VISVESVARAYA TECHNOLOGICAL UNIVERSITY BELAGUM

SDM COLLEGE OF ENGINEERING AND TECHNOLOGY

“DEPARTMENT OF MANAGEMENT STUDIES”

DHARWAD.

LITERETURE REVIEW

REPORT ON

CONSUMER PERCEPTION TOWARDS ONLINE SHOPPING

SUBMITTED BY

RAHUL V GULAGANJI

(2SD15MBA32)

SUBMITTED TO

Dr. SALEEM SONEKHAN

(PROFESSOR SDMCET,DHARWAD)

TABLE OF CONTENT

SL NO PARTICULAR PAGE NO

1 About literature review 3

Meaning and Definition 4

Objectives of the literature review, Methodology 5-6

2 Theoretical and conceptual framework 7

Meaning and Definition 8

Theories & Models of the related to the topic 9-10

3 Review of literature 11

List of the article 12-14

Analyze the article 15-19

Conclusion and Findings 20-21

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PART-1

ABOUT LITERATURE REVIEW

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Meaning

A literature review is a text of a scholarly paper, which includes the current knowledge including substantive findings, as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and do not report new or original experimental work. Most often associated with academic-oriented literature, such reviews are found in academic journals, and are not to be confused with book reviews that may also appear in the same publication. Literature reviews are a basis for research in nearly every academic field.

Definition

A literature review is an evaluative report of information found in the literature related to your selected area of study.  The review should describe, summaries, evaluate and clarify this literature.  It should give a theoretical base for the research and help you (the author) determine the nature of your research. Works which are irrelevant should be discarded and those which are peripheral should be looked at critically.

Need Of Literature Review

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• To Provide a context for the research.

• To Justify the research.

• To Ensure the research hasn't been done before (or that it is not just a "replication study" ).

• To Enable the researcher to learn from previous theory on the subject.

•To illustrate how the subject has been studied previously.

•To Highlight flaws in previous research.

• To Outline gaps in previous research.

• To Show that the work is adding to the understanding and knowledge of the field.

• To Help refine, refocus or even change the topic.

Objectives of Literature Review

To gain background knowledge of the research topic.

To Find out problems in the area of interest to the researcher that have already

been investigated in the past.

To Know what other have found out about the subject and haw they have done so.

To find out various concepts relating to it and the potential relationship between

them.

To identify potential areas and hypothesis for research.

To get some support for design of research methodology and techniques of

analysis.

To identify potential sources of information for conducting the detailed research.

METHODOLOGY

SOURCES OF DATA

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Secondary Data: - Secondary data refers to data that was collected by someone other than the user. Common sources of secondary data for social science include censuses, information collected by government departments, organizational records and data that was originally collected for other research purposes. Primary data, by contrast, are collected by the investigator conducting the research. someone else and readily available from other sources.The secondary data has been collected through following sources.

1. Data through Internet source 2. Data through E-books 3. Sampling Method

PURPOSE OF SECONDARY DATA

• Extracting the relevant information from other sources, previous studies • Fact findings: Descriptive information to support research • Model Building: specifying relationship between two or more variables • Data mining : Exploring data through computer . Using computer technology to go through volumes of data to discover trends about an organization’s sales customers and products. it is primarily used.

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PART-2THEORETICAL & CONCEPTUAL FRAME WORK

MEANING

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Consumer Perception When it comes to influencing consumers to purchase a product, their perception of the brand must be taken into account. This perception may vary based on the customer or a certain demographic of customer. Customer perception can be developed from a variety of factors, such as their own personal experience or how they have heard other people experienced the product.

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2016, customers can shop online using a range of different computers and devices.

DEFINITION

Consumer r Perception refers to how customers view a certain product based on their own conclusions. These conclusions are derived from a number of factors, such as price and overall experience.

Online Shopping is the process of buying goods and services from merchants over the Internet. Since the emergence of the World Wide Web, merchants have sought to sell their products to people who spend time online. Shoppers can visit web stores from the comfort of their homes and shop as they sit in front of the computer.

OBJECTIVES OF THE STUDY

To study perception of consumers towards online shopping.

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To examine the customer service, satisfaction and relationship aspects of online durable goods shopping.

To find out the preferences of the consumer regarding the attributes of online shopping website.

To study the marketing strategies of online shopping. To know the demographic profile of the customers and its impact

if any on the online buying.

NEEDS AND IMPORTANCE OF THE STUDY

Online shopping saves the people the drudgery of hopping from one shop to another to buy the items they require. However, with so many online retailers selling a large variety of products, it becomes impossible for even online shoppers to decide what to buy, and from where. There is an urgent need of one-stop shopping information centers from where you can receive all relevant information on the products and services available.

THEORIES RELATED TO CUSTOMER PERCEPTION

1)Gibson’s theory of Direct perception J. J. Gibson

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He believed that our cognitive apparatus was created and formed by a long evolutionary influence of external environment which is apparent in its structure and abilities. We learned to extract precisely the information which is necessary for our survival. In accordance with Darwin’s assumption, the pressures of the environment caused our receptors to be created and formed so that they became sensitive to relevant stimulus from the environment and they adapted to the environment. Such interpretation of perception is called the ecological one because it attributes the determinative role to the environment and to its influence on the whole process of perception.

2) Gregory’s theory One of the most popular constructivist theories of perception is Gregory’s theory. While Gibson integrated the phylogenetic flow of time (the influence of evolution on cognitive apparatus) into the process of perception, Gregory used also the flow of ontogenetic time. He claims that sensory data found on receptors are just some sort of energy samples, but they are of no great importance themselves. Their importance is based on our previous experience. Data have the past and the future; they change themselves and they influence each other. They have some hidden aspects that emerge only if influenced by various conditions. (Gregory, 1990, 219). What Gregory is trying to suggest is what we call the importance vagueness of sensory data. Similarly to Gibson, he does not doubt the importance of receptors for acquiring data but he disagrees that sensors possess the ability „to read“ the meaning of particular data (e.g. affordance). Gregory believes this process, just like any other similar process of reading, requires higher cortex centers activity and learning. Perception is a matter of receptors as well as of brain. The name of his book Eye and Brain follows this idea.

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PART-3REVIEW OF LITERATURE

LIST OF ARTICLES STUDIED

S.NO TITLE OF ARTICLE

AUTHORS JOURNAL YEAR OF PUBLISHED

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1"Gender difference in consumer’s perception of online consumer reviews"

Soonyong bae, taesik lee.

International journal of management and information technology

2011

2

“Towards understanding risk perception of online consumer”

Isaac j. Gabriel Academy of Marketing Science, Vol. 15

2007

3“Online versus conventional shopping consumer’s risk perception and regulatory focus.”

Guda van noort, peter bob,

Cyber psychology and behavior(volume 10)

2007

4

“Exploring the influence of inline consumer perception on purchasing intention as exemplified with an online bookstore.”

Yu lee, ching takming,

Journal of Electronic Commerce Research,Vol 12

2009

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5 “Consumer perception

towards online shopping”

Kanwal gurleen International journal of management and information technology

2012

6 “Multi Channel

Consumer Perceptions”

Kodandarama Setty, CMD of Vivek Ltd

Journal of Electronic Commerce Research,Vol 8

2007

7 “Exploring the

implications of the Internet for consumer marketing”

Peterson R.A Academy of Marketing Science, Vol. 25

2003

8 “What drives consumers to shop Online? A literature review”

Benedict G.C Service Industry Management,Vol. 15

2004

9 “Online Shopping Customer Satisfaction and Loyalty in Norway”

Ali, Pervaiz, Sankaran, Sudha,

Lambert Academic Publishing

2011

10 “Consumer Perceptions Of Online Shopping”

Chuleeporn Changchit

Issues in Information Systems Volume 7

2006

11

"Web based Shopping: Consumers Attitudes towards online shopping"

Zhaobin ChenElectronic Commerce ResearchVol. 6

2005

12 “A study on consumers

Attitude towards Online Shopping in China”

Noor Ismawati Jaafar

International Journal Of Business and Social Science,Vol 2

2011

13 “Perception Towards

Online Shopping: An empirical Study Of Indian Consumers”

Zia Ul Haq Journal of Research in Commerce And Management Vol 1

2008

14 "Customer perception

to words online shopping "

Ryan Marketing research, Vol 16

2004

15 "Customer perception

to words online shopping "

Parasuraman Academy of Marketing Science, Vol 07

2002

ARTICLES

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1)Soonyong Bae, Taesik Lee.(2010)

they investigates the effect of online consumer reviews on consumer’s purchase intention. In particular, they examine whether there are gender differences in responding to online consumer reviews. The results show that the effect of online consumer reviews on purchase intention is stronger for females than males. The negativity effect, that consumers are influenced by a negative review more than by a positive review, is also found to be more evident for females. These findings have practical implications for online sellers to guide them to effectively use online consumer reviews to engage females in online shopping.

2) Isaac J. Gabriel.(2007)

studied online consumers’ risk perceptions and will reveal a “cognitive map” of their attitudes and perceptions to online risks. It was accomplished by composing a master list of online hazards and activities, measuring current level of perceived risk, desired level of risk, and desired level of regulation associated with them, composing a master list of online risk characteristics, determining online risk dimensions, and revealing position of each online hazard or activity in the factor space diagram. A factor space diagram captures a graphical representation of the results of the factor analysis. This study is still in progress and results are not available yet.

3) Guda Van Noort, M.A., Peter Kerkhof, and Bob M. Fennis.(2007)

in two experiments, the impact of shopping context on consumers’ risk perceptions and regulatory focus was examined. They predicted that individuals perceive an online (vs. conventional) shopping environment’s more risky and that

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an online shopping environment, by its risky nature, primes a prevention focus. The findings in Study 1 demonstrate these effects by using self-report measures for risk perception and prevention focus. In Study 2, replicated these findings and demonstrated that the effect of an online shopping environment carries over to behavior in a domain unrelated to shopping.

4) Yu-Je Lee, Ching-Lin Huang, Ching-Yaw Chen.(2012)

The purpose of this study is to use structural equation modeling (SEM) to explore the influence of online bookstore consumers’ perception on their purchase intention. Through literature review, four constructs were used to establish a causal relationship between perception of online shopping and consumers’ purchase intention. Results of this study show that product perception, shopping experience, and service quality have positive and significant influence on consumers’ purchase intention, but perceived risk has negative influence on consumers’ purchase intention, and shopping experience is most important.

5) Kanwal Gurleen.(2012)

focuses on the understanding of demographic profiles of adopters and non-adopters of online shopping. For this purpose the data from 400 respondents was collected in the form of questionnaires. The study has been conducted in 3 cities of Punjab, a sample of urban respondents were selected from the Jalandhar, Ludhiana and Amritsar The paper also analyses the various reasons for adoption and non-adoption of online shopping.

6) Kodandarama Setty.(2013)

stated that “We are facing some threat from online stores in these electronics categories, however, in the big market of consumer durables we are safe for now”.

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7) Peterson et al.(1997)

commented that it is an early stage in Internet development in terms of building an appropriate dedicated model of consumer buying behavior. Decision sequences will be influenced by the starting point of the consumer, the relevant market structures and the characteristics of the product in question. Consumers' attitude towards online shopping is a prominent factor affecting actual buying behavior.

8) Benedict et al.(2001)

study reveals that perceptions toward online shopping and intention to shop online are not only affected by ease of use, usefulness, and enjoyment, but also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.

9) Ali, Sankaran, Sudha.(2011)

study establishes the scale and growth of internet shopping is impressive. In 2005, the most recent year for which reliable figures are available, sales to households were over £21bn – a fourfold increase during the previous three years. It is benefiting millions of people and thousands of businesses. Over 20 million UK adults shopped online in 2005, with 56 per cent of internet shoppers we surveyed having spent over £500 each during the year. In the same year, an estimated 62,000 UK businesses were selling online to households. We found that people shopped online because they find it convenient, it increases their choice and helps them to hunt for lower prices. Retailers sell online to reach more customers, to sell around the clock and in reaction to competition from rivals.

10) Chuleeporn Changchit.(2006)

identified online purchase in particular continues to rise, as adoption and penetration levels of Internet technology continuously increase. By 2007, European

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Internet penetration stood at 43% of the population with a 231% usage growth year on year. In North America, penetration was at 71% of the population with 120% growth (Internet World Stats 2007). This is also evidenced by increasing levels of online sales, which in the US reached US$128.1bn in 2007 and were projected to reach US$165.9bn by 2009 (source: US Census Bureau 2009).

11) Zhaobin Chen.(2005)

identified Today’s younger, more ‘green’ shoppers aren’t going to waste precious money and gas going from store to store looking for just the right item. They shop online whenever they can, narrowing their choices to one or two items then go to the store to touch, feel , bounce and check out the actual product to see if it looks the way it was represented online.

12) Noor Ismawati Jaafar.(2011)

Studied that investigated peoples‟ perception of online buying tickets (e-ticketing) as well as why some people use this facility while some who do not use it stick to the traditional way to fulfill their needs. In addition, factors such as what inform peoples‟ eagerness and unwillingness to use internet facilities are also examined. The outcome of this research showed a comprehensively integrated framework that can be utilized by policy makers and business enterprises to understand the dynamic relationships among dimensions of perceived risk, user trustworthiness, usefulness, familiarity and confidence. Also, this study considered how price perception and internet security can be utilized to understand the consumers‟ perception.

13) Zia Ul Haq.(2008)

examined the convenience of online shopping “With product getting standardized, specifications getting fixed and the concept of service getting eroded, the post sale

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responsibility of the retailer has come down drastically. Hence customers go to stores to explore the product physically detail but by online at a cheaper rate. Heavy discounts of e-commerce firms are possible because of their no warehouse model.”

14) Ryan. (2004)

conducted a research on the mosaic of institutional issues associated with gaining credibility for internet marketing standards. Strong claims for a predominantly self regulatory approach are reviewed in conjunction with other factors that inhibit credibility, namely: competing internet worldviews, weak moral coherency and offline ambiguity about respective institutional roles, especially as regards moral dimensions of notions of regulation and self-regulation..

15) Parasuraman. (2002)

Stated that the motivations for this special issue and propose a conceptual framework pertaining to the issue's theme. Using this frameworks a backdrop, they then offer an overview of the remaining articles by segmenting them into categories and discussing their relationship to the framework. They conclude by highlighting research avenues for augmenting our understanding of marketing to and serving customers through the Internet.

FINDINGS AND ANALYSIS

FINDINGS

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The findings show that Internet usage has increased over the years and it is leading to an increase in online shopping and also shows the consumers perception towards online shopping. 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%).

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 behavior.

The most important motivating factor, which influenced the online shopping, was convenience followed by time saving and price. Regular online shoppers considered convenience as the main motivating factor while buying and were less price sensitive. But the online marketers should attempt to differentiate their products or services making the comparison easier.

The marketers should bring out innovative ways so that the consumers can do more online shopping while taking the full advantage of rich information, easy access and convenience of the Internet.

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

CONCLUSION

Online shopping is becoming more popular day-by-day with then increase in the usage of WORLD WIDE WEB known as (www). understanding the consumer's perception towards online shopping, making improvement in the factors that influence consumers to shop online and working on factors that affect consumers to shop online will help marketers to gain the competitive edge over others.

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From the above data analysis it can be conclude that consumer buys goods from the online shopping website on the basis of factors like offers and discounts, variety of product available, free home delivery, website user friendliness and The hypothesis framed for the project Consumer Perception towards Online Shopping was Online shopping is beneficial for the consumer. From the above data analysis it can be determined that most of the respondent would agree to buy durable goods online rather than shopping of durable goods with the traditional method. Out of the agreed respondent to buy online durable goods, most of the respondent would think that it would be beneficial to shop durable goods online on the basis of factors like easy to order, variety, discounts/ offers, saves time and avoid long queues. With above analysis we can thus prove the hypothesis to be positive.

Online shopping is becoming common in today’s life. The study indicate that most of customer having experience of online shopping. Customer believed that online shopping is better option than manual shopping still they have belief that online shopping is expensive, delayed in delivery of products and service. Most of the customers are facing problems like return of bad / wrong product, confusing sites and ineffective customer service. According to, customers most alarming barrier for online shopping are unable to verify product personally, online payment

security.

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