PROJECT REPORT

On
CONSUMER BEHAVIOUR ON ONLINE SHOPPING
SUBMITTED TO THE

SCHOOL OF MANAGEMENT STUDIES

IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS OF

THE DEGREE OF
BACHELORS OF BUSINESS ADMINISTRATION
Under the Supervision

Of

Mr. Sandeep Bisht

Graphic Era Hill University, Bhimtal (Nainital),

Uttarakhand (2018-2021)

Mr.Sandeep Bisht Submitted By-

Bharat Sah
BCOM(HONS) VI

Roll No.- 2091207

Enrolment No.- PV-18910207

 TABLE OF CONTENTS

S. No. Particulars Page number

Preface i

Acknowledgement ii

Abstract/ Executive summary iii

Declaration by the supervisor iv

Declaration by the student v

Student supervisor interaction certificate vi

CHAPTER-1 INTRODUCTION

1. Introduction

1.1. Changing Attitude Towards Online Shopping

1.2. The increase of Internet shopping

1.3. Rise of online shopping in India

1.4. Few facts about online shopping

1.5. Incredible Trends of online shopping among the shoppers

1.6. Online shopping in India gives you enticing experience

CHAPTER-2 REVIEW OF LITERATURE

2. Review of Literature

CHAPTER-3 ABOUT STUDY

3.1. Need of the study

3.2. Objective of the study

3.3. Scope of the study

3.4. Limitations of the study

CHAPTER-4 RESEARCH METHODOLOGY

4.1. Research Strategy

4.2. Descriptive research method

4.3. Sample Design

CHAPTER-5 DATA ANALYSIS (FACTOR ANALYSIS THROUGH PAI

CHARTS)

5.QUESTIONS (1-10)

CHAPTER- 6 SUMMARY ,CONCLUSION ,REFERENCE &

RECOMMENDATIONS

6.1. Summary

6.2. Conclusion

6.3. Recommendations

6.4. Reference

QUESTIONNAIRE

PREFACE
 The field of consumer behavior is young, dynamic and in flux. It is constantly
being cross-fertilized by perspectives from many different disciplines. The
essence of contemporary marketing concept is that all elements of business
should be geared towards satisfaction of consumers. This requires a thorough
understanding of consumer behavior and buying motivations. Without such
insights, marketers will fail to segment markets effectively and design strategies
for an effective penetration into the defined market segments. The adoption of
the consumer focus is in fact the real difference between the traditional concepts of
selling and the modem concept of marketing. Online shopping has obtained very
important position in the 21st century as most of the people are busy, loaded with
hectic schedule. In such a situation online shopping became the easiest and most
suitable mode for their shopping. Internet has changed the way of consumer’s
store, and has rapidly developed into a global perspective. An online shop arouses
the physical similarity of buying products as well as services from internet shop
and this process of shopping is called business-to-consumer online shopping. The
present paper is based on assumption of classical model behavior. This report
examines the behavior and perception of online customers
 Acknowledgements

I express my deep sense of gratitude to Mr. Sandeep Bisht(Project guide) under

whose talented guidance, the present study was channeled to the goal of success.
From my heart and soul I am very thankful to my project guide for providing
information regarding the project and also her support in completing the project.

Last but not least, I thank my family, my teachers and my friends for helping me in
their own ways during the entire duration of the project.

Bharat Sah
BCOM(HONS) VI
Executive summary

The growing use of Internet in India provides a developing prospect for online
shopping. If E-marketers know the Factors affecting online Indian behavior,
and the relationships between these factors and the type of online buyers,
then they can further develop their marketing strategies to convert potential
customers into active ones, while retaining existing online customers.

This project is a part of study, and focuses on factors which online Indian
buyers keep in mind while shopping online. This research found that
information, perceived usefulness, ease of use; perceived enjoyment and
security/privacy are the five dominant factor s which influence consumer
perceptions of Online purchasing.

Consumer behavior is said to be an applied discipline as some decisions are

significantly affected by their behavior or expected actions. The two
perspectives that seek application of its knowledge are micro and societal
perspectives.

The online purchasing behavior of online shoppers and factor influencing

online shopping behavior and its future perspective. Internet is changing the
way consumers shop and buy goods and services, and has rapidly evolved
into a global phenomenon. Many companies have started using the Internet
with the aim of cutting marketing costs, thereby reducing the price of their
products and services in order to stay ahead in highly competitive
markets. Companies also use the Internet to convey, communicate and
disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not
only to buy the product online, but also to compare prices, product features
and after sale service facilities they will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of
online business. In addition to the tremendous potential of the E-
commerce market, the Internet provides a unique opportunity for
companies to more efficiently reach existing and potential customers.
Although most of the revenue of online transactions comes from
business-to-business commerce, the practitioners of business-to consumer
commerce should not lose confidence. It has been more than a decade since
business-to-consumer E-commerce first evolved. Scholars and practitioners of
electronic commerce constantly strive to gain an improved in sight into
consumer behavior in cyberspace. Along with the
development of E-retailing, researchers continue to explain E-
consumers behavior from different perspectives. Many of their studies have
factors or assumptions which are based on the traditional models of
consumer behavior, and then examine their validity in the Internet context.
 CERTIFICATE OF SUPERVISOR (GUIDE)

It is Certified that the work incorporated in this Project Report Consumer Behaviour
On Online Shopping submitted by Bharat Sah is his original work and is
satisfactorily complete under my supervision.

Material obtained from other sources has been duly acknowledged in the Project

Report.

Date :

Signature of Guide :
 DECLARATION BY THE STUDENT

This is to declare that I have carried out this project work myself for in partial
fulfillment of the requirements for the degree of bachelors of business administration
Program of Graphic Era Hill University, Bhimtal.
The work is original, has not been copied from anywhere else and it has not been
submitted to any other University/Institute for an award of any degree/diploma.

Date :

Place :

Name :

Signature :
 STUDENT AND SUPERVISOR INTERACTION CERTIFICATE

The certificate verifies that student has visited the supervisor and the corrections
indicated in the report are modified and verified by the student through supervisor. The
details of visit, remarks and modifications are mentioned below;

S.No Project Discussion Area/Remarks Modification Signature with

date (
Supervisor)
1

Signature

HOD
 Chapter-1

INTRODUCTION

1. Introduction

Internet is changing the way consumers shop and buy goods and services, and has
rapidly evolved into a global phenomenon. Many companies have started using
the Internet with the aim of cutting marketing costs, thereby reducing the
price of their products and services in order to stay ahead in highly
competitive markets. Companies also use the Internet to convey communicates
and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not
only to buy the product online, but also to compare prices, product features
and after sale service facilities the will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of online
business. In addition to the tremendous potential of the E-commerce market, the
Internet provides a unique opportunity for companies to more efficiently
reach existing and potential customers. Although most of the revenue of
online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence . It
has been more than a decade since business-to consumer E-commerce first
evolved. Scholars and practitioners of electronic commerce constantly strive
to gain an improved insight into consumer behavior in cyberspace. Along
with the development of E-retailing, researchers continue to explain E-
consumers behavior from different perspectives. Many of their studies have
posited new emergent factors or assumptions which are based on the
traditional models of consumer behavior, and then examine their validity in
the Internet context.

1.1 Changing Attitude towards Online Shopping:

“Awareness, Future Demand Focus for Emerging Markets & Current Issues”
Malls springing up everywhere and yet people are E-shopping . And not in
small numbers either. Consumers are more rational nowadays and have
ability to get the choices from the market. Awareness among the consumers is
spread through internet. The number of internet users is increasing day by
day which attracts people who have an option to buy online. It was never
thought that Indians would go in for e-shopping in such a big way.
Ticketing, travel bookings and even books and movies seem fine to buy online.
Knowing that in India sizes vary from brand to brand and quality is
inconsistent, even of some electronic items, how is it that there are people
buying these items online? In India there are some segments of people who
have not yet tried purchasing over internet.

1.2 The Increase of Internet Shopping

Internet shopping is shaping up. However today, internet shopping is a really

significant part of the retail sector. Internet shopping is the new shopping
experience of the future. Of course the other major hurdle for internet shopping is
shipping charges, sometimes they are too expensive. The growth rate for Internet
shopping is growing. Secure internet shopping is secure using encryption and SSl
techniques. Internet shopping is easier, safer, and more convenient than at any
point in its history. Internet shopping is fast becoming one of the easiest ways to
buy almost anything you want. Internet shopping is a way of shopping that allows
shopping for required products without going to the store physically. The Internet
is great because people are able to shop 24 hours a day without having to leave
their home or work. The Internet is changing the wholesale/retail landscape daily.
In today's market the shopping sector is taking about a tenth of all retail shopping
sales in the US, and the percentage in other countries is not as high. One reason we
use the internet is to buy merchandise at a discount to retail. One of the biggest
benefits of shopping online is the convenience and access to more products and
information 24 hours a day 7 days a week. Note that blocking all cookies prevents
some online services from working, so you must allow cookies on your browser.
Nearly 40 percent of remote workers said they use their work computers for
Internet shopping. Be a smart shopper and use common sense when online
shopping and just go ahead and enjoy your Internet shopping experience today.
The more people that shop online, the bigger their expectations. The supermarket
industry now services many customers through online food shopping over the
Internet. We understand that shopping online can feel risky and uncertain.

1.3Rise of Online Shopping In India

E-commerce is seeing a steep rise according to Assocham (Associated Chambers

of Commerce & Industry of India). Two metros (Delhi and Mumbai) are driving
this growth with each contributing 24% and 20% of the E-sales log on share
respectively! A major reason why metros are contributing to e-shopping growth is
the literacy rates and the cities’ internet savvy population. In cities like Delhi
safety could also be a major cause! It’s very surprising that Bangalore being the IT
Hub of the country contributes a very meager 6%. They have also predicted that
ecommerce will cross 9000 cores by March 2008. There are many online shopping
portals like http://www.futurebazaar.com and http://www.indiaplaza.in where
consumer durables are sold but they have no option to shop for groceries online!
Speaking of groceries, it has got over 3000 products in this segment alone! That’s
like WOW! Interestingly, it also offers 24 hours delivery for all products, bettering
the delivery services provided by other Online shopping portals. It provides
customers with the option of swiping their credit/debit cards at the time of
delivery! Stores representatives carry a mobile enabled point of sale device to the
customer's door step to make this happen. This seems to be a brilliant option as
customers can now get to know what groceries they are actually buying before
finalizing the bill!

1.3.1Few Factors That Boost Online Shopping in India

➢ Rapid growth of cybercafés across India

➢ Access to Information
➢ The increase in number of computer users
➢ Reach to net services through broadband
➢ Middle-class population with spending power is growing.

There are about 200 million of middle-class population good spending powers.
These people have very little time to spend for shopping. Many of them have
started to depend on internet to satisfy their shopping desires
1.3.2 Other Advantages of Online Shopping India Include:

➢ You can read other users' reviews and take ideas about the product you want
to buy.
➢ You can save a lot of your time and money as you are not moving outside
your home .

Thousands of websites related to online shopping in India have been designed to

fulfill the needs of different customers. The manifold benefits that you get are
simply incredible. Many leading online stores are offering products at discounted
rates in order to promote their products among people across the world.

1.4 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to
200 million by 2010. Around 25% of regular shoppers in India are in the 18 -
25 age groups, and 46% are in the 26 -3 5 year range. Indian online matrimonial
sector is worth around $230 million Worldwide E-commerce is only growing at
the rate o f 28%, since India being a younger market, the growth of
ecommerce is expected at 51% in the coming years.

In line with global trends finally India has also started shopping Online
these days. As per the study by IAMAI online shopping in India has rose
from $11 million in 1999 2000 to $ 522 million in 2007 and it is expected to
rise above $70 0 million by end March 2010.

1.5 Incredible Online Shopping Trends among The Shoppers

Online shopping has become a craze not only in India but also in various Western
Europe cities and if experts are to be believed, the rave is a steady phenomenon for
the five years down the line. Before sinking in the surveys and statistics, let we get
an idea that why online shopping is getting popular by each passing day in the
global continents. Emerging prevalence of internet, growing economies and
improved purchasing power of people have made online shopping a household
phenomenon. All you have to do here is to select a product here of your choice,
place your order, pay your amount via debit or credit card and within a week time
that item will be your doorstep. In the status report of several authorities, the
trend of online shopping and integrated sales has been increased by an incredible
amount of 123.1 billion Euros in the coming three years. In the same foray, a
combined annual online shopping growth rate is improved by a huge percentage of
9.6%-11% all across.

A number of factors have accelerated the growth of online shopping growth in the
countries including:-

❖ Improved mail order retailing

❖ High population density
❖ Extensive array of product categories
❖ above-average confidence in online security
❖ wide variety of payment options

1.6Online Shopping in India Gives You Enticing Experience

It is a very simple and easy way to buy a lot of products through online shopping
in India. In fact, these stores offer various payment options as per the customer's
suitability. Simultaneously, you can compare the product's price and features from
among products being offered at several online shopping stores in India. India has
been a dominating power in the world of online shopping in the recent times and is
widely known for its niche reputation in the global arena. It is all due to its far
reaching excellence in the field of online marketing that has managed it to gain a
competitive edge over its close competitors. Alongside, it is also heavily
responsible for bringing about an unprecedented boom in the field of online
marketing. Online shopping in India is a very simple and easy way as whatever
you like to buy, you can order online and receive at your doorsteps.

While opting for online shopping in India, you can seek valuable advices and
suggestions from your family and friends. Alternatively, you can simply ascertain
your requirements, look out for the product over the Internet that caters best to
your requirements and buy the one that is available at the most reasonable cost.
Online shopping India is highly preferred by countless people, since it not only
enables them to shop in the comfort of their homes, but it also gives them due
value for their money along with safe and secure payment modes such as PayPal,
credit card and more.

Information related to costs, features and specifications of numerous items

including baby products, jewelry, health equipments, mobile phones, computer and
myriad of other electronic devices are provided on various websites. For making
your online shopping experience the best and most satisfying one, you can browse
through innumerable websites that offer all these and many more products. You
can compare products from multiple online shops and buy the one or more that suit
your requirements at the most competitive rate. If you want to make any query,
there is nothing to worry about as some reputed online shops may also offer 24X7
online support to their customers to solve their queries.
 Chapter-2

REVIEW OF LITERATURE

2.Review of literature

Petrovic Dejan (2006) in his study on Analysis of consumer behavior online

explained that the most relevant behavioral characteristics of online
consumers and examine the ways they find, compare and evaluate product
information. Comparison of the newly collected survey data with the existing
consumer behavior theory resulted in detection of a number of issues related to
a specific consumer group. The purpose of this report is to translate these
finding s into a set of implementation activities on strategic and technological
level. Execution of these recommendations will result in better conversion of
visitor s into customers and encourage customer loyalty and referrals .The
focus group of this study will be young adults aged between eighteen and
thirty -four interested in buying a mobile phone or a related product .

Shun & Yunjie (2006) in their study showed that there are product types,
which are more likely to be sold online such as software, books, electronics
and music. Reason for this is that when purchasing these types of products,
one does not require personal inspection and most, if no t all features, can
be outlined in the product description and images. Most products in the
mobile phone family belong to this category. Accor ding to the recent
research on consumer behavior on the Internet users there are four distinct
consumer groups with different intention s an d motivation : Exploration,
Entertainmen, Shopping& Information.

Music Videos, Lyrics - Daily updated collection of music videos an d lyrics.

Majority of young adults interviewed for purpose of this research tend to be
active information seekers. A high level of technological confidence within
this group tends to be an encouraging factor when it comes to product
information research online .The following analysis presents both, focus
group results and behavioral theory in a parallel fashion divided into two
main research topics: Information Retrieval and Search Patterns Perception of
Product Information Online These two areas is mutually dependent and
particularly important in a market where consumers have the power to
choose the right product from a number of competing suppliers . Well-
structured product information that cannot be found easily online is as much
of a problem as is having easily accessible information that does not meet the
consumer's expectations.

Anders Hasslinger ; Selma Hodzic ; Claudio Opazo (2008-02-01) in their study

they showed that developed into a new distribution channel and online
transactions are rapidly increasing. This has created a need to understand how
the consumer perceives online purchases. The purpose of this dissertation was
to examine if there are any particular factors that influence the online
consumer. Primary data was collected through a survey that was conducted
on students at the University of Kristianstad . Price, Trust and Convenience
were identified as important factors. Price was considered to be the most
important factor for a majority of the students. Furthermore three segments
were identified, High Spenders, Price Easers and Bargain Seekers. Through
these segments we found a variation of the different factors importance and
established implications for online book stores.

Harris Interactive ( 2009) in their study of online customer experience. The

survey found that online customer experience reached an inflection point in
2009. The percent of consumer s who have experienced problems when
conducting transactions online showed its first substantial decrease in five years
from approximately 87% in all previous Tealeaf surveys to 80% in 2009.
While the percent of consumers experiencing online transaction problems, at
80%, remains high (the potential online shopping dollars impacted by
transaction problems rings up at $47.6 billion), this improvement points to a
growing business focus on delivering better customer experiences. The survey
sheds light on forces driving this accelerated online customer experience
focus, including the down economy and increased consumer power due to
experience-sharing via social media. It also examines consumer behavior when
transacting online, call center behavior elated to online issues and mobile
commerce. Verticals represented in the findings include retail, insurance, travel
and financial services.
San Francisco, CA – 6th October 2009 - the leader in online Customer
Experience Management software (CEM), today announced the results of the
5th annual survey of on line consumer behavior, commissioned by Tealeaf
and conducted by Harris Interactive® [results available at
www.tealeaf.com/Harris]. The survey found that 48% of U.S. online adults say
that they are now conducting more on line transactions than they did in the
past given the current economic climate. However, 80% of adults who have
conducted an online transaction in the past year experience problems when
doing so in 2009. Previous Tealeaf surveys have consistently shown that
approximately 87% were affected .

This improvement over prior year s may be attributed to a growing business

focus on delivering better online customer experiences. While this reported
decline in on line transaction issues is good news, online customer experience
is still very much a work in progress. The percentage of consumers affected
by issues such as error messages (38%), endless loops (19%) and login
problems (28 %) is still extremely high. Further the 1resulting business impact
is significant, as 32% of those who experience issues when conducting
transactions online would simply take their business elsewhere (to either an
online or offline competitor) or abandon the transaction entirely. In 2009,
$47.6 billion will potentially be impacted by online transaction problems, on
U.S. shopping websites alone.

Bikramjit Rishi (2010) in their study on Online shopping is an innovative

option of distribution available in the hands of marketers. It is innovative an
d creative because marketers can experiment with it in form, content,
visibility and availability. In India online shopping is considered as a relevant
alternative channel for retailing and it is now an important part of the retail
experience. This research study is an empirical study to find out the
motivators an d decisional influencers of online shopping. The sample has
been selected from the youth population as this group of people actually
use internet to buy online. The study highlights that reliability; accessibility
and convenience are the major motivator factors which motivate the Indian
consumer to buy online. Similarly, reluctance and preference are the two
decisional factors which in fluence the decision.

Kamali and Loker (2002), in their study Intern et retail sales represent a new
and increasingly vital commercial milieu. Ecommerce or electronic commerce
saw sales revenues grow 12 .1 percent in 2001 to $ 31.4 billion a figure
expected to reach $ 81.1 billion by 2006 ( Kamali & Loker, 20 02). While it is
clear that many more consumers are electing to shop online than in the past
a shift in behavior that may be due to the sense that online shopping is
safer and more secure than it was initially and to the adoption of alternative
shopping avenues. This essay will examine these issues, arguing that browsers
become buyers in cyberspace as perception of safety, product quality, and
retailer reliability increase an idea also advanced by Li, Lu o, Lepkowaska-
White and Russell .

Atanasov (2001) in their study it is anticipated that the worldwide mark et for
business-to-business and business-to-consumer e-commerce will total $3.1
trillion in 2004 as compared to $ 350.4 billion in fiscal 2000-2001. Among the
most profitable products and services sold online are consumer goods such as
books, videos, music, computers and other tech products, and travel
(Schmerken, 2001). Other profitable sectors include investment transactions,
which Schmerken (2001) considers to have generated a wave of corporate
spending on ecommerce. The Internet and its myriad e-commerce or
marketing sites, represents what researchers believe to be the security concerns
of online shoppers and potential shoppers. These researchers and others reported
that online buyers are also concerned about security issues when making
online purchases. Though many consumer concerns regarding the inherent
safety of financial transactions online have been resolved through the
development of sophisticated encryption programs, many consumers require
additional assurance that their financial data will be held in confidence.
Other security issues that were identified by Mauldin and Arunachalam
(2002) focus on retailer disclosures, information risk, product risk, and
familiarity with the retailer and the product. Generally, Mauldin and
Arunachalam (2002) found that intent to purchase rather than merely browsing
online increases in direct association with a sense of security and comfort.
Retailers who offer their products online are therefore advised to emphasize
product disclosure and retailer disclosure and reduced information risk in
their e-commerce sites. Though most online retailers do provide clear
descriptions of security procedures, some Internet shoppers still avoid using
credit cards online. Overcoming resistance to this fear is one of the key tasks that
must be under taken.

Ogenyi Ejye Omar, Alan Hirst (2006) in their study they evaluates
women's attitude as an overall inclination towards apparel shopping online
via e-mail questionnaire. Its findings suggest that women generally show
positive attitudes towards shopping online for apparel. Women who shop for
apparel online are aware of some of the discouraging features of online
shopping, but these features do not deter them from buying online. The
implication for online retailer s is that they should focus on making the experience
of online shopping more accommodating and more user -friendly. This is
important because the positive features of online shopping ('convenience',
'usefulness', 'ease of use', and 'efficiency') appear to be more important than
the negative features ('lack of security', 'privacy of information' and 'online
fraud').

Ruiliang Yan, John Wang (2009) in their research it provides a useful framework
to help business marketers identify the effect of consumer online purchase
costs on firm performances in online and traditional channel competition. A
game theory model is developed to determine the optimal strategies for
online and traditional retailers. We demonstrate that consumer online
purchase costs always have a valuable impact on firm profits, and further
show that consumer online purchase costs always have a much more valuable
impact on firm profits whenever the traditional retail transaction costs and
the product web-fit change. We also find that consumer online purchase costs
have a greater impact on the retailer's profits in a Stackel berg competitive
system than in a Bertrand competitive system. Based on our results,
managerial implications are discussed and probable paths of future research are
identified.

Scott M. Smith, Chad R. Allred, William R. Swinyard(2008) in their

research paper they discusses online shopping in context of diffusion of
innovation theory. It proposes that online shopping is a discontinuous
innovation whose adoption rate is influenced by several of Rogers' (2004)
diffusion deterrents. A new 12 -item 'Computer Competence Index' (CCI) is
proposed and tested using data from an intern et-administered US probability
study of 1800 online users. E-Shoppers are profiled using a tertile split of
the CCI . Each textile’s demographics, computer activities, computer-oriented
lifestyles, and online purchase activities are reported. Evidence is presented
that concepts related to the diffusion of innovation may explain resistance in
the growth of online shopping A.M. Sakkthivel (2009) in their research
paper aims to identify the impact of demographics on consumer buying
behavior towards online purchase of different products based on the
involvement and investment (High , Medium and Low). It attempts to unearth
the impact of the demographics on online purchase which is at present
relatively limited. It would help the marketers to identify the demographic
profile of consumers which is otherwise not known due to the intangible
nature of internet. The findings would help the marketers to design their
offerings based on the demo graphic profile of online consumers and would
help the online marketers to identify and segment the online consumers which
will enhance their focus and eventually leads to financial growth.

Jianwei Hou, Cesar Rego (2007) in traditional auctions, it is often in their

study assumed that bidders are a homogenous group. However, since most
online bidders are average consumers instead of professional bidders, we
suspect that online bidders are a heterogeneous group. The purpose of this
paper is to explore the types of online bidders based on their real bidding
behavior in the context of consumer -to-consumer online auction mark et. A
cluster analysis is employed and four types of online bidders are finally
identified in a private value auction, namely, goal-driven bidders, experiential
bidders, focused bidders, and opportunistic bidders. The profile and
performance of each group are also discussed. Tomomi Hanai Takashi Oguchi
(2009) , in their study to investigate what kind of information contributes to
trust formation in online shopping. Twenty-seven female undergraduate
students were recruited and asked to evaluate the trustworthiness of 20
online shopping websites. All the online shopping websites dealt with
branded products where there is greater emphasis on the trustworthiness of
online shops or products. The results show that information described on the
websites was classified into two categories, firstly, information about the shop
and its procedures and services. Secondly, the concrete information necessary
for the consumption process, such as payment information and return
information, which heightens the reliability of these shops . The term “brand”
originally refers to a “description or trademark which indicates a type of
product made by a particular company.” However, in modern Japanese society it
refers to those branded products that are perceived to have a higher quality
than other similar products. Thu s, the term “brand” authenticates that its
products belong to a high class, and the people who possess these branded
products are regarded as “exclusive people” through the “basking -in-r
effected glory process” (Cialdini, Borden, Thorne, Walker , Freeman, &
Sloan, 1976). The branded products interest female young people and
recently they have been more inclined to purchase them via online
shopping. However, they tend to refrain from purchasing these products via
online shopping due to their distrust of it. Consequently , it becomes more and
more important to analyze what kind of information contributes to trust
formation in online shopping. Female Undergraduate Students Attitudes
toward Branded Products First, we introduce several surveys for determining
the attitude towards, and ownership of, branded products among female
young people, especially female undergraduate students in Japan, who are
the target group of this study. Info plant (2007) showed that nearly half of
all people are interested in some branded products. Although branded
products generally attract the attention of various kinds of people, young
females are especially interested in branded products. Info plant (2007)
revealed that more than 60% of females under 20 years of age and nearly
80% of females in their twenties have purchased some branded products.
Furthermore, the percentage o f people who usually buy new branded
products is about 20% among females under 20 years of age and more than
10% in females in their twenties. . David Anderson (02.02.2006) in their
research carried out by a consumer behavior researcher at Henley Management
College has investigated what drives people to search online. The findings
reveal that convenience, time-efficiency and personal control are the key drivers
for consumers to search online, rather than cost. It also shows that the
relation ship between traditional and online retailing outlets needs to be more
unified E-shopping has changed the face of retail, and surfers are now
looking for spring sale bargains. This is following a bumper e-Christmas,
where Internet shopping soared almost 5 0% during the 10 -week run-up to
Christmas 2005 (IMRG). However, the new findings reveal that convenience
and personal control are the key drivers for consumers to search online. Dr
Susan Rose, from Henley Management College, said: “What motivates
online shoppers is the ability to shop, where, when and how they like.
Nowadays people can shop over their Shreddies in the morning. The
research, that analyses data from 304 electrical goods Internet shoppers,
provides businesses with a guide to getting the information highway buzzing
with potential customers. Big-ticket items such as digital TVs, cameras, or
iPods now feature on our e-shopping list. The Internet provides a rich source
of information about brands and retail channels that enable us to search and
find information to help us with our final purchase decision. For businesses
there are some steps to help them embrace the Internet revolution with
success. A key factor driving Internet use for online window shopping is its
usefulness in our personal lives. The Internet frees time and makes the
information search process,Research suggests that people search online for some
goods, yet buy from a traditional high street retailer, or look around for goods
in shops, then take their search online. In turn, it is essential for retailers
who operate both on and off line to ensure that they embrace a joined up
process that appears seamless to the customer. Some retailers have still to
successfully unite the two retailing methods - this is key to contemporary
customer service. Factors such as how much the medium challenges us
mentally and our confidence to navigate and understand the technology can
turn us on or off the idea of browsing online for products. A clear divide is
appearing between the occasional online shopper and the regular experienced
user. Concerns about how easy the system is to use have almost disappeared
for online shopping enthusiasts, but for occasional user retailing sites need to
be easy to navigate. Websites must be accessible and operate efficiently. The
research found that the expectation of getting a good financial deal is still a
strong motivator to seek out pro ducts online, but this is secondary to the
importance but, many people steer clear of electronic buying because of
security worries. Only once online retailers can reassure customers about
fraud and privacy, will the online shopping curve really take off. Worries
about the risk involved, in terms of financial transaction and privacy remain.
A move from big brands to , bargains may only take place once.
 Chapter-3

ABOUT STUDY

3.1. Need of the study

The need of this research is to identify and get insight into what main
factors the online consumer takes into consideration when most he buy
products on internet what affects their shopping behaviour, basic need of this
research is to find out what are the main factors affect the online consumer
when considering and making a purchase over Internet.

3.2. Objective of the study

❖ To study the online shopping behavior of customers

❖ To study the factors influencing online shoppers and
❖ consumers
❖ To study the customers level of satisfaction with regard
❖ to online Shopping
❖ To examine whether customers prefer online shopping to physical stores.

3.3. Scope of the Study

At any given time there are millions of people online and each of them is
a potential customer for a company providing online sales. Due to the rapid
development of the technologies surrounding the Internet, a company that is
interested in selling products from its web site will constantly has to search
for an edge in the fierce competition. Since there are so many potential
consumers, it is of the out most importance to be able to understand what
the consumer wants and needs. The importance of analyzing and identifying
factors that influence the consumer when he or she decides to purchase on the
Internet is vital. Since the Internet is a new medium for there have been new
demand set By the consumer. That is why it is crucial for the online retailers to
know what influences the online consumer. Analyzing consumer behavior is
not a new phenomenon. The renowned marketing expert Philip Kotler has
published several works on the topic of consumer behavior theories. These
theories have been used for many years not only to understand the
consumer, but also create a marketing strategy that will attract the consumer
efficiently Hence, understanding and identifying the consumer is closely
related to the directions a company will take with their marketing strategy.
These theories can also be applied to identify the online consumer and to
create certain consumer segments. However, some distinctions must still be
made when considering traditional consumer behavior and online consumer
behavior .

Since online retailing is a new retailing medium and online consumer behavior
is diverse from traditional consumer behavior , one must identify what
influences the online consumer. Analyzing the process that the online
consumer goes through when deciding and making a purchase over the
Internet, shows some factors that consumers consider these factors need to
be identified and taken into account by online retailers in order to satisfy
consumer demands and compete in the online market.

3.4. Limitations of the Study

Limitation of the study is the selection of the existing studies. Owing to time
limitation, I only searched a few number of journals. This may leave some
other prominent empirical studies out. In addition, owing to the
multidisciplinary nature of online shopping, it would be very interesting to
compare IS literature to other disciplines that study online shopping attitudes
and behavior. Indian E-Comm. Report Finds Heavy Spenders Driving Sales -- By
Devin Comiskey August 16, 2007 A Survey by Indian research organization
Juxtconsult found that more and more Indian Internet users are opening their
wallets online. While such hurdles as limited broadband access and security
concerns remain, the report finds there are currently more than 10 million
shoppers online in India. While current trends point to increased e-commerce
growth in India, the online marketplace in the country of more than 1 billion
people is still relatively small. Juxtconsult's survey found that 40 percent of all
urban Internet users buy online, while 42 percent of the sales originate through
just five percent of consumers. The survey was conducted in April 2007 and
sampled more than 30,000 users. "This section of buyers spends 5,000 rupees
or more per month on the net," states the report. "It is interesting to note
that two out of every three heavy spenders are also 'netholics, ' those who
are on the net for more than three hours per day...Of all those who buy
online, only 25 percent are spending more than 1,000 rupees per month
while the (remaining) 75 percent bill less than 1,000 rupees per month."
(1,000 Indian rupees is currently equal to approximately $2 3 US.)

The report also found that buying and search patterns among Indians differ
between genders. "While 43 percent of male users buy online, only 31
percent of urban female users are consumers as well. Women tend to search
more. Defying their more common attitude towards shopping, women are more
guarded when it comes to the online market," says Juxtcon sult. "Depending on
the product type, nine percent to 25 percent are buying online, whereas 33 to
47 percent are sear ching the net for product information," it says. Security Fears
Persist Juxtconsult says the motivation for Indian users to make purchases
online varies, but users fear compromised personal information is still a
great risk when it comes to e-commerce. "The single biggest motivation for
buying online for net u sers is saving time. Thirty-two percent of them look
to shop online with this purpose. Convenience of shopping '24x7' and home
delivery are other major incentives," says the report. "However, the concern
of possible misuse of credit card or personal information is extremely
significant among online buyers, with almost 55 percent of them voicing their
concern. Clearly, tackling and countering the issue of online safety figures
as an imminent challenge for net marketers." The products that are purchased
most online in India, according to Juxtconsult, are books and CDs - making up
25 percent of all online purchases. "Ironically, computer hardware and
software, despite having the home advantage are among one of the least
bought products online, with only 13 percent buying them, " says the report.
"In sum, the online market in India is blossoming but is yet to take off in a
considerable way . The Internet is still being used more for searching than
buying products and services. Though a noticeable proportion of net users
are also net consumers, essentially, at present only a small tribe among them
is driving online shopping momentum," says Juxtconsult.

LATEST

A new trend in this space is that of Meta search engines. Ixigo and Ezeego
are two players in this space. A Meta search engine searches all the online
travel sites (including the airlines sites as well) and displays the best deals for the
user. Travel websites, such as Make My Trip India Pvt. Ltd and Yatra
Online Pvt. Ltd, are battling to win over India’s Rs16,00 0 cores ($ 400 million)
religious travel market. Opportunity in Online Travel Industry: $2 billion Online
travel company Make MyTrip (MMT) has recorded sales of Rs. 1000 crore for
the financial year ending March 2008 , as per a release.

Barriers to the Growth of the Market :

➢ Consumer Bias- The customer is not sure of the quality of the product
unless it is delivered to him and post-delivery of the product, it is
sometimes a lengthy process to get a faulty or the unsuitable product
changed . Thus, unless the deliverables are as per the customers
expectations, it is hard to in use more credibility in the e-Tailing market.
➢ Mounting Competitive Pressures -To attract customers, the competing
online players are adopting all means to provide products and services
at the lowest prices. This has resulted in making the consumers
choice-spoilt, who in turn surf various websites to spot the lowest
price for the product. Thus, although the number of transactions is
increasing, the value of the products sold is continuously falling owning
to high competition and leaner margins.
➢ Seasonality- E-Commerce Market is faced by seasonal fluctuations. As
told by an Industry player, August to February is the peak seasons for
sale, while March to July is the dry seasons for sale.. During the peak
season, occasions that drive the sales are Diwali, Rakhi, Valentine s
Day, New Year, Christmas, Mother„ s Day, Friendship Day etc. are. On
these occasions younger generations prefers buying and sending gifts
online.
➢ Credibility in Payment System - Online frauds and breach are the biggest
barriers to online sales. As a result, prospective buyers prefer staying
away from revealing their credit card and bank details.
➢ Untimely Delivery of Products - It might take a few minutes to search,
book and pay for products and services online, but the delivery of the
product may take unreasonable time.
 Chapter-4

RESEARCH METHODOLOGY

Data for this study was collected for the report. The sample size was 100. .The
Questionnaire (shown in Annexure) was used Mainly to test the model
proposed for Attitude towards online shopping. The type of research was
both exploratory as well as Descriptive. Likert five point scales ranging
from Strongly Agree to strongly disagree was used as a basis of Questions.
We took around eleven different factors by studying the existing models of
consumer attitudes that play an important role in online purchase, and then
proposed a model leading to online shopping. This model was then tested in
our research by the mode of factor analysis in SPSS.

4.1Research Strategy

When collecting data to approach the purpose of a research there are two
ways in which the data can be collected. In order to acquire a General
knowledge about the topic, secondary data is primarily used and is one of
the ways by which data can be collected. The second way to collect data is the
primary data collection. Conducted , secondary data is not sufficient enough
and needs to be completed with primary data which is collected by the
research .

4.2 Descriptive Research Method

We will conduct our research in order to collect primary data and reach
the objective of the Dissertation. We will also be discussing which
different types of Methodologies that were used. Since our research is of
descriptive character our primary intention was to collect secondary data
and analyze it. By doing so we found the factors Price, Trust and
Convenience. We then collected primary data through a survey . The main
purpose of the survey was to collect data about Online Consumer Behavior
and the significance of the established factors , Price, Trust, and
Convenience In order to be able to find and establish Online Consumer
Segments, Consumer Traits and Online Behavior had to be identified .
The segments were used in order to further identify what impact the
factors Price, Trust , and Convenience have on Online Consumer Segments.

4.3 Sample Design

The factors that we intended to examine can be applied to and

investigated at any population that uses the Internet and buys online
products Online. Since there are time and resource restraints, a specific
Population had to be identified in order to generalize and create relevant
segments . We decided that the sample size should contain over 100
respondents and we collected answers from 100 respondents . Convenience
sampling involves using samples that are the easiest to Obtain and is
continued until the sampling size that is need is reached . I will attempt
to collect as many respondents as possible but since we will be studying
students we assume that there will be little variation in the population making it
more approved to generalize the response rates. The sampling method for
students took also place on a Convenience basis since the students that
agree to answer the questionnaire are those that were chosen.

Type of Research :- Descriptive Research. Sample Size :- 100

 Chapter-5

DATA ANALYSIS

DATA ANALYSIS

Q1. TO KNOW THE AGE OF THE REPONDENTS?

AGE

➢ 20-30
➢ 30-40
➢ 40-50
➢ 50 ABOVE

AGE

AGE
20-30
30-40
40-50
50 ABOVE

FIGURE-1
INTERPRETATION

The above diagram shows us the percentage in the age of respondents. As

shows that from age 20-30 the number of respondents are31 % and from age
of 30 -40 it is 48 % and from 40 -50 it is 14% and above 50 is 7% this is the
above data which is shown by the this pie chart

Q2. TO KNOW THE GENDER OF THE RESPONDENTS?

GENDER

➢ MALE
➢ FEMALE

GENDER2

MALE
FEMALE

FIGURE2
INTERPRETATION

This graph itself is showing more percentage of males rather than females, the
percentage of male respondents is 86% and percentage of female respondents
is only 14%.

Q3. TO KNOW THE OCCUPATION OF THE RESPONDENTS?

OCCUPATION

➢ STUDENT
➢ PROFESSIONAL
➢ GOVT.EMPLOYE
➢ SELF EMPLOYED
➢ OTHER

OCCUPATION

STUDENT
PROFESSIONAL
GOVT. EMPLOYE
SELF EMPLOYED
OTHER

FIGURE3

INTERPRETATION
This graph help us to know the occupation of the respondents, this is to know
that which segment of people are buying more products on the internet whether
they are the segment of students of government employees or professional ,
the above graph shows that the segment of the students i.e. 39% of the
students are using internet and use to buy online products.

Q4. TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

MONTHLY INCOME

➢ LESS THAN 10000

➢ 10000-20000
➢ 20000-30000
➢ 30000-40000
➢ 40000-50000
➢ ABOVE 50000

MONTHLY INCOME

LESS THAN 10000

10000-20000
20000-30000
40000-50000
ABOVE50000

FIGURE4

INTERPRETATION
 This above graph shows the percentage of monthly income of the different
respondents, and it show that less than 10 000 income respondents have
buyed more online products because most of them are students and they use to
buy music Cds, gadgets, laptops .

Q5. TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN

INTERNET CONNECTION.

➢ YES-62
➢ NO-38

OWN INTERNET

YES
NO

FIGURE5

INTERPRETATION
This graph show us the percentage of respondents who have their own
internet connections, its shows that 62% of respondents have their own
internet connections and 38% people don’t have their internet connection.

Q6. DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN

SHOPPING AT PHYSICAL STORE ?

➢ YES 11
➢ NO 46
➢ CAN'TSAY 38

ONLINE SHOPPINGIB BETTER THAN PHYSICAL

STORE

YES
NO
CAN'T SAY

FIGURE6

INTERPRETATION

After analyzing the above graph shows that the people are in favors of that
online shopping is better than physical store, The percentage of people who
says online shopping is better is 46% and the people who says it not good
is 38 %. Still the percentage of people who says yes is more than other who
say no.
Q7. WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ?

➢ E-BAY - 35
➢ YAHOOSHOPPING- 40
➢ AMAZON - 16
➢ BEST BUY
➢ OTHER

MOST VISITED STORE

E-BAY
YAHOO SHOPPING
AMAZON
BEST BUY
OTHER

FIGURE7

INTERPRETATION

This graph shows that 35% people use to visited e-bay for online shopping,40
% use to go at amazon.com because % of people who buys books is more
than any other products so people mostly visits amazon.com, 16 % people do at
yahoo shopping and for other people use to visit at Best Buy and others.

Q8-WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE

FOR ONLINE SHOPPING?

➢ SEARCH ENGINE
➢ PERSONAL RECOMMENDATION
➢ SPECIAL OFFERS ON SITES
➢ ONLINE ADVERTISING
➢ TV ADVERTISING
➢ OTHERS

FACTORS INFLUNCING ONLINE SHOPPING

SITE DECISION

SEARCH ENGINE
PERSONAL RECOMMENDATION
SPECIAL OFFERS ON SITES
TV ADVERTISING
OTHERS

FIGURE8

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it
shows that 32% people came to know about shopping sites through online
advertisements. And they attracted towards it and start getting products from
there. And 20% people decision is affected by special offers by the offers and
the discounts given by the sites.

Q9. HOW YOU MAKE YOUR PAYMETS ON THE INTERNET ?

➢ CREDIT CARD/DEBIT CARD

➢ BANK TRANFER
➢ PAYPAL
➢ ANY OTHER

PAYMENT

CREDIT/DEBIT CARD
BANK TRANSFER
PAYPAL
ANY OTHER

FIGURE9

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their
payments 78% people use to pay by credit/debit card and 5% through bank
transfer and 15% through pay pal and 2 from
Q10 DO YOU FACE ANY PROB LEMS WHILE SHOPPING ONLINE?

➢ YES – 48
➢ NO --- 28
➢ CAN’T SAY -- 14

PROBLEMS WHILE ONLINE SHOPPING

YES
NO
CAN'T SAY

FIGURE10

INTERPRETATION

This graph shows that whether people faces any problem while doing online
shopping or not and the result shows that 48% people says that they have faced
problem while buying online and 28% people says no.
 Chapter-6

SUMMARY, RECOMMENDATION, REFERENCE AND

CONCLUSION

5.1 SUMMARY

The three segments that were found show a significant difference in the
primary factor of concern. The general distribution showed that the factor
price was the primary factor for the entire population sample, and that second
factor was trust was closely followed by convenience. When we segmenting
the respondents through the different variables we found that segment one
were mainly trust oriented and the respondents had a high positive attitude
toward s purchasing books online. Other segment was mainly price and
convenience oriented therefore took the most consideration to the opinions
and experiences of the Reference groups. As they low disposable income and
were somewhat convenience oriented when acquiring information about low
prices, we chose to label them price easers. We found that most of the
time youngster who are from the age of 20-25 shops a lot on the net rather
than other age limits. People used to do online shopping because of its
convenience rather than its pricing, But the main thing which is very common
in the most of the people about online shopping is its risk of privacy i.e. hacking
of account number getting passwords and all.
5.2 CONCLUSION

Increased Internet penetration, a hassle free shopping environment and high

levels of Net savings see more and more Indians shopping online. But at the same
time the companies need to reduce the risks related to consumer
incompetence by tactics such as making purchase websites easier to navigate,
and introducing Internet kiosk, computers and other aids in stores. The goal is
not to convert all shoppers to online purchasing, but to show them its an
option. In addition to above, efforts need to be taken to educate the online
buyers on the steps that need to be undertaken while making an online
purchase. Moreover, the feedback of an online buyer should be captured to
identify flaws in service delivery. This can be done through online
communities and blogs that serve as advertising and marketing tools and a
source of feedback for enterprises. I found that it is a challenge for E-marketers
to convert low frequency online buyers into regular buyers through
successful website design and by addressing concerns about reliable
performance. Thus, the online retailing raises more issues than the benefits
it currently offers. The quality of products offered online and procedures for
service delivery are yet to be standardized. Till the same is done, the buyer is at
a higher risk of frauds.
5.3. Recommendations

As we came to know after researching on this topic we recommend that, the

online sellers have to make their payment transparent, and as people are coming
on their sites and they are buying their products , so retailers have to give
more discounts to their customers so that they can visit again and again to
their site , and it also helps to make people more aware about the low rick
shopping of the net, and one more thing is that there should be transaction of
money is very slow they have to make it fast so that customer dont have to
face much problem to pay for the product, if customer is going to face some
problem he is not going to visit our site and buy product .

Following implications should be followed -

➢ Discount prices
➢ A transfer and reliable retailer
➢ Fast transactions
➢ Focus on customer satisfaction
5.4. REFRENCES

➢ http://analog ik.com/article_analysis_of_ consumer_behaviour_online.asp

[27 april 2011 ]
➢ http://www. essays.se/essay/e1fb0c636 f/ [13april 2011]
➢ (International Journal of Business Innovatio n and Research 2010 - Vo l.
4, No.3 pp. 195 - 209)
➢ http://www.lotsofessays. com/viewpaper/1693412.html [11april 2011]
➢ ( International Journal of Electronic Marketing an d Retailing 2006 Vol. 1,
No.2 pp. 169 - 182)
➢ (International Journal of Electronic Marketing and Retailing 2006 - Vol. 1
, No.2 pp. 169 – 182)
➢ (International Journal of Electronic Marketing and Retailing 2006 - Vol.
1 No.1 pp. 67 - 82)
➢ (International Journal of Internet Marketing and Advertising 200 8 –
Vol. 4, No.4 pp. 302 - 327) [1 may 2010]
➢ (International Journal of Electronic Finance 200 9 - Vo l. 3, No .3 pp. 284
- 2 96 )
➢ (International Journal of Electronic Marketing and Retailing 2007 - Vol. 1
, No.4 pp. 322 - 338)
➢ http://www.cyberpsychology.eu/view.php?cisloclanku=2009111002&artic
le=6#authors [22 may 2010]
➢ http://www.innovations-report.com/html/reports/social_science
QUESTIONNAIRE

Q1. Name ___________________

Q2. Age

1) 15-20 2) 20-25 3) 25-30 4) 30 above

Q3. Gender

1) Male 2) Female

Q4. Address

1) Rural 2) Urban

Q5. What is your occupation?

a) Student b) Professional c) Govt.employed

d) Self Employed e) Other

Q6. What is your monthly income?

a) Less than 10000 b) 10 000 to 20000 c) 20000 to 30000

d) 30000 to 40000 e) More than 40000

Q7. Do you have you r own intern et connection

a) Yes b) No

Q8. How frequently do you purchase online?

a) Once a week b) More than once a week c) once a

month d) more than once in a month

Q9. What motivates to buy pro ducts online?

a) Easy payment b) No hidden cost c) No travel to shop d)

Wide range of products e) other [Please specify] _____________

Q10. What products you buy on internet?

a) Books b) Mu sic CDs c) T-shirt d) Mobile e) laptop f)

Other [specify] ___________

Q11. Do you feel that online shopping is better than shopping at physical brick
& mortar store?

a) Yes b) No c) Can’t say

Q12.Which of the following stores have you ever visited for shopping
online?

a) e-bay b) Yahoo shopping c) Amazon

d) Best buy e) Other [please specify]

Q13. What factors help you to decide which site to use for online shopping?
a) Search engine b) Personal recommendation c) Special offers on
sites d) Online advertising e) TV advertising f)
other

Q14.How do you make your payments on internet?

a) Credit card/Debit card b) Bank transfer c) PayPal

d) any other