Professional Documents
Culture Documents
Research Paper
On
E-shopping in Bangladesh
This research paper is submitted in partial fulfillment for the requirements of
the degree of Masters in Business Administration
Supervised By
Dr. A S M Kamruzzaman
Associate Professor
Department of Finance & Banking
University of Rajshahi.
Submitted By
Fatah-Ul-Islam
Roll No: 09027707
Session: 2008-09
MBA- 2013
Department of Finance & Banking
University of Rajshahi.
1|Page
University of Rajshahi
E-shopping in Bangladesh
DEDICATED
TO
2|Page
University of Rajshahi
E-shopping in Bangladesh
LETTER OF TRANSMITTAL
February 2015
Dr. A S M KAMRUZZAMAN
Supervisor & Associate Professor
Department of Finance & Banking
University of Rajshahi,
Rajshahi-6205.
Subject: Submission of the Research Report.
Dear Sir,
It is my pleasures to submit my research report titled E-shopping in Bangladesh that has
an integral part of my degree requirement. I put my best effort to follow the instructions of
you in preparing this report. This research program was very much valuable to me as it
helped me to gain experience from practical field. While preparing this report I went through
extensive literature survey and interviewed with the parties involving in tourism sector. It
was a great experience for me. I tried to the maximum competence to meet as the
dimensions required for this report. However some of the aspects are unintentionally
overlooked. It is hoped that you would ignore any discrepancies considering my limitations.
I will highly appreciate if you kindly accept the report. Your positive action regarding this
matter would be very much helpful for my academic as well as professional career.
Thanking you in advance for your assistance and advice.
Sincerely yours,
Fatah-Ul-Islam
Roll No: 09027707
MBA-2013
Department of Finance and Banking
University of Rajshahi,
Rajshahi-6205.
3|Page
University of Rajshahi
E-shopping in Bangladesh
ACCEPTENCE LETTER
I am very much pleased to declare that Fatah-Ul-Islam, ID No. 09027707, Student of MBA,
Department of Finance and Banking, University of Rajshahi, Rajshahi, Bangladesh, has
completed his Research Report on E-shopping in Bangladesh under my active
supervision.
He has reviewed all the relevant and collected latent data from the different sources. I hope
that this report will contribute in his career.
I wish all the best in his effort.
Dr. A S M KAMRUZZAMAN
Supervisor & Associate Professor
Department of Finance & Banking
University of Rajshahi,
Date:
Rajshahi-6205.
4|Page
University of Rajshahi
E-shopping in Bangladesh
PREFACE
It is true that to achieve a complete knowledge in any discipline we should have a practical
knowledge along with the theoretical knowledge. Practical knowledge is the root of all
betterment. Understanding the importance of practical knowledge department of
management studies introduces a research program which is mandatory for the achievement
of MBA degree.
I have collected necessary data from extensive literature review, discussion with experienced
persons and from direct interview through a questionnaire and prepare this report which
entitled all these issues that I found during this period of time.
All efforts have been made to keep the report free from errors and I hope that the report will
prove helpful to all those interested in this field. If one is benefited by using this report, my
labor in this regard will be success.
Fatah-Ul-Islam
Roll No: 09027707
MBA-2013
Department of Finance and Banking
University of Rajshahi,
Rajshahi- 6205.
.
5|Page
University of Rajshahi
E-shopping in Bangladesh
ACKNOWLEDGEMENT
All gratitude and thanks to almighty ALLAH the gracious the most merciful and
beneficent who gave me courage, knowledge, strength, and ability to undertake and
complete this task towards success. I am very much obliged to my ever caring and loving
parents whose prayers have enabled me to reach this stage.
I express my sincere and gratitude, deep sense of appreciation, best regards and profound
indebtedness to my honorable teachers and research supervisor Dr. A S M
KAMRUZZAMAN, Associate Professor, Department of Finance And Banking, University
of Rajshah,i for his constant supervision, Scholastic guidance, encouragement, co-operation,
constructive suggestions and valuable advice to conduct my research work and prepare this
report successfully. I will ever remember their contribution.
And last but the least I would like to express my gratitude to all of my respondents
(Students, Teachers and Officer, Staffs, Businessmen) for giving me the necessary data and
information for my research program that I have completed, who help me without
considering any business purpose and also sharing this practical experience.
Fatah-Ul-Islam
Roll No: 09027707
MBA-2013
Department of Finance and Banking
University of Rajshahi,
Rajshahi-6205.
.
6|Page
University of Rajshahi
E-shopping in Bangladesh
.
EXECUTIVE SUMMARY
Electronic shopping (e-shopping) is the process of buying product through the internet.
The developed countries are generally using e-shopping for purchase product instead of going on
a physical shop. E-shopping is also started in Bangladesh. But it is a new term and experience for
a buyer to go into an e-shop. Customers of Bangladesh are not habituated yet to go to an e-shop.
Customer attitude depends on expectation of the customer to shop in a specific store. If
expectations are met, customers achieve a high degree of satisfaction, which influences their
online shopping attitudes, intentions, decisions, and purchasing activity positively. Product
quality problem is occurred when the quality of the product is not revealed clearly to the
customer. E-shopping is not always safe. There is always a fear of fraudulent is present there.
Though there is different kind of fear is present there it has a bright prospect. This paper
discusses different issues & challenges relating to the E-shopping in Bangladesh.
7|Page
University of Rajshahi
E-shopping in Bangladesh
TABLE OF CONTENTS
ACKNOWLEDGEMENT
DECLARATION
ABSTRACT
1.
INTRODUCTION
06-24
2.
LITERATURE REVIEW
25-28
3.
OBJECTIVE
29-32
4.
RESEARCH METHODOLOGY
33-41
5.
DATA ANALYSIS
42-73
6.
FINDINGS
7.
CONCLUSION
84-87
8.
LIMITATION
88-91
9.
RECOMMENDATION
92-97
10.
CONCLUSION
107-109
11.
QUESTIONNAIRE
110-118
12
BIBILIOGRAPHY
119-120
8|Page
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 1
INTRODUCTION
9|Page
University of Rajshahi
E-shopping in Bangladesh
1.0 INTRODUCTION
Internet is changing the way consumers shop and buys 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 feed back 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.
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 posited new emergent factors or assumptions that are based on the
traditional models of consumer behavior, and then examine their validity in the Internet
context.
E-shopping in Bangladesh
magnetic disk and magnetic core. Bangladesh Agricultural University was the first
educational institution in the country to use and Radio Shack TRS-80 64K model computer.
The model is still preserved in Agriculture Museum. Still then, the use of computer was very
limited because of large size and higher cost. Computer started to become popular in the late
1980s. The printing and publication industry embraced this technology. Publication cost
decreased significantly.
E-shopping in Bangladesh
were no system for online transaction which is the first condition for E-commerce. In
addition, high cost of Internet and lower penetration meant that few people knew about these
sites. According to Bangladesh Bank, payments and transactions by credit cards were nearly
Tk11 billion in June 2008; one of the lowest in the world. The country had only about
400,000 credit card holders at the end of June 2009. From 2008, things started to look bright
as Bangladesh Bank took various initiatives including implementation of e-Payment
Gateway.
E-shopping in Bangladesh
Dr. Atiur Rahman said that there were 4.6 million debit and credit card holders in the
country and 3 million mobile bank accounts.
In February 2013, for the first time in the country, Computer Jagat, the leading ICT
magazine of Bangladesh, under the supervision of Dhaka DC Office, organized the first fair
on E-commerce The three-day fair took place from February 7 to February 9 at the premise
of Begum Sufia Kamal National Public Library. The slogan of the fair was- Festival for
buying and selling at your premise. A total of 31 public and private E-commerce
organizations showcased their products and services at the fair. Though first of its kind, the
fair was huge success attracting eighty thousand visitors. Computer Jagat also did live
webcast of the fair which was seen by more than fifty thousand people in Bangladesh and
abroad.
After the success of E-commerce Fair in Dhaka Computer Jagat organized two more fairs in
Sylhet and Chittagong. A total of 45 organizations participated in the Sylhet fair attracting
thirty thousand visitors. In the Chittagong fair a total of 51 organizations participated.
After three successful E-commerce fairs in the country. Computer Jagat, ICT Ministry
(currently Ministry of Post, Telecom and Information Technology) and Bangladesh High
Commission London jointly organized the first international E-commerce Fair. The threeday UK-Bangladesh e-Commerce Fair will be held during September7-9 at Millennium
Gloucester Hotel in Central London. Dr. Dipu Moni, the then Minister of Foreign Affairs
Bangladesh inaugurated the fair. 19 organizations from Bangladesh and 13 from the UK
participated in this fair. The UK-Bangladesh e-Commerce also repeated the success of
previous fairs. Many Bangladeshis living in London and people of London came to visit the
fair.
Third, Bangladesh Bank gave permission to buy products and services online using
international credit cards Buying products and services from abroad using credit card is an
important aspect of E-commerce but it was not possible for the Bangladeshi international
credit card holders. In May last year, Bangladesh Bank gave permission to buy products
from abroad via international credit card.
E-shopping in Bangladesh
on to browsing for news, information and entertainment, and finally graduate to shopping
and conducting business online. Online sales have registered a huge jump and what was a
concept five years ago is now beginning to hit the mainstream levels. Roughly 10 percent of
the world's population more than 627 million people have shopped online at least once, in
Bangladesh it is just
Internet is now going beyond the simple exchange of information to a shopping paradise.
This medium is far bigger than expected, but many retailers and marketers are not using it to
its full potential.
Bangladeshi customers are increasingly getting comfortable with online shopping, and there
is a higher acceptability for the concept. Bangladesh has 43641.604 thousand Internet users
and more is now turning to online shopping. There has been an influx of online shopping
sites in Bangladesh with many companies hitching onto the Internet bandwagon. Online
shopping has become the latest trend among shoppers. Bangladeshis are becoming more
comfortable with e-commerce. The consumers attitude has been evolving towards online
purchases. It has become increasingly positive over the years. The attitudes that drive people
to shop online, such as convenience, price comparison and choice are improving
tremendously in Bangladesh.
Though a miniscule amount in the global context, the Bangladeshi online shoppers
population would make its presence felt quite remarkably Bangladeshi businesses have also
grown mature enough to move up the IT curve and they are considering Business to
consumer (B2C) e-commerce a viable revenue model.
14 | P a g e
University of Rajshahi
E-shopping in Bangladesh
1.2.2 Factors That Boost Online Shopping in Bangladesh
Access to Information
15 | P a g e
University of Rajshahi
E-shopping in Bangladesh
1.3.0 ADVANTAGES
1.3.1. Convenience
Online stores are usually available 24 hours a day, and many consumers have Internet access
both at work and at home. Other establishments such as internet cafes and schools provide
access as well. A visit to a conventional retail store requires travel and must take place
during business hours.
In the event of a problem with the item it is not what the consumer ordered, or it is not what
they expectedconsumers are concerned with the ease with which they can return an item
for the correct one or for a refund. Consumers may need to contact the retailer, visit the post
office and pay return shipping, and then wait for a replacement or refund. Some online
companies have more generous return policies to compensate for the traditional advantage of
physical stores. For example, the online shoe retailer Zappos.com includes labels for free
return shipping, and does not charge a restocking fee, even for returns which are not the
result of merchant error. (Note: In the United Kingdom, online shops are prohibited from
charging a restocking fee if the consumer cancels their order in accordance with the
Consumer Protection (Distance Selling) Act 2000).
16 | P a g e
University of Rajshahi
E-shopping in Bangladesh
customers the option of shopping cheaper org anise purchases from all over the world
without having to depend on local retailers.
In a conventional retail store, clerks are generally available to answer questions. Some
online stores have real-time chat features, but most rely on e-mail or phone calls to handle
customer questions.
1.4.0 DISADVANTAGES
1.4.1 Fraud and security concerns
Given the lack of ability to inspect merchandise before purchase, consumers are at higher
risk of fraud on the part of the merchant than in a physical store. Merchants also risk
fraudulent purchases using stolen credit cards or fraudulent repudiation of the online
purchase. With a warehouse instead of a retail storefront, merchants face less risk from
physical theft.
17 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card
numbers being intercepted in transit between the consumer and the merchant. Identity theft
is still a concern for consumers when hackers break into a merchant's web site and steal
names, addresses and credit card numbers. A number of high-profile break-ins in the 2000s
have prompted some U.S. states to require disclosure to consumers when this happens.
Computer security has thus become a major concern for merchants and e-commerce service
providers, who deploy countermeasures such as firewalls and anti-virus software to protect
their networks.
Phishing is another danger, where consumers are fooled into thinking they are dealing with a
reputable retailer, when they have actually been manipulated into feeding private
information to a system operated by a malicious party. Denial of service attacks are a minor
risk for merchants, as are server and network outages.
Quality seals can be placed on the Shop web page if it has undergone an independent
assessment and meets all requirements of the company issuing the seal. The purpose of these
seals is to increase the confidence of the online shoppers; the existence of many different
seals, or seals unfamiliar to consumers, may foil this effort to a certain extent. A number of
resources offer advice on how consumers can protect themselves when using online retailer
services. These include:
Before buying from a new company, evaluate the website by considering issues such
as: the professionalism and user-friendliness of the site; whether or not the company
lists a telephone number and/or street address along with e-contact information;
whether a fair and reasonable refund and return policy is clearly stated; and whether
there are hidden price inflators, such as excessive shipping and handling charges.
Ensuring that the retailer has an acceptable privacy policy posted. For example note
if the retailer does not explicitly state that it will not share private information with
others without consent.
18 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Ensuring that the vendor address is protected with SSL (see above) when entering
credit card information. If it does the address on the credit card information entry
screen will start with "HTTPS".
Although the benefits of online shopping are considerable, when the process goes poorly it
can create a thorny situation. A few problems that shoppers potentially face include identity
theft, faulty products, and the accumulation of spyware. Whenever you purchase a product,
you are going to be required to put in your credit card information and billing/shipping
address. If the website is not secure a customers information can be accessible to anyone
who knows how to obtain it. Most large online corporations are inventing new ways to make
fraud more difficult, however, the criminals are constantly responding to these developments
with new ways to manipulate the system. Even though these efforts are making it easier to
protect yourself online, it is a constant fight to maintain the lead. It is advisable to be aware
of the most current technology and scams out there to fully protect yourself and your
finances. One of the hardest areas to deal with in online shopping is the delivery of the
products. Most companies offer shipping insurance in case the product is lost or damaged;
however, if the buyer opts not to purchase insurance on their products, they are generally out
of luck. Some shipping companies will offer refunds or compensation for the damage, but it
is up to their discretion if this will happen. It is important to realize that once the product
leaves the hands of the seller, they have no responsibility (provided the product is what the
buyer ordered and is in the specified condition).
E-shopping in Bangladesh
services such as the Canadian based Wishabi attempts to include estimates of these
additional cost,[but nevertheless, the lack of general full cost disclosure remains a concern.
1.4.3 Privacy
Privacy of personal information is a significant issue for some consumers. Different legal
jurisdictions have different laws concerning consumer privacy, and different levels of
enforcement. Many consumers wish to avoid spam and telemarketing which could result
from supplying contact information to an online merchant. In response, many merchants
promise not to use consumer information for these purposes, or provide a mechanism to optout of such contacts.
Many websites keep track of consumers shopping habits in order to suggest items and other
websites to view. Brick-and-mortar stores also collect consumer information. Some ask for
address and phone number at checkout, though consumers may refuse to provide it. Many
larger stores use the address information encoded on consumers' credit cards (often without
their knowledge) to add them to a catalog mailing list. This information is obviously not
accessible to the merchant when paying in cash.
20 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 2
LITERATURE REVIEW
21 | P a g e
University of Rajshahi
E-shopping in Bangladesh
22 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Other discriminating factors were; control over, and convenience of, the shopping process,
affordability of merchandise, customer service and ease of use of the shopping site. In
another study, Jarvenpaa et al. [2000] tested a model of consumer attitude towards specific
webbase stores, in which perceptions of the store's reputation and size were assumed to
affect consumer trust of the retailer. The level of trust was positively related to the attitude
toward the store, and inversely related to the perception of the risks involved in buying from
that store. Jarvenpaa et al. [2000] concluded that the attitude and the risk perception affected
the consumer's intention to buy from the store.
Consumer risk perceptions and concerns regarding online shopping are mainly related to
aspects involving the privacy and security of personal information, the security of online
transaction systems and the uncertainty of product quality. Trust is interwoven with risk
[McAllister, 1995]. One of the consequences of trust is that it reduces the consumers
perception of risk associated with opportunistic behavior by the seller [Ganesan, 1994]. Lack
of trust is frequently reported as the reason for consumers not purchasing from Internet
shops, as trust is regarded as an important factor under conditions of uncertainty and risk in
traditional theories.
Mayer et al. [1995] developed a model which combines traditional marketing philosophy on
consumer motivation to buy and the trust model. In this model, trust propensity; which is a
personality trait possessed by buyers; is an important antecedent of trust. In Internet
shopping, there is not much information available to the buyer regarding the seller, prior to
purchase. A buyer with a high propensity to trust will more likely be a potential customer
than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability, benevolence
and integrity constitute the main elements of trustworthiness. Ability refers to skills,
competencies and characteristics that a seller has in a specific domain. In this context, sellers
need to convince buyers of the competence of their companies in the Internet shopping
business. Benevolence is the extent to which the seller is perceived by the buyer as wanting
to do well. Sellers have to convince buyers that they genuinely want to do good things for
buyers, rather than just maximize profit.
23 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 3
OBJECTIVES
24 | P a g e
University of Rajshahi
E-shopping in Bangladesh
3.3
25 | P a g e
University of Rajshahi
E-shopping in Bangladesh
get to identify the products, compare the prices and quality and view the products
from different angles. Testimonials and reviews are the unique feature of shopping
where you can share your experiences with other users/consumers. The most exciting
aspect of internet shopping is that it is a 24x7 affair! And youre free to shop on your
leisure hours and even holiday are useful for shopping for you. Your time is best
valued here. You need not to go market so no tension of conveyance, pollution,
traffic etc.
The other dimension is that you directly purchase the items from original merchant in
online shopping no mediator comes between you and merchant so it becomes
cheaper to purchase item fewer mediators less price. Merchant will also save his
money by selling of goods on internet. Merchant need not spend for staff, showroom,
and other shop expenses. He can sale by less resources and less expenses, some
online store do not have their physical showroom they display their product and
services online and deliver goods on customer 's door such merchant save a lot of
expenses and they work in less capital thats why they are able to sale goods on low
prices.
Internet has a very bright future. If you want to increase your business and cross the
boundaries of region you need to take help of internet. Without going online you cant
think about your progress worldwide. In this regard you can see all large scale
business. Big brand, big shopping store are online. Online shopping is the demand of
todays modern time. Time and quality is the main subject of online shopping. Today
everybody is running to save time and who saves time automatically save money.
Day to day needed item is now available on internet and people prefer to shop online.
Not only for progressing but also to survive in this competition era business internet
help.
Are you looking for the fastest website for online shopping at low price branded
products then http://www.shoppingsnooper.com/ is the one name in one of the fastest
and largest shopping search engine. Here you can search every type of products at
competitive prices.
E-shopping in Bangladesh
the use of internet to reach their customers. Hence a better understanding of online shopping
is critical to the effective use of this channel of approach to the consumer. It is especially
important to know what are the consumers perceptions towards online shopping, benefits
perceived by them and what factors attract them towards online shopping
27 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 4
RESEARCH METHODOLOGY
28 | P a g e
University of Rajshahi
E-shopping in Bangladesh
What are the key concern areas for consumers while online shopping?
29 | P a g e
University of Rajshahi
E-shopping in Bangladesh
30 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 5
DATA ANALYSIS
31 | P a g e
University of Rajshahi
E-shopping in Bangladesh
The research showed that 62% of the Internet users had shopped online while 38% had not
bought anything. This is mainly because of the changing lifestyle and taste patterns. As the
life is getting more and more fast paced more people are moving on to shop online mainly
because of convenience. This shows that a more Internet users are using it as a shopping
medium and there is a huge potential in this sector but one should not be carried away by
this figures. There could be a possibility that only a small section of the online shoppers are
shopping or only a particular category of good had brought about this huge number. As a
result the entire analysis was done in case of a regular online shopper to understand the
shopping behavior of the online shoppers.
32 | P a g e
University of Rajshahi
E-shopping in Bangladesh
This helped to understand the purchasing behavior of the online shoppers. It was seen that
6% of the online shoppers had shopped more than five times and 74% had shopped 2-4
times. The frequency shows the acceptance of Internet as a shopping medium. Though only
a small amount of the online shoppers had purchased more than 6 times but still there is a
huge opportunity in the Internet arena. The 88% of the online shoppers who had shopped
more than once were considered as regular shopper and the entire analysis was based on
these regular shoppers.
33 | P a g e
University of Rajshahi
E-shopping in Bangladesh
The diagram shows that shopping has increased with the usage of Internet over the years.
Regular shoppers who have been using Internet for more than one year had shopped to 83%
and regular shoppers who have been using Internet for more than five years have shopped to
24%. Internet is not a new concept for these regular online shoppers and they have been
using it for more than 5 years now. The increased usage over the years has lead to an
increase in shopping, as these regular shoppers are able to make use of the various ecommerce activities.
34 | P a g e
University of Rajshahi
E-shopping in Bangladesh
5.2 The web online activity
The following classifications are done to study the online activities in case of a regular
online shopper.
Fig. 4 Online Activities
The Internet offers four basic services communication (socializing service with peer group
or core group (email) or with new groups of people (chat), information services,
entertainment services and commerce services and shopping. The research shows 87% of the
regular online shoppers use Internet for communication while only 1% uses it for shopping
which shows that communication still forms the major activity among the regular online
shoppers.
35 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Fig. 5 Online Activities by Age
This classification further provides an insight that Internet is mainly used as a means of
communication in respect all the age groups of the regular online shoppers. It could be seen
that shopping as a basic activity on the Internet contributes to the minimum. Internet as a
medium of shopping is maximum used by regular online shoppers between the age group1830 years, which are 1% while above 50 years it is used just to 2%. The increase in usage
among the 18-30 years is basically due to high awareness. The marketers should focus
mainly on the age group between 18 to 30, as they are the main drivers for growth. Thus the
research shows that though the regular shoppers are using the Internet for quiet some time
now but shopping still remains a small part of the major activity
36 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Fig. 6 Online Activities by Time
It is evident that regular online shoppers also spend a major part of their time in
communication unlike the occasional online buyers. In 0-1 hours a day they spend 93% of
their time in communication, which includes email, and chat as the major activity with
shopping which does not seem to exist at all. It is true that more regular online shoppers use
Internet shopping sites to gather information about products rather than to make a direct
purchase.
But it is to be noticed that as the time spend increases communication falls and other activity
picks up like entertainment and finance. One could see from the graph that between 16-20
hours a week communication falls further but information search also falls as the regular
online shoppers becomes more focused in their information search rather than wandering
aimlessly in the Internet space. They continuously use search engines for routine information
needs. As the people spend more time it has been seen that activities like shopping and
finance related needs increases. The regular online shoppers who use the Internet for more
than 4 hours a day has shown that they have indulged into more shopping i.e. 8%. It is true
that as the regular online shoppers spends more time on the Internet there is a possibility that
they would end up buying more as they are ease with the use of internet. Increased usage of
Internet is positively related to the buying behavior on the Internet.
37 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Among the 62% of the online shopping, males (72%) had purchased more as compared to
women (28%). This shows that it is true that more males are shopping online as compared to
women. This is mainly because women still like to feel, see and touch the product before
buying. It was noticed that some of them felt shopping as a reason to go out with the family
and spend time together, which was not possible in case of online shopping. As more and
more Bangladeshi women are flocking to Internet there is a possibility that they might end
up in a purchase. Also an increase in the spending power in the hands of the women might
lead to an increase in the online shopping. The marketers should make sure that they
produce the item keeping in mind the needs of the women population as they still continue
to be an important decision maker when shopping for the family.
38 | P a g e
University of Rajshahi
E-shopping in Bangladesh
39 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Fig. 9 Online Shopping & Income
Income and buying behavior are positively related. It was seen that a regular online shopper
with a higher income had purchased more online as compared to lower income online
shopper. This trend was seen in all segment of the population. It is true that more the income
in the hands of the population they would indulge in shopping. The service class had done
the major purchase in all the various levels of income. It can be seen that hardly any
purchase is done among the regular online shopper whose income lies below tk 4000.
AnalysisThus three hypotheses stated were true in case of the regular online shopper and it can
interpret that online shopping is effected by demographics like gender, education and
income levels. Among the 65% of the online shopping, males (72%) had purchased as
compared to women (28%). There is a positive relation between education and income of the
online shoppers. 89% of the online shopping was done among the regular shoppers who
were educated with a graduate or postgraduate degree compared to 11% shopping who were
matriculate and non-matriculate. Average 86% of the shopping was done by the regular
shopper who had income more than Tk 7,000 than average14% who had income less than
Tk.7, 000
40 | P a g e
University of Rajshahi
E-shopping in Bangladesh
5.4 Motivating & Satisfaction Factors
To identify the factors which Internet users choose to buy or not buy online and how
frequently they make such purchases. Analyzing is the importance of satisfaction level in the
online purchasing environment.
5.4.1 Hypothesis
Consumers who make frequent online purchases are higher in convenience orientation than
those who purchase occasionally.
It is believed that consumers whether online shoppers or non-online shoppers value price to
convenience but the study contrast this popular belief. The study showed that 36% of the
shopping had been done by the regular shopper who thinks convenience is the main driving
force while13% of the shopping had been done for whom price was the main orientation for
shopping online. Other motivating forces, which had lead to online shopping, were saves
time (32%), product availability and superior selection (12%), and product comparison
(7%). Convenience here is characterized as ease of purchase, home delivery and ability to
41 | P a g e
University of Rajshahi
E-shopping in Bangladesh
shop 24x7. These factors motivate the regular online shopper to buy over the Internet and
regular online shoppers who value convenience are more likely to buy on the web, as
compared to occasional online shoppers. Every connection is a potential for net shopping.
Therefore the companies should attract and retain its regular online shoppers, as the Internet
is a tangled jungle of web sites, which is possible at a click of a mouse. They should design
strategies and develop products keeping in mind the convenience factors.
Fig. 11 Barriers to Shopping Online
The main areas for concern in respect of the regular online shoppers while shopping were
privacy and security (33%). Most of them still preferred the conventional method of
shopping like the touch and the feel factor (21%). They felt that it is possible to see, feel,
touch and try the products before buying in a shopping store as compared to Internet
shopping. Other reasons that concern the regular online shoppers were inability to reach the
customer service (16%), hassle of returning the product (14%), technical foul ups, hesitant
in purchasing from an unfamiliar source and person and delivery costs. The marketers
should formulate such strategies so that the privacy and security concern can be taken care
off.
42 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Fig. 13 Convenience- The Motivating Factor
80%
80%
74%
74%
70%
70%
60%
60%
50%
50%
48%
48%
40%
40%
30%
30%
convenience
convenience
27%
27%
20%
20%
purchase
purchase
20%
20%
12%
12%
5%
5%
10%
10%
0%
0%
5%
5%
9%
9%
Only
Onlyonce
once 2-4
2-4 times
times More
More than
than More
More than
than
55 times
66 times
times
tim es
It has been seen that there is a positive correlation between the frequency of purchase and
the convenience factor for buying in the Internet arena. The regular online shopper who had
purchased more than 6 times (9%) for them convenience is the most important motivating
factor (48%)for shopping on the Internet. Convenience has been characterized as ease of
purchase, home delivery and ability to shop 24x7. The online shopper believes that large
amount of information about the product and the ability to compare prices is available at a
click of a mouse thus making the entire shopping experience very convenient. Thus the
marketers to should keep the convenience factor in mind while providing the goods and
services.
43 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Fig. 12 Satisfaction Index
12%
12%
Dissatisfied
Dissatisfied
31%
31%
Neither
Neither
Satified
Satified nor
nor
Dissatisfied
Dissatisfied
2%
2%
Highly
Highly
Satisfied
Satisfied
55%
55%
Satisfied
Satisfied
A 55% of the regular online shoppers were satisfied with 12% dissatisfied. An important
thing to be noted is that only 2% of the regular online shoppers were highly satisfied while
31% of the regular online shoppers were neither satisfied nor dissatisfied. This shows
satisfaction level plays an important role in online shopping with more regular shoppers
falling under the category of satisfied. This shows that they were overall satisfied by the
experience of shopping online. But the companies should take measures so that the
dissatisfied and the neither satisfied nor dissatisfied category of regular online shoppers
could be moved to satisfy or highly satisfied. A note should be taken that only 2% of the
regular online shoppers are highly satisfied which shows that there are still concerns, which
poise the regular shoppers from using the Internet frequently as a shopping medium.
Satisfaction level can also be measured by the frequency with which the online shoppers
purchase online. According to human psychology it is true that frequency of purchase
depends upon the satisfaction level received. According to the figure 2 (already explained), a
74% of the regular online shopper has purchased 2-4 times and 9% had purchased more than
6 times indicating that an increase in the confidence level and accepting the Internet as a
shopping medium. The increase in the frequency of shopping was mainly because they were
overall satisfied by the entire shopping experience.
AnalysisIt is seen that the main orientation for buying among the regular online shoppers were
convenience (36%), saves time (32%), price (13%), product availability and superior
selection (12%), and product comparison (7%). The hypothesis stated that convenience is
44 | P a g e
University of Rajshahi
E-shopping in Bangladesh
major factor motivating the regular shopper was true as 75% of the regular online shoppers
who have shopped more than 5 times felt it were necessary as compared to 25% who
shopped less than 5 times.
The barriers to online shopping as stated by the regular online shopper were privacy and
security (33%), inability to touch and feel the product (21%), customer service problems
(16%), hassle of returning the product (14%), purchasing from unfamiliar source and person
(9%) and other problems (7%).
Satisfaction level plays an important role in online shopping, as 55% of the regular online
shoppers that are satisfied tend to purchase more. It can also be seen that 74% have shopped
more 2-4 times and 11% had shopped more than 5 times showing that satisfaction level
plays an important role in online shopping.
It is seen that railway tickets 87% and jewellery 93% are the most popular categories among
the online. This is the main category, which is bringing about online shopping culture among
45 | P a g e
University of Rajshahi
E-shopping in Bangladesh
the regular online shoppers. The companies should bring out innovative ways so that there is
a growth in other categories of goods also. The entire shopping culture among the regular
shoppers is brought mainly by the travel categories followed by electronic gadgets. The
graph shows that online shopping is tend to grow in the coming years as consumers want to
buy more in the future.
Table 1 Future Categories of Goods
Railway tickets
93%
Electronic Gadgets
20%
Books
43%
Gifts
25%
Jewellery
31%
Computer Software
20%
20%
Event Tickets
30%
Toys
13%
10%
Food / Groceries
7%
Accessories apparel
3%
CD/Videos
3%
Magazines
3%
3%
Sporting goods
3%
The table I show that shows that there is a future growth in the electronic gadget and book
categories also apart from railway and airline tickets, which continues to be on the priority
list. There is a growth in these categories because traditionally products like audio-video,
apparel, and computer accessories were purchased through catalogs and other forms of direct
mail but toady online shopping serves a convenient means of distribution channel. Another
reason for the growth in these categories is because of well-established sites for travel,
audio-video (e.g., CD-Now), and computers (e.g.www.dell.com, www.sonyvaio.com),
which lure the consumers to buy these products. These goods do well because consumers are
not bothered much about the touch and feel factors, which generally drive the shopping in
46 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Bangladesh unlike categories like apparels and groceries where it still remain an important
factor while purchasing. It is difficult to change the set mindset of consumers for certain
categories of goods but still companies should keep innovating and find means and ways to
attract more online shopping.
AnalysisThere is a future growth in online shopping which can be especially seen in the travel arena
with railway 87% and bus 10%, electronic gadgets (12%)). Gifts also seem to show a growth
in the coming years. Thus the marketers should mainly focus on these growing categories of
goods, which would drive the online shopping in the future.
47 | P a g e
University of Rajshahi
E-shopping in Bangladesh
5.6 SWOT ANALYSIS
Strengths:
An e-commerce companys strengths are unique points which show their difference from
their competitors which are competitive advantages can increase a companys strengths. Ebusiness salesmen and suppliers gain profits from small operational expenses and 24
hour shopping, unlike offline shopping business. E-shopping retail business start up
costs is more economic because both kind of new start ups have low income at the
start. Nowadays, an online business is full of needs especially with the use of e-mail system
and would bring better communications for a company.
Weaknesses:
There are many problems for businessmen but the great one is excessive charge backs. With
security and cheating internet everywhere, customers are often unwilling for online
purchases in using cards for online purchases. Product transferring is an important job.
Heavy, huge, and spoil goods are always problem and are very costly. Time for shipping can
make the customers options to purchase products from other places. Customers in these
markets have not any way of the company size identifying from the internet. A user needs
same level of services from new small online enterprise than an old and strong retail. A new
company must identify and understand consumer behaviors.
Opportunities:
Technology is very important; everything is changing in every moment. Technology works
like a tool to increase effect and productivity of retailers. Improved online shopping
cards are a good example. The new ones are quicker ensuring a more customer-friendly
experience. To increase product sales, a good environment for low cost promotions are
social Medias. The ability of a company to have 24/7 business makes it to be accessible for
all days of the week that customers will be able to order anytime they like even for
midnights orders.
48 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Threats:
Laws associations are making some difficulties for cards recently. This have more impacts
on risky industries. Competition of top e-business like eBay and Amazon most of the time
effects on smaller businesses price and forces them to give up. Less limits for going into
ecommerce are also threats, nowadays anyone can start a company even without need
of paying for website costs. As far as giant supermarkets concerned, e-shopping enables to
not just have their customers contact addresses but allowed them to get to the customer with
new ways, offering a various items food and other product and services. Losing online
customers means losing great part of population. People fear about extends to privacy issues
and identity with consumers will skip to give personal information via the internet.
49 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 6
FINDINGS
50 | P a g e
University of Rajshahi
E-shopping in Bangladesh
6.0 FINDINGS
The findings show that Internet usage has increased over the years and it is leading to an
increase in online shopping and also shows the consumers attitude and perception towards
online shopping. Communication still forms the major activity among the large number of
online shoppers of regular online shopper use Internet for communication as compared to
shopping.
Online shopping is affected by demographics as it has been seen that more males are
shopping online as compared women online shoppers and there is a positive relation
between education and income levels with respect to the increased online shopping
behaviour.
The most important motivating factor, which influenced the online shopping, was
convenience followed by time saving and price. Regular online shoppers considered
convenience as the main motivating factor while buying and were fewer prices sensitive. But
the online marketers should attempt to differentiate their products or services making the
comparison easier. The marketers should bring out innovative ways so that the consumers
can do more online shopping while taking the full advantage of rich information, easy access
and convenience of the Internet.
One of the main concerns among the online shoppers was privacy and security. Another
reason that hindered online shopping was the touch factor. Consumers still preferred the
experience they get from traditional stores like feeling the stores atmosphere, interacting
with a salesperson, and seeking sensory stimulation. This might hinder the use of certain
goods like grocery and apparel, as the touch factor is the main factor, which drives the
shopping for these goods. The future of online shopping is bright especially in the categories
of travel, books, electronic gadgets and gifts.
51 | P a g e
University of Rajshahi
E-shopping in Bangladesh
6.1.2 Lack of Touch Feel-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 expectations, it is
hard to infuse more credibility in the e-Tailing market.
6.1.4 Seasonality
E-Tailing 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, Valentines Day,
New Year, Christmas, Mothers Day, Friendship Day etc are. On these occasions younger
generations prefers buying and sending gifts online.
52 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 7
LIMITATIONS
53 | P a g e
University of Rajshahi
E-shopping in Bangladesh
7. LIMITATION
Every study will have its problems and limitations at some point during the project. This
study is no different. The use of a non-probalistic sample in the research was a major
limitation because there was no way to make sure that the sample taken represented the total
population of the Internet users. A non-probability sample lacks the accuracy and precision
that a probability sample might offer. Though these samples provided a better insight about
the online shoppers but there could be a possibility that a respondent may have done online
shopping but is not a regular Internet user. It was seen that some respondents were biased
towards some questions. Another major limitation encountered doing the research
assignment was the issue regarding the time.
Limitation of the study is the selection of the existing studies. Owing to time limitation, only
a few numbers of journals were searched. 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.
E-shopping in Bangladesh
Goods in transit
Goods might be declared in transit when been tracked on the internet. This is a great
limitation. This hinders the buyer to receive the good at the stipulated time. He receives such
goods very late at the eleventh hour. It is very common to almost all shops. Steps are on to
set everything in the right order.
Currency barrier
Not every country in the world has the same currency. Dollars are popularly used but some
countries have no access to dollars. This has limited online shopping in the recent years.
There are limitations. There are dangerous strives. There are perils. Language could also
limit online shopping. Before you pay for anything online.
55 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 8
RECOMMENDATIONS
56 | P a g e
University of Rajshahi
E-shopping in Bangladesh
8. RECOMMENDATIONS
The consumers should be made aware that one of the safety aspect of using credit
cards online is that in case of disputed credit card payments for online transactions
the onus is on the merchants to prove that the transaction actually took place, as
online users don't physically sign a credit slip. As a result online users are protected
from fraudulent use of credit cards.
It is not only important to pay strong attention to the security issue and create new,
innovative safeguards that protect consumers but the merchants should promote these
safeguards to the marketplace and make the prospective consumers aware that the
57 | P a g e
University of Rajshahi
E-shopping in Bangladesh
communications, personal data, credit card accounts, and transaction information can
be protected.
One of the factors that hinder Internet penetration in Bangladesh is access. More
companies should adopt click and mortar model with the real world operations to
complement its online presence for e.g. customers can walk to the office to access its
services.
Merchants should provide goods and services that offer the right value for money.
There should be transparency in policies (returns, privacy, shipping, etc), insurance
against fraud and a good after sales services should be provided to consumers
making it an enjoyable experience.
Consumers today demand a better, more efficient and less cumbersome way to
compare and buy products online. Innovative service should be provided to
consumers so that they can compare products, which are available online using their
mobile phones.
Vendors should educate the customers about e-commerce like educating them on
safety tips like reading the item description, looking for a sellers feedback score and
asking questions, detecting spoof mails and informing them about the new online
crimes which happen regularly.
In Bangladesh still the penetration of Internet has not happened the way it should
have been which hampers online shopping. Ecommerce revolution can be brought
about by providing more broadband connections at affordable prices.
There is a huge market for business in the rural Bangladesh therefore efforts should
be such that to bring these people also into experiencing online shopping. Companies
58 | P a g e
University of Rajshahi
E-shopping in Bangladesh
should create more Bangladeshi language software or content as Internet still is a
primarily English language world and language could be a barrier in rural
Bangladesh. Only few language portals like webduniya.com exist today.
Most of the Bangladeshis still like to see the product before buying; efforts should be
made to change this mindset of the people by making them aware of the benefits of
online shopping.
To make online shopping big the shopping web sites should give the customers the
convenience to shop anything on a single site like ordering pizzas, movie tickets,
groceries, etc rather than in scattered places. The site should not only provide
information content but also tools to navigate and evaluate this information. The
information on the site should be just sufficient for the consumers to make a decision
and not to overload them with information, which results in confusion.
Convenience and time saving are the main reason to shop online. Therefore Business
to Consumers (B2C) sites should be designed in such a way that consumers spend
less time in finding information they are looking for as delays in searching or loading
a web page might turn the consumers to other sites which have faster download and
display times.
Since consumers control the experience they receive from shopping over the Internet,
there is a need to find ways of managing the amount of information available over
the Internet. Sites that are able to offer this information and present it in a simple way
to understand will become the preferred destination for online shopping.
The key to selling to a customer which cannot be seen is to get the customer to trust
the website with which they have electronic transactions.
Some of the things, which the consumers should take into considerations while
online shopping, are:
Use a secure browser. The browser should comply with industry security standards,
such as Secure Sockets Layer (SSL).
59 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Consumers should shop with the known companies, as it is easy to set up a shop
online under any name. If they are not familiar with a merchant they should ask for
paper catalogue or brochure to get a better idea about the merchandise and services
and should find about the companys refund and return policies. Consumers should
also search for the reviews of the company.
Read the privacy policy on the site of the companies before shopping as this helps to
know what information is being collected and how it would be used.
Keep a print record of the transactions this would come handy in case of any fraud.
One should find out how the company secures the financial and personal information
before paying the bills.
The personal information should be kept private like address, telephone numbers,
email, etc. One should avoid using telephone numbers or date of birth for
establishing a password instead should use a combination of numbers, letters and
symbols.
Proper research should be done about countries shopping laws and merchant when
shopping from other countries.
60 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CHAPTER - 9
CONCLUSION
61 | P a g e
University of Rajshahi
E-shopping in Bangladesh
CONCLUSION:
Business is an important part of our economy and lives. Nowadays the dependency of online
for all sort of business is significantly increasing. E-commerce is one of the key factors to
success in business. As we mentioned before that our purpose is to customer satisfaction in
online and improves the e-commerce shopping in online. Now, using the current online based
facilities, we can check the inns out outs of every desired product through the online without
expending much more money. It opens a new window for doing business and significantly
reduces the distances. Many more potential opportunities have been created for the small
entrepreneur. Nowadays the quality of customer services has improved using internet
facilities. Every company is trying giving better service to withstand in the challenging
environment. 24 hours automated online customers assistant are ready to give customers
proper assistance. Online forum, online chat, instant messaging services all are the benefits of
this technology.
Currently, e-commerce is being used extensively in USA. However Sweden has the highest
e-readiness rating. It means that Sweden is poised for rapid growth in e-commerce. This
measure takes into consideration a country internet infrastructure, business environment,
consumer and business adoption of e-commerce, cultural acceptance, and a supportive legal
environment. Due to cheap labor cost, one of the current trends is to produce products in
Bangladesh, India, Pakistan, China and others Asian countries. So, many notable companies
have established their own factory in those countries. For example, every branded shop in
clothing business in Sweden has their own factory in Bangladesh so that they can sell their
product comparatively cheaper rate.
Our country is an over populated country. There are so many people who use internet, can be
the consumer of the e-shop. Through this our country can reduce its unemployment in various
sectors. Cause for this, there also need payment gateway, banking service and delivery
system should have to be updated. So we can say that E-commerce is the blessings of
business and in our daily life.
62 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Appendix A
Questionnaire
Dear Respondent,
I am a student of MBA in department of Finance and Banking at University of Rajshahi. I
have undertaken an academic research on E-shopping in Bangladesh. For this I need
your sincere participation in filling the following questionnaire. I assure the information
what you provide will be kept secret and used only for academic purpose.
Please give your opinion in each of the following statements
Fatah-Ul-Islam
MBA, 2013
Dept. of Finance & Banking
University of Rajshahi
female
5.Age
Below 18 yrs
18 - 30 yrs
31 - 40 yrs
41 50 yrs
Above 50 yrs
6. Income: (in thousands)
0-3
3-5
5-7
7-10
Above
7. Education:
63 | P a g e
University of Rajshahi
E-shopping in Bangladesh
SSC
HSC
8. Profession:
Students
Graduate
Post- Graduate
service holder
Others
businessman
No
3 5 years
More than 5 years
Intermediate
Advanced
1-2 hours
2-3 hours
3-4 hours
64 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Items
A retail
store
a. Railway ticket
b. Bus ticket
c. Event ticket
d .Books/CDs
e. Clothes
f. Cosmetics
g. Computer products
No
65 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Multiple payment gateways
Customer friendly
10.
Railway tickets
CD/Videos
Computer Hardware
Electronic Gadgets
even tickets
Accessories apparel
Computer Software
Gifts
Magazines
Event Tickets
Movies tickets
Office Supplies
Jewellery
Food / Groceries
Sporting goods
Toys
Which category (ies) of goods are you planning to buy through internet in the
near future?
Bus ticket
Railway tickets
CD/Videos
Computer Hardware
Gifts
Magazines
Electronic Gadgets
Books
event tickets
Computer Software
Event Tickets
Movies tickets
Office Supplies
Jewellery
Food / Groceries
Sporting goods
Toys
E-shopping in Bangladesh
2-4 times
More than 5 times
More than 6 times
14. The payment system of E-shopping is much secured.
Highly Satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied
15. Overall, were you satisfied with your experience of online shopping
Highly Satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied
16. What is your main motivation for buying through Internet?
Convenience (ease of purchase, home delivery, ability to shop 24x7)
Price
Saves time
Superior selection/Availability
Product comparison
Any other, specify
67 | P a g e
University of Rajshahi
E-shopping in Bangladesh
Appendix B
Bibliography
68 | P a g e
University of Rajshahi