1% respondent who totally
disagreed on this statement.
The above pie chart depicts the safety and privacy of the buyers while
involved in Online shopping. 96% of the respondent feels safe and
secure while 4% doesn’t.
The above pie chart depicts te ease in chosing and making comparison
with other products while shopping online . 79% of the respondent
agreed followed by 8% neutral and 1% both in disagreement and total
disagreement.

The above pie chart shows 56% of the respondent strongly agreed when
asked, detailed information is available while shopping online.
Followed by 37% in favour of this statement. 6% were neutral about
this statement as well. Only 1% disagreed.
93% of the respondents believes online shopping takes less time to
make purchase followed by 7% respondents who denied.
The above pie chart depicts about the choice of online shopping
platform. Amazon and Flipkart tied for the first place as the respondents
liked both of them equally with 37% votes followed by 24% and 2% to
Myntra and Ajio respectively.

The above pie chart depicts what are reasons for shopping online over
offline. 38% respondents went with the option All of the above which
consisted; Great offers, attractive prices, home delivery, cashbacks and
discounts. Home delivery was one of the reason for shopping online
over offline it backed 33% of the votes which was highest individual
votes among the other reasons. Followed by Attractive prices,
cashbacks & discounts and great offers with 12%, 9% and 8% of the
votes respectively.
 4.2 Hypothesis Testing

➢ H1 There is significance relationship exists between likeliness of

consumer towards online shopping and services offered by online
shopping platforms

➢ H0 There is no significant relationship between likeliness of consumer

towards online shopping and services offered by online shopping
platform.

The results of this study with the hypothesis testing can be summarized
with the help of Chi-Square Test.

So, the following are the tables shows our hypothesis testing which was
done with the help of IBM SPSS Statistics software: -
 Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
VAR00002 * VAR00001 101 100.0% 0 0.0% 101 100.0%

VAR00002 * VAR00001 Crosstabulation

Count
VAR00001
What makes you
choose Online
Shopping over
1 2 3 4 5 offline shopping? Total
VAR00002 0 0 0 1 0 0 1
1 0 0 1 0 0 0 1
2 34 8 31 8 12 0 93
3 4 0 1 0 0 0 5
Do you like online shopping? 0 0 0 0 0 1 1
Total 38 8 33 9 12 1 101

Chi-Square Tests

Asymptotic Significance
Value df (2-sided)
a
Pearson Chi-Square 117.508 20 .001

Likelihood Ratio 23.382 20 .270

N of Valid Cases 101

a. 25 cells (83.3%) have expected count less than 5. The minimum expected count is .01.
So, this is our output for chi square test. The first table shows the sample size &
missing values in this table we can see that the sample size is 101 so that for
N=101 & there is no missing cases so in missing column N=0.

The second table that is cross tabulation is the contingency table, in contingency
table each row shows the category of one nominal variable so here each rows
shows that what makes a consumer choose online over offline shopping which is
depicted through the scale of 1 to 5 Similar column majors another nominal
variable that is likeliness of consumer towards Online shopping, so here again
there is scale ranging from 1 to 3.

The final table shows Chi-Squire Statistics so here the Pearson Chi-Square is
117.508 & the associated significance level or ‘P’ value is 0.001. Now since this
‘P’ value is less than 0.05 so we reject the null hypothesis.

So, what is null hypothesis, there is no significant relationship between likeliness

of consumer towards online shopping and services offered by online shopping
platform & we are going to reject our null hypothesis and therefore, we conclude
that there is significance relationship exists between likeliness of consumer
towards online shopping and services offered by online shopping platforms.
Chapter 5

Results and
Discussion
5.1 Major Findings

Basic statistical methods are employed for data analysis, like frequency
and percentages of replies which helped in analysing the consumer
behaviour towards Online shopping. After evaluating, organizing,
tabulation and interpreting data, the conclusions
will be carried away. More than 80% of the respondents liked online
shopping and agreed to the fact that online shopping consumes less
time. Around 70% of the respondent feels that evaluating and
comparing the product is quite easy when it comes to Online shopping.
More than half of the respondent believes that there is detailed
information provided of the product when it comes to online shopping.

When asked about the website or app preferred by the respondents for
carrying out the online purchase, Flipkart and Amazon tied for the first
place as both got the equal number of votes, i.e. 37%. Followed by
Myntra with 24% and Ajio 2%.

Respondents were then asked about the factors which makes them
choose Online Shopping over Offline Shopping, there were mixed bags
of opinions from the respondents. 33% believes that Home delivery is
one of the factor that makes them choose online shopping, followed by
attractive prices with 12% votes, cashbacks and discounts 9% votes and
Great offers with 8% votes. Though the majority of the respondents
went with the option all of the above which consisted Great offers,
Attractive prices, Home delivery, Cashbacks and Discounts with 38%
of the votes.

5.2 Conclusions and Suggestions

The study concludes that there is a shift in consumers buying behaviour.

More and more peeople are getting comfortable with Online Shopping
and with this pandemic there is a drastic surge in the online shopping
industry. People doesn’t want to go out and shop rather wants to get
everything home delivered which ultimately serves the main objective
of Online shopping. People wants to shop from the larger variety of
products compare it and then they finalise keeping the competitve price
offered by the sellers in mind.

Though when it comes to sellers it’s a different story altogether. Indian

ecommerce space percentage is getting higher as more
and more online retailers enter the market. Although this level
of entry in the e-commerce market is good from a long term
perspective, the challenge is that most entrepreneurs don’t
have the resources or capital to wait for years before they can
get profitsThe future of ecommerce in India may be rough and may
require more efforts from both entrepreneurs and investors due
to its socio cultural concept of marketing. Indian companies
need a mixed-approach implementation that is influenced by
globally tested strategies, along with the local elements.
Compared with the pace of development of networks, online
shopping still lagged behind. Most of Internet users had not
became a member of online shopping consumer, they still were
web browser. The development of online shopping was
relatively lagging related to the imperfect legal system and
support environment in India
This study shows that online shopping is having very bright
future in India. Perception towards online shopping is getting
better in India. With the use of internet, consumers can shop
anywhere, anything and anytime with easy and safe payment
options. There are two factors mainly influencing the consumers for
decision making: Risk aversion and innovativeness.
Risk aversion is a measure of how much consumers need to
be certain and sure of what they are purchasing. Highly risk
adverse consumers need to be very certain about what they
are buying. Whereas less risk adverse consumers can tolerate
some risk and uncertainty in their purchases. The second variable,
innovativeness, is a global measure which captures the
degree to which consumers are willing to take chances and
experiment with new ways of doing things.
 References

• https://www.researchgate.net/publication/323998478_Analysis_
Of_Consumer_Buying_Behavior_Towards_Online_Shopping_
A_Case_Study_Of_Kota_City-_Rajasthan
• https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1
514940
• https://medium.com/@nyxonedigital/importance-of-e-
commerce-and-online-shopping-and-why-to-sell-online-
5a3fd8e6f416#:~:text=It%20provides%20a%20very%20comfor
table,direct%20online%20increases%20your%20reach.
• https://www.worldwidejournals.com/indian-journal-of-applied-
research-
(IJAR)/recent_issues_pdf/2015/April/April_2015_1428502066_
_261.pdf
• https://www.journalcra.com/article/analytical-study-online-
shopping-consumers-special-reference-central-india
• https://en.wikipedia.org/wiki/Online_shopping
• https://www.journalcra.com/sites/default/files/issue-
pdf/17883.pdf
• https://www.bigcommerce.com/articles/ecommerce/types-of-
business-models/#four-traditional-types-of-ecommerce-
business-models
• https://www.abacademies.org/articles/changing-consumer-
behaviours-towards-online-shopping--an-impact-of-covid-19-
9298.html
• https://www.bigcommerce.com/blog/covid-19-
ecommerce/#generational-purchasing-responses-to-covid-19
• http://admin.umt.edu.pk/Media/Site/SBE1/SubSites/JMR/FileM
anager/JMR/Paper_1.pdf
 ANNEXURE

Questionnaires on Consumer buying behaviour towards online

shopping

Hello friends I'm Abhishek Mishra pursuing B. Com (Honours)

lll year from Bhopal School of Social Science & currently doing
a project on "Consumer buying behaviour towards online
shopping". I request you to kindly co-operate by giving your
true responses.

▪ Name
▪ Age
▪ 18 or under
▪ 18-30
▪ 30-50
▪ Above 50

▪ Do you like online shopping?

▪ Yes
▪ No
▪ Maybe

▪ Online Shopping doesn't waste time.

▪ Strongly disagree
▪ Disagree
▪ Neutral
▪ Agree
▪ Strongly agree

▪ I feel that it takes less time in evaluating and

selecting a product while shopping online.
▪ Strongly Agree
▪ Agree
▪ Neutrals
▪ Disagree
▪ Strongly Disagree

▪ I feel safe and secure while shopping online

▪ Yes
▪ No

▪ It is easy to choose and make comparison with

other products while shopping online
▪ Strongly disagree
▪ Disagree
▪ Neutral
▪ Agree
▪ Strongly agree

▪ Detailed information is available while shopping

online
▪ Strongly disagree
▪ Disagree
▪ Neutral
▪ Agree
▪ Strongly agree

▪ Online shopping takes less time to purchase?

▪ Yes
▪ No

▪ Which online shopping app/website you prefer the

most?
▪ Amazon
▪ Flipkart
▪ Myntra
▪ Ajio
▪ Others
▪ What makes you choose Online Shopping over
offline shopping?
▪ Great Offers
▪ Attractive Prices
▪ Home delivery
▪ Cashbacks and Discounts
▪ All of the above

▪ Any Suggestion please