PROJECT REPORT

(ATTITUDE OF CUSTOMERS TOWARDS

RECENT TRENDS IN ONLINE SHOPPING
IN INDIA AND ITS IMPACT)

SUBMITTED BY:
Barsha Sethy
Regd. No./Roll No.:1803010120040046

UNDER THE GUIDANCE OF

Dr. Jiwan Jhunjhunwala
[Link]. [Link] MBA, PHD
Submitted in partial fulfillment of the requirement
for the award of the degree of Bachelor of Commerce
of the Utkal University, Odisha

CHRIST COLLEGE
2020-2021
 CERTIFICATE

This is to certify that the project entitled “ATTITUDE OF CUSTOMERS

TOWARDS RECENT TRENDS IN ONLINE SHOPPING IN INDIA AND

ITS IMPACT”, submitted by Barsha Sethy for the partial fulfillment of the

requirements of the Bachelor of Commerce Programme of the

Utkal University of Odisha is based on the original work done by her in

the department of Commerce, Christ College, under my supervision and

has not previously formed the basis for the award of any Degree,

Diploma, Associate ship, Fellowship or other similar title.

Dr. Jiwan Jhunjhunwala

Lecturer in commerce
 DECLARATION

I Barsha Sethy, do here by declare that the project report entitled “ATTITUDE

OF CUSTOMERS TOWARDS RECENT TRENDS IN ONLINE SHOPPING IN INDIA

AND ITS IMPACT”, submitted to Utkal University in partial fulfillment of the

requirements of the Bachelor of Commerce is the record of original work done by me

under the supervision of Dr. Jiwan Jhunjhunwala, lecturer in Commerce Dept. of

Commerce, Christ College, Cuttack.

Cuttack Barsha Sethy

Date :
 ACKNOWLEDGEMENT

I take this opportunity to extend my sincere gratitude to all those who

shared their knowledge and effort to help me the completion of the project
report.
To begin with I extend heartfelt thanks to my faculty supervisor Dr.
Jiwan Jhunjhunwala, Dept of Commerce and other faculties of the department
for the patience guidance and support in this work.
I also immense pleasure in expressing my genuine gratitude to all other
personalities who helped me in the successful completion of the project. The
support and guidance by them have greatly helped me in preparing the
subject.
Finally I am also grateful to my parents and friends for their support and
encouragement, which extended to me throughout this work.

Cuttack Barsha Sethy

Date :
 PREFACE

The growing number of internet users in India provides a bright prospect

for online shopping. If E-marketers know the key factors affecting behavior of
customers and its relationship then they can formulate their marketing
strategies to convert potential customers into loyal ones and retaining existing
online customers. This researcher paper highlights on factors which online
Indian customers keep in mind while shopping. After completion of study
Researchers found that cognition, sensed usefulness, comfort of use; sensed
enjoyment and security are the five components which affect consumer
perceptions about online purchasing.

Internet has changed the way consumers purchase goods and services at
the same time many companies have started using the Internet with the
objectives of cutting marketing costs, thereby reducing the price of their product
and service in order to stay ahead in high 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 purchase the
product online, but also to compare prices, product features and after sale
service facilities they will receive if the purchase product from a particular store.
Many experts are optimistic about the prospect of online business.
 CONTENTS

CHAPTER TOPICS PAGE NO.

No.

I Introduction 1-8

II Review of Literature 9 - 15

III Research Design and Methodology 16 - 17

IV Data Analysis and Interpretation 18 - 34

V Findings, Suggestions and Conclusion 35 -40

References and Questionnaires 41 - 45

 CHAPTER – I

INTRODUCTION

Online shopping is the process whereby consumers directly buy goods

or services from a seller in real-time, without an intermediary service, over
the internet. It is a form of electronic commerce. The sale or purchase
transaction is completed electronically and interactively in real time such as
in [Link] for new books. However in some cases, an intermediary may
be present in a sale or purchase transaction such as the transactions on
[Link].

An online shop, e-shop, e-store, internet shop, webshop, webstore,

online store, or virtual store evokes the physical analogy of buying products
or services at a bricks-and-mortar retailer or in a shopping centre. The
process is calledBusiness-to Consumer (B2C) online shopping. This is the
type of electronic commerce conducted by companies such as [Link].
When a business buys from another business it is called Business-to-Business
(B2B) online shopping.

A large percentage of electronic commerce is conducted entirely in

electronic form for virtual items such as access to premium content on a
website, but mostly electronic commerce involves the transportation of
physical items in some way. Online retailers are sometimes known as e-
tailers and online retail is sometimes known as e-tail. Almost all big retailers
are now electronically present on the World Wide Web.

History of Online Shopping

In 1990, Tim Berners-Lee created the first World Wide Web server and
browser in UK. It opened for commercial use in 1991. In 1994 other advances

1
took place, such as online banking and the opening of an online pizza shop by
Pizza Hut. During that same year, Netscape introduced SSL encryption of data
transferred online, which has become essential for secure online shopping.
Also in 1994, the German company Intershop introducedits first online
shopping system. in1995, Amazon launched its online shopping site, and in
1996, eBay appeared.

From the 1990s onwards, electronic commerce would additionally

include enterprise resource planning systems (ERP), data mining and data
warehousing.

In 1990s, Tim Berners-Lee invented the World Wide Web web

browser and transformed an academic telecommunication network into a
worldwide every man everyday communication system called internet/
[Link] enterprise on the Internet was strictly prohibited by NSF
until 1995. Although the internet became popular worldwide around 1994
with the adoption of Mosaic web browser, it took five years to introduce
security protocols and DSL allowing continual connection to the Internet. By
the end of 2000, many European and American business companies offered
their services through the World Wide Web. Since then people began to
associate a word “e-commerce” with the ability of purchasing various goods
through the internet using secure protocols and electronic payment services.

Global Internet Shopping Scenario

The rapidly increasing popularity of online shopping is a truly global

phenomenon. Online shoppers can be found scattered across the globe, but
the world’s most avid Internet shppers hail from South Korea- 99 percent of
Internet users in South Korea have shopped online. German, UK and Japanese
consumers come in a close second. US consumers are slightly more
recalcitrant, clocking in at number eight.

2
 In 2018, an estimated 1.8 billion people worldwide purchase goods
online. During the same year global e-retail sales amounted to 2.8 trillion US.
dollars and projection show a growth of up to 4.8 trillion U.S. dollars by 2021.
Worldwide E-commerce market share in 2018 [Link] 16%, [Link]
13%, Amazon 10%.

According to statista calculations, India will rank first in terms of B2C

e-commerce development with a compound annual growth rate of 17.8in
theprojected period from 2019-2023.

Growth of Internet Shopping In India:

Earlier food, cloth and shelter were called as primary need but today
one more need is added in that is ‘internet’. Due to revolution in
telecommunication sector internet has changed the way consumers shop and
buy goods and services. Both domestic companies as well as MNC’s have
started using the Internet with an objective of cutting marketing costs and
thereby reducing the price of their products in order to stay ahead in heavy
competition. 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. In addition to the tremendous
potential of the E-business market, the Internet provides a unique
opportunity for companies to more efficiently reach existing and potential
customers.

The popular online retailing companies in India are Myntra, Flipkart

Snap deal, [Link] and e-Bay etc. The five dominant factors which
influence consumer perceptions for online shopping are information, easy to
use, satisfaction, security, proper utilization of available information to
compare the different products.

3
 The electronic segment had the highest share in the e-commerce retail
market share with about 48% across India in 2018. Approved 29%, books
accounted for only 3%.

E-Commerce Company in India

India has an internet user's base of about 450 million as of July 2017,
about 40% of the population. This figure projected to grow 635 million
Internet users in 2021. Despite being the second largest user base in world,
only behind China (650 million, 48% of population), the penetration of e-
commerce is low compared to markets like the United States (266 million,
84%), or France (54 M, 81%), but is growing at an unprecedented rate,
adding around 6 million new entrants every month. The industry consensus
is that growth is at an inflection point. In India, cash on delivery is the most
preferred payment method, accumulating 75% of the e-retail activities.
Demand for international consumer products (including long-tail items) is
growing much faster than in-country supply from authorized distributors
and e-commerce offerings.

Accordingly to study done by Indian Institute of e-Commerce, by 2021

India is expected to generate $100 billion online retail revenue out of which
$35 billion will be through fashion e-commerce. Online apparel sales are set
to grow four times in coming years.

As of 2018, thelargest e-commerce companies in India are:

Amazon India: World leader e-commerce company Amazon has

emerged as the topmost e-commerce in India as well, in last few years. With a
wide range of products Amazon has also started focusing on their delivery
service by providing delivery within one day to their customers. To counter
its competitors, more than 8500 crores have been invested by Amazon global
in Amazon India.

4
 Flipkart: Founded in 2007 by Sachin Bansal and Binny Bansal,
Flipkart is one of the best e-commerce companies in India. It has set a perfect
exmaple for all start up aspirants by growing a thousand times over a decade.
Flipkart provides all kind of products, from products of basic-needs to stylish
and luxurious products that are feasible. The market value of Flipkart is US
$15 billion presently.

Walmart, one of the biggest retail corporation in the world, has

bought a major share of Flipkart, the Indian e-commerce giant. The deal is an
official one and Walmart is paying about $16 billion for the 77% share that it
is buying. The remaining share is retained by some of the old stakeholders
including Binny Bansal, co-founder of Flipkart.

Snapdeal: Started in 2010 by two graduates Kunal Bahl and Rohit

Bansal, Snapdeal ranks thrid in the top ten lists of e-commerce companies.
Headquartered in New Delhi, Snapdeal provies a wide variety in its products
along with attractive daily local deals such as on restaurants, spas, travelling
apps etc.

Paytm: As the acronym suggests 'payment through mobile', it enables

you to make payments online through its e-wallet. This Delhi based e-
commerce brand was commenced in 2010 but it witnessed boom in the year
2016. Because of Demonetization and government's support for Digital India,
in last two years it has achieved more than 300% year-on-year growth.

Jabong: Launched in the year 2012, this e-commerce majori basically

deals in fashion products. It provides a range of around 300 brands for kids,
men and women by keeping in mind about today's trend.

EBay: Basically an American MNC, e-Bay is also one of the prominent

e-commerce company was commenced by Sandeep and Radhika Agarwal.

5
Delivering products to over 3000 pin codes, Shopclues has associated more
than 5 lakh sellers with itself.

MakeMy Trip: Headquartered in Gurgaon, MakeMytrip is basically a

travelling site which sells us, train, and air tickets, holiday packages along
with great deals and exciting offers.

Homeshop18: Having launched India's first 24-hour Home shopping

TV channel, this e-commerce major provides you a wide variety of home
appliances along with gazettes like cameras, mobiles, laptops and much
more.

Bookmyshow: The first website that comes to our mind while boking
movie tickets online is Boomyshow. Headquartered in Mumbai, Bookmyshow
is the leading portal in booking tickets for entertainment purposes like
movies, plays, sports events etc.

Zomato: This is a platform which lets you order food online; the
partner reasturant will delvier the ordered food at your doorstep,. Zomato is
growing rapidly since it has also launched gold membership in India that
means it has tied up with premier restaurant of Delhi, Bangalore and
Mumbai.

Digital India is a campaign launched by the Government of India to

ensure the Government services are made available to citizens electronically
by improved online infrastructure and by increasing Internet connectivity or
by making the country digitally empowered in the field of technology. The
initiative includes plans to connect rural areas with high-speed internet
networds. Digital India consists of three core components.

a. Development of secure and stable digital infrastructure,

6
 b. Delivering government services digitally, and
c. Universal digital literacy.

Highlighting the above paragraph, digital India helps even the rural
poeople are now-a-days the consumer of online shopping with the help of a
good stable digital instructure. Every aspect of online shopping is digital,
meaning that is electronic information that is transmitted on a computer or
similar device, though naturally it can tie in with traditional offline
advertising and sales tool.

SCOPE OF STUDY

It was proposed that instead of taking a wide coverage and making a

broad study, this work should narrow down its focus and go deep into
inquiry. Hence, the researcher proposes to concentrate this work in Cuttack
City. E-Business includes variety of products, no. of companies and wide
range of customer base present in industry. It is difficult to researcher to do
segment customers, companies and very important customers for selection
as a sample of study. Therefore the study undertaken by researcher was
focused on “Attitude of customers towards recent trends in online shopping
in India and its impact: a case study.

OBJECTIVES OF STUDY

Ø To study presentstatus of online shopping in India.

Ø To analyze the factors those affects customers attitude towards online
shopping in India.
Ø To study factors motivates customersattitude towards online shopping
in India.
Ø To study potential for development of online shopping in India.

7
LIMITATIONS OF THE STUDY

v The sample size is limited to 50

v The survey is conducted only in selected areas of Cuttack city.
v The study largely is based on the perception of the respondents.
v The data was collected through structured questionnaire and
analyzed based on the information given by the respondents.

ORGANIZATION OF THE STUDY

Chapter-I includes introduction, scope, objectives and limitations.

Chapter-II: Review of Literature.

Chapter-III: Research Design and Methodology

Chapter-IV: Data Analysis and Interpretation.

Chapter-V: Findings, Suggestions and Conclusion, References &

Questionnaires.

8
 CHAPTER - II

REVIEW OF LITERATURE

Globally, it has recognized that no work can be meaningfully

conceptualized and achieved without studying what already exists in
reference to it. The knowledge of already established research areas enables
us to clearly understand what is already illuminated in that area & what more
research in areas identified is still being unexplored. Once we come to know
about the research that what is so far researched and what part is
unexplored, then we can begin rationally and purposefully. As India is new
and an emerging country in online shopping there are very few studies
conducted in this areas.

Pooja Mordani (2008) explored the study on investigation

consumer’s perception towards internet based e-shopping and the study
involved an experiment in which the respondents were asked to go through
the online shopping process and relate their experiences. The study found
that the positive experience with a website plays a vital role in forming
consumers trust while shopping online and if consumers trust the website
then they will perceive ease of use, perceive enjoyment and perceive the
website to be less risky which would finally culminate into an intention to
transact with the website.

Kiran et al. (2008) have not only identified the factors affecting
online buying behavior in India, they have also explored how online
advertisements influence consumers to buy online. The authors have
identified product information and reliability as the key contributing factor
to internet retailing adoption. Yet another contributing factor is audience
attitude towards e-shopping. Various constituent variable include

9
responsiveness of websites for the information, positive outcome of the
websites and the influencing power of advertisements. Influence of internet
advertisements on e-shopping has emerged as another important
determinant of online buying behavior.

Prasad and Aryasri (2009) have explored the determinants of shop

behavior such as convenience, customer service, trust, web store
environment and web shopping enjoyment and examine the effect of these
factors towards online buying behavior.

S.L. Gupta & Nirupama Gupta (2009 in their study Online shopping
behavior by Urban Indian youth and study highlights that urban Indian youth
is more an online surfer than an online shopper. Only a very small percentage
of Indian youth has started appreciating the role of Internet in shopping. It is
well equipped for using the Internet as an online surfer but needs time and
experience to be an online shopper.

Ankur Kumar Rastogi (2010) conducted the study on a study on

Indian online consumers and their buying behavior and the study attempts to
analyze the features related to the buying behavior of online shoppers.
Consumer buying behavior in respect of online shopping was studied using
different socio-economic variables. It also provides a support that helps
researchers understand the drivers of consumers’ attitude and goal to shop
on the Internet, and consumers’ perception regarding ease of use and
usefulness. Conclusions derived from the analysis can be used as useful guide
for market orientation. The outcomes of the study suggest that assessment of
consumer buying behavior can contribute to a better understanding of
consumer buying behavior can contribute to a better understanding of
consumer buying behavior in respect of online shopping.

Ruchi Nayyar (2010) in the study of website factors on online

shopping buying behavior and the study found that online shoppers perceive

10
different factors such as website design, fulfillment/reliability, privacy/
security and customer service affecting online purchase activity differently.

Dr. S.G. Gupta (2010) in the study impact of changing demographic

profile of Indian customers on their internet shopping behavior and the study
concluded that demographic profiles of online users; gender, age and
education have significant association to web shopping in the current Indian
scenario. However, it won’t be very late for these differences to evaporate
keeping into account fast changing social habits and growing technological
developments.

Archana Shrivastava & Ujwal Lanjewar (2011) in online bueying,

the rate of diffusion and adoption of the online buying amongst consumers is
still relatively low in India. In view of above problem an empirical study of
online buying behavior was undertaken. Based on literature review, four
predominant psychographic parameters namely attitude, motivation,
personality and trust were studied with respect to online buying. The online
buying decision process models based on all the four parameters were
designed after statistical analysis. These models were integrated with
business intelligence, knowledge management and data mining to design
Behavioural Business Intelligence framework with a cohesive view of online
buyer behavior.

Earnest & Youg (2012) conducted a research study on Rebirth of e-

Commerce in India. The rapid growth of the e-Commerce sector is attracting
new player. The initial investment required to start an online venture is as
low as a US$10,000 – 20,000. The sector is also attracting the interest of VCs
and entrepreneurs to secure funds easily. This enables new companies to
easily replicate the existing business models and, thereby, increases
competition in the sector. Furthermore, some operational aspects such as
free shopping of products and COD, which were differentiators earlier, have

11
now become hygiene factors. India’s e-Commerce market is mainly restricted
to urban areas, with the bulk of the business being restricted to cities.
Internet usage in rural areas is limited. This could be due to several reasons
including low internet speed and internet user base (20 million out of a total
121 million in 2011), though rural areas account for 70% of the country’s
population.

Chu & Yuan (2013) in the paper “The Effects of Perceived

Interactivity on E-Trust and E-consumer Behaviours investigated the impact
of perceived interactivity on customer trust and transaction intentions in e-
commerce. The findings suggest that perceived interactivity has positive
effects on the user that ultimately result in e-loyalty behavior. Further, the
fuzzy linguistic scale enables researchers not only to deal with different
recognition styles, but also to notice difference in individuals by providing
different linguistic variable combinations for researching purpose. Finally,
the outcomes will be of interest to web designers and online marketers for
how to enhance interactive online web applications.

Namita Bhandari & Preeti Kaushal (2013) in the study on Online

consumer behavior: an exploratory study find outs that e-commerce websites
as it helps in framing strategies to make online shopping a more user friendly
experience. The issues like security of financial information while transacting
on websites and confidentiality of their personal information still bring
anxiety to the minds of Indian consumers, hence online vendors need to
bring that assurance to their minds by having robust back-end technology as
well as right image through their websites’ features. Further, the factor of
convenience also tops the mind of an online buyer, so effort should be made
to delight the consumer by giving extremely good buying experience by
ensuring quick delivery and hassle free online transactions.

12
 Dr. Renuka Sharma (2014) in the study entitled “Understanding
Online Shopping Behavior of Indian Shoppers” revealed that the ease and
convenience provided by these stores for 24x7 has made very easy shopping
for consumers worldwide. Indian customers are also getting addicted to the
online shopping and they do like various features of online shopping as by
rest of the world. But the statistics available has shown that Indian market is
still not a fully developed market for e-tail stores. The majority of interest
users are youngsters, the majority of goods and services demanded are
related t only this segment. Travel planning is one of the biggest services
used by Indian online shoppers.

Sanjeev Kumar & Savita Maan (2014) in the study Status and Scope
of Online Shopping: An Interactive Analysis, indicted that online shopping is a
fun and convenience way to locate hard-to-find items, to make purchases and
discover bargains, but also with some level of risk. Online shopping can be
easy and enjoyable with some precautions. India’s online market is at an
early stage but is expected to see huge growth over the next four to five
years. Retailers have sizeable opportunity as the online population starts to
spend more and buy more frequently online.

Prof. Ashis Bhat (2014) in article entitled “Consumer Attitude

towards Online Shopping in Selected Regions of Gujarat” published in Journal
of Marketing Management stated that online shopping is gaining popularity
among people specially the younger generation but in today scenario to
become equally popular among all age groups e-marketing will have to cover
a longer distance. As per study mode of payment is depended upon income of
the respondents. People from different age groups are doing online shopping
regularly. The attitude of consumers is changing with the time. In a country
like India, consumers are finding online shopping very comfortable because

13
of many variables like cash on delivery, customization or personalization of
the websites, home delivery etc.

Prashant Singh (2014) in his article “Consumer’s Buying Behaviour

towards Online Shopping: A case study of [Link] user’s in Lucknow
City” published in Abhinav stated that future of e-retailers in India looking
very bright. E-retailers give consumers the best way to save money and time
through purchasing online within the range of budget. [Link] offering
some of the best prices and completely hassle-free shopping experience. The
whole concept of online shopping has altered in terms of consumer’s
purchasing or buying behavior and the success of E-tailers in India is
depending upon its popularity, its branding image, and its unique policies.

Dr. V Vijaylakshmi & Dr. R. Lakshmi (2018)1 Mostly youngers and

youth generation (19-30 age group) are very much interested in online
buying because they know about technology and e-shopping.

As per an ASSOCHAM – Resurgent Joint Study (2018)2 online

shopping is expected to clock annualized growth of 115 percent this year,
aided by fast-increasing data consumption and improvement in logistics,
along with a number of offers presented by e-commerce platforms.

Jarvenpaa Journal of Electronic Commerce Research, Vol.6, No.2

(2015)3 it is an early stage in interest development in terms of building an
appropriate dedicated model of consumer buying behavior.

Ahmed (2012) Concerns of price, quality, durability and other

product-related aspects are the main drivers of buying decision in developed
countries but the consideration could be vary from the developing countries.

Sylke et al. (204) The growth rate of electronic commerce in India,

however, has yet been much below anticipation; its proportion of total
business is still small due to its certain limitations.

14
 Garbarino & Strahilevitz 2004; Korgaonkar & Wolin, 1999; Van
Slyke et al., (2002) previous researches suggested that men are more likely
to purchase products and/or services from the Internet than women.

Na Li & Ping Zhang (2002) found that men are more adopting in
online shopping, Female shoppers are found to prefer using catalogs to shop
at home. It is found once female showed preference in online shopping, they
will shop more frequently online than their male counterparts.

15
 CHAPTER - III

RESEARCH DESIGN AND METHODOLOGY

Methodology is a systematic way of solving a problem it includes the

research methods for solving a problem it includes the research methods for
solving the problem.

Types of Research

Descriptive-cum- Exploratory research

Data Source

Primary and Secondary data

Data Collection Tools

Questionnaires

Sampling Universe

Cuttack Municipal Corporation.

Sample Size

50

Sample Design

The target population of the study consists of various respondents

Cuttack Municipal Corporation. This survey will be done by collecting the
data from the respondents.

16
Sample Technique

The sampling technique that adapted to conduct the survey was

‘Random Sampling’, percentage used for the data analysis. The area of the
survey was concentrated in the City of Cuttack Municipal Corporation. The
survey was conducted by visiting different offices, malls, etc.

DATA SOURCE

In this study data will be collected through both primary and

secondary data source.

· Primary Data
A primary data is a data, which is collected for gathering information
first time and to analyze the problem. In this study, the primary data
was collected among the consumers using questionnaire.
· Secondary Data
Secondary data consist of information that already exists somewhere,
having been collected for some other purpose. In this study secondary
data was collected from websites, magazines and brochures.
· Presentation of Data

Survey data presented in the form of table, graphs and charts.

17
 CHAPTER – IV

DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF DEMOGRAPIC FINDINGS

Educational Qualification:

The Total data of 50 respondents were segregated on the basis of

Educational qualification as per the table below:

Table - 4.1: Educational Qualification

Educational Qualification No. of Respondents Percentage (%)

Under Graduates 23 46
Post Graduates 12 24
Professional 15 30
Total 50 100

Fig.4.1 : Educational Qualification

Educational Qualification

30%
46%
UG
PG
24%
Professional

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 The above table shows that out of 50, the majority of the respondents
i.e. 23 (46%) were under graduates while 15 (30%) were professional and 12
(24%) were post graduates. This reflects the proper distribution of the
respondents across the educational qualification profile.

Residing Place:

The data of 50 respondents were segregated on the basis of residing

place as per the table below:

Table-4.2: Residing Place

Residing Place No. of Respondents Percentage (%)

Rural 10 20
Urban 40 80
Professional 15 30
Total 50 100

Fig.4.2: Residing Place

Residing Place

20%

Rural
80%
Urban

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 The residing place for the online shoppers was important and
considering that 20% respondents were from rural background indicates
that there is some penetration in that market and there is a possible of more
penetration in that region. The respondents from urban area were 80% and
the online segment mainly lies in this area.

Income:

The total data of 50 respondents were segregated on the basis of

Income as per the table below:

Table-4.3: Income (Per month in Rupees)

Income (in Rupees/month) No. of Respondents Percentage (%)

Dependents 20 40
Below Rs.40,000 9 18
Above Rs.40,000 – Rs. 80,000 13 26
Above Rs. 80,000 8 16
Total 50 100

Fig.4.3: Income (Per month in Rupees)

Income
45%
40%
35%
30% 40%
25%
20%
15% 26%
10% 18%
16%
5%
0%
Dependents Below Rs.40,000 Above Rs.40,000 – Above Rs. 80,000
Rs. 80,000

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 The above tale depicts majority of those making purchases online are
dependents. It’s the next generation net savvy student’s community which is
driving the online market. The older generation admitted to being guided,
helped, directed and often assured by the youth relations to depend on the
online market. The distribution of income shows that most people who have
reasonable good monthly income of Rs.40,000 – Rs.80,000 are maximum
spenders on online market from the earning group.

Occupation:

The total data of 50 respondents were segregated on the basis of

occupation as per the table below:

Table-4.4: Occupation

Occupation No. of Respondents Percentage (%)

Working 22 44
Not working 28 56
Total 50 100

Fig.4.4: Occupation

Occupation

44%
56%
Working
Not working

21
 The above table shows 56% who shop online were non-working but
have income source or are dependent on others. This is a clear indication of
the next generation and their role in the fast developing online market. It is
this segment which is giving a fill up to the online market segment. Our
finding corroborate that online shoppers are mostly youth and students who
are not regularly working. However, 44% of the working is also indulging in
online shopping and they order for themselves or for their dependents needs.

Age:

The total data of 50 respondents were segregated on the basis of age

as per the table below:

Table-4.5: Age

Age No. of Respondents Percentage (%)

Below 30 years 28 56%
30 – 50 years 16 32%
Above 50 years 6 12%
Total 50 100%

From the above table 56% on online shoppers are below 30 years of
age while 32% are within 30 and 40 years and only 12% above 50 years. This
can easily be explained as computers is a new phenomenon and very few
people over 50 years would have learnt the skills in class room environment
to operate a computer while below 30 years everyone would have done so.
This fact emerges directly from the findings and the data corroborates this
findings.

22
Gender :

The total data of 50 respondents were segregated on the basis of

gender as per the table below:

Table-4.6: Gender

Gender No. of Respondents Percentage (%)

Male 26 52%
Female 24 48%
Total 50 100%

There is almost an equal representation for online shopping in terms

of gender. Be it a male or female both enjoy online shopping equally. They
may have different reasons, but there is balance in their attempt to purchase
products online. This is correctly reflected in our findings.

ANALYSIS OF ONLINE SHOPPING FACTORS

Online shoppers have different reasons for buying from online

retailers. These reasons were investigated and the findings of data were
analyzed for better understanding of online shoppers and they were
segmented on this basis for preference for what they were looking for when
buying online.

Time Convenience

The first question put across to the respondents was if they felt online
shopping gave time convenience to them. They can shop anytime they please
as the facility is available twenty four hours. The response was as follows:

23
 Table-4.7: Time Convenience

Response No. of Respondents Percentage (%)

Strongly agree 32 64
Strongly disagree 11 22
Neutral 7 14
Total 50 100

Most respondents (64%) strongly agree with the proposition and felt
that time convenience is an important ingredient which motivates them to
buy online, while another 14 are neutral agree thus it can conclude that most
respondents consider time convenience as a major reason for buying online.

Place Convenience

The next reason was place convenience as they could shop online from
the convenience of their home or office. The 50 respondents gave the
following response.

Table-4.8: Place Convenience

Response No. of Respondents Percentage (%)

Strongly agree 31 62
Strongly disagree 13 26
Neutral 6 12
Total 50 100

24
 Fig.4.5: Place Convenience

Place Convenience

12%

26% Strongly Agree

62%
Strongly disagree
Neutral

While around more than 62% in agreement very strongly, with the
proposition that the online shopping offer place convenience, while 12% of
the respondents were neutral and 26% were strongly disagree.

Ease of Price Comparison

Table-4.9: Place Convenience

Response No. of Respondents Percentage (%)

Strongly agree 24 48
Strongly disagree 13 34
Neutral 6 18
Total 50 100

Around 50% of respondents were strongly agree with the proposition

and out of the rest 18% felt that. 34% of the respondents were strongly
disagreeing to ease of price comparison.

25
Easy Access to Information

Information can be accessed easily was the next proposition for

respondents to make online purchase. The following response was elicited
from the respondents.

Table-4.10: Easy Access to Information

Response No. of Respondents Percentage (%)

Strongly agree 27 54
Strongly disagree 14 28
Neutral 9 18
Total 50 100

Fig.4.6: Easy Access to Information

Easy Access to Information

18%

54% Strongly Agree

Strongly disagree
28%
Neutral

On easy access to information 54 strongly agreed, while 28% strongly

disagreed and 18% respondents were neutral against of this factor.

26
Infinite Choice in Products and Services

Online shoppers enjoy ‘infinite choice in products and services’ was

another proposition given to the respondents on which a total of 50
respondents gave their opinion.

Table-4.11: Infinite Choice in Products and Services

Response No. of Respondents Percentage (%)

Strongly agree 31 62
Strongly disagree 12 24
Neutral 7 14
Total 50 100
Fig.4.7: Infinite Choice in Products and Services

Infinite Choice in Products and Services

14%

24% Strongly Agree

62%
Strongly disagree
Neutral

From the above table, it has observed that 62% of respondents are
strongly agreed another 24% strongly disagree. From this we can conclude
that indeed the online retail shops have given sufficient choice to shoppers to
win their hearts and this become a major reason for shoppers to make
purchases online. Another 14% of the respondents are neutral thus the
conclusion is that there is infinite choice and consumers get what they need
exactly on the internet retail portals.

27
Better Price

The bonanza offered by online retailers to shoppers is too good to

resist. To investigate respondents were asked to inform if online retailers
offered ‘better price’. The result is as below:

Table-4.12: Better Price

Response No. of Respondents Percentage (%)

Strongly agree 37 74
Strongly disagree 9 18
Neutral 4 8
Total 50 100

From the above table, it has observed that 74% respondents under
strongly agree, 18% are disagree and rest mere 8% respondents are neutral
with the proposition. The overall with the respondents are that there are
comparatively better pricing on the online market as compared to traditional
and other retail formats.

Save Time

Online shopping ‘save time’ for buyers. For this proposition the
following data was obtained.

Table-4.13: Save Time

Response No. of Respondents Percentage (%)

Strongly agree 29 58
Strongly disagree 15 30
Neutral 6 12
Total 50 100

28
 Fig.4.8: Time Save

Time Save

12%

58% Strongly Agree

30%
Strongly disagree
Neutral

More than 50% of the respondents are of the view that online
shopping saves time for them. Only 30% respondents are strongly disagreed
relating to save time on online shopping. Mere 12% of the respondents under
study are neutral. This leaves little doubt for accepting the fact that it save
time. However, for the respondents who have poor internet connectivity or
are less technology savvy this may not be true. But now the speed of internet
is generally good as is the basic knowledge required to most as can be seen
from the data.

Easy Payment Option

The Online payment option is easy compared to traditional method of

retailing. ‘Easy payment option’ includes various modes of payment, using
internet, cards cash on delivery etc. The details are as under:

Table-4.14: Easy Payment Option

Response No. of Respondents Percentage (%)

Strongly agree 37 74
Strongly disagree 9 18
Neutral 4 8
Total 50 100

29
 Fig.4.9: Easy Payment Option

Easy Payment Option

8%
18% Strongly Agree

74% Strongly disagree

Neutral

The ease of payment is strongly agreed by almost three –fourth of

respondents only 18% of respondents are strongly disagreed and 8% are
neutral. In fact quite a few options are such that they are only available on
this platform. The convenience factor is also very high for payment, as all
these can be done from the ease of place chosen and almost all banks are now
included for internet banking and every card is accepted. In fact many give
the option of wallet and other such means.

Easy Placing Order

Online retailing perhaps is a platform where it is ‘easy placing order’.

The proposition gave the following results.

Table-4.15: Easy Placing Order

Response No. of Respondents Percentage (%)

Strongly agree 33 66
Strongly disagree 9 18
Neutral 8 16
Total 50 100

30
 From the above table, it is clear that 66% are agreed with the
proposition while 18% are disagreed with it. Only a few respondents (16%)
are neutral relating to the factor easy of placing order.

Better Scope of Discount

Online shopping offers ‘better scope of discount’. This was put before
the respondents and the following came out of the analysis of the data in the
questionnaire.

Table-4.16: Better Scope of Discount

Response No. of Respondents Percentage (%)

Strongly agree 35 70
Strongly disagree 12 24
Neutral 3 6
Total 50 100

It was observed from the above table 70% respondents strongly

agreed on the scope of discount. As the scale of operation is large, the scope
for maximum discount is also. Hardly 24% disagreed with the proposition,
which may have access for privileged discount at some store.

Faster Service

Online service is lightening fast giving ‘Faster Service’ to people across

the globe. Today products available worldwide can be ordered through the
internet. The respondents gave the following response.

31
 Table-4.17: Faster Service

Response No. of Respondents Percentage (%)

Strongly agree 37 74
Strongly disagree 8 16
Neutral 5 10
Total 50 100

An overwhelming majority confirm the fast service that the online

retailers have brought in with keen competition for the retailers online the
world over. Very few have disagreed while an equal number to disagree are
fence sitters.

Quick Return Policy

In Online retailing a major problem is return of items not wanted or

not meeting the required specification. Is there a ‘Quick Return Policy’?

Table-4.18: Quick Return Policy

Response No. of Respondents Percentage (%)

Strongly agree 29 58
Strongly disagree 14 28
Neutral 7 14
Total 50 100

From the above table it is clearly depicted that 58% are strongly
agreed that the online retailers have a quick return policy. Very few is only
14% have had any kind of adverse experience. This could be from the lesser
known brands as confessed by some of the respondents.

32
Cash on Delivery Option

Is there satisfactory ‘Cash on Delivery Option’? The following is the

response to the same.

Table-4.19: Cash on Delivery Option

Response No. of Respondents Percentage (%)

Strongly agree 34 68
Strongly disagree 17 34
Neutral 3 6
Total 50 100
It is observed that 68% of respondents felt that ‘cash on delivery
option’ is satisfactory and available, however 34% have not had the option as
most retailers provide the facility for limited pin codes.

After Sales Service

Regarding after sales service we have the following data.

Table-4.20: After Sales Service

Response No. of Respondents Percentage (%)

Strongly agree 36 72
Strongly disagree 8 16
Neutral 6 12
Total 50 100

33
 Fig.4.10: After Sales Services

After Sales Services

12%
16%
Strongly Agree
Strongly disagree
72%
Neutral

It depicts that 72% of the respondents strongly agreed with the view,
whereas only 16% disagreed with the proposition and 12% of the
respondents are neutral.

34
 CHAPTER – V

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

1. Educational Qualification: Out of 50, the majority of the respondents

i.e. 23 (46%) were under graduates while 15 (30) were professional
and 12 (24%) were post graduates.

2. Residing Place: 20% respondents were from rural background

whereas 80% were from urban area.

3. Income: Almost out of 50 the majority of the respondents were

dependent 20 (40%) while 13 (26%) were having their monthly
income between Rs.40,000 – Rs.80,000, 9 (18%) were having their
monthly income below Rs.40,000 and 8 (16%) were having their
monthly income above Rs. 80,000. It’s the new generation net savvy
student’s community which is driving the online market.

4. Occupation: 56% of the total respondents were non-working and

44% were working people.

5. Age: Almost 56% of online shoppers were below 30 years of age while
32% were within 30 and 50 years and only 12% were above 50 years.
This can easily be explained as computers is a new phenomenon and
very few people over 50 years would have learnt the skills in class
room environment to operate a computer while below 30 years
everyone would have done so.

6. Gender: 52% of the total respondents were male and 48% were
female.

35
ONLINE SHOPPING FACTORS

1. Time Convenience: 64% strongly agreed while another 22% are

strongly disagreed, thus we can conclude and most respondents
considered time convenience as a major reason for buying online.

2. Place Convenience: 62% strongly agreed another 26% strongly

disagreed with the proposition that the online shopping offers place
convenience.

3. Ease of Price Comparison: Around 50% of respondents are strongly

agreed with the proposition and out of the rest 18% remained neutral.
This is a very good reason to register this as a valid reason for buying
online.

4. Ease Access to Information: On easy access to information 54%

strongly agreed, 18% stayed neutral and only 28% were against this
factor.

5. Infinite Choice in Products and Services: On infinite choice in

products and services 62% strongly agreed while 24% are strongly
disagreed.

6. Better Price: On better price 74% of the respondents are strongly

agreed and those who were neutral only 8%. Thus a mere 18%
disagreed with the proposition. The perception overall with the
respondents is that there is comparatively better pricing on the online
market as compared to traditional and other retail formats.

7. Save Time: 58% which is almost more than half the respondents
strongly agreed with the fact that online shopping saves time and
another 30% disagreed to the statement.

36
8. Easy Payment Option: 74% were agreed with the proposition while
only 18% disagreed with it.

9. Easy Placing Order: 66% agreed with the proposition while only 18%
disagreed with it.

10. Better Scope of Discount: 70% agreed on the scope of discount.

11. Faster Service: An overwhelming majority (74%) confirmed the fast

service that the online retailers have brought with tougher
competition for the retailers online the world over. Very few (16%)
did not agree with the proposition.

12. Quick Return Policy: 58% strongly agreed that the online retailers
have a quick return policy. Very few only 28% have had any kind of
adverse experience.

13. Cash on Delivery Option: 68% of respondents agreed that ‘cash on

delivery option’ is satisfactory and available; however, 25% have not
had the option as most retailers provide the facility for limited pin
codes.

14. After Sales Service: 72% of the total respondents agreed with the
proposition whereas 16% disagreeing with it.

SUGGESTIONS

The researcher has made personal contact with the respondents who
have purchased products and services through online. It is concluded that
most of the respondents have a good opinion about online shopping, though
there are so many problems to be improved by the vendors and service
providers.

37
These suggestions are as follows:

v As there are no proper laws for online purchases, they have to

be implemented to prevent the anonymous intruders. This will
help to maintain security and private information properly
concerning the respondents. So the website developers and
service providers should take necessary steps to overcome this
problem.

v Web based technologies upgraded creative conceptualization

that would improve the response from technology savvy
consumers. So the firms have to invest in such new technologies.

v One of the major drawbacks that the respondents have felt is no

proper returning policy to the product. After getting opinion
from the respondents if the above said problem occurs, then
they should be guided in a proper way to return the product.
This will create a good website reputation and repurchasing
power of the respondents.

v The vendors and service providers should avoid hidden charges.

This will help to avoid increase in price of product.

v Due to the technological development the service providers

should implement new innovative ideas to display information
about the product. Now-a-days 360 degree method is mostly
helpful to know about all the position of the product. This
method will help to create confidence about the product. So all
the service provider’s should implement these kinds of
innovative methods.

38
 v Website design and quality creates a positive impact on online
shopping satisfaction. So the vendor companies should
concentrate more on the designing part of websites.

v Majority of the users among higher income groups shops online

only. But in India middle income and low income groups are
very high. So the online marketers can concentrate on
innovative ideas to increase online business through middle and
low income group. This will be possible only through price
fixation of the product based on this group.

v The respondents face major problems on theft of credit card

information, and lack of security on online payments.
Implementing precautionary steps to solve these problems shall
create consumer confidence on online shopping.

v Most of the Indian consumers are traditional buyers with long

term usage behavior. But most of the buyers of online shopping
products are in the nature of short term product users. Hence, it
is suggested that the vendor can concentrate on offering more of
durable products with guarantee.

CONCLUSION

In the past, consumers had sufficient time to visit shopping centers,

searching for various products. Many consumers prefer bargaining and
decide the purchases after physical examination of the commodities. The
entire process can range from a few hours to weeks depending on the
product, quantity, quality and source of purchase. Today there is radical

39
change in the entire scenario. Everything in today’s world is internet oriented
like Electronic Data Interchange, E-Mail, E-Business and E-Commerce.

E-Commerce is exchange of information using network-based

technologies. In the present high cost situation, E-Commerce can be used as a
competitive strategy. It successfully includes the entire online process of
developing, marketing, selling, delivering, servicing and paying for products
and services.

Online shopping is a vast growing technology. If it is properly utilized

with assured safety and security for the transactions, it will thrive into a high
competitive and dynamic environment.

Online shopping give customers best alternative to save money and

time. Companies Offers detail product information, easy mode of payment,
facility of comparison of price and very important completely hassle free
shopping experience. Success of online shopping depends on its popularity,
its brand image and its unique promotional policies.

40
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43
 QUESTIONNAIRES

Personal Detail (Please tick the Appropriate Option)

MALE _________________ FEMALE _____________

1. AGE :

· Below 30 years
· 30 – 50 years
· Above 50 years

2. OCCUPATION:

· Working
· Non-working

3. INCOME:

· Below Rs.40,000
· Rs.40,000 – Rs.80,000
· Above Rs.80,000

4. RESIDING PLACE:

· Rural
· Urban

5. EDUCATIONAL QUALIFICATION

· UG
· PG
· Professional

44
FACTORS IDENTIFIED

Based on the items, the respondents are requested to answer as given

in form of the followings:

(i) Strongly agree

(ii) Strongly disagree
(iii) Neutral

Time convenience

Place Convenience

Easy Price Comparison

Easy access to information

Infinite choice in products and services

Better price

Save time

Easy payment option

Easy placing order

Better scope of discount

Faster Service

Quick return policy

Cash on delivery option

After sales service

45