A

PROJECT REPORT
ON
CONSUMER PREFERENCE TOWARDS
ONLINE SHOPPING SITES IN
GURUGRAM CITY

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

MAHARSHI DAYANAND UNIVERSITY

SUBMITTED BY
ANURAG ANAND
University Roll no.:
Semester: 4th
SUBMITTEED TO
Ms. Alpana Yadav
Assistant Professor

Department of Management Studies

BM GROUP OF INSTITUTIONS, FARRUKHNAGAR, GURGAON

Session 2020-22
 CANDIDATE'S DECLARATION

I hereby certify that the work which is being presented in the project report entitled
“Consumer Preference towards Online Shopping Sites in Gurugram City” in
partial fulfillment of requirements for the award of degree of Master of Business
Administrator submitted to the Maharishi Dayanand University, Rohtak through the
B.M. Group of Institutions, Farrukhnagar, Gurgram is an authentic piece of work done
by me.

The work has been carried out during a period from Jan 2022 to June 2022 under the
guidance of Ms. Alpna Yadav, Assistant professor, Department of Management and
Humanities, B.M. Group of Institutions, Farrukhnagar, Gurgaon. The matter presented
in this thesis has not been submitted by me in any other University/ Institute for the
award of M.B.A Degree.

Signature of the Student

This is to certify that the above statement made by the candidate is correct to the best of

my knowledge.

Signature of the Supervisor

i
 ABSTRACT

Online shopping is the most favored and preferred mode of shopping by the present

day generation due to convenience, easy payment process, easy store navigation,

excellent copy for product description, availability of offers and greater variety of

products. There is no dearth of online shopping sites available at present. This study

aim at finding out the preference of consumers in Gurugram towards a specific online

shopping site, the reasons for preferring the specific site and the product that they often

buy online. In case they shop through multiple shopping sites, their preferences towards

the shops in their ranking order along with the attributes that support their preference

towards them are also analyzed. Their preferences towards shopping sites in terms of

Quality, price, greater variety, Promotion, Delivery and rectification of compliant are

also revealed. The study also highlights the suggestions for enhancing online shopping

experience.

ii
 ACKNOWLEDGEMENT

I’m over whelmed in all humbleness and gratefulness to acknowledge my deepest

gratitude to all those who have helped me to put these ideas, well above the level of
simplicity & into something concrete.

The thesis period proved for me one of the most productive & knowledgeable
experiences of my career. It provided me an opportunity to upgrade my skills as well as
sharpen my professional knowledge.

I am indebted to Dr. Sahab Singh, Haead of Department Management Studies, B.M.

Group of Institutions, (BMGI), Gurgaon for giving me the opportunity to carry out my
project work in this institute.

I deem it as a proud privilege to express my sincerest regards and gratitude to my

project supervisor Ms. Alpana, Assistant professor Dept. of Management and
Humanities, BMGI, Gurgaon for his invaluable guidance, constructive criticism,
encouragement and vital suggestions throughout the thesis work. He not only
recommended many useful references, but also attributed his insights in many
theoretical as well as practical issues.

Last but not the least, I would like to extend special thanks to my parents and friends
whose deep experience, patience and love enabled me to complete my thesis work.
Finally, I indebted to all whosoever have contributed in this work.

Anurag Anand

Univ. Roll no.

iii
 CONTENTS
Description Page No.

Candidate Declaration i

Abstract ii

Acknowledgement iii

CHAPTER 1: INTRODUCTION 1-7

1.1 Introduction 1

1.2 Background of the study 2

1.3 Significance of the research 3

1.4 Rational of the study 3

1.5 Research Aim 3

1.6 Research objective 4

1.7 Research question 5

1.8 Research scope 5

1.9 Summary 5

1.10 Research structure 5

CHAPTER 2: LITERATURE SURVEY 6-23

2.1 Introduction 6

2.2 Concept of customer satisfaction 6

2.3 Customer satisfaction models 13

2.4 Concept of online shopping 14

2.5 Preference of customer for online shopping 15

2.6 Influence of online shopping on retail industry 19

2.7 Literature Gap 22

iv
 2.8 Conclusion 22

CHAPTER: 3 RESEARCH METHODOLOGY 24-30

3.1 Research Methodology 24

3.2 Research Philosophy – Positivism 24

3.3 Research Approach 25

3.4 Research Design 26

3.5 Research Strategy – Quantitative Survey 26

3.6 Research Method 27

CHAPTER: 4 DATA ANALYSIS 31-41

4.1 Introduction 31

4.2 Analysis and Interpretation of Data 31

CHAPTER: 5 DISCUSSIONS 42-43

5.1 Basic of Discussion 42

CHAPTER: 6 CONCLUSIONS AND RECOMMENDATION 44-48

6.1 Conclusion 44
6.2 Recommendations 46
CHAPTER: 7 SELF-ASSESSMEN 49-50
7.1 Conclusion 49

REFERENCES 51

v
Chapter-1 Introduction

CHAPTER 1
INTRODUCTION
1.1 Introduction

Online shopping is commonly known as internet shopping or e-shopping. Online shopping is

done when the consumers purchase products on-line. Through online shopping, consumers
shop for required products without physically visiting the store. Nowadays, the consumers
have become more shopping conscious and surf the internet whenever needed and buy
products even across the globe. Development in technology and an increase in the usage of
internet in recent times have led to a drastic, increase in the practice of online shopping. The
greater the accessibility of internet to the general population, higher is the number of people
shopping online. At present, online shopping is becoming a well-accepted way to purchase a
wide range of products and services. Internet shopping is becoming extremely popular
because online shoppers have an option of shopping at any time of the day sitting at their
home or offices. Consumers are able to buy products from various websites in a single mouse
click.

It is believed that shopping online is superior and more intelligent way of spending money. It
offers a huge collection of products and allows consumers to get the products as per their
needs. Shopping online offers lower prices as compared to the traditional shopping method.
Shopping websites provide various kinds of discounts on the original price of the product. It
offers gift coupons, vouchers and promotional offers which attracts the consumer to buy
products in discounted price. There are many benefits of online shopping websites which
includes; description of the products, information related to sizes and color of the garments,
price of the products and various other details like customer reviews and ratings.
The greatest feature of online shopping is that the websites are open 24 hours a day
and consumers are free to shop at their convenience. Most of the items available for online
shopping are on huge discount and low prices along with free shipping on the maximum
range of products. The online shopping websites and number of consumers shopping online
have increased exponentially in the past few years.

1
Chapter-1 Introduction

Online shopping websites and services offered

File Name Services
Amazon.In It is global leader, and deals in variety of products like electronics, clothes etc.
Snapdeal.com Grounded in Delhi and deals in products like, apparel, cell phones, accessories
and customer goods etc
Flipkart.com Started as online book store, but now offers electronics, mobiles, clothing,
accessories etc.
Shopclues.com It deals in products like women jewellery, apparel and fashion accessories,
electronics and books, etc.
EBay. In It is a popular across the globe and offers all varieties of products.
Jabong.com It deals in branded and fashionable apparel and accessories.
Myntra.com Website centered in Bangalore deals mainly in fashion wear and accessories,
and lifestyle goods for both men and women.
Napptol.com Napptol sells products like Mobiles, Sports, Fitness, Clothing, Auto
accessories, Jewellery, Books and more.
Firstcry.com Firstcry.com is Asia’s Largest Online Portal for Baby Products and Toys which
has now become the top e-commerce platform in India for kids’ products, baby
care and maternity care items.
Lenskart.com Lenskart is an Indian eyewear company based in New Delhi. The company
retails optical products from brands such as Ray-Ban, Oakley, Fastrack, Tag
Heuer

CUSTOMER PREFERENCE TOWARDS ONLINE SHOPPING

Stupendous & enormous expansion of Internet in India, the people are taking interest in
online shopping. They can do online shopping while they are sitting in their homes and
work place, after getting good service response, quality of product, competitive price and on
time delivery through online shopping, they always try to recommend their friends and family
members for online shopping.
At present More and more customers are doing shopping online because in urban area Eg. in
NCR itself mostly people are working that s why they are not having so much time to go for
offline shopping, they used to prefer online shopping. The convenience of online shopping is
the main attraction of customers. Unique online payment system offer easy and safe
purchasing from other individuals. Various demographic factors like age, income, gender,
education background also affect the customer behavior. Earlier consumer used to pay with
cash but now a days number of payment options are available for like debit card, credit card,
internet banking and cash on delivery also. These payment methods also makes online
shopping easy.There are various online promotional tools which attract most of the customers
to shop online. In the era of internet technology, wi-fi services and smart-phone gadgets
provides so much facility for the consumers to do shopping from anywhere. Many retailers

2
Chapter-1 Introduction

engage their customers in impulsebehavior through the usage of visuals and information and
through the usage of colored pictures and images of the entire product and offered discount
on various products. In description of the entire product and service, online promotions can
serve an excellent purpose.

Advantages of online shopping:-

 Online shops give us the opportunity to shop 24/7, and also reward us with a no
pollution shopping experience.
 Cheap dealsand better prices are available online, because products come to you
direct from the manufacturer or seller without middleman being involved.
 You can shop from retailers in other parts of the country, or even the world, all
without being limited by geography. The choices online are amazing.
 Many times, when we opt for conventional shopping, we tend to spend a lot more
than planned. There are other outside expenses on things like eating out,
transportation, and let's not forget impulse buys! So there are less expenditure
incurred in online shopping
 Comparing and researching products and their prices is so much easier online
 No crowd is their when you prefer to do shop online.
Disadvantages of online shopping:-
 If an item comes damaged or not as described, you will want to return the item or
be refunded your money. Depending on where you purchased your item, there can
be different policies for refunds and returns;
 Unlike buying at retail stores, you are able to use the product instantly after you
buy it, which can be satisfying. However, online shopping requires patience to
wait for the item to arrive at your door step about 2 to 3 days or even longer
depending on the location you've ordered it from.
 Lack of touch-feel-try creates concerns over the quality of the product on offer.
Online shopping is not quite suitable for clothes as the customers cannot try them
on.
 Customers have to be careful in revealing their personal information. Some of the
e-retailers are unreliable.

3
Chapter-1 Introduction

Benefits of E-shopping:
The above mentioned benefits of E shopping make it popular among the customers and a step
ahead on the Brick and Mortar store. Due to the advent of information technology now it
becomes very easy to shop the desired merchandise, payment options and to grab deals due to
the availability of electronic mode of shopping. It also helps customers in saving their time
and fuel expenses which occur in case of shopping from brick and mortar store.

Figure 1 Benefits of E-shopping

E-COMMERCE WORKING:-
Electronic commerce, commonly known as E-commerce or e-commerce, is trading in
products or services using computer networks, such as the Internet. Electronic commerce
draws on technologies such as mobile commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction processing, electronic data interchange
(EDI), inventory management systems, and automated data collection systems. Modern
electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle, although it may also use other technologies such as e-mail.

4
Chapter-1 Introduction

E-commerce offers products and services through websites, a customer simply has to visit an
ecommerce website and browse various offering through browser catalog, a customer can
select multiple offerings and can add them to the shopping cart, once the shopping is done the
customer can checkout and proceed to payment section where various online payment options
are available like internet banking, credit card, debit card etc. Once payment is done the
customer is notified about the order and order is shipped on the postal address provided by
the customer.
E-commerce businesses may employ some or all of the following:
 Online shopping web sites for retail sales direct to consumers.
 Providing or participating in online marketplaces, which process third-party business-
to consumer or consumer-to-consumer sales.
 Business-to-business buying and selling.
 Gathering and using demographic data through web contacts and social media.
 Business-to-business electronic data interchange.
 Marketing to prospective and established customers by e-mail or fax (for example,
with newsletters).
 Prevail for launching new products and services

BENEFITS OF E-COMMERCE:

E-commerce benefits are broadly classified in 3 major categories:-

 Benefit to organization

 Benefit to consumers

 Benefit to society

BENEFIT TO ORGANIZATION:-
 Using e-commerce, organizations can expand their market to national and
international markets with minimum capital investment. An organization can easily
locate more customers, best suppliers, and suitable business partners across the globe.
 E-commerce helps organizations to reduce the cost to create process, distribute,
retrieve and manage the paper based information by digitizing the information.
 E-commerce improves the brand image of the company.
 E-commerce helps organization to provide better customer services.

5
Chapter-1 Introduction

 E-commerce helps to simplify the business processes and makes them faster and
efficient.
 E-commerce reduces the paper work.
 E-commerce increases the productivity of organizations.

BENEFIT TO CUSTOMERS:-
 Customers need not travel to shop a product, thus less traffic on road and low air
pollution.
 E-commerce helps in reducing the cost of products, so less affluent people can also
afford the products.
 E-commerce has enabled rural areas to access services and products, which are
otherwise not available to them.
 E-commerce helps the government to deliver public services such as healthcare,
education, social services at a reduced cost and in an improved manner

E-COMMERCE IN INDIA:
The birth and growth of Internet has been the biggest event of the century. E-commerce in
India has come a long way from a timid beginning in the 1999-2000 to a period where one
can sell and find all sorts of stuff from a high end product to a meager peanut online. Most
corporations are using Internet to represent their product range and services so that it is
accessible to the global market and to reach out to a larger range of their audience.

E-commerce development of comparison from 2014-2015:

Growing Internet penetration, entry of global majors, rise in smart phone adoption,
innovation in mobile technologies, access to funding, millennial consumers and digital
payments is fuelling the growth of the ecommerce market in the country. The report presents
a detailed overview of the Indian e-commerce space – its market size, growth, trends, drivers,
and market outlook. It also delves into the various business segments, with highlights on
growth, presence of start-ups, and future prospects. The report also showcases startups that
are emerging in niche segments of ecommerce and expanding the business opportunity.

6
Chapter-1 Introduction

Growth of e-commerce from 2016:

 The value of e-commerce in India is forecasted to boom from US$ 30 billion in 2016
to US$ 120 billion by the year 2020 due to its current Compound Annual Growth
Rate (CAGR) of over 51 percent per annum.
 This growth is fuelled by the younger generation, aged between 15 and 35 years who
account for a whopping 75 percent of purchases made online. Online retail sector
witnesses some 55 percent growth annually with 65 million unique visitors every
month.
 About 65 percent online shopping is for mobile phone handsets and fashion at 55
percent. Till 2016 end, about 25 million new Internet users were being added in
India. Over 65 percent of online purchases in 2016 were made using smart phones
and tabs.
 Post demonetization on November 9, 2016, this figure has increased exponentially
with shopping for groceries, paying insurance premiums and school fees as well as
other expenses moving to the digital platform.
 Growth of e-commerce from 2019:

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Chapter-1 Introduction

TOP 10 E-COMMERCE SITES IN INDIA IN 2019

1. Flipkart.com
This one has to come first hands down. The entire country is completely dependent on
Flipkart for nearly all their shopping needs. Flipkart sells everything from gift
vouchers to electronics to home appliances. In fact, statistics claim that there are more
items on flipkart than in a mall. Hence, Indians are heavily reliant on flipkart for all
their shopping needs.

2. Amazon.in
A large number of people from India swear by the services of amazon. Amazon and
flipkart are always at war with each other and are always at close heels. Amazon has
an equally large number of products as flipkart. In fact, Amazon apparently sells more
than flipkart. Since amazon is an American company, it lacks the desi taste that would
be preferred by an Indian. It would be wise to indianise its Indian domain. It would
then be an instant hit amongst the masses.
3. Snapdeal.com
Snapdeal is a completely Indian website and is often preferred by the masses for its
cheap rates. It sells products at really low prices and hence, is a favourite of the
masses. It is a good idea to buy from Snapdeal if you are looking for absolutely cheap
prices. However, there have been times when consumers have complained of the
products of Snapdeal and hence, some of them stay away from Snapdeal.
4. Jabong.com
Jabong is again an American brand but seems to be doing very well in India. It has a
large number of clothes and accessories for sale and is a complete paradise for those
who love shopping for clothes. It has all kinds of products from western wear to desi
kurtis and it would be fun to sit home and shop for clothes on Jabong. Jabong is
excessively preferred by women shoppers.
5. Myntra.com
Myntra also has a large number of accessories and clothes on its online portal. It has a
large number of categories as well and one can buy from a category of their choices.
From western to ethnic to traditional, all kinds of clothes are sold on Myntra.
6. Homeshop18

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Chapter-1 Introduction

This is an equally popular website amongst online shoppers. Those who do not mind
waiting a little extra for delivery at the reward of a lower price, order from here. A lot
of times, the cheapest of items and the remotest of items are easily found on
homeshop18.com. Thus, this site also has an equally large number of shoppers who
are loyalists. However, homeshop18 cannot be trusted when one is in an emergency.
You’d rather buy from one of the websites where they give express deliveries.
7. Shopclues.com
Shopclues is famous for their heavily discounted best shopping deals. Shopclues is
one of the best online stores that offers a wide variety of cameras, Computer
accessories, Mobile, Gift, Jewellery, Cosmetics, toys, clothes, books and bag.
8. Paytm.com
Started just as mobile recharge app, now Paytm become the Indian Alibaba. Provides
a number of services like mobile recharge, bill payments, tickets etc. along with a
variety of generic products. Paytm offers cashback with the discounts, that makes it
different from other shopping sites in India. Sometimes such cashback makes a big
difference and saves your extra money. PayTM has now launched PayTM Mall which
is equivalent to Amazon and Flipkart. You can go and shop anything on PayTM mall.
PayTM mall offers electronic items, shoes, bags, home décor, clothing for men and
women and many more products which are 100% authentic. Once, you do shopping
from PayTM mall then you will get cashbacks, these cashbacks can be used later to
process mobile recharges, pay bills and other stuff.
9. Voonik.com
Voonik is one of those sites that specifically focus on only women products. This
thing makes it more popular among women as compare to other fashion sites. The
products include Indian wear, western wear, lingerie & sleepwear, footwear, bags and
accessories, jewellery and beauty products. Voonik offers deep discounts on its
products along with cash back offers. Voonik was started in Bangalore with the vision
of being the personal stylist to every woman. It provides the free personalization
which is inbuilt in the app for its user.
10. Bigbasket.com
Bigbasket is the top grocery shopping site in India. From Bigbasket you can purchase
products under the category of grocery, household, personal care, gourmet, beverage,
dairy and fruit & veggie. It offers a wide range of top brands product. It additionally
offers up to 20% cash back on different debit and credit cards.

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Chapter-2 Literature Survey

CHAPTER 2
LITERATURE SURVEY

Prof. Ashish Bhatt (2014) in article entitled “Consumer Attitude towards Online Shopping in
Selected Regions of Gujarat” published in Journal of Marketing Management stated that
online shopping is gaining popularity among people specially the younger generation but in
today scenario to become equally popular among all age groups e-marketing will have to
cover a longer distance. As per study mode of payment is depended upon income of the
respondents. People from different age groups are doing online shopping regularly. The
attitude of consumers is changing with the time. In a country like India, consumers are
finding online shopping very comfortable because of many variables like cash on delivery,
customization or personalization of the websites, home delivery etc.

Prashant Singh(2014) in his article “Consumer’s Buying Behaviour towards Online Shopping
A case study of Flipkart.Com user’s in Lucknow City” published in Abhinav stated that
future of e-retailers in India is looking very bright. E-retailers give consumers the best way to
save money and time through purchasing online within the range of budget. Flipkart.com
offering some of the best prices and completely hassle-free shopping experience. The whole
concept of online shopping has altered in terms of consumer’s purchasing or buying behavior
and the success of E-tailers in India is depending upon its popularity, its branding image, and
its unique policies.

Upasana Kanchan , Naveen Kumar and Abhishek Gupta(2015) in their article “A Study of
Online purchase behaviour of Customers in India” Published in ICTACT Journal on
Management Studies stated that online shopping is gaining popularity among people of
young generation. Higher income groups and educated people are purchasing more via e-
retailing websites.

People have hesitations in doing online shopping due to security concerns. At the same time
people are resistant to change because of technological complexity in making online
purchase. Companies involved in online retailing should focus on building trustworthy
relationship between producers and customers.

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Chapter-2 Literature Survey

This study entitled, “Consumer Preference towards Online Shopping Sites in Tiruchirappalli
City” aims at finding out the preference of consumers in Tiruchirappalli City towards a
specific online shopping site, the reasons for preferring the specific site and the product that
they often buy online. In case they shop through multiple shopping sites, their preferences
towards the shops in their ranking order along with the attributes that support their preference
towards them are also analyzed. Their preferences towards shopping sites in terms of Quality,
Price, Greater Variety, Promotion, Delivery and Rectification of Compliant are also revealed.
The study also highlights the suggestions for enhancing online shopping experience.
Margherio (1998) studied that Internet and WWW have made it easier, simpler, cheaper and
easily accessible for businesses of all sizes and consumers to interact and conduct
commercial transactions electronically as compared with the traditional approach of using
private value-added networks.
Wyckoff (1997) Stated that Internet dramatically shrinks the distance between producers and
consumers, who can make their purchases directly without involving traditional „middlemen‟
such as retailers, wholesalers and distributors.
Hsin (2000) and Rowley (2000) stated that Electronic retailing over the Internet or online
shopping first started in 1994 and it is considered as one form of direct consumer marketing
of non-store retailing using online channels. This new concept of retailing has captured the
interest of many retailers and merchants because of the general recognition that online
shopping will establish itself as an alternative channel alongside traditional offline retail
channels such as physical retail stores (Rowley, 2000).
According to a study by Professor Rajiv Lal and Assistant Professor Miklos Sarvary of
Stanford Business School in Palo Alto, California, US, and (Legard, 1998) products that are
being marketed through the Internet can be classified into two groups.
The first group of products are items that consumers do not need to see in person before
purchasing. These products, which include everything from computers to compact discs to
canned goods, can be evaluated using just text, pictures and other digitally communicable
information. This group of products is ideally suited to online shopping whereby the Internet
could serve significant transaction and communication functions.
Based on the study conducted by AC Nielsen Research (Peterson et al., 1997, McGann 2004),
the reason why consumers shop online over the Internet is convenience. Convenience is the
most prominent factor that motivates consumers to shop online. The timing, location and
purchasing process through the Internet are much more superior to other traditional methods
of purchasing goods and services.

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Chapter-2 Literature Survey

According to (Hanson, 1999) the 24-hour availability of online storefront and accessibility
from almost any location makes online shopping more convenient to consumers and provides
consumers with a powerful alternative channel for making purchases. Online retailers are
able to offer cheaper prices because of the shrinking cost of information processing, lower
operating cost and global reach provided by the Internet (Rowley, 2000). Another main
reason that cheaper prices are offered to online shoppers is because of competitive pressure,
especially from new online retailers. New online retailers use price as a main competitive
weapon to attract customers (Hanson, 1999).
The presence of online stores today provides many changes in the buying behaviour of the
community. The online system makes it easy to communicate and approach customers
(Katawetawaraks & Wang, 2011). Wang et al. (2005) states that online stores are becoming
more fun for consumers as it comes to consumers 24 hours a day, 7 days a week. Online store
applications provide more benefits to consumers. Direct apps help consumers find their
options more easily. In addition, online applications help address issues such as security and
service guarantees to consumers. The interaction between the consumer and the application
system helps to cope with direct contact with the salesperson where some people prefer not to
interact with the salesperson (Parks, 2008). Online shopping apps can affect consumer
shopping preferences to use online shopping. In this drastically altered marketing context,
knowledge of demographic factor will lead to understand how the shopping preferences
affect market conditions. Marketing experts always pay attention to major factors such as
demographic, economic, socio-cultural, technological and environmental factors in an effort
to understand market conditions. Haver (2009) has shown that yearunger consumers are more
familiar and choose online shopping preferences. Richa (2012) evaluates more demographic
aspects and concludes that this preference is influenced by gender, age, income and marital
status. Therefore, demographic factors can affect consumers' preferences in shopping.
An adequate internet network is capable of bringing about revolutionary changes in the goods
and services market. Traditional perspective states that the market is essentially a meeting
place between the seller and the buyer (Wahyuni & Ginting, 2017), but with the rapid
development of internet, buying and selling no longer has to be done when the seller meets
directly with the buyer (Nugroho et al., 2017; Budiharseno, 2017). Along with the
development of technology, the understanding of the market began to shift. In the beginning
the market happens when the buyer and seller meet in person. The development of the era of
communication makes the market happen without having to meet directly, but through
telephone conversation. This activity developed into tele-marketing. Internet presence makes

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Chapter-2 Literature Survey

sellers and buyers do not have to meet directly, can even happen without any meaningful
interaction from the seller or buyer. The presence of an online store makes the buying and
selling process simpler. The seller markets the product information on the website or online
store, then the buyer can compare the product according to their needs or wishes and make a
purchase either in consultation with the seller or not. In the end, the internet presence in
marketing and online shopping has resulted in three beliefs, which are time-saving, cost-
effective and 'best match' to the desired product (Punj, 2011).
Attendance of online shops provides various facilities in the aspects of buying and selling.
Buyers can easily find information, make comparisons between alternative products and
stores in an effort to meet their needs and wants, as well as find the best alternative of all the
options available. The buyer does not even have to make purchases outdoors to buy the
products he wants from either the local shop or from any hemisphere. Katawetawaraks &
Wang (2013) point out that the ease of marketing communication provided by the online
market greatly influences consumer decisions in choosing to shop online. The conveniences
offered by online stores to consumers make online shopping grows rapidly, reaching even
231% in 2007 (Rose et al., 2011). Unfortunately, the presence of online stores also eliminates
those aspects that are quite important in the buying process in general. For example, a
prospective buyer can choose the fabric or outfit offered by the online store as well as the
availability of supplies for the various sizes available on the choice of clothing. They are even
possible to pre-order products that are not available. However, potential buyers lost the
chance to try the product before buying, to check whether the size of the clothes are in
accordance with his or her desire or not or cannot feel the quality of the fabric used
significantly before the transaction occurred. The presence of online stores makes buyers
have high expectations for the products they have purchased and can lead to discontent. High
expectations alone become a double-edged sword that can be both advantage and weakness.
Expectations, however, is closely related to satisfaction and loyalty (Teviana et al., 2017).
This can lead to satisfaction or dissatisfaction depending on the level of product evaluation
received. The slightest condition that no physical interaction occurs in online transactions
also makes it difficult to conduct consumer behaviour studies directly on online shopping
activities (Jiang et al., 2008).
A review of the side of online transactions shows that buyers generally have to pay first the
products they want to buy before the products are delivered to them. This is in contrast to
traditional markets where generally the handover of goods occurs simultaneously with the
handover of money to be paid (Wahyuni & Ginting, 2017). This gap makes the act of fraud in

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Chapter-2 Literature Survey

online transactions is quite high. In many cases, buyers receive goods that are not in
accordance with the goods they buy. Some cases that occur in online shopping community
itself occurs when purchasing pots online, goods received by consumers just cover the pan.
Good online stores accept complaints and fix existing errors, but not all behave the way they
do. Even the seller can simply close the store and open a store with a new name and a new
identity.
Online transactions on some online stores ask prospective customers to enter credit card
information that is very confidential (Nugroho et al., 2017). A good store will include third
party security on its site. However, such information may be misused by others who have
particular ability to process data information on the internet or by phishing, creating a similar
predatory site whose primary purpose is to gain access to personal information and commit
other crimes. In this aspect, trust plays a role in the smoothness of transactions on online
stores.
Lusiah et al. (2017) argue that beliefs can moderate behaviours that lead to a person's loyalty
level. Traditional markets (some call them offline stores today) and online stores each have
its own pros and cons, advantages and disadvantages. Until now, traditional markets are still
the choice of many people in the transaction behind the rapid growth of online market and
buyers who make online transactions. The main advantage of traditional markets is the strong
physical interaction that occurs between the seller, the buyer and the products offered. Direct
service becomes an important factor in shaping the decision and loyalty of the buyers (Lubis
& Lumbanraja, 2016). Today, shops that initially move on traditional markets are beginning
to switch and run online stores. This decision needs to be evaluated since not all consumers
prefer to conduct transactions online. The study of online shopping preferences by Vijay &
Balaji (2009) indicates that behind the ease with which online shopping is offered, people
still prefer to shop traditionally. Budiharseno (2017) identifies that although student
participation in shopping shows changes to online shopping, there are still many who still do
not choose to shop online at their own discretion.
Kim and Park (1991) stated that the consumers spend more time online for information
search and they also found that the Internet is easily accessible Price which is a part of the
marketing mix is a factor used to stimulate the consumer and is also communicator, to
negotiate and a competitive weapon. The consumer can use price as a means to compare
products, judge relative value for the money, and the judge quality of products. It is estimated
that this factor has a considerable influence on the consumers during their online shopping
Brassington & Pettitt (2000). Wang and Emuian (2004) defined online shopping as buying

16
Chapter-2 Literature Survey

stuff through the internet. The items are usually sent to the buyer‟s door step that you have
purchased online. Sharma and Mittal (2009) said that India is showing tremendous growth in
the Ecommerce, in their study “Prospects of e-commerce in India”. Online shopping shows
unlimited potential in India with the population of millions of people. E-commerce has
become an integral part of our daily life and it is a common word in Indian society with
websites providing a number of goods and services. Some of these portals provide specific
product along with its allied services. Solomon, 1998 in his study “Consumer behavior is the
study of the processes involved when an individual selects, purchases, uses or disposes of
products, services, ideas, or experiences to satisfy needs and desires”

Objectives of the Study:

1. To identify the gender that mostly prefers the online shopping sites.
2. To trace the age group mostly preferring online sites.
3. To exhibit the preferred online site and the reason for the preference.
4. To measure the satisfaction level of the users.
5. To offer suggestions for enhancing the consumers online shopping experience.

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 Chapter-3 Resarch Methodology

CHAPTER 3
RESEARCH METHODOLOGY
3.1 INTRODUCTION
The main source for this study is the primary data. Primary Data has been collected from one
hundred respondents residing in Gurgaon city to identify their preferences towards online
shopping sites. Simple random sampling Technique has been adopted to select the one
hundred respondents. Collected data have been Classified, Tabulated and Analyzed. Chi-
Square test of significance has been used to test the Hypotheses Formulated.
Hypotheses:
Collected Data have been Cross classified to test the association between the variables that
are reflected in the Hypotheses mentioned below:

1. H01: There is no association between the age of the respondents and the frequency of
visit.
2. H02: There is no association between gender and frequency of visit.
3. H03: There is no association between gender and availing promotional offer.
4. H04: There is no association between age group of the respondents and their
preference for the products.

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Chapter-4 Analysis & Interpretation

CHAPTER 4
ANALYSIS & INTERPRETATION
Table 1 Preferred Online Shopping Sites
Sites Number of Respondents
Amazon 36
Snap Deal 12
Flip kart 26
Shop Clues -
EBay -
Jabong 5
Myntra 2
Napptol 11
First Cry 4
Lens Kart 4
Total 100

Source: Primary Data

This table shows the preferred online shopping sites of the respondents. 36% of the
respondents prefer Amazon as their shopping site. 26% of the respondents prefer Flip Kart.
12% of them prefer Snap Deal and 5% of them prefer Jabong as their Shopping Sites. None
of them choose Shop Clues and EBay as their shopping sites.

Table 2 Reasons for Visiting Online Sites

Reasons Number of Respondents
Time Saving 22
Convenience 4
Availability of Different Varieties 41
Lower Price 11
Offer 18
Easier Mode of Payment 4
Total 100

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Chapter-4 Analysis & Interpretation

Source: Primary Data

Table 2 gives the reasons for visiting online sites. 41% of the respondents prefer online
shopping due to availability of different varieties. 22% of them prefer online shopping due to
its time saving nature. 18% of the respondents like the offer given by the online shops. 2% of
the respondents have assigned both reasons viz., Different Varieties and Offer as the
motivational reason for visiting online sites.

Table 3 Frequency of Visiting Online Sites

Frequency Number of Respondents
Daily 2
Weekly 12
Fortnightly 2
Monthly 12
As & When Needed 72
Total 100

Source: Primary Data

Table 3 shows the frequency of visiting online sites. Majority (72%) of the respondents visit
online site whenever they need. 12% of them visit weekly and another 12% visits online sites
monthly. Finally, 2% of them visit online daily and another 2% of the respondents visit the
online shopping sites fortnightly.

Table 4 Products Preferred through Online Sites

Products Number of Respondents
Clothes 19
Books 6
Shoes 10
Spectacles 2
Beauty Items 6
Watches 13
Fancy Items 10
Electronic Items 17
Groceries -
Durable Items 2
Others 15
Total 100

Source: Primary Data

50
Chapter-4 Analysis & Interpretation

Table 4 shows the products that are preferred through online shopping sites. 19% of the
respondents prefer Clothes through online. 17% of them prefer Electronic items, 15% of them
prefer Other Products like Curtain, Baby products, Plastic Items, Steel Dryer, Stationery
Items, Jewellery, Back Pack etc.,

Table 5 Received the Items within the time specified by the site
Opinion Number of Respondents
Yes 76
No 24
Total 100

Source: Primary Data

Majority (76%) of the respondents received their products within the time specified by the
site and 24% of them do not receive their items within the time specified by the site.
Table 6 Non-Compliance of the Product with the Description
Opinion Number of Respondents
Yes 58
No 42
Total 100

Source: Primary Data

58% of the respondents found some complaint in their products purchased and 42% of the
respondents did not find any complaint on the products purchased through online shopping
sites.
Table 7 Nature of Complaint
Nature of Complaint Number of Respondents Percentage of Respondents
Quality 20 35%
Price 8 13%
Color 18 31%
Packing 12 21%
Total 58 100%

Source: Primary Data

51
Chapter-4 Analysis & Interpretation

Table 7 highlights information about the nature of complaint of the products purchased
through online shopping sites. 35% of 58 respondents have complaint on the Quality of the
products purchased. 31% of 58 respondents have complaint on the color of the products. 21%
of 58 respondents have the complaint about the packing of the product and 13% of 58
respondents complaint about the price of the products purchased.

Table 8 Site in which the Problem was encountered

Sites Number of Respondents Percentage of Respondents
Amazon 18 31%
Snap Deal 4 7%
Flip kart 14 24%
Shop Clues - -
EBay - -
Jabong 2 3%
Myntra 4 7%
Napptol 16 28%
First Cry - -
Lens Kart - -
Total 58 100%

Source: Primary Data

Table 8 shows the site in which the problem was encountered. Majority 31% of 58
respondents faced the problem in Amazon. 28% of 58 Respondents had problem in Napptol.
24% of 58 respondents encountered the problem in Flip Kart. 7% of 58 respondents faced the
problem in Snap Deal and another 7% of 58 respondents faced in Myntra. And finally 3% of
them faced problem in Jabong shopping site.
Table 9 Order Accepted just on a Single Visit
Opinion Number of Respondents
Yes 84
No 16
Total 100

Source: Primary Data

52
Chapter-4 Analysis & Interpretation

Table 9 gives the information about the Acceptance of the Order on Single Click. Majority
(84%) of the respondents’ order has been accepted just on a single visit. 16% of the
respondents’ order has not been accepted in a single click.

Table 10 Comfortability of Existing Mode of Payment

Opinion Number of Respondents
Yes 90
No 10
Total 100

Table 10 shows the information about the mode of payment in Online Shopping Sites.
Majority (90%) of the respondents feels comfortable in with the existing mode of payment
and 10% of them feel some discomforts in existing mode of payment.

Table 11 Availed Promotional Offer in the Selected Sites

Opinion Number of Respondents
Yes 82
No 18
Total 100

Source: Primary Data

The above table gives the information about availing Promotional Offers in the selected sites.
82% of the respondents availed promotional offer in the shopping sites and 18% of the
respondents have not availed any promotional offers in the selected shopping sites.

Table 12 Impact of Promotional Offer on the Quantity of Purchase

Opinion Number of Respondents
Increased the Quantity 58
Not Increased the Quantity 42
Total 100

Source: Primary Data

58% of the respondents Quantity of purchase have been increased due to Promotional Offers
but 42% o the respondents Quantity of purchase are not influenced by the Promotional
Offers.

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Chapter-4 Analysis & Interpretation

Table 13 Degree of Satisfaction Level

Opinion Number of Respondents
Highly Satisfied 18
Satisfied 58
Neutral 10
Dissatisfied 14
Highly Dissatisfied -
Total 100

Source: Primary Data

The above table shows the Degree of Satisfaction Level of the Respondents. Majority (58%)
of the respondents are satisfied with online shopping sites, 18% of them are highly satisfied
with the online shopping sites, 14% of them are dissatisfied and 10% of them are neutral in
expressing their opinion with the online shopping sites.
Cross – classified data are shown in the following Tables to test the hypotheses
formulated.
Options Specific Intervals As & When Needed Total
15 – 25 22 50 72
25 – 35 4 22 26
Above 35 2 - 2
Total 28 72 100

Source: Primary Data

Cross Table 2
Frequency of Visit
Options Yes No Total
Male 22 6 28
Female 58 14 72
Total 80 20 100
Gender

Source: Primary Data

Cross Table 3
Frequency of Visit
Options Yes No Total
Male 22 6 28
Female 58 14 72
Total 80 20 100
Gender

54
Chapter-4 Analysis & Interpretation

Source: Primary Data

Cross Table 4
Age of the Respondents
Options 15–25 25–35 Above 35 Total
Durable Items 24 4 2 30
Electronic Items 26 8 - 34
Beauty Items 12 8 - 20
Fancy Items 10 6 - 16
Total 72 26 2 100

Source: Primary Data

Results of Hypotheses Testing
H0 Table Calculated Degree of Freedom Significance Remark
Value Value Ʋ0.05 Level
H01 5.991 5.989 2 5% Accepted
H02 3.841 0.006 1 5% Accepted
H03 3.841 0.050 1 5% Accepted
H04 12.592 11.964 6 5% Accepted

Source: Primary Data

55
Chapter-5 Findings and Suggestions

CHAPTER 5
FINDINGS AND SUGGESTIONS

5.1 FINDINGS
 There are 72% of the Respondents are Female.
 Majority (56%) of the respondents are found in the age group of 20-25 years.
 36% of the respondents Prefers Amazon.
 41% of the respondents prefer due to Availability of Different varieties.
 Majority (72%) of the Respondents visit Online Site whenever they need. 19% of the
respondents prefer Clothes to buy through online.
 Majority (76%) of the respondents received their products within the time specified
by the site.
 58% of the respondents found some complaint in their products purchased.
 35% among 58 respondents has complaint on the Quality of the products purchased.
 Majority 31% among 58 respondents faced the problem in Amazon.
 Majority (84%) of the respondent’s order has accepted just on a single visit.
 Majority (90%) of the respondents feel comfortable in Existing Mode of Payment.
 82% of the respondents Availed Promotional Offer in the Shopping sites.
 58% of the respondent’s Quantity of purchase has been increased due to Promotional
Offers.
 86% of the respondents were satisfied with shopping in the selected sites.
 Majority (58%) of the respondents has Satisfied with online shopping sites.
 There is no association between the age of the respondents and the frequency of visit.
 There is no association between gender and frequency of visit.
 There is no association between gender and availing promotional offer.
 There is no association between age group of the respondents and their preference for
the products.

67
Chapter-5 Findings and Suggestions

Tips for safe and secure shopping:

 Before giving payment information, consumers should check for indicators that
security software is in place i.e., must ensure that the internet connection is safe.
 Credit cards are the safer choice for online shopping.
 Must be extra careful while using a mobile device.
 Must ensure that the order checkout area is encrypted. Before purchasing anything
from a website, verify that the vendor has encrypted the payment form.
 Strong passwords must be used by the consumers.
 Look for web addresses with https:// indicating extra measures to help secure
information.

5.2 SUGGESTIONS FOR ENHANCING ONLINE SHOPPING EXPERIENCE

 Search for more varieties to get the best products.
 Download the Application to get more Offers.
 Spent some time to search for various offers to get a good deal.
 Read the reviews of the customers before placing the order.

68
 References

REFERENCES
1. Prof.Ashih Bhatt(2014), Consumers attitude towards online shopping in selected
region of Gujarat, Journal of Marketing Management, ISSN-2333-6080,Vol.-02,No.-
02.
2. Prashant Singh (2014),Consumers buying behavior towards online shopping,
ABHINAV-National Journal of Research in Commerce and Management, ISSN-
2277-1166,Vol –III.
3. Upasan Kanchan(2015), A study of online purchase behavior of Consumers in India,
ICTACT Journal of management Studies, ISSN 2395, Vol-01,Issue-03.

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