A STUDY ON CONSUMER BEHAVIOUR

TOWARDS ONLINE SHOPPING

By

SYEDMEERAN. A
 CERTIFICATE

This is to certify that this Project Report is the bonafide work of

SYEDMEERAN.A (39740241) who has done the Project work entitled A
STUDY ON CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING
under my supervision from December 2021 to February 2022.

Dr. ************************
Guide
ACKNOWLEDGEMENT

SYED MEERAN.A
 TABLE OF CONTENT

TITLE PAGE NO

LIST OF TABLES i

LIST OF FIGURES iii

INTRODUCTION

1 Online Shopping In India 1

2 Changing Attitude Towards Online Shopping 2

3 Statement Of Problem 3

4 Scope Of Study 4

5 Objectives Of Study 4

RESEARCH METHODOLOGY

1 METHODOLOGY 11

2 COLLECTION OF DATA 11

2.1 Primary Data 11

2.2 Secondary Data 11

3 Tools Of Analysis And Presentation 11

4 Structure Of Questionnaire 11

5 Sample Size 12

6 Sample Technique 12
7 Period Of Study 12
8 LIMITATION OF STUDY 12
DATA ANALYSIS AND INTERPRETATION 13
FINDINGS, SUGGESTIONS AND CONCLUSION
1 Findings of the Study 27
2 Suggestions 28
3 Conclusion 28
REFERENCES 29
ANNEXURE (Questionnaire) 31

iv
 LIST OF TABLE
TABLE NO. PARTICULARS PAGE NO.

1 Frequency Analysis of Age 13

2 Frequency Analysis of Educational Qualification 14
3 Analysis Of Martial Status 16
4 Response Of Using Always Online Shopping 17
5 Response Of Enjoying Shopping On Internet 18
6 Rating Of Experience In Online Shopping 19
7 Biggest Concern Of Responses Towards Online 20
8 Response On the basis of their frequent online 21
shopping
9 Information About Most preferred Online shopping 22
site
10 Response Of Most Preferred Payment Mode 24

11 Response For Reason For Online shopping 25

LIST OF FIGURES

CHARTS NO. PARTICULARS PAGE NO.

1 Age Response 14

2 Educational Qualification Response 15

3 Marital Status Of Response 16

4 Response of always online shopping 17

5 Response of enjoying online shopping 18

6 Response of experience in online shopping 19

7 Response Of Biggest Concern towards online 21

shopping

v
 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 to cut marketing costs, thereby reducing the price
of their products and services to communicate and disseminate information,
to sell the products, to take feedback, and also to conduct satisfaction
surveys with consumers. Consumers use the internet not only to buy the
product online but also to compare prices, product features, and after-sales
service facilities they will receive if they purchase the product from a
particular store. Many experts are optimistic about the prospects 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-consumers 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 and improve insight into consumer behavior from
different perspectives. Many of the studies have cost new emergent factors
or assumptions which are based on the traditional models of consumer
behavior, and then examine their validity in the internet context.

1. ONLINE SHOPPING IN INDIA

The birth and growth of the internet have been the biggest event of the
century. e-Commerce in India has come a long way from a timid beginning
in 1999-2000 to a period where one can sell and find all sorts of stuff from a

1
high-end product to a large peanut online. Most corporations are using the
internet to represent their product range and services so that it is accessible
to the global market and to reach out to a larger range of their audience.
Computers and the internet have completely changed the way one handles
day-to-day transactions; online shopping is one of them. The internet has
brought about sweeping changes in the purchasing habits of people. In the
comfort of one’s home, office or cyber cafe or anywhere across the globe,
one can log on and buy just about anything from apparel, books, Music, and
jewelry to digital cameras, mobile phones, mp3 players, video games, movie
tickets, rail, and air tickets. Ease, simplicity, convenience, and security are
the key factors turning the user to buy online. There is a huge purchasing
power of the youth population aged 18-40 in the urban area.

2. CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

“Awareness, Future Demand Focus for Emerging Markets & current issues”
Malls springing up everywhere, and yet people are E-shopping! And not in
small numbers either. Consumers are more rational nowadays and can get
choices from the market. Awareness among consumers is spread through
the 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 people are buying these items online?
In India, there are some segments of people who have not yet tried
purchasing over the internet.
Here are a few reasons why internet shopping is preferable:

2
Convenience

Online stores are usually available 24 hours a day, and many consumers
have internet access both at work and at home. Other establish such as
internet café and the school provides access as well. A visit to conventional
retail stores requires travel and must take place during business hours.

Information and reviews

Online stores must describe products for sale with text, photos, and
multimedia files. Some stores even allow customers to comment or rate their
items. There are also dedicated review sites that host user reviews for
different products. Reviews and now blogs give customers the option of
shopping cheaper organize purchases from all over the world without having
to depend on local retailers.

a. STATEMENT OF PROBLEM
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
technology surrounding the internet, accompany that are interested in selling products
from its website will constantly have to search for an edge in the fierce competition.
Since there are so many potential consumers, it is of the utmost importance to be able
to understand what the consumer wants and needs.

The importance of analyzing and identifying factors that influence 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 online retailers
must know what influences 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

3
consumer but also to 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 its marketing strategies. These theories can also
be applied to identify the online consumer and to create certain consumer segments.

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
to satisfy consumer demands and compete in the online market.

b. SCOPE OF 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 website will constantly have to search for an edge in the fierce competition.
There are so many potential consumers, it is of the utmost importance to be able to
understand what the consumers want and need. 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. The online retailers must know what influences the
online consumer behavior is diverse from traditional consumer behavior, one must
identify what influences the online consumer.

c. OBJECTIVES OF STUDY

This project research helps to find out what are the main factors that affect consumer
behavior towards online shopping. The following are the objectives of the study;

4
 i. To study consumer behavior towards online shopping.
ii. To know the factors which affect decision making process of
customer whilepurchasing the online shopping product.
iii. To identify their preference towards different E-shopping websites
and thefeatures of websites in general.
iv. To know the problems, they face during online shopping.

METHODOLOGY
The research is based upon both primary and secondary data both. The primary data
was collected through a questionnaire designed exclusively for the study. Secondary
data was taken from Research papers, journals,magazines, and websites.
COLLECTION OF DATA
The research uses both Primary and Secondary data
Primary Data
Primary data are those, which are collected for the first time, and are original. A suitable
combination of Questionnaires and interview techniques is used to collect the required
primary data. By using aquestionnaire, data has been collected from 100 sample
respondents through survey method.
Secondary Data
The secondary data are those which are already collected by someone forsome purpose
and are available for the present study. Secondary data was collected from magazines,
websites, and other such sources.
Tools for Analysis and Presentation

The collected data has been analyzed and interpreted by using different statisticaltools
such as percentages, pie charts, bar charts, etc.

STRUCTURE OF QUESTINNAIRE

The questionnaire has been framed and circulated to collect primary data. The
questionnaire contains:

5
  Direct Questions
 Close end Questions
 Multiple Choice Questions

1. SAMPLE SIZE

Samples were collected from consumers and buyers of online shopping through
questionnaire. The sampling size is 100, the sampling technique used for the study is
Convenient Sampling

2. SAMPLING TECHNIQUE

Sampling technique is the technique used to select the sample size. Convenient
sampling technique is used for this research. Customers were taken according to the
convenience of the research study. The respondents from questionnaire (survey
method).

3. PERIOD OF STUDY

The study was conducted for a period of 3 months starting from December 2021 to
February 2022

4. LIMITATION OF STUDY

The study suffers from the following limitations:

 The study is based on the opinion on only 100 respondents. It cannot be

generalised.
 The data was collected through structured questionnaire and analysed basedon the
information given by respondents.
 The study largely based on the perception of the respondents.

6
 DATA ANALYSIS AND INTERPRETATION

The study on Consumer Behaviour Towards Online Shopping has been conductedby collecting
primary data from 100 sample respondents. The primary data collected has been analyzed and
interpreted with help of percentage analysis. Thecollected data has been presented in the form
of tables and charts. The analysis and interpretation of data is as follows;

TABLE 01

AGE-WISE CLASSIFICATION OF RESPONDENTS

AGE No. Of Response Percentage

10-20 44 44
21-30 47 47
31-40 4 4
ABOVE 40 5 5
TOTAL 100 100

Figure 01
AGE RESPONDANTS

7
From the above data, it is clear that 47 % of respondents belong to the age class20-
30,44 %of the respondents belongs to the age class 10-20, 5 % of the respondents
belong to the age class Above 40 and 4% of the respondents belongto the age class
30-40.

EDUCATIONAL QUALIFICATION OF RESPONDENTS

QUALIFICATION [Link] PERCENTAGE

RESPONDENTS
SCHOOL LEVEL 24 24
UNDER 56 56
GRADUATION
POST-GRADUATION 20 20
TOTAL 100 100

Table 0.2

Education Qualification Of Respondants

Figure 0.2

From the collected data the researcher identifies that 56 % of the

respondents are undergraduates 24 %of the respondents are school
level and 20 % of the respondents are postgraduates.

8
 MARITAL STATUS OF RESPONDENT

MARITAL STATUS NO OF RESPONDANTS PERCENTAGE

IN A RELATIONSHIP 1 1
MARRIED 17 17
SINGLE 82 82
TOTAL 100 100
Table 0.3

MARITAL STATUS OF
RESPONDANTS
In RelationShip Married Single

Figure 0.3

From the above table and figure it is clear that 82 % of respondents are single.17
% of the respondents are married and 1 % of the respondents are in a relationship.

RESPONDENTS OF USING ALWAYS ONLINE SHOPPING

RESPONDENTS NO OF RESPONDENT PERCENTAGE

YES 71 71
NO 29 29
Table 0.4

9
 RESPONSES

Yes
No

Figure 0.4

From the above data, the researcher can say that 71 % of respondents are always
shopping online.

RESPONDENTS OF ENJOYING SHOPPING ON THE INTERNET

RESPONSE NO OF RESPONDENT PERCENTAGE

YES 73 73

NO 27 27

Table 0.5

10
 RESPONDENTS OF ENJOYING SHOPPING ON THE
INTERNET

YES NO

Figure 0.5

From the classified data, the researcher can say that 73% of respondents are
enjoying shopping in online websites.

RATE YOUR EXPERIENCE IN ONLINE SHOPPING

OPTIONS NO OF RESPONDENT PERCENTAGE

POOR 10 10
FAIR 26 26
GOOD 42 42
EXCELLENT 22 22
Table 0.6

11
 RESPONSE OF EXPERIENCE IN ONLINE SHOPPING

Poor Fair Good Excellent

Figure 0.6

From the above table and figure it is clear that 42 % of respondents good on
experience online shopping, 26 % of respondents fair on experience online
shopping, 22 % of respondents excellent on experience online shopping, and 10
% of respondents poor on experience online shopping.

BIGGEST CONCERN OF RESPONDENTS TOWARDS ONLINE SHOPPING

OPTION NO. OF PERCENTAGE

RESPONDANTS
POOR INTERNET 16 1
6
CONNECTION
BREACH OF 44 4
4
PERSONAL INFORMATION
BREACH OF 40 4
0
PAYMENT DETAIL
TOTAL 100 1
0
0
Table 0.7

12
 BIGGEST CONCERN OF RESPONDENTS
TOWARDS ONLINE SHOPPING

POOR INTERNET CONNECTION BREACH OF PERSONAL INFORMATION

BREACH OF PAYMENT DETAIL

Figure 0.7

From the classified data, it is clear that 44 % of the respondent’s biggest

concern is a breach of personal information, 40 % of the respondent’s
biggest concern is a breach of payment detail and 16 % of the
respondent’s biggest concern is a poor internet connection.
CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
THEIR FREQUENT ONLINE PURCHASE

OPTION NO OF PERCENTAGE
RESONDANT
YES 77 77
NO 23 23
TOTAL 100 100
Table 0.8

13
 RESPONDENTS ON THE BASIS OF THEIR FREQUENT
ONLINE PURCHASE

Yes No

Figure 0.8
From the above data, it is clear that 77% of respondents are frequent online buyers
and 23% of the respondents are not.

INFORMATION ABOUT THE MOST PREFERRED ONLINE SHOPPING SITE

Shopping Sites No Of Response Percentage

[Link] 45 45

[Link] 35 35

[Link] 20 20

[Link] 0 0

Total 100 100

Table 0.9

14
 RESPONSE OF MOST PREFERRED ONLINE SHOPPING
SITE

[Link] [Link] [Link] [Link]

Figure 0.9
From the classified data, the researcher can say that 35% of
respondents respond prefer Flipkart as the most visited online shopping
site, 20% of respondents respond prefer snapdeal site and 45% of
respondents respond says the most visited online shopping site is
amazon

MOST PREFERRED PAYMENT MODE

Payment Mode No. Of Response Percentage

Card 15 16
Cash On Delivery 64 68
(COD)
Internet Banking 21 16
Total 100 100
Table 10

15
 Responses Of Payment Mode

Card Cash On Delivery Netbanking

Figure 10

From the above data, researchers can say that 68% of respondents preferred
payment mode is cash on delivery, 16% of respondents prefer card for payment
and 16% of respondents prefer internet banking facilities.

REAON FOR ONLINE

Reason [Link] respondents Percentage

Door step delivery 10 10

Low price 14 14

Time saving 28 28

Wide variety of brand 4 4

choice

Getting latest product 24 24

Convenience 20 20
Table 11

16
 Response for Online Shopping Reason

Door Step Delivery Low price

Time Saving Wide variety of brand choice
Getting last product Convenience

Figure 11

In the above table shows that most motivated factor of online shopping time saving.
28% of customers prefer online shopping for time saving, 24% is Getting latest
product, and 14%is Low Price

17
 FINDINGS, SUGGESTION & CONCLUSION

The study entitled “A study on the topic consumer behavior towards online shopping
has been conducted to analyze and evaluate consumer behavior towards online
shopping. The study has been conducted by collecting primary data with the help of
a structured questionnaire from 100 respondents. The collected primary data have
been analyzed and interpreted with help of ratios and percentages and the analysis
is presented in the form of tables and charts.

Findings of the Study on Consumer Behavior towards Online

Shopping

The major findings of the study on Consumer Behavior towards Online

Shopping are:

 91% of respondents are belonging to the age group of 10- 30.

 Majority of respondents (56%) are under graduates.
 82% of respondents are single.
 73% of respondents are enjoying shopping in online websites
 71 % of respondents are always shopping online..
 Only 77% of respondents are frequently conduct online buying.
 Most preferred (45%) online shopping site is Amazon
 Most preferred payment mode is cash on delivery.
 44 % of the respondent’s concerned about breach of personal information.
 28% of customers prefer online shopping for time saving.
 24% is Getting latest product.
 42 % of respondents good on experience online shopping

18
 SUGGESTIONS

1. Providing more competitive price can attract customers.

2. Online shopping sites should increase the security for online payment.
3. More attractive offers on products can attract more customers.
4. Measures to be taken in order to avoid delivery of duplicate products.
5. Measures to be taken in order to reduce delivery of damaged products.

CONCLUSION

After completing the project, it is revealed that customers are partially satisfied with
online shopping. Some corrections in the facility can fully satisfy the customers.
Online shopping sites provide a big platform for customers for shopping and they
can save time by shopping online. By removing the online frauds, sites can create
a high place in the mind of customers. Customers need fast delivery of good quality
products, a wide range of products and competitive prices are of the main factor
that attracts people towards online shopping, more improvements in this two field
attract people more. Online shopping provides an important role in the mind of
customers.

19
 REFERENCES

1. Armstrong, Gary. Y Kotler, Philip (2003), “Fundaments de marketing”, Editorial

Prentice Hall, 6a Edition, pp.14-15.
2. Bansal and Suita Pant (2005), ‘Encyclopedia of India’, Delhi: Smite Books.
3. Botha, J, Botham, C, Geldenhuys, P (2008), ‘Managing E-Commerce in Business’,
Cape Town: Juta and Company Ltd, pp.3.
4. Del. I Hawkins, David. L Mothersbaugh, Roger. J Best (2007), ‘Consumer
Behavior: Building Marketing Strategy’, McGraw-Hill/Irwin.
5. Donald, R Cooper & Pamela S Schindler (2007), Business Research Methods,
Tata McGraw Hill, New Delhi.
6. Engel. J.F, Kollat. D.T and Blackwell. R.D (1968), ‘Consumer Behaviour’, Holt,
Rinehart and Winston.
7. Enis. B.M (1974), ‘Marketing Principles: The Management Process’, pp.228.
8. Hollensen, S (2004), ‘Global Marketing a decision-oriented approach’, Essex:
Pearson Education, 3rd Edition.
9. Kotler. P and Keller. K (2011), ‘Marketing Management’, 14 th Edition, London:
Pearson Education.
10. Abadi, D.R.H. Hafshejani, A.N.S and Zadeh, K.F (2011), ‘Considering Factors that
Affect User’s Online Purchase Intentions with Using Structural Equation Modeling’,
Interdisciplinary Journal of Contemporary Research in Business, Vol.3, No.8,
Pp.465-468.
11. Aimol Agift, VermaRekha and Chacko Nisha (2014), ‘Consumers Attitude towards
12. Online Shopping’, Research Journal of Community and Consumer Sciences,
International Science Congress Association, Vol.2, No.8, pp.4-7.
13. Ajay Kumar (2016), ‘Beyond Buying to Shoppers: Motivation towards Online
Shopping’, BVIMSR’s Journal of Management Research, Vol. 8, Issue-1.
14. Alba, J. Lynch, J. Weitz, B. Janiszewski, C. Lutz, R. Sawyer, A. and Wood, S
(1997), ‘Interactive Home Shopping: Consumer, Retailer and Manufacturer
Incentives to participate in Electronic marketplaces’, Journal ofMarketing, vol.61,
No.3, pp.38-53.

20
15. Al-Azzam, Abdel Fattah Mohmoud (2014), ‘Evaluating the Antecedents of Online
Consumer Purchasing Behaviour: An Empirical Study based on Theory of Planned
Behaviour’, International Journal of Economics, Commerce and Management, Vol.
II, Issue-4, pp. 1-18.
16. Aldrich.M (2011), ‘Online Shopping in the 1980s’ IEEE Annals of the History of
Computing, Vol.33, No.4, pp.57-61.

21
 ANNEXURE
QUESTIONAIRRE:
1) Age :
a) 10-20 years
b) 21-30 years
c) 31-40 years
d) Above 40 years
2) Gender :
a) Male
b) Female
3) Educational Qualification
a) School
b) Under Graduate
c) Post Graduate
4) Marital Status
a) In a Relationship
b) Married
c) Single
5) Do you always shop online?
a) Yes
b) No
6) Did you enjoy the online shopping experience on websites?
a) Yes
b) No
7) How would you rate your overall online shopping experience?
a) Excellent
b) Good
c) Fair
d) Poor
8) What is biggest concern towards online shopping?
a) Poor Internet Connection

22
 b) Breach Of Personal Information
c) Breach Of Payment Detail
9) Are you frequent online purchaser?
a) Yes
b) No
10) Which is the most preferred online shopping site?
a) [Link]
b) [Link]
c) [Link]
d) [Link]
11) Which payment mode do you prefer?
a) Card
b) Cash On Delivery (COD)
c) Internet Banking
12) What is the reason for online shopping?
a) Door step delivery
b) Low Price
c) Time saving
d) Wide variety of brand choice
e) Getting latest products
f) Convenience
Time / Convenience Risk
(Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree)
Questions SA A N D SD
13 Delay in deliveryof product

14 Cancellation oforder is difficult

15 It may take a lot of time toplace an

order on website

23
 Delivery Risk
Question SA A N D SD
16 Delivery of wrong product

17 Chance of non-delivery ofproduct

18 Goods arriving faulty ordamaged

24