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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 _________________________
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
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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)
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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
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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
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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 _________________________
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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72
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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 _________________________
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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httpwwwtealeafcomHarris[12april]
httpindersciencemetapresscomapphomecontributionaspreferrer=parentampbackto=is
sue26journal1540linkingpublicationresults11108441[11april 2010]
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y=ampps=10ampm=or1m[12 may 2010]
(International Journal of Business Innovation and Research 2010 - Vol 4 No3 pp 195 -
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id=11032ampprevQuery=ampps=10ampm=or[22april [11april 2010]
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- 182)
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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
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id=27851ampprevQuery=ampps=10ampm=or [2 may 2010]
(International Journal of Electronic Finance 2009 - Vol 3 No3 pp 284 - 296)
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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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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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sue26journal1540linkingpublicationresults11108441[11april 2010]
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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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
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 _________________________
78
Q16 Have you face any problems while shopping online
a) Yes b) No c) Specify _________________________