A DISSERTATION REPORT ON

“CONSUMER’S PERCEPTION ON ONLINE SHOPPING”

Submitted for the partial fulfilment of award of Master of Business Administration Academic Session- (2009-11)

SUBMITTED TO: Prof. Neha P. Shrotiya

SUBMITTED BY:Shikha MBA (2009-2011) Roll No. 0903870045

Institute of Technology and Science-Management & IT Institute, Mohan Nagar, Ghaziabad

ACKNOWLEDGEMENT
I dedicate this page to all those who have silently or actively left indelible mark on my project report, so that they may give credits which richly deserve. Talent & capabilities are of course necessary but opportunities & right guidance is two very important backups without which any person cannot climb the ladder for success. Proper guidance and direction is required in order to achieve the goal & making optimum of each & every opportunity. It is my great privilege to have summer training in such an estimated business. I am thankful from the core of my heart & express my feeling of gratitude and acknowledgement to my “Project Mentor Prof Neha P. Shrotiya whose constant support and faith in me always motivated me and their knowledge and brilliance has pulled me out of doldrums in this project. Mundane words are not enough to express our insufficient to express our indebtedness towards “Dr. Raghvendra Dwivedi, Chairperson (MBA) and Dr. Tanushree Sharma, Coordinator (MBA), ITS Ghaziabad” whose

enormous assistance helped me in the completion of project.

Shikha MBA – IV sem 0903870045

ABSTRACT
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, and then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existent 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 factors, which influence consumer perceptions of online purchasing. A model was developed indicating online shopping behavior and

acceptance among customers in India. The model was tested with a survey sample (n=100). Factor analysis technique in SPSS was used to classify these factors which buyers keep in mind while shopping online.

TABLE OF CONTENTS

1 INTRODUCTION 1.0 INTRODUCTION .CHAPTER .

but also to compare prices. of business-to-consumer commerce should not lose It has been more than a decade since business-to-consumer E-commerce first evolved. to take feed back and also to conduct satisfaction surveys with customers. thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Scholars and practitioners of electronic commerce constantly . the practitioners confidence. In addition to the tremendous potential of the E-commerce market. Although most of the revenue of online transactions comes from business-to-business commerce. the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. product features and after sale service facilities they will receive if they purchase the product from a particular store. communicate and disseminate information. Customers use the Internet not only to buy the product online. Many companies have started using the Internet with the aim of cutting marketing costs.Internet is changing the way consumers shop and buys goods and services. Many experts are optimistic about the prospect of online business. Companies also use the Internet to convey. to sell the product. and has rapidly evolved into a global phenomenon.

In the comfort of one's home. 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. Computers and the Internet have completely changed the way one handles day-to-day transactions. one can log on and buy just about anything from apparel. video games. office or cyber cafe or anywhere across the globe. 1.1 ONLINE SHOPPING IN INDIA The birth and growth of Internet has been the biggest event of the century. MP3 players. Ease. and then examine their validity in the Internet context. The Internet has brought about sweeping changes in the purchasing habits of the people. movie tickets. music and diamond jewellery to digital cameras. 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. mobile phones. researchers continue to explain E-consumers’ behavior from different perspectives. Along with the development of E-retailing. simplicity. books. rail and air tickets. . Many of their studies have posited new emergent factors or assumptions that are based on the traditional models of consumer behavior.strive to gain an improved insight into consumer behavior in cyberspace. online shopping is one of them. convenience and security are the key factors turning the users to buy online.

information and entertainment. It may be too early to do a comparison with the e-commerce scenes in countries such as the US where billions of dollars are spent online but the business in India is growing exponentially every year.0 Recent Developments The number of users logging on to the Internet is growing by leaps and bounds.300 crore in the year 2006-07. albeit from a smaller base.E-commerce revenues in the country are projected to reach Rs 2. IAMAI). Online users typically start by using e-mail. The numbers indicate a growing sense of comfort with the use of Internet for shopping. Accompanying this growth. Roughly 10 percent of the world's population more than 627 million people have shopped online at least once. This pertains to the business-toconsumer (B2C) segment. 1. the total revenues have reached a respectful size. gradually move on to browsing for news. in India it is just sprouted and beginning to perish. and finally graduate to shopping and conducting business online. It's a classical curve. Internet is now going beyond the simple exchange of information to a shopping paradise. there is an increasing maturity in the way people use the Internet. Online sales have registered a huge jump and what was a concept five years ago is now beginning to hit the mainstream levels. . growing at 95 per cent over 2004-05(Source: Internet and Mobile Association of India.5 million according to the research conducted by IAMAI. The number of Indians who are online is expected to touch to 100 million by 2007-08. from the present 38.1.

The attitudes that drive people to shop online.This medium is far bigger than expected. such as convenience. Indian customers are increasingly getting comfortable with online shopping. The consumer’s attitude has been evolving towards online purchases. India has 25 million Internet users and more is now turning to online shopping. Indians are becoming more comfortable with e-commerce.4 lakh in 2004-05 and has doubled to 7. but many retailers and marketers are not using it to its full potential. These figures clearly show that online shopping has truly come of age and consumers are keen to shop on the net. Effective customer communication on products plus reduced shipping costs and timely delivery has helped online marketers to seize a slice of the Rs 115 crore sales. price comparison and choice are improving tremendously in India. It has become increasingly positive over the years. and there is a higher acceptability for the concept. the average number of transactions per month in India has gone up from 2 lakh in 2003-04 to 4. There has been an influx of online shopping sites in India with many companies hitching onto the Internet bandwagon. a 117 per cent increase from the Rs53 crore in the year 2004-05(source IAMAI).95 lakh transactions per month in the year 2005-06. The online sales during the festival season had increased rapidly especially during Diwali and Ramzan which recorded a sales of Rs115 crore. According to IAMAI. . Online shopping has become the latest trend among shoppers. The revenues from online shopping are expected to more than double by 2006-07.

7 million users. making it the third most online-potential country after Korea (28 percent) and Australia (26 percent) (Source:IMRB). the company was able to generate an average $8.000 worth of room bookings/month for its premium client.com. indiamart. which shows .com. This is an indication of a growing breed of Indian consumers who are not only better equipped but also more confident of the online transactions. Companies like eBay India have seen a large increase in the number of sellers and buyers from B and C cities and in a year the eBay community (buyers and sellers) base has increased to 1.com.com.com and sifymall. fabmart. In the online travel domain. rediff.com has witnessed a growth of more than ten times in just two years in its online gifts domain. It is expected to touch $15-20. Some of the companies that have benefited are baazee. traveljini. which is over 100 percent growth (Source:Indiamart). Indiamart.com. In the year 2005-06 Samsung India recorded a 120 percent jump in online buying from its site over the year 2004-05 (Source: Samsung). Brickand-mortar businesses are also building up e-commerce revenues. indiatimes.com. Indian businesses have also grown mature enough to move up the IT curve and they are considering Business to consumer (B2C) e-commerce a viable revenue model. Nirula’s witnessed more than double growth in its B2C e-commerce revenues in the year 2005-06 and is positive for the next one to two years (Source: Nirula’s). the Indian online shoppers’ population would make its presence felt quite remarkably.Though a miniscule amount in the global context.000/month/client by the year-end. The potential of the Indian e-market can be gauged from the fact that 16 percent of Indian consumers want to buy online in the next six months.

1. hobby searches. general web surfing or browsing.e. E-mail provides the opportunity to communicate more often with a much broader circle of people than one can reach by telephone or by mail in a convenient way. tracking credit cards. The main motive of these retailers through online sales is to reach the global markets and the small towns where they do not have the outlets. Online sales are currently marked by a single digit growth. medical information searches. 1. travel information searches.1 Online Activities The Internet has entered the mainstream consciousness over the past decade. The activities which are happening on the Internet are email and instant messaging. but the leading garment retailers like Pantaloon. Communication i. Thus the India's Internet shopping sector is preparing for a massive growth. which is fuelled by increasing broadband usage and growing e-commerce.that more Indians are shopping online (Source: eBay). Famous apparel brand Zodiac has already started online stores. It is the single most important reason for people to go online. This has happened primarily because the web has got a graphical interface and Internet has moved from governmental control to private hands. chat or instant message is the basic activity for which Internet is used. entertainment searches. shopping and buying online. In India too email constitutes the major . and playing games. Shoppers’ Stop and Globus have already made business strategies to enter into the world of e-retailing. email. reading news.

tops for email and chat  Indiatimes –Best event and sports news provider. chatting. classifieds and social networking are a few spheres ripe for investment. surfing.1.2 million in the year 2006-07. travel.5 million in 2005-06 and is expected to across 9. The market size of the Indian online recruitment industry in 2005-06 was 145 crore and it is estimated to reach Rs 241 crore for 2006-07 (source IAMAI) this is mainly because of the increase in the internet penetration which has lead .  Naukri-Best recruitment portal  Google-Best information domain  Shaadi-Best for matrimonial services  eBay-Best online shopping portal (Source:IAMAI) In India online trading. recruitment. 1. real estate. According to IAMAI the number of online job seekers had reached 6.activity on the Internet. search and job search. It was found that more elderly people are increasingly using email as compared to the younger generations.2 Employment Today online job search market is expanding tremendously. which are commonly used for these particular activities. are:  Yahoo -Most preferred communication portal. ticketing. In India the top five online activities are e-mail. Some of the sites.

6 million Internet users are using Internet for banking purposes and it is expected to grow to 16 million plus by 2007-08 (Source IAMAI). The traders feel that trading through Internet is not that cheap but the convenience provided by online trading is worth the costs involved.3 Banking & Trading The net banking is increasing and it is estimated that 4. can access live news from international news agencies such as Reuters. They can not only buy and sell stocks but can also find the track record of various stocks.1. Internet is advantageous to both the job seekers (saves time and cost) and to the recruiters (easy access to the best talent pool) as a result there is a win a win situation. for these job seekers Internet is the most convenient (24 hour a day) and the comprehensive medium to research and look for jobs. Every year thousands of graduates pass out and look for employment opportunities.to an increase in the users for whom net has become a convenient way to meet their needs. 1. Trading stocks is also becoming a fast booming activity amongst the Indians.1. 1. "Marriages are made in heaven" but today with so many matrimonial portals in the market they help one find the .4 Matrimonial As the popular adage goes. More and more traders today are making the immense use of these services. do technical analysis. which shows that there is a huge potential in this sector. CNBC and can find opinions from other leading brokers which help them do decide whether to buy or sell. Traders can keep a regular check on various stocks and it is easier to compare them.

More Indians are registering to these matrimonial portals and there seems to be a huge growth in the coming years. The scope for growth is immense in this sector as more Indians are using the Internet. The marriage portals provide them the medium to interact with the people who match their required profiles.5 Online Ticketing The growth in the online travel business today is phenomenal. bharatmatrimony. These youngsters are becoming more independent and are now making their own decision in respect of choosing their life partners. wedding planners and caterers thus providing a whole lot of services in one basket.com. 1. as the online population of the country is estimated to be 25 millions (Source:IMRB). . There has been a significant increase in online ticket booking in India with a double-digit growth.com and jeevansaathi.com. Matricorp. which has also lead to an increase in Indian tourism. The Indian online travel business is worth $350-400 million and is growing at 40-50 per cent year by year. This growth in the travel industry has definitely leaded to the increase in the travel portals.com.com. These marriage portals have increased because there is a rise in the career orientation among youngsters and increasing work pressures have resulted in less time for socializing. These portals not only help in finding a better match but also provide with services of astrologers. decorators. Yahoo India matrimony.1.best match for themselves. Some of the popular marriage portals are shaadi. MrnMrs.

The cost of internet usage is . It is a fact that a great online shopping revolution is expected in India in the coming years.com (MMT) has been growing at about 20 per cent month-on-month. etc are all increasingly going online.com). selling 1. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. If we observe the growth of Indian online transactions (Info by: IAMAI). The usage of internet in India is only 4% of the total population. Thus Internet has become an indispensable part of life and has reduced the world to a global village. as there seem to be a humongous growth in the coming years. The advantages of online ticketing are both for providers and for consumers as the providers benefit from infrastructure cost while for users it is a convenient way to book tickets. Many corporates are getting into this bandwagon. There is a huge purchasing power of a youth population aged 18-40 in the urban area. The revenue of the Indian Railway Catering and Tourism Corporation (IRCTC) has also increased phenomenally because of the online ticketing.400 tickets a day on an average (Source: MakeMyTrip. The future of online business is bright therefore companies are providing more convenient services to the consumers and thereby changing their mindsets and attitudes towards life. for the last four months. hotel bookings. it is getting doubled year by year. cinema.Travel sites like MakeMyTrip. The online bookings in India was mainly stared because of the low cost carriers like Air Deccan which sells most of it tickets online. Airline.

1. Many of them have started to depend on internet to satisfy their shopping desires. Indians are proving every time that they can beat the world when it comes to figures of online shopping. 1. More and more Indians are going to online shopping and the frequency of India’s online buying is crossing the overall global averages. 1.1. Wi-Fi & Wimax is also getting tested in Bangalore and other cities in India. These people have very little time to spend for shopping. There are about 200 million of middle-class population good spending powers. This will increase the usage as it goes more on wireless internet. Around 25% of regular shoppers in India are in the 18-25 age groups.6 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. with good competition among the providers.7 Few Facts about Online Shopping The figures from IAMAI show that the internet users in India will grow to 200 million by 2010. . and 46% are in the 26-35-year range.also getting lower.

since India being a younger market. . There are over 120 million people online in India and this is expected to grow to 200 Million by the end of 2010. railway tickets (38%). music downloads (21%).Most popular online shopping products include: books (45%). beauty products (12%). tools (16%). In India . There is a strong booming young adult population in India with good levels of disposable income. computer and peripherals (32%). accessories apparel (35%). gifts (34%). hotel rooms (22%). the growth of e-commerce is expected at 51% in the coming years. apparel (35%).Over $50 Billion and growing rapidly . Worldwide e-commerce is only growing at the rate of 28%. movie downloads (21%). magazines (18%). • In line with global trends finally India has also started shopping online these days. electronic gadgets (42%). airline tickets (28%). home appliances (16%). • Indians are also Shopaholics like other Asians.• • Indian online matrimonial sector is worth around $230 million. toys (16%). apparel gift certificates( 11%) and sporting goods (7%). As per the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522 million in 2008 and it is expected to rise above $700 million by end March 2010. jewelry (17%). movie ticket (15%). health and fitness products (12%).

CHAPTER .2 LITERATURE REVIEW .

Nevertheless. as it eventually affects consumers’ perception of satisfaction/dissatisfaction with the product/service. The traditional framework for analysis of the buyer decision process is a five-step model. there are general models of buying behavior that depict the process which consumers use in making a purchase decision. 2001]. In the domain of consumer behavior research. post-purchase behavior is critical in the marketing perspective. Finally. The classic consumer purchasing decision-making theory can be characterized as a continuum extending from routine problem-solving behaviors. Given the model. the consumer progresses firstly from a state of felt deprivation (problem recognition). These models are very important to marketers as they have the ability to explain and predict consumers’ purchase behavior. through to limited problem-solving behaviors and then towards extensive problem-solving behaviors [Schiff man et al. to the search for information on problem solutions. the management of marketing issues .. The information gathered provides the basis for the evaluation of alternatives.2. This classic five stage model comprises the essence of consumer behavior under most contexts.0 LITERATURE REVIEW The current literature on consumer online purchasing decisions has mainly concentrated on identifying the factors which affect the willingness of consumers to engage in Internet shopping.

the relevant market structures and the characteristics of the product in question. Peterson et al. VOL. belonging to four major categories. [1997] commented that it is an early stage in Internet development in terms of building an appropriate dedicated model of consumer buying behavior. 2005) Todd [1997] proposed a model of attitudes and shopping intention towards Internet shopping in general. In the research conducted by Vellido et al. 6. Jarvenpaa et al. In another study. [2000]. in . affordability of merchandise.2. [2000] tested a model of consumer attitude towards specific webbase stores. control over. Other discriminating factors were. customer service and ease of use of the shopping site. Decision sequences will be influenced by the starting point of the consumer. The model included several indicators. the quality of service offered by the website and the risk perceptions of Internet retail shopping. the shopping experience. Consumers' attitude towards online shopping is a prominent factor affecting actual buying behavior. nine factors associated with users' perception of online shopping were extracted. the value of the product. (Source: Jarvenpaa Journal of Electronic Commerce Research.at each stage in the virtual environment has to be resolved by individual E-marketers. and NO. and convenience of. the shopping process. Among those factors the risk perception of users was demonstrated to be the main discriminator between people buying online and people not buying online.

In Internet shopping. The level of trust was positively related to the attitude toward the store. . trust propensity. Mayer et al. the security of online transaction systems and the uncertainty of product quality. which is a personality trait possessed by buyers. Consumer risk perceptions and concerns regarding online shopping are mainly related to aspects involving the privacy and security of personal information. Trust is interwoven with risk [McAllister.which perceptions of the store's reputation and size were assumed to affect consumer trust of the retailer. as trust is regarded as an important factor under conditions of uncertainty and risk in traditional theories. 1994]. prior to purchase. A buyer with a high propensity to trust will more likely be a potential customer than a buyer with a lower propensity. and inversely related to the perception of the risks involved in buying from that store. One of the consequences of trust is that it reduces the consumer’s perception of risk associated with opportunistic behavior by the seller [Ganesan. Mayer et al. [2000] concluded that the attitude and the risk perception affected the consumer's intention to buy from the store. is an important antecedent of trust. 1995]. there is not much information available to the buyer regarding the seller. In this model. Jarvenpaa et al. [1995] developed a model which combines traditional marketing philosophy on consumer motivation to buy and the trust model. Lack of trust is frequently reported as the reason for consumers not purchasing from Internet shops.

competencies and characteristics that a seller has in a specific domain. Benevolence is the extent to which the seller is perceived by the buyer as wanting to ‘do well’.[1995] proposed that ability. Sellers have to convince buyers that they genuinely want to do good things for buyers. In this context. sellers need to convince buyers of the competence of their companies in the Internet shopping business. rather than just maximize profit. Ability refers to skills. benevolence and integrity constitute the main elements of trustworthiness. .

3 PROJECT PROFILE .CHAPTER .

3.0 PROJECT PROFILE
3.1 Objective of the Study The objective of this research study is to investigate online consumer behavior, which in turn provides E-marketers with a constructional framework for fine-tuning their E-businesses’ strategies. The specific objectives of this research are: 1. To know the consumers awareness and perception about the

products and services provided on internet. 2. To know how it provides products and services and satisfies their

customers. 3. To know how it reduces the uncertainty in purchase decision

process.

3.2 Scope of the Study 1. The Study was conducted among the Internet users. 2. The Geographical area covered was Sec-18 Noida, Sec-29 Noida, Cannaught place, Karol Baugh, Delhi. 3. The Study was based on a Schedule of Questions.

3.4 Rationale of Study

Selling on internet has a large potential due to the very high targeting possibilities As a result of this exceptional development, the online selling industry is becoming interested in the use of internet to reach their customers. Hence a better understanding of online shopping is critical to the effective use of this channel of approach to the consumer. It is especially important to know what is the consumer’s perception towards online shopping, benefits perceived by them and what factors attract them towards online shopping.

CHAPTER - 4

RESEARCH METHODOLOGY

4.0 RESEARCH METHODOLOGY
4.1 Research Objective To know and understand the consumer’s perception and awareness about internet marketing/ shopping. This will help to know the attitude and perception of consumers towards online shopping and what are the factors which shape the consumer’s perception towards online shopping. Also what are key concerns from the point of view of consumer while online shopping.

4.2 Determination of information needs and sources The following was the information required: • • What is consumer’s attitude towards online shopping? What are the key concern areas for consumers while online

shopping? • Which factors shape the consumer’s attitude towards online

shopping? • How has been recent shift taking place in online shopping?

4.3 Research Framework

quality of internet connection )are found to be ordinarily independent and five (attitude toward online shopping.1 Proposed Model After examining the 10 empirical studies. then a model was proposed leading to online shopping. intention.3. perceived ease of use. And random sampling was done among the internet users. intention to shop online. online purchasing. 4. we identify a total of eleven interrelated factors for which the empirical evidences show significant relationships. The sample size was 100. online purchasing. quality of internet connection. perceived enjoyment. perceived enjoyment. Consumer satisfaction is considered to be a separate factor in this study. These ten factors are perceived usefulness. intention to shop online. and consumer satisfaction) are ordinarily dependent variables. attitude towards online shopping.Eleven different factors were identified by studying the existing models of consumer attitudes(Refer Annexure 1. information on online shopping. decision making. security and privacy. It can occur at all possible stages depending on consumer’s involvement during the online shopping process. 2) that play an important role in online purchase. security and privacy. decision making and online purchasing are proposed to be two-way relationships due to the reciprocal influences of . The relationships between satisfaction. attitude. Six (perceived usefulness. The data was collected only through Questionnaires. and consumer satisfaction. information on online shopping. perceived ease of use. online shopping decision making.

have been found to have direct impact on consumer satisfaction. perceived enjoyment . In addition. Perceived Usefulness Perceived usefulness is defined as the degree to which a person believes that using a particular system would increase his or her job performance. perceived ease of use. because the ultimate aim of any person is the superior job performance. This factor eases the decision of the user to actually buy the product or not. Amount of Information Amount of information is defined as the information which is available for the product which a person wants to buy through online shopping. This is seen as an intrinsic source of motivation to use a particular application.each on the other. Hence an application perceived to be easier to use would more likely be accepted by the user. It is an important factor affecting acceptance of an information system. Perceived Ease of Use This is an important factor that affects the acceptance of a particular information system. Perceived Enjoyment Enjoyment refers to the extent to which the activity of using a computer is perceived to be enjoyable in its own rights. It is defined as the degree to which a person believes that using a particular information system would be free of effort. three of the antecedents. or . perceived usefulness.

Security and Privacy Security and privacy are the main factors which hinder the growth of online shopping. It is believed that consumer attitudes will affect intention to shop online and eventually whether a transaction is made.which product to buy. At the same time they are concerned that their personal information may be sold to the third party which poses a serious threat to their privacy. It refers to:1) The consumer’s acceptance of the Internet as a shopping channel 2) Consumer attitudes toward a specific Internet store (i. The user is concerned about his ID and Password which can be stolen by persons with wrong intentions and then misuse it.e. to what extent consumers think that shopping at this store is appealing). Intention to shop online . This is an important factor which determines whether the user would shop online or not because presence of internet is a basic necessity for this mode of shopping Attitude and perception towards online shopping Consumer’s attitude and perception toward online shopping have gained a great deal of attention in the empirical literature. This factor becomes even more important in case of High Involvement product. Quality of Internet Connection Not only is the presence of internet connection necessary but also its Quality is important to shop online..

and influences their decision-making and purchasing behavior. In addition. performing relative comparisons across products based on some desirable attributes and make a purchase decision. there are only five studies that include it. consumers typically screen a large set of products in order to identify a subset of promising alternatives that appears to meet their needs. and choice making. Online shopping decision making Online shopping decision-making includes information seeking. They then evaluate the subset in greater depth. comparison of alternatives. Initially. According to Haubl and Trifts (2000). there is evidence of reciprocal influence between intention to shop online and customer satisfaction.Consumer’s intention to shop online refers to their willingness to make purchases in an Internet store. Commonly. this factor is measured by consumer’s willingness to buy and to return for additional purchases. there appears to be an impact on user’s satisfaction. In addition. potential consumers appear to use a two-stage process in reaching purchase decisions. The latter also contributes to customer loyalty. Though it is important. Online purchasing . Consumer’s intention to shop online is positively associated with attitude towards Internet buying. The results bearing on this factor directly influence consumer’s purchasing behavior.

vendor/service/product characteristics. other less commonly used measures are unplanned purchases Online purchasing is reported to be strongly associated with the factors of personal characteristics. 2001. attitudes toward online shopping. Kim et al. website quality. . intention to shop online. 2001). dissatisfaction is negatively associated with these four variables (Ho and Wu 1999. These expectations influence their attitudes and intentions to shop at a certain Internet store. 1999) Consumer satisfaction It can be defined as the extent to which consumer’s perceptions of the online shopping experience confirm their expectations. and purchasing activity positively. and consequently their decision-making processes and purchasing behavior. service. Jahng et al. which influences their online shopping attitudes. vendor. and quality of the website that they patronize before engaging in online shopping activities. decisions. If expectations are met.This is the most substantial step in online shopping activities. intentions. In contrast. with most empirical research using measures of frequency (or number) of purchases and value of online purchases as measures of online purchasing. Most consumers form expectations of the product. Bellman et al. and decision making (Andrade 2000. customers achieve a high degree of satisfaction.

4.Questionnaire development is the critical part of primary data collection method. I have to use following common research instrument or toolQuestionnaire.4 Data Collection Method4. for specific purpose of research project. The questionnaire was used mainly to test the model proposed for consumer perception towards online shopping.Information on online shopping Security & Privacy Attitude towards online shoppin g Intention to shop online Decisio n Making Online Purchase Perceived Usefulness Perceived Ease of use Perceived Enjoyment CONSUMER SATISFACTION 4. For this project. Likert five point scales . The questionnaire was designed using various scaling techniques. For this I will prepare a questionnaire in such a way that it will be able to collect all relevant information regarding the project.1 Primary Data It is original primary data.

3 Sampling Methods Sampling methods fall under two broad categoriesa) Non-probability sampling methods.5 Research place. b) Probability sampling methods.2 Sample Media The respondents in the samples are reached through personal interviews.2 Secondary Data It will be collected to add the value to the primary data.1 Sample Unit For studying consumer perception on online shopping.5 Sample Design 4. This may be used to collect necessary data and records by different websites.4 Sample size.5. The data collection was done over a period of 8 weeks This was done by going directly to the respondents or through mails.4.ranging from Strongly Agree to strongly disagree was used as a basis of Questions. as the objective of the study. etc.5.6 Sample Design I have prepared this project as descriptive type.5. 4.5. magazines. . reference books. samples were selected from Delhi (East). journals. 4.5.NCR region 4.100 4. 4. and newspapers.5. 4. annual reports. 4.

CHAPTER .5 DATA ANALYSIS .

There could be a possibility that only a small section of the online shoppers are shopping or only a . This is mainly because of the changing lifestyle and taste patterns. As the life is getting more and more fast paced more people are moving on to shop online mainly because of convenience. This shows that a more Internet users are using it as a shopping medium and there is a huge potential in this sector but one should not be carried away by this figures. 1 Total Purchase Online NO 35% YES 65% The research showed that 65% of the Internet users had shopped online while 35% had not bought anything.0 DATA ANALYSIS The objectives of the research were studied with respect to a regular online shopper who shopped more than once because they would be the right respondent to give an insight about the online shopping.5. Therefore it is firstly important to understand who is a regular online shopper. In the survey the respondents where asked the following questions which helped to know about a regular shopper. I Have you purchased anything online ever? Fig.

The frequency shows the acceptance of Internet as a shopping medium. As a result the entire analysis was done in case of a regular online shopper to understand the shopping behavior of the online shoppers. II How frequently did you purchase online? Fig. Though only a small amount of the online shoppers had purchased more than 6 times but still there is a huge opportunity in the Internet arena. The following question helped to understand who is a regular online shopper among the 65% who had indulged into online shopping. The 65% of the online . 2 Frequency of Online Purchase 80% 70% 60% 50% 40% 30% 20% 10% 0% Only Once 12% 74% 5% 9% 2-4 times 5-6 times More than 6 times This helped to understand the purchasing behavior of the online shoppers.particular category of good had brought about this huge number. It was seen that 14% of the online shoppers had shopped more than five times and 74% had shopped 2-4 times.

5.shoppers who had shopped more than once were considered as regular shopper and the entire analysis was based on these regular shoppers. Internet is not a new concept for these regular online shoppers and they have been using it for more than 5 years now. Regular shoppers who have been using Internet for more than one year had shopped to 98% and regular shoppers who have been using Internet for more than five years have shopped to 78%.1 The Internet Usage It is necessary to study the amount of time spend by the regular shoppers on the world wide web because this would give us clear picture as to understand whether usage and time spent by the regular online shoppers has an effect on online shopping or not. The increased usage over the years . 3 Online Shopping & Internet usage by years 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Less than1year 1–3years 3–5years 2% 6% 14% 78% More than 5years The diagram shows that shopping has increased with the usage of Internet over the years. Fig.

This shows that Internet is becoming an integral part of the daily activity of the regular online shopper. There is a positive relation between increase usage of Internet and online purchase. The regular online shoppers who have been using Internet for more than 20 hours are more comfortable and confident as a result they purchase more online as compared to who use Internet for less number of hours. 4 Online Shopping & Internet usage by hours a week 40% 35% 30% 25% 20% 15% 10% 5% 0% 0-5 hours a week 6 . The marketers should .10 hours a week 11 .20 hours a week 4% 12% 20% 28% 36% More than 20 hours a week The research shows that 36% of the online shopping had been done who use Internet for more than 20 hours a week and 96% of the shopping has been done by regular shoppers who have been using Internet for more than 5 hours a week. As more the regular online shopper are using the Internet it is seen that they end up buying more also. The study shows that the growing usage of Internet has lead to increase in online shopping as seen above.15 hours a week 16 . as these regular shoppers are able to make use of the various e-commerce activities. Fig.has lead to an increase in shopping.

capture this enormous growth. But one needs to know whether online shopping is an integral part of regular shoppers or not this understood as follows.2 The web online activity The following classifications are done to study the online activities in case of a regular online shopper. Fig. 5. . entertainment services and commerce services and shopping. 5 Online Activities 10% 20% Finance Shopping 32% Communication 14% Entertainment 24% Inf ormation Gathering The Internet offers four basic services communication (socializing service with peer group or core group (email) or with new groups of people (chat). The research shows 32% of the regular online shoppers use Internet for communication while only 10% uses it for shopping which shows that communication still forms the major activity among the regular online shoppers. which can be brought by the penetration of broadband and lowering the prices of computers. information services. Thus increase in usage of Internet over the years and the more time spent has lead to an increase in shopping.

as they are the main drivers for growth. It could be seen that shopping as a basic activity on the Internet contributes to the minimum. The increase in usage among the 18-30 years is basically due to high awareness. The marketers should focus mainly on the age group between 18-30. Thus the research shows that though the regular shoppers are using the Internet for quiet some time now but shopping still remains a small part of the major activity .Fig. It contributes to 60% of the major activity among the regular online shoppers who lie between the age group 18-30 years. which is 18% while above 50 years it is used just to 2%. Internet as a medium of shopping is maximum used by regular online shoppers between the age group18-30 years. 6 Online Activities by Age 70% 60% 50% 40% 30% 20% 10% 0% communication Information gathering Finance Shopping 18-30 years 31-40 years 41-50 years above 50 years This classification further provides an insight that Internet is mainly used as a means of communication in respect all the age groups of the regular online shoppers.

In 0-5 hours a week they spend 77% of their time in communication. Information search constitute 20% of the time. But it is to be noticed that as the time spend increases communication falls and other activity picks up like entertainment and finance. The information search increases as the regular online shoppers tries to figure out ways to surf the Internet and access the information they require. which includes email. and chat as the major activity with shopping which does not seem to exist at all.Fig. It is true that more regular online shoppers use Internet shopping sites to gather information about products rather than to make a direct purchase. 7 Online Activities by Time 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0-5 hours 6-10 hours 11-15 hours 16-20 hours more than 20 hours Comm unication Inform ation Entertainment Finance Shopping It is evident that regular online shoppers also spend a major part of their time in communication unlike the occasional online buyers. One could see from the graph that between 16-20 hours a week communication falls further but information search also falls as the regular online shoppers .

5.e. education and income.becomes more focused in their information search rather than wandering aimlessly in the Internet space. The time spent on entertainment increases marginally to 18%. Communication still constitutes the major activity on the Internet. But shopping still constitute a small amount of the major activity on the internet as 32% of the regular online shoppers uses Internet for communication while only 10% uses it for shopping. Analysis-It is true that increase in internet has lead to an increase in the online shopping as 78% of the online shopping has been done by the regular online shopper who have been using internet for more than five years and 36% of the online shopping have been done among the regular shopper who uses the Internet for more than 20 hours a week. The regular online shoppers who use the Internet for more than 20 hours a week has shown that they have indulged into more shopping i. As the people spend more time it has been seen that activities like shopping and finance related needs increases.e. It is true that as the regular online shoppers spends more time on the Internet there is a possibility that they would end up buying more as they are ease with the use of internet.3 Demographic Factors Online behavior is affected by demographics i.10%. They continuously use search engines for routine information needs. Thus increase in usage of Internet has lead to an increase in online shopping. by gender. . Increased usage of Internet is positively related to the buying behavior on the Internet.

8 Online Shopping & Gender 28% Female 72% Male Among the 65% of the online shopping. which was not possible in case of online shopping. This is mainly because women still like to feel. Regular online buyers are better educated than occasional online buyers.5. see and touch the product before buying. 2. Also an increase in the spending power in the hands of the women might lead to an increase .3. Fig. 3. As more and more Indian women are flocking to Internet there is a possibility that they might end up in a purchase. It was noticed that some of them felt shopping as a reason to go out with the family and spend time together. More male Internet users are frequent online buyers than female Internet users. This shows that it is true that more males are shopping online as compared to women. Income is higher in case of a regular online shopper than occasional online buyer.1 Hypotesis 1. males (72%)had purchased more as compared to women (28%).

9 Online Shopping & Educational Qualification 3% Non Matriculate 8% Matriculate 54% Postgraduate 35% Graduate Educational difference is a significant demographic variable. The marketers should make sure that they produce the item keeping in mind the needs of the women population as they still continue to be an important decision maker when shopping for the family. This shows that frequency of purchase is more in case of a higher educated regular shopper as compared to a online shopping done by a regular online shopper with matriculate (8%) and non matriculate (3%).000. 89% of the shopping has been done by the regular shopper whose is educated with a graduate or postgraduate degree. The research showed that 28% of the women who shopped online fall mostly in the service and executive class with an income above Rs10. Fig. . which shows that regular shoppers who were better educated made more purchases online.in the online shopping.

education and income levels. Among the 65% of the online shopping. There is a positive relation between education and income of the online shoppers. It was seen that a regular online shopper with a higher income had purchased more online as compared to lower income online shopper. It can be seen that hardly any purchase is done among the regular online shopper whose income lies below Rs5000. This trend was seen in all segment of the population. 10 Online Shopping & Income 40 35 30 25 20 15 10 5 0 Student 38 21 14 8 1 3 5 2 Service/Executive less5000 5000-10000 10000-25000 15 11 5 1 1 Business above25000 1 1 3 Others Income and buying behavior are positively related. 89% of the online shopping was done among the regular .Fig. males (72%)had purchased as compared to women (28%). It is true that more the income in the hands of the population they would indulge in shopping. The service class had done the major purchase in all the various levels of income. Analysis-Thus three hypotheses stated were true in case of the regular online shopper and it can interpreted that online shopping is effected by demographics like gender.

000 than 40% who had income less than Rs. 5. Fig.4.1 Hypothesis Consumers who make frequent online purchases are higher in convenience orientation than those who purchase occasionally. 11 Online Shopping & Motivating Factors 7% Product Comparison 32% Convenience 26% Saves Time 12% Superior selection 23% Price It is believed that consumers whether online shoppers or non-online shoppers value price to convenience but the study contrast this popular belief.shoppers who were educated with a graduate or postgraduate degree compared to 11% shopping who were matriculate and non-matriculate.25. A 60% of the shopping was done by the regular shopper who had income more than Rs 25. Analyzing the importance of satisfaction level in the online purchasing environment.4 Motivating & Satisfaction Factors To identify the factors which Internet users choose to buy or not buy online and how frequently they make such purchases. The study showed that 32% of the shopping had been done by the . 5.000.

as the Internet is a tangled jungle of web sites. Every connection is a potential for net shopping. were saves time (26%). Fig. and product comparison (7%). Therefore the companies should attract and retain its regular online shoppers. home delivery and ability to shop 24x7. which is possible at a click of a mouse. 12 Barriers to Shopping Online 7% 9% Unfamiliar Others 33% Privacy & Security 14% Hassle of returning 16% Lack of Customer Service 21% Inability to touch & feel The main areas for concern in respect of the regular online shoppers while shopping were privacy and security (33%). which had lead to online shopping.regular shopper who think convenience is the main driving force while 23% of the shopping had been done for whom price was the main orientation for shopping online. They should design strategies and develop products keeping in mind the convenience factors. . Other motivating forces. product availability and superior selection (12%). as compared to occasional online shoppers. Most of them still preferred the conventional method of shopping like the touch and the feel factor (21%). Convenience here is characterized as ease of purchase. These factors motivate the regular online shopper to buy over the Internet and regular online shoppers who value convenience are more likely to buy on the web.

hesitant in purchasing from an unfamiliar source and person and delivery costs. touch and try the products before buying in a shopping store as compared to Internet shopping. Fig. The online shopper believes that large amount of information about the product and the ability to compare prices is available at a click of a mouse thus making the . feel.The Motivating Factor 80% 70% 60% 50% 40% 30% 20% 10% 0% 12% 5% Only once 2-4 times 20% 5% More than 5 times 9% More than 6 times 27% 48% 74% purchase convenience It has been seen that there is a positive correlation between the frequency of purchase and the convenience factor for buying in the Internet arena. The marketers should formulate such strategies so that the privacy and security concern can be taken care off. Convenience has been characterized as ease of purchase. hassle of returning the product (14%). Other reasons that concern the regular online shoppers were inability to reach the customer service (16%). technical foul –ups.They felt that it is possible to see. 13 Convenience. The regular online shopper who had purchased more than 6 times (9%) for them convenience is the most important motivating factor (48%)for shopping on the Internet. home delivery and ability to shop 24x7.

entire shopping experience very convenient. which had lead to online shopping. 5. But the companies should take measures so that the dissatisfied and the neither satisfied nor dissatisfied . This shows satisfaction level plays an important role in online shopping with more regular shoppers falling under the category of satisfied. Fig.2 Satisfaction Index It is important to understand the satisfaction level among the regular online shoppers. This could be understood by the satisfaction index and the frequency of purchase among the shoppers. 14 Satisfaction Index 12% Dissatisfied 2% Highly Satisfied 31% Neither Satified nor Dissatisfied 55% Satisfied A 55% of the regular online shoppers were satisfied with 12% dissatisfied. This shows that they were overall satisfied by the experience of shopping online.4. Thus the marketers to should keep the convenience factor in mind while providing the goods and services. An important thing to be noted is that only 2% of the regular online shoppers were highly satisfied while 31% of the regular online shoppers were neither satisfied nor dissatisfied.

saves time (26%). hassle of returning the product . which poise the regular shoppers from using the Internet frequently as a shopping medium. price (23%). a 74% of the regular online shopper has purchased 2-4 times and 9% had purchased more than 6 times indicating that an increase in the confidence level and accepting the Internet as a shopping medium. A note should be taken that only 2% of the regular online shoppers are highly satisfied which shows that there are still concerns. Analysis-It is seen that the main orientation for buying among the regular online shoppers were convenience (32%). According to the figure 2 (already explained). The hypothesis stated that convenience is major factor motivating the regular shopper was true as 75% of the regular online shoppers who have shopped more than 5 times felt it was necessary as compared to 25% who shopped less than 5 times. customer service problems (16%). inability to touch and feel the product (21%). Satisfaction level can also be measured by the frequency with which the online shoppers purchase online. The increase in the frequency of shopping was mainly because they were overall satisfied by the entire shopping experience. product availability and superior selection (12%).category of regular online shoppers could be moved to satisfied or highly satisfied. and product comparison (7%). The barriers to online shopping as stated by the regular online shopper were privacy and security (33%). According to human psychology it is true that frequency of purchase depends upon the satisfaction level received.

It can also be seen that 74% have shopped more 2-4 times and 11% had shopped more than 5 times showing that satisfaction level plays an important role in online shopping. Satisfaction level plays an important role in online shopping. Fig.(14%).5 Future and growth of Online Shopping This can be understood by the categories of good bought by the regular online shoppers presently and the future of the various categories. 15 Present & future categories of Goods 120% 100% 80% 60% 40% 20% 0% Books Railway tickets Airline tickets Electronic Gadgets Gifts Movies tickets Present Future It is seen that railway tickets 70% and airline tickets 93% are the most popular categories among the online shoppers followed by books and . purchasing from unfamiliar source and person (9%) and other problems (7%). 5. as 55% of the regular online shoppers that are satisfied tend to purchase more.

The entire shopping culture among the regular shoppers is brought mainly by the travel categories followed by electronic gadgets. The graph shows that online shopping is tend to grow in the coming years as consumers want to buy more in the future. Table 1 Future Categories of Goods Railway tickets Airline tickets Electronic Gadgets Books Gifts Movies tickets Jewellery Computer Software Hotel Rooms/Car Rental Event Tickets Toys Infant / Child items Food / Groceries Accessories apparel CD/Videos Magazines Home tools and products Sporting goods 83% 80% 50% 43% 33% 30% 23% 20% 20% 13% 13% 10% 7% 3% 3% 3% 3% 3% . The companies should bring out innovative ways so that there is a growth in other categories of goods also. which is bringing about online shopping culture among the regular online shoppers. This is the main category.electronic gadgets.

Thus the marketers should mainly focus on these growing categories of goods. These goods do well because consumers are not bothered much about the touch and feel factors. and computers (e. Gifts also seem to show a growth in the coming years. www. Analysis.www. and computer accessories were purchased through catalogs and other forms of direct mail but toady online shopping serves a convenient means of distribution channel.com. which generally drive the shopping in India unlike categories like apparels and groceries where it still remain an important factor while purchasing. which would drive the online shopping in the future. Another reason for the growth in these categories is because of well-established sites for travel.g. electronic gadgets (50%)and books (43%). audio-video (e.com). which lure the consumers to buy these products. .. It is difficult to change the set mindset of consumers for certain categories of goods but still companies should keep innovating and find means and ways to attract more online shopping.dell. CD-Now).The table I shows that shows that there is a future growth in the electronic gadget and book categories also apart from railway and airline tickets. which continues to be on the priority list. There is a growth in these categories because traditionally products like audio-video.There is a future growth in online shopping which can be especially seen in the travel arena with railway 83% and airlines 80%.g.sonyvaio. apparel.

CHAPTER .6 .

FINDINGS .

which influenced the online shopping. was convenience followed by time saving and price.0 FINDINGS The findings show that Internet usage has increased over the years and it is leading to an increase in online shopping and also shows the consumers attitude and perception towards online shopping. Communication still forms the major activity among the large number of online shoppers as 32% of regular online shopper use Internet for communication as compared to shopping (10%).6. Regular online shoppers considered convenience as the main motivating factor while buying and were less price sensitive. The most important motivating factor. easy access and convenience of the Internet. Online shopping is affected by demographics as it has been seen that more males are shopping online as compared women online shoppers and there is a positive relation between education and income levels with respect to the increased online shopping behaviour. The marketers should bring out innovative ways so that the consumers can do more online shopping while taking the full advantage of rich information. . But the online marketers should attempt to differentiate their products or services making the comparison easier.

One of the main concerns among the online shoppers was privacy and security. interacting with a salesperson. Another reason that hindered online shopping was the touch factor. which drives the shopping for these goods. as the touch factor is the main factor. books. . The future of online shopping is bright especially in the categories of travel. electronic gadgets and gifts. This might hinder the use of certain goods like grocery and apparel. and seeking sensory stimulation. Consumers still preferred the experience they get from traditional stores like feeling the store’s atmosphere.

7 GENERAL DISSCUSIONS .CHAPTER .

Report Finds Heavy Spenders Driving Sales By Devin Comiskey August 16. While such hurdles as limited broadband access and security concerns remain.1 Indian E-Comm. Juxtconsult's survey found that 40 percent of all urban Internet users buy online..000 rupees per month.000 rupees per month while the (remaining) 75 percent bill less than 1. The survey was conducted in April 2008and sampled more than 30. "It is interesting to note that two out of every three heavy spenders are also 'netholics.." states the report.) . only 25 percent are spending more than 1. 2008 A Survey by Indian research organization Juxtconsult found that more and more Indian Internet users are opening their wallets online.000 rupees or more per month on the net.0 GENERAL DISCUSSION 7. the report finds there are currently more than 10 million shoppers online in India.Of all those who buy online.000 users. While current trends point to increased e-commerce growth in India.7.000 Indian rupees is currently equal to approximately $23 US." (1.' those who are on the net for more than three hours per day. while 42 percent of the sales originate through just five percent of consumers. "This section of buyers spends 5. the online marketplace in the country of more than 1 billion people is still relatively small.

CDs Top the List The products that are purchased most online in India. Defying their more common attitude towards shopping. nine percent to 25 percent are buying online. "Depending on the product type." 7. only 31 percent of urban female users are consumers as well. "The single biggest motivation for buying online for net users is saving time. whereas 33 to 47 percent are searching the net for product information." says the report.2 Security Fears Persist Juxtconsult says the motivation for Indian users to make purchases online varies. Thirty-two percent of them look to shop online with this purpose. according to . 7." says Juxtconsult. Convenience of shopping '24x7' and home delivery are other major incentives.3 Books. but users fear compromised personal information is still a great risk when it comes to e-commerce." it says. Clearly. Women tend to search more. women are more guarded when it comes to the online market. with almost 55 percent of them voicing their concern. "However.The report also found that buying and search patterns among Indians differ between genders. "While 43 percent of male users buy online. the concern of possible misuse of credit card or personal information is extremely significant among online buyers. tackling and countering the issue of online safety figures as an imminent challenge for net marketers.

despite having the home advantage are among one of the least bought products online. Though a noticeable proportion of net users are also net consumers. "Ironically. The Internet is still being used more for searching than buying products and services. essentially. as per a release. at present only a small tribe among them is driving online shopping momentum. the online market in India is blossoming but is yet to take off in a considerable way. with only 13 percent buying them." says the report.Juxtconsult. 1000 crore for the financial year ending March 2008. computer hardware and software. ." says Juxtconsult.000 crore ($400 million) religious travel market • • Opportunity in Online Travel Industry: $2billion Online travel company MakeMyTrip (MMT) has recorded sales of Rs. LATEST • A new trend in this space is that of Meta search engines. Ltd and Yatra Online Pvt. are battling to win over India’s Rs16. such as Make My Trip India Pvt. Ltd. A Meta search engine searches all the online travel sites (including the airlines sites as well) and displays the best deals for the user. "In sum.making up 25 percent of all online purchases. Ixigo and Ezeego are two players in this space. are books and CDs . • Travel websites.

8 CONCLUSION .CHAPTER .

movie tickets. The main motivating factor seen during the research was the convenience and customer service which drives the people to online shopping as a result today they are buying airline and railway tickets. than driving up to a store . More consumers are indulging into Internet shopping as seen by the research because of the value proposition it offers to a customer such as convenience. It is believed that electronic commerce will become a huge industry in the coming years and online shopping is now becoming a significant part of the consumers daily life to meet their never ending requirements in a convenient way. books. A huge buyers and sellers across demographics are shopping online because of the changing lifestyles and shopping habits but the majority of the users are males.8. etc by logging on to a web site. It is creating an entire new economy. 24x7 shopping.0 CONCLUSION The e-commerce is one of the biggest things that have taken the business by a storm. a broad product selection and the everexpanding range of unique and unusual gift ideas as well as increased consumer confidence in shopping on the internet is increasing. Online shopping is picking up and is becoming a trend. It was seen that despite the immense possibilities available on .As the research suggest that increase in usage of internet increases the online shopping so there is a need to increase in broadband penetration as it accelerates the growth of online trade. electronic gadgets. doorstop delivery. which has a huge potential and is fundamentally changing the way businesses are done. home appliances.

unless the deliverables are as per the customers expectations. although the number of . 8.1 Consumer Bias Consumers often display a bias for brands that they know well and have had a good experience in the past. A few would risk buying expensive jewelry from an unknown jeweler online.the Internet it is mainly used for mailing. who in turn surf various websites to spot the lowest price for the product. it is hard to infuse more credibility in the e-Tailing market. Increased Internet penetration.2 Lack of ‘Touch –Feel-Try’ Experience The customer is not sure of the quality of the product unless it is delivered to him and post delivery of the product. a hassle free shopping environment and high levels of Net savviness see more and more Indians shopping online. chatting and surfing. Thus. Thus products of brands with a favorable bias will score over the products of less popular brands.1. Thus. it is sometimes a lengthy process to get a faulty or the unsuitable product changed. 8.1 Barriers to the Growth of Online Market 8. the competing online players are adopting all means to provide products and services at the lowest prices. E-mail applications still constitute the bulk of net traffic in the country.3 Mounting Competitive Pressures To attract customers. This has resulted in making the consumers choice-spoilt. 8.1.1.

Mother’s Day. the value of the products sold is continuously falling owning to high competition and leaner margins. while March to July is the dry seasons for sale”. On these occasions younger generations prefers buying and sending gifts online. 8. 8.transactions is increasing. Valentines Day. 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.1. Rakhi.1.1.5 Credibility in Payment System Online frauds and breach are the biggest barriers to online sales. the online retailing raises more issues than the benefits it currently offers. During the peak season. prospective buyers prefer staying away from revealing their credit card and bank details. . As a result. occasions that drive the sales are Diwali. “August to February is the peak seasons for sale. Christmas. Thus. but the delivery of the product may take unreasonable time. As told by an Industry player.4 Seasonality E-Tailing Market is faced by seasonal fluctuations. New Year. Friendship Day etc are. book and pay for products and services online. 8.6 Untimely Delivery of Products It might take a few minutes to search.

CHAPTER .9 LIMITATION .

A non-probability sample lacks the accuracy and precision that a probability sample might offer. Limitation of the study is the selection of the existing studies. This study is no different. owing to the multidisciplinary nature of online shopping. This may leave some other prominent empirical studies out. It was seen that some respondents were biased towards some questions.0 LIMITATION Every study will have its problems and limitations at some point during the project. In addition. Though this samples provided a better insight about the online shoppers but there could be a possibility that a respondent may have done online shopping but is not a regular Internet user. Another major limitation encountered doing the research assignment was the issue regarding the time. The use of a non-probalistic sample in the research was a major limitation because there was no way to make sure that the sample taken represented the total population of the Internet users.9. Owing to time limitation. it would be very interesting to compare IS literature to other disciplines that study online shopping attitudes and behavior. only a few number of journals were searched. .

CHAPTER .10 RECOMMENDATIONS .

Other technologies like encryption technologies trusted third-party certifications.  The consumers should be made aware that one of the safety aspect of using credit cards online is that in case of disputed credit card .  In India the total ownership of credit cards is small as compared to its population and there are also hesitant in using it as a mode of online payment therefore alternative methods of payment like cash on delivery (COD) where the end user pays cash after the product is delivered and debit cards where the bank accounts are directly debited should be used.0 RECOMMENDATION Online shopping in India is poised for greater acceleration as PC and Internet penetration grows.  India has a strong research and development (R&D) capability so companies should innovate rapidly to take care of the security issues. To make online shopping a boom following methods can be followed. It is becoming one of the top Internet activities and there is a huge growth in this business as more manufacturers and providers are integrating the Internet into their sales model. But there are many things that need to occur in online shopping to generate higher revenues and the key to it lies in the hands of the marketers. digital ID systems and prepaid cards should be used. Technology like text to speech softwares should be innovated to take care of the security concern.10.

as online users don't physically sign a credit slip.g.  It is not only important to pay strong attention to the security issue and create new.  One of the factors that hinder Internet penetration in India is access. privacy. . There should be transparency in policies (returns. transaction information can be protected.  Merchants should provide goods and services that offer the right value for money. consumers credit aware that the and communications.payments for online transactions the onus is on the merchants to prove that the transaction actually took place. card accounts. customers can walk to the office to access its services. innovative safeguards that protect consumers but the merchants should promote these safeguards to the marketplace and make the prospective personal data. more merchants should make use of this device allowing the customers to access the Internet and use it as mode of payment thereby obviating the need for PCs and credit cards. As a result online users are protected from fraudulent use of credit cards. etc). shipping. insurance against fraud and a good after sales services should be provided to consumers making it an enjoyable experience. More companies should adopt click and mortar model with the real world operations to complement its online presence for e.  There is a growth in the cellular phone market in India.

and sometimes frustrating process. fragmented.  Online shopping today is an incomplete.  Vendors should educate the customers about e-commerce like educating them on safety tips like reading the item description. more efficient and less cumbersome way to compare and buy products online.  In India still the penetration of Internet has not happened the way it should have been which hampers online shopping. offer a personalized customer experience and their web sites should deliver a shopping experience that addresses all of the consumer needs like recommendation customers. Ecommerce revolution can be brought about by providing more broadband connections at affordable prices. Therefore merchants should set themselves apart from their competitors by factors other than price. feedback from other . looking for a seller’s feedback score and asking questions. detecting spoof mails and informing them about the new online crimes which happen regularly. etc. Innovative service should be provided to consumers so that they can compare products. constantly innovate and move towards creating customer confidence to trade online. about the products. They should provide massive selection at lower prices. which are available online using their mobile phones. Consumers today demand a better.

which results in confusion.  To make online shopping big the shopping web sites should give the customers the convenience to shop anything on a single site like ordering pizzas. There is a huge market for business in the rural India therefore efforts should be such that to bring these people also into experiencing online shopping.  Convenience and time saving are the main reason to shop online. Therefore Business to Consumers (B2C) sites should be designed in such a way that consumers spend less time in finding information they are looking for as delays in searching or loading a web page might turn the consumers to other sites which have faster download and display times. The information on the site should be just sufficient for the consumers to make a decision and not to overload them with information. efforts should be made to change this mindset of the people by making them aware of the benefits of online shopping.com exist today. movie tickets. Companies should create more Indian language software or content as Internet still is a primarily English language world and language could be a barrier in rural India. . etc rather than in scattered places. The site should not only provide information content but also tools to navigate and evaluate this information. Only few language portals like webduniya. groceries.  Most of the Indians still like to see the product before buying.

Some of the things. Sites that are able to offer this information and present it in a simple way to understand will become the preferred destination for online shopping. which the consumers should take into considerations while online shopping. as it is easy to set up a shop online under any name. Consumers should also search for the reviews of the company. are:  Use a secure browser. .  Active participation from consumer marketing companies to manufacturing industries is required to make online shopping a booming sector.  Consumers should shop with the known companies.  The key to selling to a customer which cannot be seen is to get the customer to trust the website with which they have electronic transactions. such as Secure Sockets Layer (SSL). there is a need to find ways of managing the amount of information available over the Internet. Since consumers control the experience they receive from shopping over the Internet. If they are not familiar with a merchant they should ask for paper catalogue or brochure to get a better idea about the merchandise and services and should find about the company’s refund and return policies. The browser should comply with industry security standards.

 Proper research should be done about countries shopping laws and merchant when shopping from other countries. One should avoid using telephone numbers or date of birth for establishing a password instead should use a combination of numbers. letters and symbols. Read the privacy policy on the site of the companies before shopping as this helps to know what information is being collected and how it would be used.  Keep a print record of the transactions this would come handy in case of any fraud. etc.  One should find out how the company secures the financial and personal information before paying the bills.  The personal information should be kept private like address. . telephone numbers. email.

CHAPTER .11 EXECUTIVE SUMMARY .

and NO.  Research report By: IAMAI  Emerald.87.org/wiki/online_shopping  www. The Internet Shopper. 52-58. 2001  Simpson Paul. Online Shopping: The rough Guide.pdf .765-789. PP. research report  Jarvenpaa Journal of Electronic Commerce Research. What Drives Consumers to shop Online? A literature review. C.2.org/iis/2006_iis/PDFs/Changchit.wikipedia.  Donthu. V39 (3).iaciis.3rd edition. Benedict G.11.5. Online shopping through consumer’s eyes.122  Tonita Perea Monsuwe. Am Navigator.pdf  http://www. The best of Online Shopping.ibimapublishing. Dellaut and KodeRuyter. VOL. 6. Framework for consumers’ intentions to shop online. Ballantine Books.com/journals/CIBIMA/2010/854516/8545 16. 2000  Lillian Clark and Peter Wright. 2005  http://en. A review of Common Approaches to understanding Online Consumer Behaviour.5.  Price Lisa.0 REFERENCES  Prussakov Evgenii. PP. Naveen and Adriana Garcia (1999). 2008. Journal of Advertising Research.

CHAPTER .12 ANNEXURE .

0 ANNEXURE 12. Someone who is optimistic toward the benefits of online shopping will develop approach coping. A person who is pessimistic toward online shopping will think of the drawbacks to it and decide to purchase in physical stores instead.1 Annexure 1 Different models of consumer attitude towards online shopping By:Mary Ann Eastlick This chart shows how consumer attitude toward online shopping can lead either to approach coping (wanting to shop online) or to avoidance coping (deciding not to search or shop online). .12. which is avoidance coping.

1 Annexure 2 FRAMEWORK FOR CONSUMERS’ INTENTIONS TO SHOP ONLINE Source: research by Emerald .12.

CHAPTER .13 QUESTIONNAIRE .

1. Do you use Internet? Yes No 2.13. how much time (per week) do you spend in surfing the Web? 0 – 5 hours 6 – 10 hours 11 – 15 hours 16 – 20 hours More than 20 hours 4. Have you purchased anything online ever? Yes No . On the average. How long have you been using Internet? Less than 1 year 1 – 3 years 3 – 5 years More than 5 years 3.0 QUESTIONNAIRE Questionnaire Kindly highlight/bold your answers.

When did u shop for the first time? Last 6 months 6 months.5.1year 1-3 year 3-5 year . Which category (ies) of goods have you bought through Internet? Books Electronic Gadgets CD/Videos Accessories apparel Gifts Event Tickets Hotel Rooms/Car Rental Jewellery Infant / Child items Sporting goods Toys Railway tickets Airline tickets Computer Hardware Computer Software Magazines Movies tickets Office Supplies Food / Groceries Home tools and products Health and fitness products Any other. specify……………… 6.

Where do you most often access the Internet? Home Office / College Cyber-cafes Any other. specify……… . were you satisfied with your experience of online shopping? Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly Dissatisfied 9. How frequently did you purchase online? Only once 2-4 times More than 5 times More than 6 times 8. Overall.More than 5 year 7.

with 1=most used. Classifieds. etc.) Entertainment (Games. trading. Which category (ies) of goods are you planning to buy through internet in the near future? Books Electronic Gadgets CD/Videos Accessories apparel Railway tickets Airline tickets Computer Hardware Computer Software . online banking. Entertainment sites. Sports. financial research. Sports scores. Search for employment. News.) Finance (Investment portfolio.) Shopping (Researching purchases.) 11. Web page design.10. Adult entertainment. 3=used to a good extent. News Groups. Selling. 5=rarely used) Communication (E-mail. auctions. 4=used sometimes. Bulletin Boards. Instant Messaging. Chat. purchasing. check stock/fund quotes. What are the activities that you use Internet for? (Kindly rank them between 1 to 5. 2=used to a large extent.) Information Gathering (Research. etc. etc. Music. etc. etc.

What is your main motivation for buying through Internet? Convenience (ease of purchase.Gifts Event Tickets Movies tickets Hotel Rooms/Car Rental Jewellery Apparel gift certificates Infant / Child items Sporting goods Toys Magazines Beauty products Health and fitness products Office Supplies Food / Groceries Pharmaceuticals Home tools and products Home appliances Any other. home delivery. specify……………… . specify……………… 12. ability to shop 24x7) Price Saves time Superior selection/Availability Product comparison Any other.

according to you. What.13. before I buy it Internet is too slow / Pages take too long to load I am worried about the cost/hassle of returning the product Delivery costs are too high Prices are too high Technical foul-ups prevent transactions from going through I can’t find anything that I want to purchase on the Internet I don’t know how but I am uncomfortable about purchasing through Internet The process is expensive due to cost of access . are the most important barriers to purchase online? I am worried about giving out my credit card number I don’t have a credit card I don’t like providing personal information I don’t want to purchase from someone with whom I am not familiar I enjoy going out to do my shopping I like to see/touch the product in person.

specify…………… PERSONAL DETAILS 14.40 yrs 41 – 50 yrs Above 50 yrs 2. Educational Background: Non-Matriculate Matriculate Graduate Postgraduate 3. Age: Below 18 yrs 18 .30 yrs 31 . Occupation: Business/Self Employed Service/Executive Student .Any other.

25. 5.000 Rs.000 Rs. 50.000 Above Rs.000 – Rs. 10.000 – Rs.000 Rs. specify……………… 4. 5.000 – Rs. 10. Average Monthly Income: Less than Rs. 50.: ______________________________ City: ______________________________ .Any other. 25. Gender: Male Female 5.000 Name: _____________________________ Contact No.

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