78
1 Project Dissertation On Consumer Behavior In Online Shopping Submitted To Lovely Professional University In partial fulfillment of the requirements for the award of degree of BACHELOR OF BUSINESS ADMINSTRATION Submitted by: Group No-46 Supervisor: Kuljeet Minhas Prashant Priyadarshi Roll no-17 Nitish Arora Roll no-15 Nandni Kashyap Roll no-20 DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2010-11)

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Page 1: 31785752 Consumer Behaviour in Online Shopping

1

Project Dissertation

On

Consumer Behavior In Online Shopping

Submitted To Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

BACHELOR OF BUSINESS ADMINSTRATION

Submitted by

Group No-46 Supervisor

Kuljeet Minhas

Prashant Priyadarshi Roll no-17

Nitish Arora Roll no-15

Nandni Kashyap Roll no-20

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA (2010-11)

2

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report entitled ldquoConsumer behavior in online

shopping-carried out by Nitish Arora (SO) Satish Kumar Arora Prashant Priyadarshi

(SO) Sanjay Kumar Mishra Nandni Kashyap and (DO)Sham lal kashyap has been

accomplished under my guidance amp supervision as a duly registered BBA (H) student of

Lovely Professional University Phagwara This project is being submitted by them in the

partial fulfillment of the requirements for the award of the master of business

Administration from Lovely Professional University

There dissertation represents their original work and is worthy of consideration for the

award of the degree of bachelor of Business Administration

KULJEET MINHAS

LECTURER IN MANAGEMENT

LHSB

Lovely Hons School of Business

Date 1752010

3

Declaration

I Nitish Arora Prashant Priyadarshi Nandni hereby declare that the project report

entitled Study on Consumer Behavior in Online Shopping has been written and

submitted under the guidance of Miss kuljeet Minhas

I further declare that it is original work done as a part of our academic course and has

not been submitted elsewhere The conclusions and recommendations written in this

project are based on the data collected by me while preparing this report

Prashant Priyadarshi Nitish Arora Nandni Kashyap

10803272 10806134 10809033

4

TABLE OF CONTENTS

SNo Particulars Page number

Chapter

1 1Introduction

(Theoretical Foundation Evolution of subject and its

Dimensions

11 Executive summary

12 Introduction

13 Theoretical Foundation

131 Online Shopping in India

132 Rising connectivity

133 Factors that Boot Online Shopping in India

134 Few Facts about Online Shopping

135 Changing Attitude Towards Online Shopping

12

10

12

14

14

14

15

16

5

2 Review of literature 18-32

3 NeedObjectives Scope amp Methodology

31 Need

32 Objective

33 Scope of Study and Methodology

331 Scope of Study

332 Research Methodology

333 Research Strategy

334 Descriptive research method

34 Sample Design

33-36

34

35

36

36

36

37

4 Data analysis [factor analysis through spss]

41 Pie charts

39-44

45-58

5 Summary Conclusion Limitations amp

Recommendations

51 Summary

63-67

63

64

6

Table of figures

52 Conclusion

53 Limitationsamp Recommendations

65-69

6 References 69-73

7

Appendix(QuestionnaireTerms

AbbreviationsDocumentsPerformaFinancial

Statements

74-78

SNO Particular Page no

Chapter 4

Fig 11

Fig 12

Fig 13

Fig 14

Fig 15

Fig 16

Fig 17

Fig 18

Fig 19

Fig 20

Fig 21

Fig 21

Fig 22

Fig 23

40

40

41

42

43

44

45

46

47

48

49

50

51

52

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 2: 31785752 Consumer Behaviour in Online Shopping

2

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report entitled ldquoConsumer behavior in online

shopping-carried out by Nitish Arora (SO) Satish Kumar Arora Prashant Priyadarshi

(SO) Sanjay Kumar Mishra Nandni Kashyap and (DO)Sham lal kashyap has been

accomplished under my guidance amp supervision as a duly registered BBA (H) student of

Lovely Professional University Phagwara This project is being submitted by them in the

partial fulfillment of the requirements for the award of the master of business

Administration from Lovely Professional University

There dissertation represents their original work and is worthy of consideration for the

award of the degree of bachelor of Business Administration

KULJEET MINHAS

LECTURER IN MANAGEMENT

LHSB

Lovely Hons School of Business

Date 1752010

3

Declaration

I Nitish Arora Prashant Priyadarshi Nandni hereby declare that the project report

entitled Study on Consumer Behavior in Online Shopping has been written and

submitted under the guidance of Miss kuljeet Minhas

I further declare that it is original work done as a part of our academic course and has

not been submitted elsewhere The conclusions and recommendations written in this

project are based on the data collected by me while preparing this report

Prashant Priyadarshi Nitish Arora Nandni Kashyap

10803272 10806134 10809033

4

TABLE OF CONTENTS

SNo Particulars Page number

Chapter

1 1Introduction

(Theoretical Foundation Evolution of subject and its

Dimensions

11 Executive summary

12 Introduction

13 Theoretical Foundation

131 Online Shopping in India

132 Rising connectivity

133 Factors that Boot Online Shopping in India

134 Few Facts about Online Shopping

135 Changing Attitude Towards Online Shopping

12

10

12

14

14

14

15

16

5

2 Review of literature 18-32

3 NeedObjectives Scope amp Methodology

31 Need

32 Objective

33 Scope of Study and Methodology

331 Scope of Study

332 Research Methodology

333 Research Strategy

334 Descriptive research method

34 Sample Design

33-36

34

35

36

36

36

37

4 Data analysis [factor analysis through spss]

41 Pie charts

39-44

45-58

5 Summary Conclusion Limitations amp

Recommendations

51 Summary

63-67

63

64

6

Table of figures

52 Conclusion

53 Limitationsamp Recommendations

65-69

6 References 69-73

7

Appendix(QuestionnaireTerms

AbbreviationsDocumentsPerformaFinancial

Statements

74-78

SNO Particular Page no

Chapter 4

Fig 11

Fig 12

Fig 13

Fig 14

Fig 15

Fig 16

Fig 17

Fig 18

Fig 19

Fig 20

Fig 21

Fig 21

Fig 22

Fig 23

40

40

41

42

43

44

45

46

47

48

49

50

51

52

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 3: 31785752 Consumer Behaviour in Online Shopping

3

Declaration

I Nitish Arora Prashant Priyadarshi Nandni hereby declare that the project report

entitled Study on Consumer Behavior in Online Shopping has been written and

submitted under the guidance of Miss kuljeet Minhas

I further declare that it is original work done as a part of our academic course and has

not been submitted elsewhere The conclusions and recommendations written in this

project are based on the data collected by me while preparing this report

Prashant Priyadarshi Nitish Arora Nandni Kashyap

10803272 10806134 10809033

4

TABLE OF CONTENTS

SNo Particulars Page number

Chapter

1 1Introduction

(Theoretical Foundation Evolution of subject and its

Dimensions

11 Executive summary

12 Introduction

13 Theoretical Foundation

131 Online Shopping in India

132 Rising connectivity

133 Factors that Boot Online Shopping in India

134 Few Facts about Online Shopping

135 Changing Attitude Towards Online Shopping

12

10

12

14

14

14

15

16

5

2 Review of literature 18-32

3 NeedObjectives Scope amp Methodology

31 Need

32 Objective

33 Scope of Study and Methodology

331 Scope of Study

332 Research Methodology

333 Research Strategy

334 Descriptive research method

34 Sample Design

33-36

34

35

36

36

36

37

4 Data analysis [factor analysis through spss]

41 Pie charts

39-44

45-58

5 Summary Conclusion Limitations amp

Recommendations

51 Summary

63-67

63

64

6

Table of figures

52 Conclusion

53 Limitationsamp Recommendations

65-69

6 References 69-73

7

Appendix(QuestionnaireTerms

AbbreviationsDocumentsPerformaFinancial

Statements

74-78

SNO Particular Page no

Chapter 4

Fig 11

Fig 12

Fig 13

Fig 14

Fig 15

Fig 16

Fig 17

Fig 18

Fig 19

Fig 20

Fig 21

Fig 21

Fig 22

Fig 23

40

40

41

42

43

44

45

46

47

48

49

50

51

52

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 4: 31785752 Consumer Behaviour in Online Shopping

4

TABLE OF CONTENTS

SNo Particulars Page number

Chapter

1 1Introduction

(Theoretical Foundation Evolution of subject and its

Dimensions

11 Executive summary

12 Introduction

13 Theoretical Foundation

131 Online Shopping in India

132 Rising connectivity

133 Factors that Boot Online Shopping in India

134 Few Facts about Online Shopping

135 Changing Attitude Towards Online Shopping

12

10

12

14

14

14

15

16

5

2 Review of literature 18-32

3 NeedObjectives Scope amp Methodology

31 Need

32 Objective

33 Scope of Study and Methodology

331 Scope of Study

332 Research Methodology

333 Research Strategy

334 Descriptive research method

34 Sample Design

33-36

34

35

36

36

36

37

4 Data analysis [factor analysis through spss]

41 Pie charts

39-44

45-58

5 Summary Conclusion Limitations amp

Recommendations

51 Summary

63-67

63

64

6

Table of figures

52 Conclusion

53 Limitationsamp Recommendations

65-69

6 References 69-73

7

Appendix(QuestionnaireTerms

AbbreviationsDocumentsPerformaFinancial

Statements

74-78

SNO Particular Page no

Chapter 4

Fig 11

Fig 12

Fig 13

Fig 14

Fig 15

Fig 16

Fig 17

Fig 18

Fig 19

Fig 20

Fig 21

Fig 21

Fig 22

Fig 23

40

40

41

42

43

44

45

46

47

48

49

50

51

52

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 5: 31785752 Consumer Behaviour in Online Shopping

5

2 Review of literature 18-32

3 NeedObjectives Scope amp Methodology

31 Need

32 Objective

33 Scope of Study and Methodology

331 Scope of Study

332 Research Methodology

333 Research Strategy

334 Descriptive research method

34 Sample Design

33-36

34

35

36

36

36

37

4 Data analysis [factor analysis through spss]

41 Pie charts

39-44

45-58

5 Summary Conclusion Limitations amp

Recommendations

51 Summary

63-67

63

64

6

Table of figures

52 Conclusion

53 Limitationsamp Recommendations

65-69

6 References 69-73

7

Appendix(QuestionnaireTerms

AbbreviationsDocumentsPerformaFinancial

Statements

74-78

SNO Particular Page no

Chapter 4

Fig 11

Fig 12

Fig 13

Fig 14

Fig 15

Fig 16

Fig 17

Fig 18

Fig 19

Fig 20

Fig 21

Fig 21

Fig 22

Fig 23

40

40

41

42

43

44

45

46

47

48

49

50

51

52

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 6: 31785752 Consumer Behaviour in Online Shopping

6

Table of figures

52 Conclusion

53 Limitationsamp Recommendations

65-69

6 References 69-73

7

Appendix(QuestionnaireTerms

AbbreviationsDocumentsPerformaFinancial

Statements

74-78

SNO Particular Page no

Chapter 4

Fig 11

Fig 12

Fig 13

Fig 14

Fig 15

Fig 16

Fig 17

Fig 18

Fig 19

Fig 20

Fig 21

Fig 21

Fig 22

Fig 23

40

40

41

42

43

44

45

46

47

48

49

50

51

52

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 7: 31785752 Consumer Behaviour in Online Shopping

7

Table of Figures

SNo

Particular

Page

No

Tables No

1

Table 11

Table 12

Table 13

Table 14

Table 15

Table 15

Table 16

Table 17

Table 18

Table 19

Table 110

Table 111

60

60

60

60

60

60

60

60

60

60

60

62

62

62

62

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 8: 31785752 Consumer Behaviour in Online Shopping

8

Table 112

Table 113

Table 114

63

63

63

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 9: 31785752 Consumer Behaviour in Online Shopping

9

CHAPTER-1

INTRODUCTION TO SUBJECT

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 10: 31785752 Consumer Behaviour in Online Shopping

10

11Executive summary

The growing use of Internet in India provides a developing prospect for online shopping

If E-marketers know the factors affecting online Indian behavior and the relationships

between these factors and the type of online buyers then they can further develop their

marketing strategies to convert potential customers into active ones while retaining

existing online customers

This project is a part of study and focuses on factors which online Indian buyers keep in

mind while shopping online This research found that information perceived usefulness

ease of use perceived enjoyment and securityprivacy are the five dominant factors

which influence consumer perceptions of Online purchasing

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

affected by their behavior or expected actions The two perspectives that seek application

of its knowledge are micro and societal perspectives

The online purchasing behavior of online shoppers and factor influencing online

shopping behavior and its future perspective Internet is changing the way consumers

shop and buy goods and services and has rapidly evolved into a global phenomenon

Many companies have started using the Internet with the aim of cutting marketing costs

thereby reducing the price of their products and services in order to stay ahead in

highly competitive markets

Companies also use the Internet to convey communicate and disseminate information

to sell the product to take feedback and also to conduct satisfaction surveys with

customers Customers use the Internet not only to buy the product online but also to

compare prices product features and after sale service facilities they will receive if they

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 11: 31785752 Consumer Behaviour in Online Shopping

11

purchase the product from a particular store Many experts are optimistic about the

prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet

provides a unique opportunity for companies to more efficiently reach existing and

potential customers Although most of the revenue of online transactions comes

from business-to-business commerce the practitioners of business-to-consumer

commerce should not lose confidence It has been more than a decade since business-to-

consumer E-commerce first evolved Scholars and practitioners of electronic commerce

constantly strive to gain an improved insight into consumer behavior in cyberspace

Along with the development of E-retailing researchers continue to explain E-

consumers‟ behavior from different perspectives Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior and then

examine their validity in the Internet context

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 12: 31785752 Consumer Behaviour in Online Shopping

12

12 Introduction

Internet is changing the way consumers shop and buy goods and services and has rapidly

evolved into a global phenomenon Many companies have started using the Internet with

the aim of cutting marketing costs thereby reducing the price of their products and

services in order to stay ahead in highly competitive markets Companies also use the

Internet to convey communicates and disseminate information to sell the product to take

feedback and also to conduct satisfaction surveys with customers Customers use the

Internet not only to buy the product online but also to compare prices product features

and after sale service facilities the will receive if they purchase the product from a

particular store Many experts are optimistic about the prospect of online business

In addition to the tremendous potential of the E-commerce market the Internet provides a

unique opportunity for companies to more efficiently reach existing and potential

customersAlthough most of the revenue of online transactions comes from business-to-

business commerce the practitioners of business-to-consumer commerce should not lose

confidence It has been more than a decade since business-to-consumer E-commerce first

evolved Scholars and practitioners of electronic commerce constantly strive to gain an

improved insight into consumer behavior in cyberspace Along with the development of

E-retailing researchers continue to explain E-consumers bdquobehavior from different

perspectives Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior and then examine their

validity in the Internet context

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 13: 31785752 Consumer Behaviour in Online Shopping

13

13Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are

rapidly increasing This has created a need to under how the consumers perceive online

purchasing

Price Trust and Convenience were identified as important factors Price was considered

as to be a most important factor for a majority of the students The internet has created a

paradigm shift of the traditional way people shop A consumer is no longer bound to

opening a times or specific location So he can become active at virtually any time any

place and purchase the products or services

The internet is relatively a new medium for communication and the information exchange

that has present in everyday life The number of internet user is constantly increasing

which is also signifies that online purchasing is increasing The rapid increasing is

explained by the consumer behavior The internet is considered a mass medium that

provides the consumers with purchase characteristics as no other medium Certain

characteristics are making it more convenient for the consumer compared to the

traditional way of shopping such as the ability to any time view and purchase products

visualize the needs with products and discuss products with other consumers Online

shopping is the process of consumer go through the when they decide the shop on the

internet

The internet has developed into a new distribution channel and the evaluation of this

channel E-commerce has now identified Using the internet to shop online has become

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 14: 31785752 Consumer Behaviour in Online Shopping

14

one of the primary reasons to use the internet combined with searching for products and

finding the information about them Therefore internet develop the h Companies also

use the Internet to convey communicate and disseminate information to sell the

product to take feedback and also to conduct satisfaction surveys with customers

Customers use the Internet not only to buy the product online but also to compare prices

product features and after sale service facilities they will receive if they purchase the

product from a particular store Many experts are optimistic about the prospect of online

business

Due to the rapid development of the technologies surrounding the Internet a company

that is interested in selling products from its web site will constantly has to search for an

edge in the fierce competition Since there are so many potential consumers it is of the

out most importance to be able to understand what the consumer wants and needs

131Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming

years There is a huge purchasing power of a youth population aged 18-40 in the urban

area

132Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph it is getting

doubled year by year The usage of internet in India is only 4 of the total population

This is also getting increased day by day as the costs of computers are decreasing and net

penetration is increasing The cost of internet usage is also getting lower with good

competition among the providers Wi-Fi amp Wimax system has also started in India This

will increase the usage as it goes more on wireless internet Indians are proving every

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 15: 31785752 Consumer Behaviour in Online Shopping

15

time that they can beat the world when it comes to figures of online shopping More and

more Indians are going to online shopping and the frequency of Indiabdquos online buying is

crossing the overall global averages

133Few Factors That Boost Online Shopping in India

Rapid growth of cybercafeacutes across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing There are about 200

million of middle-class population good spending powers These people have

very little time to spend for shopping Many of them have started to depend on

internet to satisfy their shopping desires

134 Few Facts about Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million

by 2010 Around 25 of regular shoppers in India are in the 18-25 age groups and 46

are in the 26-35 year range

Indian online matrimonial sector is worth around $230 million

Worldwide E-commerce is only growing at the rate of 28 since India being a

younger market the growth of e-commerce is expected at 51 in the coming

years

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 16: 31785752 Consumer Behaviour in Online Shopping

16

In line with global trends finally India has also started shopping online these

days As per the study by IAMAI online shopping in India has rose from

$11million in 1999-2000 to $522 million in 2007 and it is expected to rise above

$700 million by end March 2010

135 Changing Attitude towards Online Shopping

ldquoAwareness Future Demand Focus for Emerging Markets amp Current Issuesrdquo Malls

springing up everywhere and yet people are E-shopping And not in small numbers

either Consumers are more rational nowadays and have ability to get the choices from

the market Awareness among the consumers is spread through internet The number of

internet users is increasing day by day which attracts people who have an option to buy

online It was never thought that Indians would go in for e-shopping in such a big way

Ticketing travel bookings and even books and movies seem fine to buy online Knowing

that in India sizes vary from brand to brand and quality is inconsistent even of some

electronic items how is it that there are people buying these items online In India there

are some segments of people who have not yet tried purchasing over internet

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 17: 31785752 Consumer Behaviour in Online Shopping

17

CHAPTER-2

Review of Literature

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 18: 31785752 Consumer Behaviour in Online Shopping

18

21 Review of literature

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

that the most relevant behavioural characteristics of online consumers and examine the

ways they find compare and evaluate product information Comparison of the newly

collected survey data with the existing consumer behaviour theory resulted in detection of

a number of issues related to a specific consumer group The purpose of this report is to

translate these findings into a set of implementation activities on strategic and

technological level Execution of these recommendations will result in better conversion

of visitors into customers and encourage customer loyalty and referralsThe focus group

of this study will be young adults aged between eighteen and thirty-four interested in

buying a mobile phone or a related product

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 19: 31785752 Consumer Behaviour in Online Shopping

19

Shun ampYunjie (2006) in their study showed that there are product types which are

more likely to be sold online such as software books electronics and music Reason for

this is that when purchasing these types of products one does not require personal

inspection and most if not all features can be outlined in the product description and

images Most products in the mobile phone family belong to this category According to

the recent research on consumer behaviour on the Internet users (Cotte Chowdhury

Ratenshwaramp Ricci 2006) there are four distinct consumer groups with different

intentions and motivations

Exploration

Entertainment

Shopping

Information

Music Videos Lyrics - Daily updated collection of music videos and lyrics Majority of

young adults interviewed for purpose of this research tend to be active information

seekers A high level of technological confidence within this group tends to be an

encouraging factor when it comes to product information research onlineThe following

analysis presents both focus group results and behavioural theory in a parallel fashion

divided into two main research topics

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the right

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 20: 31785752 Consumer Behaviour in Online Shopping

20

product from a number of competing suppliers Well-structured product information that

cannot be found easily online is as much of a problem as is having easily accessible

information that does not meet the consumers expectations

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

study they showed that developed into a new distribution channel and online

transactions are rapidly increasing This has created a need to understand how the

consumer perceives online purchases The purpose of this dissertation was to examine if

there are any particular factors that influence the online consumer Primary data was

collected through a survey that was conducted on students at the University of

KristianstadPrice Trust and Convenience were identified as important factors Price was

considered to be the most important factor for a majority of the students Furthermore

three segments were identified High Spenders Price Easers and Bargain Seekers

Through these segments we found a variation of the different factors importance and

established implications for online book stores

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 21: 31785752 Consumer Behaviour in Online Shopping

21

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

survey found that online customer experience reached an inflection point in 2009 The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87 in all

previous Tealeaf surveys to 80 in 2009 While the percent of consumers experiencing

online transaction problems at 80 remains high (the potential online shopping dollars

impacted by transaction problems rings up at $476 billion) this improvement points to a

growing business focus on delivering better customer experiencesThe survey sheds light

on forces driving this accelerated online customer experience focus including the down

economy and increased consumer power due to experience-sharing via social media It

also examines consumer behavior when transacting online call center behavior related to

online issues and mobile commerce Verticals represented in the findings include retail

insurance travel and financial services

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 22: 31785752 Consumer Behaviour in Online Shopping

22

San Francisco CA ndash 6th October 2009 - the leader in online Customer

Experience Management software (CEM) today announced the results of the 5th annual

survey of online consumer behavior commissioned by Tealeaf and conducted by Harris

Interactivereg [results available at wwwtealeafcomHarris] The survey found that 48 of

US online adults say that they are now conducting more online transactions than they

did in the past given the current economic climate However 80 of adults who have

conducted an online transaction in the past year experience problems when doing so in

2009 Previous Tealeaf surveys have consistently shown that approximately 87 were

affected

This improvement over prior years may be attributed to a growing business focus on

delivering better online customer experiences While this reported decline in online

transaction issues is good news online customer experience is still very much a work in

progress The percentage of consumers affected by issues such as error messages (38)

endless loops (19) and login problems (28) is still extremely high 1 Further the

resulting business impact is significant as 32 of those who experience issues when

conducting transactions online would simply take their business elsewhere (to either an

online or offline competitor) or abandon the transaction entirely In 2009 $476 billion

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 23: 31785752 Consumer Behaviour in Online Shopping

23

will potentially be impacted by online transaction problems on US shopping websites

alone

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

of distribution available in the hands of marketers It is innovative and creative because

marketers can experiment with it in form content visibility and availability In India

online shopping is considered as a relevant alternative channel for retailing and it is now

an important part of the retail experience This research study is an empirical study to

find out the motivators and decisional influencers of online shopping The sample has

been selected from the youth population as this group of people actually use internet to

buy online The study highlights that reliability accessibility and convenience are the

major motivator factors which motivate the Indian consumer to buy online Similarly

reluctance and preference are the two decisional factors which influence the decision

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 24: 31785752 Consumer Behaviour in Online Shopping

24

Kamali and Loker (2002) in their study Internet retail sales represent a new and

increasingly vital commercial milieu E-commerce or electronic commerce saw sales

revenues grow 121 percent in 2001 to $314 billion a figure expected to reach $811

billion by 2006 (Kamali amp Loker 2002) While it is clear that many more consumers are

electing to shop online than in the past a shift in behavior that may be due to the sense

that online shopping is safer and more secure than it was initially and to the adoption of

alternative shopping avenues This essay will examine these issues arguing that browsers

become buyers in cyberspace as perception of safety product quality and retailer

reliability increase an idea also advanced by Li Luo Lepkowaska-White and Russell

Atanasov (2001) in their study it is anticipated that the worldwide market for business-

to-business and business-to-consumer e-commerce will total $31 trillion in 2004 as

compared to $3504 billion in fiscal 2000-2001 Among the most profitable products and

services sold online are consumer goods such as books videos music computers and

other tech products and travel (Schmerken 2001) Other profitable sectors include

investment transactions which Schmerken (2001) considers to have generated a wave of

corporate spending on e-commerce The Internet and its myriad e-commerce or

marketing sites represents what researchers believe to be the security concerns of online

shoppers and potential shoppers These researchers and others reported that online buyers

are also concerned about security issues when making online purchases Though many

consumer concerns regarding the inherent safety of financial transactions online have

been resolved through the development of sophisticated encryption programs many

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 25: 31785752 Consumer Behaviour in Online Shopping

25

consumers require additional assurance that their financial data will be held in

confidence Other security issues that were identified by Mauldin and Arunachalam

(2002) focus on retailer disclosures information risk product risk and familiarity with

the retailer and the product Generally Mauldin and Arunachalam (2002) found that

intent to purchase rather than merely browsing online increases in direct association with

a sense of security and comfort Retailers who offer their products online are therefore

advised to emphasize product disclosure and retailer disclosure and reduced information

risk in their e-commerce sites Though most online retailers do provide clear descriptions

of security procedures some Internet shoppers still avoid using credit cards online

Overcoming resistance to this fear is one of the key tasks that must be under taken

Ogenyi Ejye Omar Alan Hirst (2006) in their study they evaluates womens

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire Its findings suggest that women generally show positive attitudes towards

shopping online for apparel Women who shop for apparel online are aware of some of

the discouraging features of online shopping but these features do not deter them from

buying online The implication for online retailers is that they should focus on making the

experience of online shopping more accommodating and more user-friendly This is

important because the positive features of online shopping (convenience usefulness

ease of use and efficiency) appear to be more important than the negative features

(lack of security privacy of information and online fraud)

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 26: 31785752 Consumer Behaviour in Online Shopping

26

Ruiliang Yan John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition A game theory model is

developed to determine the optimal strategies for online and traditional retailers We

demonstrate that consumer online purchase costs always have a valuable impact on firm

profits and further show that consumer online purchase costs always have a much more

valuable impact on firm profits whenever the traditional retail transaction costs and the

product web-fit change We also find that consumer online purchase costs have a greater

impact on the retailers profits in a Stackel berg competitive system than in a Bertrand

competitive system Based on our results managerial implications are discussed and

probable paths of future research are identified

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

research paper they discusses online shopping in context of diffusion of innovation

theory It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers (2004) diffusion deterrents A new 12-item

Computer Competence Index (CCI) is proposed and tested using data from an internet-

administered US probability study of 1800 online users EShoppers are profiled using a

tertile split of the CCI Each tertiles demographics computer activities computer-

oriented lifestyles and online purchase activities are reported Evidence is presented that

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 27: 31785752 Consumer Behaviour in Online Shopping

27

concepts related to the diffusion of innovation may explain resistance in the growth of

online shopping

AM Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behaviour towards online purchase of different

products based on the involvement and investment (High Medium and Low) It attempts

to unearth the impact of the demographics on online purchase which is at present

relatively limited It would help the marketers to identify the demographic profile of

consumers which is otherwise not known due to the intangible nature of internet The

findings would help the marketers to design their offerings based on the demographic

profile of online consumers and would help the online marketers to identify and segment

the online consumers which will enhance their focus and eventually leads to financial

growth

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 28: 31785752 Consumer Behaviour in Online Shopping

28

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

assumed that bidders are a homogenous group However since most online bidders are

average consumers instead of professional bidders we suspect that online bidders are a

heterogeneous group The purpose of this paper is to explore the types of online bidders

based on their real bidding behaviour in the context of consumer-to-consumer online

auction market A cluster analysis is employed and four types of online bidders are

finally identified in a private value auction namely goal-driven bidders experiential

bidders focused bidders and opportunistic bidders The profile and performance of each

group are also discussed

Tomomi Hanai Takashi Oguchi (2009) in their study to investigate what kind

of information contributes to trust formation in online shopping Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites All the online shopping websites dealt with branded products

where there is greater emphasis on the trustworthiness of online shops or products The

results show that information described on the websites was classified into two

categories firstly information about the shop and its procedures and services Secondly

the concrete information necessary for the consumption process such as payment

information and return information which heightens the reliability of these shopsThe

term ldquobrandrdquo originally refers to a ldquodescription or trademark which indicates a type of

product made by a particular companyrdquo However in modern Japanese society it refers to

those branded products that are perceived to have a higher quality than other similar

products Thus the term ldquobrandrdquo authenticates that its products belong to a high-class

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 29: 31785752 Consumer Behaviour in Online Shopping

29

and the people who possess these branded products are regarded as ldquoexclusive peoplerdquo

through the ldquobasking-in-reflected glory processrdquo (Cialdini Borden Thorne Walker

Freeman amp Sloan 1976) The branded products interest female young people and

recently they have been more inclined to purchase them via online shopping However

they tend to refrain from purchasing these products via online shopping due to their

distrust of it Consequently it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping Female Undergraduate

Students‟ Attitudes toward Branded ProductsFirst we introduce several surveys for

determining the attitude towards and ownership of branded products among female

young people especially female undergraduate students in Japan who are the target

group of this study Infoplant (2007) showed that nearly half of all people are interested

in some branded products Although branded products generally attract the attention of

various kinds of people young females are especially interested in branded products

Infoplant (2007) revealed that more than 60 of females under 20 years of age and

nearly 80 of females in their twenties have purchased some branded products

Furthermore the percentage of people who usually buy new branded products is about

20 among females under 20 years of age and more than 10 in females in their

twenties

David Anderson (02022006) in their research carried out by a consumer

behaviour researcher at Henley Management College has investigated what drives people

to search online The findings reveal that convenience time-efficiency and personal

control are the key drivers for consumers to search online rather than cost It also shows

that the relationship between traditional and online retailing outlets needs to be more

unified E-shopping has changed the face of retail and surfers are now looking for spring

sale bargains This is following a bumper e-Christmas where Internet shopping soared

almost 50 during the 10-week run-up to Christmas 2005 (IMRG)

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 30: 31785752 Consumer Behaviour in Online Shopping

30

However the new findings reveal that convenience and personal control are the key

drivers for consumers to search online Dr Susan Rose from Henley Management

College said ldquoWhat motivates online shoppers is the ability to shop where when and

how they like Nowadays people can shop over their Shreddies in the morning

The research that analyses data from 304 electrical goods Internet shoppers provides

businesses with a guide to getting the information highway buzzing with potential

customers Big-ticket items such as digital TVs cameras or iPods now feature on our e-

shopping list The Internet provides a rich source of information about brands and retail

channels that enable us to search and find information to help us with our final purchase

decision For businesses there are some steps to help them embrace the Internet

revolution with successA key factor driving Internet use for bdquoonline window shopping‟ is

its usefulness in our personal lives The Internet frees time and makes the information

search processResearch suggests that people search online for some goods yet buy from

a traditional high street retailer or look around for goods in shops then take their search

online In turn it is essential for retailers who operate both on and off line to ensure that

they embrace a joined up process that appears seamless to the customer Some retailers

have still to successfully unite the two retailing methods - this is key to contemporary

customer service Factors such as how much the medium challenges us mentally and our

confidence to navigate and understand the technology can turn us on or off the idea of

browsing online for products A clear divide is appearing between the occasional online

shopper and the regular experienced user Concerns about how easy the system is to use

have almost disappeared for online shopping enthusiasts but for occasional users

etailingsites need to be easy to navigate Websites must be accessible and operate

efficiently The research found that the expectation of getting a good financial deal is still

a strong motivator to seek out products online but this is secondary to the importance

but many people steer clear of electronic buying because of security worries Only once

online retailers can reassure customers about fraud and privacy will the online shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 31: 31785752 Consumer Behaviour in Online Shopping

31

curve really take off Worries about the risk involved in terms of financial transaction

and privacy remain A move from bdquobig brands‟ to bdquobargains‟ may only take place once

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change

human behaviour and human interactions to a very large extent Web based shopping

behaviour is one major example to point out the trends in this direction This study is of a

very exploratory nature and it intends to establish the differences between several web-

based shoppers from different parts of the world Several critical factors associated with

online shopping behaviour will be explored A cross cultural data set will be collected

and an illustrative description of the shoppers will be provided As a final step the cross

cultural differences between several shoppers will be explored One question which will

run as a theme throughout the course of this paper is ldquoWill the traditional consumer

behaviour theory and research be altered by the advent of web based shoppingrdquo

There is a huge difference between a physical store and its electronic counterpart A help

button on the home page of the web-shopping site replaces the sales clerks‟ friendly

advice and service The familiar layout of the physical store becomes a maze of pull

down menus product indices and search features Now more than ever the promise of

electronic commerce and online shopping will depend to a great extent upon the interface

and how people interact with the computer At the same time there are some inherent

difficulties in maintaining an online inventory In a regular store the managers can pull

out a product from the shelf if they feel that it is not fast moving or has no demand This

is a privilege that cannot be extended to the online retail store

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 32: 31785752 Consumer Behaviour in Online Shopping

32

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet It is the abbreviated version of ldquoelectronic retailingrdquo which essentially

constitutes business to consumer transaction While the concept of online retailing or e-

tailing is no longer in its nascent stage it continues to evolve as advanced e-commerce

applications act as a potent catalyst in the development of e-tailing

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience Furthermore online retailers or e-tailers get to expose and

sell their products to a global audience through their e-stores (Also termed as online

stores internet shops web shops etc)

The E-commerce industry plays a vital role in its growth and development The consumer

or buyer is usually provided with detailed information and description of the product

which helps them make a judicious choice before making an online purchase For

consumers who face a paucity of time or want a diverse range of products to choose

from e-tailing proves to be an ideal option Every e-tailer wants hisher share of domain

amidst the vast World Wide Web galaxy Due to the intense competitory quotient

involved every e-tailer out there wants to offer their customerbuyer a smooth and

pleasant shopping experience Therefore e-tailing is just not restricted to putting up

products for sale for consumers to buy As consumers today are well-informed it is

understood that they would make a well informed decision as well This involves a fair

amount of product research price comparison and checking the credibility of the e-store

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 33: 31785752 Consumer Behaviour in Online Shopping

33

CHAPTER-3

NEED OBJECTIVES SCOPE amp

METHODOLOGY

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 34: 31785752 Consumer Behaviour in Online Shopping

34

31 Need

The need of this research is to identify and get insight into what main factors the online

consumer takes into consideration when most he buy products on internet what affects

their shopping behaviour basic need of this research is to find out what are the main

factors affect the online consumer when considering and making a purchase over

Internet

32 Objective of the study

To study the online shopping behavior of customers

To study the factors influencing online shoppers and consumers

To study the customer‟s level of satisfaction with regard to online shopping

To examine whether customers prefer online shopping to physical stores

33 Scope of the Study and Methodology

331 Scope of the study

At any given time there are millions of people online and each of them is a potential

customer for a company providing online sales Due to the rapid development of the

technologies surrounding the Internet a company that is interested in selling products

from its web site will constantly has to search for an edge in the fierce competition Since

there are so many potential consumers it is of the out most importance to be able to

understand what the consumer wants and needs The importance of analyzing and

identifying factors that influence the consumer when he or she decides to purchase on the

Internet is vital Since the Internet is a new medium for there have been new demands set

by the consumer That is why it is crucial for the online retailers to know what influences

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 35: 31785752 Consumer Behaviour in Online Shopping

35

the online consumer Analyzing consumer behavior is not a new phenomenon The

renowned marketing expert Philip Kotler has published several works on the topic of

consumer behavior theories These theories have been used for many years not only to

understand the consumer but also create a marketing strategy that will attract the

consumer efficiently Hence understanding and identifying the consumer is closely

related to the directions a company will take with their marketing strategy These theories

can also be applied to identify the online consumer and to create certain consumer

segments However some distinctions must still be made when considering traditional

consumer behavior and online consumer behavior

Since online retailing is a new retailing medium and online consumer behavior is diverse

from traditional consumer behavior one must identify what influences the online

consumer Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet shows some factors that consumers consider

these factors need to be identified and taken into account by online retailers in order to

satisfy consumer demands and compete in the online market

332Research Methodology

Data for this study was collected by means of a Survey conducted in Lovely Professional

University The sample size was 100 The Questionnaire (shown in Annexure) was used

Mainly to test the model proposed for Attitude towards online shopping The type of

research was both exploratory as well as Descriptive Likert five point scales ranging

from Strongly Agree to strongly disagree was used as a basis of Questions We took

around eleven different factors by studying the existing models of consumer attitudes that

play an important role in online purchase and then proposed a model leading to online

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 36: 31785752 Consumer Behaviour in Online Shopping

36

shopping This model was then tested in our research by the mode of factor analysis in

SPSS

333Research Strategy

When collecting data to approach the purpose of a research there are two ways in which

the data can be collected In order to acquire a General knowledge about the topic

secondary data is primarily used and is one of the ways by which data can be collected

The second way to collect data is the primary data collection Usually when a study is

Conducted secondary data is not sufficient enough and needs to be

completed with primary data which is collected by the research

334Descriptive Research Method

We will conduct our research in order to collect primary data and reach the

objective of the Dissertation We will also be discussing which different

types of Methodologies that were used Since our research is of descriptive

character our primary intention was to collect seconda ry data and analyze it

By doing so we found the factors Price Trust and Convenience We then

collected primary data through a survey The main purpose of the survey was

to collect data about Online Consumer Behavior and the significance of the

established factors Price Trust and Convenience In order to be able to find

and establish Online Consumer Segments Consumer Traits and Online

Behavior had to be identified The segments were used in order to further

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 37: 31785752 Consumer Behaviour in Online Shopping

37

identify what impact the factors Price Trust and Convenience have on

Online Consumer Segments

34Sample Design

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

any population that uses the Internet and buys online products Online Since

there are time and resource res traints a specific Population had to be

identified in order to generalize and create relevant segments We decided

that the sample size should contain over 100 respondents and we collected

answers from100 respondents The populations for this research are

university students at the Lovely Professional University the University was

chosen on a convenience basis

Convenience sampling involves using samples that are the easiest to

Obtain and is continued until the sampling size that is need is reached

We will attempt to collect as many respondents as possible but since we will be

studying students we assume that there will be little variation in the population making it

more approved to generalize the response rates The sampling method for students took

also place on a Convenience basis since the students that agree to answer the

questionnaire are those that were chosen

Type of Research

Descriptive Research

Sample Size-

100

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

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httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

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httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 38: 31785752 Consumer Behaviour in Online Shopping

38

CHAPTER- 4

DATA ANALYSIS

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 39: 31785752 Consumer Behaviour in Online Shopping

39

FACTOR ANALYSIS

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

543

Bartletts Test of Sphericity Approx Chi-Square

349989

df 190

Sig 000

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 40: 31785752 Consumer Behaviour in Online Shopping

40

Communalities

Initial Extraction

q1 1000 562

q2 1000 616

q3 1000 717

q4 1000 584

q5 1000 638

q6 1000 688

q7 1000 570

q8 1000 718

q9 1000 713

q10 1000 778

q11 1000 576

q12 1000 625

q13 1000 521

q14 1000 766

q15 1000 669

q16 1000 589

q17 1000 781

q18 1000 500

q19 1000 688

q20 1000 550

Extraction Method Principal Component Analysis

Total Variance Explained

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 41: 31785752 Consumer Behaviour in Online Shopping

41

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total of Variance Cumulative Total of Variance Cumulative Total of Variance Cumulative

1 3075 15373 15373 3075 15373 15373 2091 10454 10454

2 1926 9629 25002 1926 9629 25002 1891 9456 19910

3 1633 8163 33165 1633 8163 33165 1709 8546 28456

4 1441 7203 40368 1441 7203 40368 1563 7815 36271

5 1328 6641 47009 1328 6641 47009 1560 7800 44071

6 1269 6345 53354 1269 6345 53354 1368 6839 50910

7 1135 5677 59032 1135 5677 59032 1335 6673 57583

8 1042 5208 64240 1042 5208 64240 1331 6657 64240

9 979 4894 69133

10 875 4377 73510

11 817 4087 77598

12 765 3826 81423

13 685 3427 84850

14 629 3144 87994

15 530 2651 90644

16 501 2505 93150

17 457 2283 95433

18 325 1626 97059

19 309 1545 98604

20 279 1396 100000

Extraction Method Principal Component

Analysis

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 42: 31785752 Consumer Behaviour in Online Shopping

42

Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 582 -003 -151 -118 127 148 -370 106

q2 623 088 143 -335 -265 095 094 000

q3 264 -287 278 286 -575 217 -051 158

q4 249 -549 -005 389 -003 185 185 025

q5 423 -626 -042 -146 -117 074 -116 102

q6 526 117 -195 060 262 263 -458 -089

q7 411 333 238 -261 -097 -132 350 -128

q8 189 577 359 -235 120 -081 -207 318

q9 143 071 547 314 315 158 400 -073

q10 058 293 -314 396 -309 -181 075 547

q11 180 -174 -523 -256 105 130 355 141

q12 579 181 -327 014 181 012 308 -148

q13 473 072 098 -227 -284 -363 -030 -134

q14 261 228 146 -047 197 670 125 344

q15 203 326 -574 321 064 018 -013 -289

q16 310 107 174 487 175 -299 -282 116

q17 360 290 085 274 -461 236 -064 -461

q18 193 -344 329 072 403 -098 -114 -213

q19 557 -032 007 294 188 -411 250 156

q20 508 -388 -031 -229 041 -281 -034 082

Extraction Method Principal Component Analysis

a 8 components extracted

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 43: 31785752 Consumer Behaviour in Online Shopping

43

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

q1 202 094 701 091 087 062 -003 -040

q2 698 125 249 010 -100 170 027 104

q3 169 581 030 -368 071 111 235 376

q4 -114 710 -018 108 169 134 -089 027

q5 216 636 332 -111 -066 -107 -112 -188

q6 -004 -013 757 226 134 098 -112 155

q7 673 -180 -123 148 046 186 -057 087

q8 325 -565 241 -281 220 297 122 -062

q9 058 055 -305 036 371 585 -340 133

q10 -042 015 -039 091 297 005 823 -009

q11 095 235 077 469 -314 069 146 -401

q12 337 056 181 665 111 145 006 -006

q13 644 003 106 -007 125 -265 004 093

q14 026 005 288 014 -122 811 092 -009

q15 -137 -113 202 671 093 -141 183 291

q16 -030 -017 209 -043 726 -032 032 115

q17 259 073 105 140 003 030 046 821

q18 -005 172 099 -072 319 008 -588 -088

q19 328 205 -003 305 639 037 059 -179

q20 421 342 257 024 152 -203 -135 -327

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

a Rotation converged in 13 iterations

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 44: 31785752 Consumer Behaviour in Online Shopping

44

Component Transformation Matrix

Compo

nent 1 2 3 4 5 6 7 8

1 643 309 517 289 324 163 -027 086

2 153 -815 023 188 086 248 330 314

3 258 -066 -253 -670 287 365 -408 184

4 -480 284 -149 159 637 084 201 435

5 -332 -271 181 303 302 286 -528 -490

6 -281 204 285 010 -517 663 -040 300

7 273 186 -719 439 -097 370 050 -179

8 -051 077 120 -350 178 338 633 -556

Extraction Method Principal Component Analysis

Rotation Method Varimax with Kaiser Normalization

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 45: 31785752 Consumer Behaviour in Online Shopping

45

Q1 TO KNOW THE AGE OF THE REPONDENTS

Figure 11

INTERPRETATION

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

from age 15-20 the number of respondents are31 and from age of 20-25 it is 48 and

from 25-30 it is 14 this is the above data which is shown by the this pie chart

0

31

48

147

AGE

AGE

15-20

20-25

25-30

30-ABOVE

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 46: 31785752 Consumer Behaviour in Online Shopping

46

Q2 TO KNOW THE GENDER OF THE RESPONDENTS

GENDER

Figure 22

INTERPRETATION

As our respondents are mostly from the hostel of Lovely professional University and the

campus of university itself we use to get more data from males as they were ready to

give their experiences it this graph itself is showing more percentage of males rather than

females the percentage of male respondents is 86 and percentage of female

respondents is only 14

86

14

MALE

FEMALE

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 47: 31785752 Consumer Behaviour in Online Shopping

47

Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR

URBAN AREA

Figure 33

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is

the percentage of respondents who lives in rural or urban region the above diagram is

showing that 76 of the respondents are from urban areas and 24 of the respondents

are from urban area

76

24

ADDRESS

RURAL

URBAN

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 48: 31785752 Consumer Behaviour in Online Shopping

48

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Figure 44

INTERPRETATION

This graph help us to know the occupation of the respondents this is to know that which

segment of people are buying more products on the internet whether they are the segment

of students o government employees or professional the above graph shows that the

segment of the students ie 90 of the students are using internet and use to buy online

products

0

90

4

0

5

1

OCCUPATION

STUDENT

PROFESSIONAL

GOVTEMPLOYEE

SELF EMPLOYED

OTHER

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 49: 31785752 Consumer Behaviour in Online Shopping

49

Q5 TO KNOW THE MONTHLY INCOME OF THE REPONDENTS

Figure 55

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents

and it show that less than 10000 income respondents have buyed more online products

because most of them are students and they use to buy music Cds gadgets laptops

94

3 3

MONTHLY INCOME

LESS THAN10000

10000-20000

20000-30000

30000-40000

40000ABOVE

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 50: 31785752 Consumer Behaviour in Online Shopping

50

Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR OWN INTERNET

CONNECTION

Figure 66

INTERPRETATION

This graph show us the percentage of respondents who have their own internet

connections its shows that 65 of respondents have their own internet connections and

35 people don‟t have their internet connection

65

35DO YOU HAVE YOUR INTERNETCONNECTION

YES

NO

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 51: 31785752 Consumer Behaviour in Online Shopping

51

Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE SHOPPING

Figure 77

INTERPRETATION

This graph shows us what motivates the people to buy internet as from above result we

found out that no travel to shop is the main thing which motivates the people to buy

products online

37

510

Column1 NO TRAVEL TO SHOP 46 47

WHAT MOTIVATES YOU TO BUY ONLINE

EASY PAYMENT

NO HIDDEN COST

WIDE RANGE OF PRODUCTS

NO TRAVEL TO SHOP

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 52: 31785752 Consumer Behaviour in Online Shopping

52

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE

Figure88

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not

and result which is came is that most of the people thought that online marketers are

providing competitive prices than physical stores And result shows 67 of people says

that it provides competitive prices and only 27 people says no

67

27

6

Do you feel that the online marketers are providing competitive prices

YES

NO

CANT SAY

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 53: 31785752 Consumer Behaviour in Online Shopping

53

Q9 WHAT PRODUCTS DDO YOU BUY ONLINE

Figure 99

INTERPRETATION

The above graphs gives result that most of time people use to buy books25 but the

margin with other things is very less as music Cds have percentage of 20 and mobile

23So this graph shows us this useful data

25

20

12

23

20

WHAT PRODUCTS YOU BUY ON INTERNET

BOOKS

MUSIC CDS

T-SHIRTS

MOBILE

LAPTOP

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 54: 31785752 Consumer Behaviour in Online Shopping

54

Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING

AT PHYSICAL STORE

Figure 101

After analyzing the above graph shows that the people are in favour of that online

shopping is better than physical store The percentage of people who says online

shopping is better is 45 and the people who says it not good is 38 Still the

percentage of people who says yes is more than other who says no

45

38

12

0

DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK

AND MORTAR STORE

YES

NO

CANT SAY

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 55: 31785752 Consumer Behaviour in Online Shopping

55

Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Figure 111

INTERPRETATION

This graph shows that 35 people use to visit e-bay for online shopping40 use to go at

amazoncom because of people who buys books is more than any other products so

people mostly visits amazoncom 16 people do at yahoo shopping and for other people

use to visit at BestBuy and others

35

16

40

10 4

WHICH OF THE FOLLOWING STORES HAVE YOU VISITED ONLINE

e-BAY

YAHOO SHOPPING

AMAZON

BEST BUY

OTHER

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 56: 31785752 Consumer Behaviour in Online Shopping

56

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR

ONLINE SHOPPING

Figure 121

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that

32 people came to know about shopping sites through online advertisements And they

attracted towards it and start getting products from there And 20 people decision is

affected by special offers by the offers and the discounts given by the sites

18

10

2032

173

WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING

SEARCH ENGINE

PERSONAL RECOMMENDATION

SPECIAL OFFERS ON SITES

ONLINE ADVERTISING

TV ADVERTISING

OTHERS

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 57: 31785752 Consumer Behaviour in Online Shopping

57

Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Figure 131

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78

people use to pay by creditdebit card and 5 through bank transfer and 15 through pay

pal and 2 from paypal

78

5

15 2

HOW DO YOU MAKE YOUR PAYMENTS ON INTERNET

CREDIT CARDDEBIT CARD

BANK TRANFER

PAYPAL

ANY OTHER

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 58: 31785752 Consumer Behaviour in Online Shopping

58

Q14 HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Figure 144 This graph shows that whether people faces any problem while doing online

shopping or not and the result shows that 48 people says that they have

faced problem while buying online and 28 people says that they don‟t face

any problem and 14 says that we can‟t say

48

28

14

HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

YES

NO

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 59: 31785752 Consumer Behaviour in Online Shopping

59

List of Tables

Age

No of respondents of respondnts

15-20 31 31

20-25 48 48

25-30 14 14

30 and above 0 7

Fig 1

Gender

Respondents

Male 86

Female 14

Fig 2

Address

Respondents

Rural 76

Urban 24

Fig 3

Occupation No of respondents

Student 90

Professional 4

Govtemployee

Self employed 5

Others 1

Fig 4

Income of respondents

of Respondents

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 60: 31785752 Consumer Behaviour in Online Shopping

60

LESS THAN 10000 94

10000-20000 3

20000-30000 3

30000-40000

40000ABOVE

Fig 5

Internet connection respondents having internet

connection

Yes 65

No 35

Fig 6

WHAT MOTIVATES YOU TO

BUY ONLINE

of Respondents

EASY PAYMENT 37

NO HIDDEN COST 5

WIDE RANGE OF PRODUCTS 10

NO TRAVEL TO SHOP 46-47

Fig 7

Do you feel that the online marketers

are

providing competitive prices

respondents

Yes 67

No 27

Cantsay 6

Fig 8

What products you buy on internet Respondents

Books 24

Music 25

t-shirts 12

Mobile 23

Laptop 20

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 61: 31785752 Consumer Behaviour in Online Shopping

61

Fig 9

Do you feel that online shopping is

better than shopping at physical brick

mortar store

Respondents

Yes 45

No 38

Cant say 12

Fig 10

Which of the following stores have you

visited online

of Respondents

e-bay 35

Yahoo shopping 16

Amazon 40

Best buy 10

Others 4

Fig 11

What factors help you to decide which

site is use for online shopping

of respondents

Search engine 18

Personal recomdations 10

Special offers on sites 20

Online advertising 32

TV advertising 17

Others 3

Fig 12

How do you make your payments online of respondents

Credit carddebit card 78

Bank transfer 5

Pay pal 15

Any other 2

Fig 13

Have you face any problems while

shopping online

of respondents

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 62: 31785752 Consumer Behaviour in Online Shopping

62

Yes 48

No 28

Cant say 14

Fig 14

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 63: 31785752 Consumer Behaviour in Online Shopping

63

CHAPTER-5

Summary conclusion Limitations Recommendations

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 64: 31785752 Consumer Behaviour in Online Shopping

64

Summary

The three segments that were found show a significant difference in the primary factor of

concern The general distribution showed that the factor price was the primary factor for

the entire population sample and that second factor was trust was closely followed by

convenience

When we segmenting the respondents through the different variables we found that

segment one were mainly trust oriented and the respondents had a high positive attitude

towards purchasing books online

Other segment was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups As they low

disposable income and were somewhat convenience oriented when acquiring information

about low prices we chose to label them price easers We found that most of the time

youngster who are from the age of 20-25 shops a lot on the net rather than other age

limits People used to do online shopping because of its convenience rather than its

pricing But the main thing which is very common in the most of the people about online

shopping is its risk of privacy ie hacking of account number getting passwords and all

CONCLUSION

Increased Internet penetration a hassle free shopping environment and high levels of Net

saviness see more and more Indians shopping online But at the same time the companies

need to reduce the risks related to consumer incompetence by tactics such as making

purchase websites easier to navigate and introducing Internet kiosk computers and other

aids in stores The goal is not to convert all shoppers to online purchasing but to show

them itbdquos an option In addition to above efforts need to be taken to educate the online

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 65: 31785752 Consumer Behaviour in Online Shopping

65

buyers on the steps that need to be undertaken while making an online purchase

Moreover the feedback of an online buyer should be captured to identify flaws in service

delivery This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises I found that it is

a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable

performance Thus the online retailing raises more issues than the benefits it currently

offers The quality of products offered online and procedures for service delivery are yet

to be standardized Till the same is done the buyer is at a higher risk of frauds

Limitations of the Study

Limitation of the study is the selection of the existing studies Owing to time limitation I

only searched a few number of journals This may leave some other prominent empirical

studies out In addition owing to the multidisciplinary nature of online shopping it

would be very interesting to compare IS literature to other disciplines that study online

shopping attitudes and behavior

Indian E-Comm Report Finds Heavy Spenders Driving Sales

By Devin Comiskey

August 16 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online While such hurdles as limited broadband

access and security concerns remain the report finds there are currently more than 10

million shoppers online in India While current trends point to increased e-commerce

growth in India the online marketplace in the country of more than 1 billion people is

still relatively small Juxtconsults survey found that 40 percent of all urban Internet users

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 66: 31785752 Consumer Behaviour in Online Shopping

66

buy online while 42 percent of the sales originate through just five percent of consumers

The survey was conducted in April 2007 and sampled more than 30000 users

This section of buyers spends 5000 rupees or more per month on the net states the

report It is interesting to note that two out of every three heavy spenders are also

netholics those who are on the net for more than three hours per dayOf all those who

buy online only 25 percent are spending more than 1000 rupees per month while the

(remaining) 75 percent bill less than 1000 rupees per month (1000 Indian rupees is

currently equal to approximately $23 US)

The report also found that buying and search patterns among Indians differ between

genders While 43 percent of male users buy online only 31 percent of urban female

users are consumers as well Women tend to search more Defying their more common

attitude towards shopping women are more guarded when it comes to the online market

says Juxtconsult Depending on the product type nine percent to 25 percent are buying

online whereas 33 to 47 percent are searching the net for product information it says

Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies but

users fear compromised personal information is still a great risk when it comes to e-

commerce The single biggest motivation for buying online for net users is saving time

Thirty-two percent of them look to shop online with this purpose Convenience of

shopping 24x7 and home delivery are other major incentives says the report

However the concern of possible misuse of credit card or personal information is

extremely significant among online buyers with almost 55 percent of them voicing their

concern Clearly tackling and countering the issue of online safety figures as an

imminent challenge for net marketers

Books CDs Top the List

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 67: 31785752 Consumer Behaviour in Online Shopping

67

The products that are purchased most online in India according to Juxtconsult are books

and CDs - making up 25 percent of all online purchases Ironically computer hardware

and software despite having the home advantage are among one of the least bought

products online with only 13 percent buying them says the report In sum the online

market in India is blossoming but is yet to take off in a considerable way The Internet is

still being used more for searching than buying products and services Though a

noticeable proportion of net users are also net consumers essentially at present only a

small tribe among them is driving online shopping momentum says Juxtconsult

LATEST

A new trend in this space is that of Meta search engines Ixigo and Ezeego are two

players in this space A Meta search engine searches all the online travel sites (including

the airlines sites as well) and displays the best deals for the user

Travel websites such as Make My Trip India Pvt Ltd and Yatra Online Pvt Ltd are

battling to win over Indiabdquos Rs16000 crores ($400 million) religious travel market

Opportunity in Online Travel Industry $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs 1000 crore for the

financial year ending March 2008 as per a release

Barriers to the Growth of the Market

Consumer Bias

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 68: 31785752 Consumer Behaviour in Online Shopping

68

Consumers often display a bias for brands that they know well and have had a good

experience in the past Thus products of brands with a favorable bias will score over the

products of less popular brands A few would risk buying expensive jewelry from an

unknown jeweler online

Lack of bdquoTouch ndashFeel-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 it is sometimes a lengthy process to get a faulty or the

unsuitable product changed Thus unless the deliverables are as per the customers

bdquoexpectations it is hard to infuse more credibility in the e-Tailing market

Mounting Competitive Pressures

To attract customers the competing online players are adopting all means to provide

products and services at the lowest prices This has resulted in making the consumers

choice-spoilt who in turn surf various websites to spot the lowest price for the product

Thus although the number of transactions is increasing the value of the products sold is

continuously falling owning to high competition and leaner margins

Seasonality

E-Commerce Market is faced by seasonal fluctuations As told by an Industry player

August to February is the peak seasons for sale while March to July is the dry seasons

for sale During the peak season occasions that drive the sales are Diwali Rakhi

Valentine‟s Day New Year Christmas Motherbdquos Day Friendship Day etc are On these

occasions younger generations prefers buying and sending gifts online

Credibility in Payment System

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 69: 31785752 Consumer Behaviour in Online Shopping

69

Online frauds and breach are the biggest barriers to online sales As a result prospective

buyers prefer staying away from revealing their credit card and bank details

Untimely Delivery of Products

It might take a few minutes to search book and pay for products and services online but

the delivery of the product may take unreasonable time

Recommendations

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

have to make their payment transparent and as people are coming on their sites and they

are buying their products so retailers have to give more discounts to their customers so

that they can visit again and again to their site and it also helps to make people more

aware about the low rick shopping of the net and one more thing is that there should be

transaction of money is very slow they have to make it fast so that customer don‟t have to

face much problem to pay for the product if customer is going to face some problem he

is not going to visit our site and buy product

Following implications should be followed

Discount prices

A transfer and reliable retailer

Fast transactions

Focus on customer satisfaction

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 70: 31785752 Consumer Behaviour in Online Shopping

70

CHAPTER-6

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 71: 31785752 Consumer Behaviour in Online Shopping

71

REFRENCES

httpanalogikcomarticle_analysis_of_consumer_behaviour_onlineasp [27april 2010]

httpwwwessaysseessaye1fb0c636f [13april 2010]

httpwwwtealeafcomHarris[12april]

httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is

sue26journal1540linkingpublicationresults11108441[11april 2010]

httpwwwindersciencecomsearchindexphpaction=recordamprec_id=32383ampprevQuer

y=ampps=10ampm=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -

209)

httpwwwlotsofessayscomviewpaper1693412html [11april 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]

( International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=11032ampprevQuery=ampps=10ampm=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No2 pp 169

- 182)

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 72: 31785752 Consumer Behaviour in Online Shopping

72

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=10096ampprevQuery=ampps=10ampm=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol 1 No1 pp 67 -

82)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=19151ampprevQuery=ampps=10ampm=or

(International Journal of Internet Marketing and Advertising 2008 - Vol 4 No4 pp 302

- 327) [1 may 2010]

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec_

id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)

httpwwwindersciencecomsearchindexphpmainAction=searchampaction=recordamprec

_id=14847ampprevQuery=ampps=10ampm=or [ 16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol 1 No4 pp 322

- 338)

httpwwwcyberpsychologyeuviewphpcisloclanku=2009111002amparticle=6authors[2

2 may 2010]

httpwwwinnovations-reportcomhtmlreportssocial_sciencesreport-54694html

22april 2010]

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 73: 31785752 Consumer Behaviour in Online Shopping

73

CHAPTER-7

APPENDIX

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 74: 31785752 Consumer Behaviour in Online Shopping

74

APPENDIX

It is humbly submitted that we are doing research project on the topic entitled ldquo

Consumer Behaviour In Online shopping In this regards your kind cooperation is needed in filling the questionnaire herewith

Further I assure you that all the information provided by you would be kept strictly

confidential and will be used for academic purpose only

Thanks

With regards

NAME ROLLNO

Prashant Priyadarshi Q1808A17

Nitish Arora Q1808A15

Nandni Kashyap Q1808A58

BBA 4th

SEM

Specialization Marketing

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 75: 31785752 Consumer Behaviour in Online Shopping

75

QUESTIONNAIRE

1 Name ___________________

2 Age

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

Q3 Gender

1) Male 2) Female

Q4 Address

1) Rural 2) Urban

Q5 What is your occupation

a) Student yumlagrave b) Professional c) Govtemployed d) Self Employed

e) Other

Q6 What is your monthly income

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

d) 30000 to 40000 e) More than 40000

Q7 Do you have your own internet connection

a) Yes b) No

Q8 How frequently do you purchase online

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

Page 76: 31785752 Consumer Behaviour in Online Shopping

76

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

d) more than once in a month

Q9 What motivates to buy products online

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

d) Wide range of products e) other [Please specify] ____________

Q10Do you feel that the online marketers are providing competitive prices

a) Yes b) No c) Can‟t Say

1 2 3 4 5

Strongly

agree

Agree Can‟t

say

Disagree Strongly

Disagree

1It saves your time

2It does not require travelling to far off distance

3Anywhere any time shopping

4It takes a long time to deliver products

5It takes more time to search specific product

6Speed of internet affects your online shopping

7It gives me ease of shopping at home

8Shopping 24x7

9Ease to make payment assistance

10I get better discounts amp offers on internet

11I do not think that online shopping results in monetary benefits

12I can customize the products according to my specification

13 I cannot negotiate prices on internet

77

Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

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Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

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Q11 What products you buy on internet

a) Books b) Music CDs c) T-shirt d) Mobile

e) laptop

f) Other [specify] ___________

Q12 Do you feel that online shopping is better than shopping at physical brick amp mortar

store

a) Yes b) No c) Can‟t say

Q13Which of the following stores have you ever visited for shopping online

a) e-bay b) Yahoo shopping c) Amazon d) Best buy

e) Other [please specify]

Q14 What factors help you to decide which site to use for online shopping

a) Search engine b) Personal recommendation c) Special offers on sites

d) Online advertising e) TV advertising f) other_________

Q15How do you make your payments on internet

a) Credit cardDebit card b) Bank transfer c) PayPal d) any

other______

14 I can shop from stores located at any part of the world

15I have access to Global brands

16 Lack of physical evidence affects my purchase decision

17Wide choices of brands to choose

18 The actual products do no match the products shown on site

19I do not get much variety in products

20I feel difficulty to choose a product because of intangibility

78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________

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78

Q16 Have you face any problems while shopping online

a) Yes b) No c) Specify _________________________