Professional Documents
Culture Documents
Summer Project - Sangeeta
Summer Project - Sangeeta
PRODUCTS ONLINE
By
at the
Tribhuvan University
Bhairahawa
March 2022
STUDENT’S DECLARATION
This is to certify that I have completed the Summer Project entitled “Students
Behavior on Purchase of Electronic Products Online”: A case study of bachelor
level students under the guidance of Dr. Sahadev Bhatta in the partial fulfillment of
the requirements for the degree of Bachelor of Business Administration at Faculty of
management, Tribhuvan University. This is my original work and I have not
submitted it earlier elsewhere.
Signature:…………...
This is to certify that I have completed the summer project entitled “Students
Behavior on Purchase of Electronic Products Online” a case study of bachelor
level students is an academic work done by “Sangeeta Sharma Panthi” submitted in
the partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at faculty of management, the information presented by him/her in the
summer project.
…………………………………
First of all I would like to gratitude to the Tribhuvan University as well as the
Bhairahawa Multiple Campus for providing a BBA program with summer project that
helps us to extend our theoretical knowledge to practical level through fieldwork.
I would like to thank our respective teacher Dr. Sahadev Bhatta for giving us the
guidance and mentorship for the preparation of our proposal and for the field visit so
as to carry on with our research with the collected of relevant data and information.
Similarly, I would like to thank my friends and family for their endurance and
encouragement, which was greatly needed most of the time. I would also express my
gratitude to all the participants in questionnaire data collection for giving their time.
Sincerely,
TITLE’S PAGE....................................................................................................................i
STUDENT’S DECLARATION..........................................................................................ii
ACKNOWLEDGEMENTS................................................................................................iv
TABLE OF CONTENTS....................................................................................................v
LIST OF TABLES............................................................................................................vii
LIST OF FIGURES..........................................................................................................viii
EXECUTIVE SUMMARY................................................................................................ix
CHAPTER I: INTRODUCTION........................................................................................1
2.4 Discussions:.................................................................................................................26
3.1 Conclusion:..................................................................................................................27
REFFERENCE
APPENDIX (Questionnaire)
LIST OF TABLES
Table2.1.1:Gender of Respondents....................................................................................12
Table2.1.2:Age Group.........................................................................................................1
Table2.1.6:Concerning Attributes.......................................................................................1
Table2.1.7:Intention to Buy.................................................................................................1
Table2.1.8:Suitability..........................................................................................................1
Table2.1.10:Influencing Factor...........................................................................................1
Table2.1.12:Problem Faced.................................................................................................1
Table2.1.13:Trust Level.......................................................................................................1
LIST OF FIGURES
Figure2.1.1:Affecting Factors..............................................................................................7
Figure2.1.1:Gender of Respondents....................................................................................1
Figure2.1.2:Age of Respondent.........................................................................................13
Figure2.1.6:Concerning Attributes......................................................................................1
Figure2.1.7:Intention to Buy..............................................................................................18
Figure2.1.9 :Comparison...................................................................................................20
Figure2.1.12:Problem Faced................................................................................................1
The role of e-commerce has dramatically increased in the recent years. Internet has
transformed into arena for successful international retail. With growing importance of
online trade, research of consumer behavior in online context gained significant
attention. But studies tend to generalize consumer behavior without distinguishing
specific categories of products.
The findings contribute to research literature and gave practical implications for the
managers of online stores.
CHAPTER I
INTRODUCTION
1
Time Saving, Easy to Compare Prices,
More Variety,
Less Taxes,
No Crowd,
A decade ago, e-commerce was setup as sending gifts and money online and other
websites promoting Send Gifts to Nepal which did not had real meaning of e-
commerce. They were target to Nepalese residing in USA, UK, Australia and Europe.
There was no effect of that business to support the e-commerce in Nepal. Gradually
the business was promoted by other companies who saw there was a marginal profit.
Along with the rise of IT, and business concept many online stores were launched but
they did not have the actual process of buying and selling online. Some of the
companies that existed in initial phase of ecommerce development are:
Daraz.com
Sastodeal.com
Muncha.com
Thulo.com
Bhatbhateni online
2
1.2 Consumer behavior:
According to Kotler (1994), consumer behavior is the study of how people buy, what
they buy, when they buy and why they buy. Consumer behavior research is based on
studying consumer buying behavior, in which consumer plays tree different roles:
payer, buyer and user. It pursuits comprehension of buyer’s decision making process
(Furaji et al.2012). Consumer buying behavior refers to the study of the ways of
buying and disposing of goods, services, ideas or experiences by the individuals,
groups and organizations in order to satisfy their needs and wants (Kotler and Keller
2011).
3
1.5 Literature review:
Electronic product includes products such as cellular phones and other personal
communication devices, TVs, video and audio recorders and players, cameras, home
security systems, etc. So, these are the products of everyday use by many people.
Most consumers’ research electronics online before buying an item, and the amount
of time spent on information search is proportional to the price. However, around a
half of those who spend average of 12 hours in information search online still result in
buying an item offline in a traditional store.
Of a particular interest is a research by Kim et al. (2010), who emphasize higher risk
connected to shopping consumer electronics online compared with ‘low involvement
products’. The inability to examine the product before purchase and lack of personal
contact (with shopping assistant) are particularly strong concerns for consumers of
electronics because of high prices and complexity of the items of this category. The
researchers investigated acceptance of product virtualization technology (rotating the
product on screen, examining its specific features – image, sound, etc. - through
virtual technologies) to online shopping of electronics. They concluded that use of
product virtualization technology can facilitate online retailers because it decreases
uncertainty regarding buying items of this category online,
Weber et al. (1999), conducted a study on those who search for or purchase travel
products through on-line with the age group of 26 to 55 years. Results on the basis of
the study concerns about credit card security, evaluation of product quality, and
privacy issues are the main problems faced while on-line purchase of travel products,
were made.
Vellido et al. (2000), pointed out in his research, that there are nine factors associated
with user’s perception of online shopping. Among those factors the risk perception of
users was demonstrated to be the main discriminator between people buying online
and people not buying online. Other discriminating factors were control over, and
convenience of, the shopping process, affordability of merchandise, customer service
and ease of use of the shopping site.
4
Furaiji et al. (2012) conducted a study of factors that influence purchase of electric
appliances based on consumers in Iraq (without inclusion of online context). Their
findings showed that social factors, psychological factors and marketing mix have the
strongest influence on buying decisions of electronics.
Corbitt et al. (2003), argue that information to make the purchase and to be able to
make comparisons with alternative offers plays an important role in the absence of
sales staff and the inability to see and try the product. The cost of accessing the
Internet is also a decisive factor for engaging in Internet activities. While low prices
do not guarantee high penetration, they are an important factor for more widespread
development of the Internet and consequently, of electronic commerce.
Clark et al. (2004), in their study reviewed the research into the various issues that
may differentiate online consumer behavior and whether they are able to produce the
understanding needed to construct behavioral models that can help realize the full
potential of ecommerce. The study concluded that a more comprehensive approach to
modeling online consumer behavior is needed in order to coherently describe the
online consumer experience.
NikMat et al. (2005), studied that the higher website trust will create higher intention
for online shopping. The study provides the consumers do not trust the website during
online shopping. Maybe another factors are very important than trust like types of
products. This result however is in contradiction with the result depicted in other
research which shows trust level may affect consumers’ willingness to purchase and
propensity to return to the site.
Rao (2006), carried out in his study consumers’ attitude towards online shopping is a
prominent factor affecting actual buying behavior. The results of study of perceptions
of 200 online purchasers in Hyderabad reveal trust, security, Internet speed, and
responsiveness significantly affect online purchasers’ behavior. In addition, on
examination of demographic variables like gender, age and education are used; the
study reveals that might help organizations develop effective strategies eventually
leading to customer satisfaction.
5
Athiyaman (2002), also highlighted the importance of such word of mouth
recommendations, finding that social influences have been found to be important
determinant of internet users' intention to purchase air travel online, second only to
the attitude towards online purchasing.
Tulin (2007), in his research report helped the business owners again, by posting
some comprehensive status about online consumer behavior. For this purpose, the
study has broken out the industry, into particular field. The study revealed that 80% of
internet users go online to find health related information, 85% of Google users have
made an online purchase in the past six months, approximately 20 million people are
browsing new home listing each month and more than 70% of Google users have
shown some interest in a financial service product.
Venkatesh et al. (2008) is his article analyzed the new trends in marketing and
observed that several developments in technology have completely transformed the
world and made life easier for people on the transactions of business and work.
Notable among these is called “Internet and Online Marketing”. In essence, this
activity enables buyers and sellers of goods and services to get their task
accomplished without the necessity to travel. In internet marketing, the users access
the products of their choice but it is not possible to trace and test all aspects of the
marketing campaign.
6
1.5.1 Conceptual framework:
Perceived Risks:
Perceived risk is the uncertainty a consumer has when buying items, mostly those that
are particularly expensive. For example, cars, houses, and computers, etc. Every time
a consumer considers buying a product, he or she has certain doubts about the
product, especially if the product in question is highly priced.
Psychological Factor:
7
Hedonic Motivation:
Hedonic motivation refers to the influence of a person's pleasure and pain receptors
on their willingness to move towards a goal or away from a threat. This is linked to
the classic motivational principle that people approach pleasure and avoid pain, and is
gained from acting on certain behaviors that resulted from esthetic and emotional
feelings such as: love, hate, fear, joy, etc.
Website Design:
Web design encompasses many different skills and disciplines in the production and
maintenance of websites. The different areas of web design include web graphic
design; interface design; authoring, including standardized code and proprietary
software; user experience design; and search engine optimization. Often many
individuals will work in teams covering different aspects of the design process,
although some designers will cover them all. The term web design is normally used to
describe the design process relating to the front-end (client side) design of a website
including writing markup.
8
1.6.2 Research gap:
There are many research conducted regarding the students behaviour on purchase of
electronic products online. After going through all the previous research conducted to
analyze the student’s behaviour on purchase of electronic products online researcher
came to know that my research is a different from previous research in this multiple
campus. This research is based on analyzing the student’s behaviour on purchase of
electronic products online with the selection criteria on the basis of reliability,
convenience, assurance and accessibility.
9
1.7 Population and sample:
Sampling refers to any procedure that draws conclusion based on measurement of
population. The population of this study is the bachelor level students as they are the
youths of the present time who are well familiar will the growing technology. For the
sample, 50 students were randomly selected whose response was collected through
structured questionnaire.
1.9 Limitations:
The research has to be completed in a limited amount of time, there is lack of
adequate time
We don’t have financial support for budget to carry out the research in deeper
detail.
The sample size taken relatively small to extract the accurate result.
10
CHAPTER II
This section presents the presentation and analysis of the data that were collected
through the research process. This chapter is composed of descriptive result of key
variables, which are presented via pie chart, bar diagram, and so on. The required
information was collected from the college going students of the study area. To obtain
the participants’ response, structured questionnaires were made and data was
collected, and their responses were analyzed. The data collected was then arranged,
classified and presented in the form of tables, graphs and bar diagrams in the later part
of the report. Those statistical presentations of the data show the consumer behavior
on purchase of electronic products online.
11
Table: 2.1.1: Gender of respondents
Gender No. of respondents Percentage (%)
Male 35 70%
Female 15 30%
Total 50 100%
(Source: Field survey, 2022)
From the survey stated in the table 2.1.1, the majority of respondents are male that
represents 70 percent of the total respondents. The above data can be shown in the
following pie chart that can helps to easily analyze the proportion of gender of the
respondents.
Gender
30%
male
female
70%
12
2.1.2 Age group.
The table 2.1.2 shows the age of individual respondents taken under study. The age of
respondents are classifies into three different gaps such as: 16-20, 21-25 and above 26
As this research was carried on, focusing on the online shoppers, they lie mostly on
the age group from 21-25 years. It is presented in following diagram:
Age Group
35
30 35
25
Age Group
20
15
10
9
6
5
0
16-20 21-25 26-above
13
2.1.3 Faculty of study
Faculty of study is the enrollment that student is currently involved.
BBA 20 40%
BIM 9 18%
BBS 6 12%
BBM 6 12%
Other 9 18%
(Source: Field survey, 2022)
Most of the respondents were found to have passed Bachelor Degree. Only few of
them were studying or had completed Higher Secondary Level and Masters’ level. It
can be clearly presented in the following diagram to make clear picture of above data.
Faculty
18%
BBA
40% BIM
12% BBS
BBM
Other
12%
18%
14
2.2 Analysis of data:
Various questions were asked to the respondents regarding their view of purchase of
electronic product through online platform. Data analysis is an important part of the
research since the conclusion of the research is drawn on the basis of data collected
and presented in this session. Therefore the data presented should be simple and clear
as far as possible. Here this session is related with analysis and presentation of data
that was obtained through questionnaire. We asked whether the respondents shops in
online store or not and if not then are they planning to use the platform. Following are
the response we got.
Yes 21
No 10
42%
Yes
No, but planning
No
38%
15
Product emphasis:
As online retail stores offer more variety of products even within the electronic
categories so to understand what kind of items are bought online mostly by the
respondents they were asked to choose among categories: Laptops, mobiles, home
appliances, accessories.
Mobiles 10
Home appliances 8
Accessories 15
Others 5
(Source: Field Survey, 2022)
From the survey, most of the people are involved in purchase of electronic
accessories, laptops & then mobiles. The data is further presented into bar graph:
Product Emphasis
15
16
14 12
12 10
10 8
8 5
6
4
2
0
laptops mobiles Home appliances accessories others
16
Concerning attributes:
Respondents were asked about the attributes that matter the most to them while
purchasing electronic product online. Their response is presented in the following
table.
Price 22 44%
Quality 16 32%
Brand name 10 20%
Other 2 4%
(Source: Field Survey, 2022)
Through this we see that majority of the respondents are price sensitive i.e. 44% then
after only comes quality of a product i.e. by 32% and brand name and other attributes
20% and 4 % respectively.
Attributes
Other 2
Brand name 10
Attributes
quality 16
Price 22
0 5 10 15 20 25
17
Intention to buy:
The respondents were asked if they had any plan to buy an electronic product within
12 month or not. We had given three options i.e. agree, neutral (maybe),
disagree .following were the result.
Through the table we see that most of the respondents think that they may purchase
electronic product within next 12 months i.e.50% and 30% agreed that they will buy
product with in next 12 month.
Intention
20% 30%
agreed
Neutral (maybe)
disagree
50%
Suitability:
18
The respondents were asked whether online platform are suitable place to buy
electronic product or not. Their response is presented in the table.
Through the table we see that most of the respondents have neutral thoughts that
online platform is suitable for buying electronic product s i.e.50% and 30% agreed
that it’s a suitable place.
Suitability
30% 20%
agreed
Neutral (maybe)
disagree
50%
19
The respondents were asked if online platform are suitable than physical store to buy
electronic product. Their response are presented in the table
Through the table we see that most of the respondents disagree that online plat form is
better than physical platform to purchase electronic product .only few of them agree
on it i.e.4%
Comparison
4%
26%
agreed
Neutral (maybe)
disagree
70%
20
The respondents were asked if media or advertisement were main the factor that led
them to use the online platform for purchasing electronic product.
Agreed 23 46%
Disagree 12 24%
Through the table we see that most of the respondents agree that media is the
influencing factor to make them use online platform i.e.46% and 24%diasgree on this
context where as 30%of the people have neutral thoughts on this.
Influencing factor
24%
46% agreed
Neutral (maybe)
disagree
30%
21
The respondents were asked if they had proper knowledge about the use of the
platform. Their response is presented in the table.
Agreed 26 52%
Disagree 9 18%
(Source: Field Survey, 2022)
Through the table we see that most of the respondents agree that they have proper
knowledge about the use of online platform i.e.52% and 18%diasgree on this context
where as 30%of the people have neutral thoughts on this.
Proper Knowldge
18%
agreed
Neutral (maybe)
disagree
52%
30%
Through pie chart we see that most of the respondents agree that they have proper
knowledge about the use of online platform i.e.52% and 18%diasgree on this context
where as 30%of the people have neutral thoughts on this.
Problem Faced:
22
The respondents were asked if they had faced problem using the online platform
either while selecting the product or during the delivery. Their response is presented
in the table.
Through the table we see that most of the respondents stated that they do not face
much problem i.e.48% and 30% of the respondents stated that they rarely face
problem while 22%of respondents stated that they face lot of problem.
Problem Faced
22%
48%
30%
23
The respondents were asked regarding their trust level on the information provided on
the different online platform or websites regarding the products. Their response is
presented in the table.
Through the table we see that most of the respondents stated that they have medium
level of trust towards the information provided by various online platforms i.e.46%
and 30%have low and 24% have high trust.
Trust Level
30% 24%
high
medium
low
none
46%
24
2.3 Major findings and discussions:
The findings show that internet usage has increased over the years and it is leading to
an increase in online shopping and also shows the consumers perception towards
online shopping of electronic products. As per the research, consumer’s perception
towards online shopping is satisfactory. The major findings of the study are
Online shopping is the third most popular internet activity and shopping of
electronic products is one of popular category.
It is found that people of age above twenty are the ones who are involved in
shopping of electronic product online.
Even with the facilities there are still people who have no intention to use the
online platform while some of them are planning to use in the future.
It is found that most people use the online platform to purchase electronic
accessories in compare to laptops and mobiles.
Price still is the major attribute that concerns people, which shows people are
price sensitive.
Most people agreed that online platform is suitable for purchasing electronic
platform while some did not agree to it.
Even with the increased usage of online platform, almost all people think that
physical stores are still better option in comparison to online platform.
It is found that most people are engaged in online shopping of electronic
product due to influence of media and advertisement
People generally do not face problem while using online platform to purchase
the electronic product
Most of the people have mediocre level of trust towards the information
provided in online platform.
As there is large number of retailer doing business online, there is wide
availability of products and services. The researcher finds that the respondents
have positive attitude towards the broad availability and selection of goods on
the internet.
The consumers are neither fully satisfied nor dis-satisfied with the online
services. However, they purchase online for convenience purpose.
25
2.4 Discussion:
Internet usage has increased over the years and it is leading to an increase in online
shopping and also shows the consumers perception towards online shopping of
electronic products. Mainly the youths are focused or are encouraged towards online
shopping of electronics as electronic products have become one of the basic parts of day to
day life.
26
CHAPTER III
CONCLUSION AND ACTION IMPLICATION
3.1 Conclusion:
Online shopping is increasing and is becoming a trend. More people are being
involved into internet shopping as seen by the research because of the value it offers
to a customers such as convenience, doorstep delivery, a broad product selection. The
main motivating factors seen during the research was the convenience and customer
service which drives the people to online shopping for the products they need. Huge
variety of products is available in the internet and the consumers have freedom to
choose, compare and analyze them.
A huge number of students are shopping online because of the changing lifestyles.
Despite its huge scope and advantages, there hasn’t been optimum utilization of the
available facilities by the consumers. Online shopping today is an incomplete,
fragmented and sometimes frustrating process. Therefore merchants should set
themselves apart from their competitors by factors other than price, constantly
innovate and move towards creating customer confidence to trade online. They should
provide massive selection at lower prices, offer a personalized customer experience
and their web sites should deliver a shopping experience that addresses all of the
consumer needs like recommendation about the products, feedback from other
customers, etc. Most of the Nepalese still like to see the product before buying. So
efforts should be made to change this mindset of the people by making them aware of
the benefits of online shopping.
The perception on online shopping varies from person to person each person has their
own preferences on purchasing the products. Each one is affected by various factor
and attributes. The process for the purchase of the product should be made effective
and easy to use for the consumers.
27
3.2 Action implications:
Results of this study can be useful to the managers and marketers of online stores that
sell consumer electronics. It can give them a better understanding of what drives
consumer’s intention to make a purchase on their website.
Attitude towards buying consumer electronics online was proven to have a great
influence on consumer’s purchase intention. Managers of online stores can use it to
increase sales by emphasizing how shopping on their website is a positive experience.
Ensuring safety of the shopping process is one way, so it is necessary to provide
security and fraud-protection. Marketing campaigns should address complete safety
of online shopping experience in the store. It can also be beneficial to create an image
that the online store has certain benefits,
Another factor that to a large extent affects intention to purchase electronics online is
attitude towards using online stores. This construct addressed technological aspects of
online shopping process. So, online stores should provide easy and satisfying
shopping experience. It can be achieved by improving the quality and design of the
web-page, creating apps for tablets and mobile phones, include easy guides that
explain every step of online shopping, include features like product comparison.
Marketing campaigns should emphasize how online shopping is a joyful experience
and how it can be efficient in terms of time and money saving (fast delivery, benefits
for frequent customers).
One of the most important things of this study is that the merchant needs to ensure
that the websites should be developed to facilitate online shopping and should be easy
to use by the consumers and must be able to demonstrate the benefits of shopping
online to consumers. The survey reveals that consumers have strong preference for
trust worthy online store. As such the merchant should actively promote their online
channel option to their existing customers who frequently visit their current retail
store. This is because the reputation of the physical store will most likely influence
the perception of an online site.
27
REFFERENCE
Corbitt, B. J., Thanasankit, T., & Yi, H. (2003). Trust and e-commerce: a study of
consumer perceptions. Electronic commerce research and applications, 2(3), 203-
215.
Furaiji, F., Łatuszyńska, M., & Wawrzyniak, A. (2012). An empirical study of the
factors influencing consumer behaviour in the electric appliances
market. Contemporary Economics, 6(3), 76-86.
Kim, J., & Forsythe, S. (2010). Factors affecting adoption of product virtualization
technology for online consumer electronics shopping. International Journal of
Retail & Distribution Management
Nik Mat, N. K., & Meor Ahmad, S. S. (2005). Determinants of online shopping
intention.
Vellido, A., Lisboa, P. J., & Meehan, K. (2000). Quantitative characterization and
prediction of on-line purchasing behavior: A latent variable
approach. International journal of electronic commerce, 4(4), 83-104.
Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research
agenda on interventions. Decision sciences, 39(2), 273-315.
Weber, K., & Roehl, W. S. (1999). Profiling people searching for and purchasing
travel products on the World Wide Web. Journal of travel research, 37(3), 291-
298.
APPENDIX (Questionnaire)
Dear respondent,
I am the student of Bhairahawa Multiple Campus conducting a purely
academic research on “STUDENTS BEHAVIOR ON PURCHASE OF
ELECTRONIC PRODUCTS ONLINE” to meet the partial fulfilment of the
requirement of the requirements for the Bachelor Degree in, Tribhuvan University.
So, this is a humble request to all the respondents to fill up the questionnaire and feel
free to answer the given questions according to your understanding. Please be
confident because all your response will be maintain absolutely confidential and use
for only academic purposes. Your participation in the study is anonymous, voluntary
and will be very much appreciated.
1. Name…………..
…………………………………………………………………………………
……………………………………………………………….
(Please give information about yourself)
2. What is you gender?
Male Female