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A Study on Consumer Perception towards Online Shopping and its Impact: With
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 International Research Journal of Management
Science & Technology
ISSN 2250 – 1959(0nline)
2348 – 9367 (Print)
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IRJMST Vol 11 Issue 1 [Year 2020] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

A Study on Consumer Perception towards Online Shopping and its Impact: With
Special Reference to Gwalior City
Dr. Jitendra Shrivastava
Assistant Professor,
Institute of Professional Studies, Gwalior
Ms. Neha Yadav
Ph.D. Research Scholar (Management)
Jiwaji University, Gwalior

Abstract: Currently, the number of internet users in India is increasing day by day, which is helpful
in creating a bright future for online shopping in India. If e-marketers know which factors can
influence the behavior and relationship of consumers, they can develop their marketing strategy to
convert potential consumers into online consumers. This paper tries to find out the factors that
Indian consumers take into account while shopping online. After this research study, it was found
that cognition, sensitivity, convenience of use, saving money, enjoyment and security are the six
components, which can affect consumer perceptions when shopping online. The present era is the
age of the Internet which has brought many revolutionary changes in the life of man. As time has
changed in the way consumers purchase goods and services through the Internet, many marketing
companies have managed to cut their marketing costs with the help of the Internet to stay ahead in
today's highly competitive markets, so the price of their products and services has come down.
Internet is not only used by consumers for online purchases but through this they compare the price
of the product as well as the type and features of the product.
Keywords: Possibilities of using internet in India, changes in online trends and use of online
shopping effect in Gwalior city.
Introduction
Many people round the world choose to look on-line and obtain product from many brands and
corporations that they can not realize or don't seem to be on the market for purchase in their home countries.
Nowadays, and with the assistance of the new technology and also the support of the net, folks from all round
the world began to purchase things on-line by merely sitting in their
homes. Getting things and product through the online could be a terribly straightforward task to try and
do. It’s currently taking part in a really vital role in everybody’s life particularly aged folks, still as folks with
a really busy life schedule. It provides a really comfy service for its customers, by having the ability to save
lots of the item within the personal carrier bag, and pass away afterward. Looking through the
online merely works for folks with a sound master card, a charge account credit or a web checking account.
There square measure heaps of reasons why customers nowadays like looking online:
1. Convenience: The convenience is the biggest perk. Wherever else are you able to well shop hour
whereas in your pajamas? There are not any lines to attend in or look assistants to attend on to
assist you together with your purchases and you'll be able to do your looking in
minutes. Online outlets provide US the chance to buy 24/7, and additionally reward US with a ‘no
pollution’ looking expertise. There's no higher place to shop for informational product like e
books, that square measure on the market to you instantly, as shortly because the payment goes
through. Downloadable things purchased on-line eliminate the requirement for
any quite material product in any respect, as well, that helps the environment!

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2. You'll be able to send gifts a lot of simply. Causing gifts to relatives and friends is
simple, notwithstanding wherever they're. Now there is no need to create distance associate
degree excuse for not causing a present on occasions like birthdays, weddings, anniversaries,
Valentine’s Day, Mother’s Day, Father’s Day, and then forth.
3. Price comparisons - Scrutiny and researching product and their costs is most easily on-line.
Also, we've the power to share info and reviews with alternative shoppers WHO have primary
expertise with a product or merchandise.
4. No crowds: If you're like Pine Tree State, you hate crowds once you’re looking. Particularly
throughout festivals or special events, they'll be such an enormous headache. Also, it tends to be a lot
of chaotic once there square measure a lot of crowds out and this typically makes US feel rush or
precipitous. Grumpy, annoying, and fetid folks additionally displease Pine Tree State once I’m
out looking. Plus, parking becomes an enormous issue. All of those issues will be avoided once you
look on-line.
5. No need to travel - Folks do not sometimes wish to move heaps to induce what they need. Of course,
nothing will contend with expertise of getting to a artifact dress shop and shopping for what you
wish, however commonly folks simply don't need to travel. Customers do not sometimes leave close
to the outlets they'd wish to go to, however nowadays they need associate degree choice to visit the
look on-line. An ecommerce system provides real time information and
analytics concerning your product and your customers. You'll be able
to see however folks act with the positioning, what product interest them, what they left in their
cart and the way a lot of the common purchase was. Valuable metrics that enable you to
create changes to satisfy your customer’s wants.
1.1 Trends of Internet users and E-Business in India
In 2015, India had 302.36 million internet users. This figure is projected to grow to 974.86
million internet users in 2025. Despite the untapped potential, India already is the second-
largest online market worldwide

Graph: Information about the number of internet users in India from 2015 to 2025
(Source: https://www.statista.com/statistics/255146/number-of-internet-users-in-india/)
India is one of the fastest-growing e-commerce markets worldwide, with millions of new internet
users taking advantage of cheap mobile connections to send mobile messages, watch online videos,
use mobile services, and of course, to shop. In 2020, Asian country had nearly 700 million net users
across the country. This figure was projected to grow to over 974 million users by 2025, indicating an

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enormous market potential in net services for the south state. In fact, Asian country was hierarchical because
the second largest on-line market worldwide in 2019, returning second solely to China. The quantity of users
was calculable to extend in each urban similarly as rural region indicating a dynamic growth in access to net.
Mobile property of full net users within the country a majority of the folks access the web via their mobile
phones. There have been nearly constant quantity of smart-phone users as net users across the country. Low
cost availableness of mobile knowledge, a growing smart-phone user base within the country at the side of the
utility worth of smart-phones compared to desktops and tablets are a number of the factors contributive to the
mobile serious net access in Asian country. Growth is on the cards Despite the big variety of net users within
the country, the web penetration levels took longer to catch up equally. At constant time, the quantity of
ladies World Health Organization have access to net is way below men within the country, and therefore
the bias is even a lot of evident in rural Asian country. Similarly, net usage is lower among older adults within
the country thanks to net skill and technological ability. By encouraging net accessibility among
marginalized teams together with girls, older folks and rural inhabitants within the country, India’s digital
footprint has vital headroom to grow.

Graph: Information about trends of E-business in India from 2016 to 2022

(Source: https://www.zepo.in/blog/2018/07/05/e-commerce-is-killing-traditional-retail/)
1.2 Advantages and Disadvantages of Online Shopping

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II. SCOPE OF STUDY

It was projected that rather than taking a good coverage and creating a broad study; this work ought
to slender down its focus and run into inquiry. Hence, the research worker proposes to concentrate
this add Gwalior town. E-Business includes a range of merchandise, no. of corporations, and a
good vary of client bases gift within the trade. It’s tough for the research worker to try and
do section customers, companies, and really necessary customers for choice as a sample of the study. Thus the
study undertaken by the research worker was centered on “Attitude of consumers towards on-
line searching in India and its impact: With special relevancy Gwalior city”

Objective of Study :
1. To Study present status of Online Shopping in India
2. To study the factors those affects consumer perception towards online shopping in India.
3. To analyze factors motivates consumer perception towards online shopping in India.
4. To study possibility for increase of online shopping in India.
Hypothesis of Study
H0 : Products buy by consumer are independent on their Income in online shopping
H1 : Products buy by the consumer are dependent on their Income in online shopping

3. METHODOLOGY OF THE STUDY

The population of this study was restricted to users also on non-users of product purchased through on-
line shopping. The geographic territory was restricted to Gwalior city. Samples for every population were
being selected as per the convenience sampling methodology (As per their accessibility and willingness).
As the precise population is unknown here analysis has used the Krejcie associated Morgan's formula of
sample size calculation for an infinite (unknown) Population.
Here X= 1.72 for 95 confidence level, P= 0.5 and df = 0.1
The sample size selected for this study was 100 consumers. Primary data was collected with the assistance of
a well-structured questionnaire at the side of a interview. Secondary data was collected from printed literature
in Books, Magazines, Journals and Newspapers, and websites. A well-structured objective type was ready. To
gather personal views and to research the sensible facts, a private interview, and observation technique was
used. The information collected throughout data assortment was coded initial and tables were generated,
analyzed, and taken with the assistance of surpass sheets on a laptop. On the premise of findings supported
tabulated info and observations throughout knowledge assortment, a conclusion was drawn.
Data Analysis and Interpretation
Internet Uses by Respondents
Yes % No % Total
You have internet connection and 77 77% 23 23% 100
use the internet regular

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Chart Title

23%

Online
Manual

77%

Opinion of respondents about types of shopping regularly

Respondents about types of shopping regularly
Online % Manual % Total
Which type of methods used 74 74% 26 26% 100
for the shopping regularly

Which type of Chart Title

methods used
for the
shopping
regularly ,
Manual, 26%,
26%
Online
Manual
Which type of
methods used
for the
shopping
regularly ,
Online, 74%,
74%

Opinion of respondent’s status about online shopping

Respondents status about online shopping
Continue % Discontinue % Never % Total
What is the status 68 68% 20 20% 12 12% 100
of your online
shopping

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Series1, Never, Continue Discontinue Never

12%, 12%

Series1,
Discontinue ,
20%, 20%

Series1,
Continue,
68%, 68%

Respondents status about online shopping

Overall satisfaction towards online shopping
Particular Yes % No % Can’t Say % Total
Safety features is high about the 74 74% 18 18% 8 8% 100
share bank detail during the online
shopping
See the product before purchase 82 82% 12 12% 6 6% 100
when you are online shopping
Satisfied with the policy when you 66 66% 24 24% 10 10% 100
get wrong product and return
policies during the online shopping
Online shopping is a money saving 72 72% 20 20% 8 8% 100
process
If net connectivity is high then you 78 78% 16 16% 6 6% 100
are not faced any problem during
the online shopping
Don’t worried about share personal 74 74% 22 22% 4 4% 100
details
Overall Satisfaction towards online 80 80% 14 14% 6 6% 100
shopping

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Testing of Hypothesis

H0 : Products buy by consumer are independent on their Income in online shopping

H1 : Products buy by the consumer are dependent on their Income in online shopping
Income (per month) / Beauty items Cloths Electronic Other
Product Appliances Accessories
Expected Value
Below 15000 11.74 7.74 15.24 7.89
15000-25000 14.87 13.12 9.67 13.15
25000-35000 8.98 10.45 11.04 12.43
35000-45000 7.67 9.71 8.09 16.98
Above 45000 10.12 17.13 10.56 9.33
Result of Chi Square Test
Level of Significance α = 0.05 at 5%
X2 = 16.718
df = 12
P = 0.059
Since P > 0.05 Null hypothesis in accepted and Alternative hypothesis is rejected
From the above statistics we may concluded that income of consumers is independent of Purchase
habit of consumers in online shopping.

VI. FINDINGS
 Due to revolution in telecommunication sector no. of internet user increased in recent time

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 Though usage of online shopping by customers is increased but still customers are giving first
preference to manual shopping for regular purchase
 Majority of customers have used online shopping and shown willingness to continue but very
few of them have done online shopping earlier and not showing willingness to continue
 Respondents are preferring online shopping due to various motives like less price or price
discount, time saving, due to availability of no of sites rang and variety of products are
available and customers are having choice to purchase, customers found purchase method
very easy as websites are user-friendly and customers want to avoid hassles of shopping in
store.
 Majority of respondents are satisfied with online shopping
 Following are barriers behind development of online shopping in large scale
 Customers want to see product in personal before buy.
 Customers are having fear of receiving wrong or bad product and could not return
 Customers are worried about giving credit card no.
 Occupation of respondent is independent of purchase habit. Occupation is not playing any
role in product choice.

VII. CONCLUSION AND SUGGESTIONS

An attempt was made by researchers to study the present status of online shopping. 100 respondents
from Gwalior city were selected. Opinion from these respondents was collected with the help of
well-structured questionnaire. With the help of Data analysis and interpretation finding were drawn
by researchers. With the help of findings following conclusion and suggestions were drawn by
researchers
Due to revolution in telecommunication sector no. of users of internet are increased in India in recent
time and customers are using internet for online shopping but still for regular purchase most of
customers first choice is manual shopping. To increase no. of customers for online shopping there is
need of extensive publicity and promotion by online shopping companies to attract all class of
customers
Most of the customers are of opinion that shipping charges charged by companies are very high, it is
suggested to companies to either reduce shipping charges or delivery of product should be given
freely. Companies may use it as one of the promotional activity.
After research it is observed that major hurdle behind development of online shopping is of customer
awareness. Majority of customers are not aware about various pre and post services rend by this
online shopping companies.
Companies should aware customers regarding how security regarding customers credit card no. is
maintained by companies
 Companies should made aware customers regarding return policy and procedure if wrong or
bad product arrived. Companies should make returning procedure simpler, like few
companies are asking customers to resend products if any wrong or bad product arrived.
Instead of these companies should collect product from customers and deliver write product
to them in minimum time.
 Most of customers want to see product before purchase to make sure that same product
arrived as per order. Most of companies are not having this facility. If companies want to

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increase no. of customers they should provide this facility because in manual purchase
customers are getting chance to see and touch the product and this may be the important
reason behind customers first preference for manual shopping on regular basis.
 in home and electronic appliances after sales service in very important aspect, companies
should inform customers regarding how to install and use the product or send company
representative for installation very soon after delivery. Companies should inform customers
regarding nearest service station if any problem arrived in product. Majority of customers are
preferring manual shopping for home and electronic appliances in fear of after sales service.

From the above discussion, it is concluded that future of online shopping in India looks very bright.
Online shopping give customers best alternative to save money and time. Companies Offers detail
product information, easy mode of payment, facility of comparison of price and very important
completely hassle free shopping experience. Success of online shopping depends on its popularity,
its brand image and its unique promotional policies.
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