RESEARCH REPORT

ON

Factor affecting online shopping in India

SUBMITTED IN PARTIAL FULFILLMENT

TOWARDS THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
(2011 13)

SUBMITTED BY:

GAURAV JAIN ANKIT GUPTA MUDIT SHAHNI

(118410091) (118410026) (118410154)

MBA II YEAR (VI TRIMESTER)

Under the Supervision of:

MR. SEMANT YADAV

INSTITUTE OF BUSINESS MANAGEMENT

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 TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
INTRODUCTION 4
LITERATURE REVIEW 4
INDUSTRY REVIEW 10
RESEARCH OBJECTIVE 13
METHODOLOGY 14
POPULATION 14
SAMPLE PLAN 14
SAMPLE SIZE 14
DEVELOPMENT OF THE
QUESTIONNAIRE 14
ANALYSIS AND RESULT 15 TO 38
FINDING 39
RECOMMENDATIONS 40
CONCLUSION 41
LIMITATION OF THE STUDY 41
REFERENCE 42
APPENDIX 43-44

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 Executive summary

Online shopping, different from traditional shopping behavior, is characterized with

Uncertainty, anonymity, and lack of control and potential opportunism. Therefore,
trusting important factor to facilitate online transactions. Online shopping, different
from traditional shopping behavior, is characterized with uncertainty, anonymity, and
lack of control and potential opportunism. Therefore, trust is an important factor to
facilitate online transactions. The purpose of this study is to explore the role of trust in
consumer online purchase behavior. This study undertook a comprehensive survey of
online customers having e-shopping experiences in Trust also has a significant
influence on attitude towards online purchase. However, there is no significant impact
from trust on the intention of online purchase. In the traditional brick-and-mortar
store, one could inspect the goods or services and evaluate the vendor before making
the purchase. Online shopping, different from traditional shopping, has a unique
feature of uncertainty, anonymity, and lack of control and potential opportunism
(Sonja and Ewald, 2003). For example, on-line consumers are required to share
personal detail (such as mailing address, telephone number), financial information
(such as credit card numbers), and suffer from the risk of products or services not
matching the description on the website, and the risk of damage during the delivery
process, etc.perceived ease of use (PEOU) and perceived usefulness (PU)Technology
Acceptance Model (TAM), developed by Davis (1989), is one of the most influential
research mdels in studies of the determinants of information systems/information
technology (IS/IT) acceptance to predict the intention of use and acceptance of IS/IT
by individuals. Based on TRA Model, TAM points out two particular beliefs
perceived ease of use (PEOU) and perceived usefulness (PU),It was meant to be a
portal that compared different e-commerce websites, only there weren't enough of
them in the first place to be compared. Thus was born Flipkart, making sure that
online shopping would never be the same again in India.
Total variable which we have is 22 and major 7 factor have a weightage 73 percent
therefore we will focus majorly on these factors.

social networking.

safety.

monotonous.

alternate modes of payment.

efficiency of website.

customer satisfaction.

variety of product.

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 Introduction
India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3
billion in 2011 and to $14 billion in 2012. About 75% of this is travel related (airline
tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing
comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online
shoppers and is growing at an estimated 30 CAGR vis--vis a global growth rate of 8
10%. Electronics and Apparel are the biggest categories in terms of sales.

In the traditional brick-and-mortar store, one could inspect the goods or services and
evaluate the vendorbefore making the purchase. Online shopping, different from
traditional shopping, has a unique feature ofUncertainty, anonymity, and lack of
control and potential opportunism (Sonja and Ewald, 2003). For example, on-line
consumers are required to share personal detail (such as mailing address, telephone
number), financial information (such as credit card numbers), and suffer from the risk
of products or services not matching the description on the website, and the risk of
damage during the delivery process, etc. There seems little assurance that customers
will receive the products or services comparable to the ones they ordered according to
the description and image on the computer screen. Customers also do not know how
the retailer will deal with the personal information collected during the shopping
process (Sonja and Ewald, 2003). Therefore, trust is an important factor in the buyer-
seller relationships in electronic commerce (Sonja and Ewald, 2003). Trust is also one
of the most frequently cited reasons for consumers not willing to purchase online (Lee
and Turban, 2001)and plays a critical role in facilitating online transactions. Recently,
there have been a number of empirical researches investigating the role of trust in the
specific context of e-commerce. However, we still lack of the understanding about the
relationships between trust, its antecedents and consequents. The objective of this
paperis to explore the factors affecting online purchase intentions in consumer
markets. Elucidation of online consumer behaviors will benefit e-venders in their
efforts to sell products or services online in the future.

Future trends
India's retail market is estimated at $470 billion in 2011 and is expected to grow to
$675 Bn by 2016 and $850 Bn by 2020, estimated CAGR of 7 According to
Forrester, the e-commerce market in India is set to grow the fastest within the Asia-
Pacific Region at a CAGR of over 57% between 201216 India's e-tailing markct-
post/indian-e-tailing-market/ Indian Retail Market Size and Growth Estimates

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 Literature review

Technology acceptance model

Technology Acceptance Model (TAM), developed by Davis (1989), is one of the

most influential research Models in studies of the determinants of information
systems/information technology (IS/IT) acceptance to Predict the intention of use and
acceptance of IS/IT by individuals. Based on TRA Model, TAM points out two
particular beliefs perceived ease of use (PEOU) and perceived usefulness (PU), to
represent the antecedents of system usage in TAM. PEOU is defined as "the degree to
which a person believes that using a particular system would enhance his or her job
performance" and PU is defined as "the degree to which a person believes that using a
particular system would be free of effort" (Davis, 1989). In the TAM model, PEOU
positively-2-affects the PU. Moreover, PEOU and PU positively affect the attitude
toward an information system, and further, positively affect individuals intentions to
use and accept of the information system. Numerous empirical tests have indicated
that TAM is a robust model of technology acceptance behaviors inwide variety of
information systems and countries (Rose, Khoo, and Straub, 1999; Gefen, Karahanna
and Straub, 2003a, 2003b). A website is, in essence, an information technology. As
such, TAM is suitable to be applied in explaining online behavior. Accordingly, the
following hypotheses were cast and tested:

H1: A consumers PEOU toward using online store positively affects his /her PU
toward using the online store.
H2: A consumers PEOU toward using online store positively affects his /her attitude
toward using the online store.
H3: A consumers PU toward using online store positively affects his /her attitude
toward using the online store.
H4: A consumers PU toward using online store positively affects his /her intention
toward using the online store.
H5: A consumers attitude toward using online store positively affects his /her
intention toward using the online store.
H6: A consumers intention toward using online store positively affects his /her
behavior toward using the online store.

Trust and Technology Acceptance Model

Trust has different definition in the various social science literatures such as
sociology, social psychology,and organizational behavior. Trust, in a social
psychological sense, is the belief that other people will react inpredictable ways. In

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brief, trust is a belief that one can rely upon a promise made by another (Pavlou,
2003). In the context of e-commerce, trust beliefs include the online consumers
beliefs and expectancies about trust-related characteristics of the online seller
(McKnight and Chervany, 2002). The online consumersdesire the online sellers to be
willing and able to act of the consumers interests, to be honest in transactions (not
Divulging personal information to other vendors), and to be capable of delivering the
ordered goods as promised.Many trust studies in psychology and organizational
behaviors focus on interpersonal relationships; other Trust studies in economic and
strategy field, on the other hand, focus on the inter-organization
relationships.However, the analysis of trust in the context of electronic commerce
should be considered as the relationshipbetween firm and individual aspects. The
technology itselfmainly the Internethas to be considered as an Object of trust
(Shankar et al., 2002). As a result, online shop also could be considered as an object
of trust.TAM has been considered a robust framework to investigate how users
develop attitudes towardsTechnology and when they decide to utilize it (Davis, 1989;
Mathieson, 1991; Szajna, 1996; Straub et al., 1995;Hu et al., 1999; Kowaris 2002).
Several studies have applied TAM and trust in their models. Based on theprevious
literatures, trust is a mixed belief-intention variable in trust studies. However, when
trust is integratedinto TAM, the trusting intention is replaced by the intention variable
of TAM. In other words, trust in TAM is Trusting belief, reflecting the online
consumer wants the online sellers to be willing and able to act matching the
Consumers interests, to be honest in transactions (and not divulge personal
information to other vendors), and to be capable of delivering the offered goods as
promised.
There are several studies have investigated trust based on TAM (Jarvenpaa et al.,
1999, 2000; Gefen andStraub, 2003; Koufaris and Hampton-Sosa, 2002; Pavlou,
2002; Suh and Han, 2002, 2004; Hans van derHeijden et al., 2003). After the
literature review on customers online trust and TAM model, we decided to integrate
trust into our expanded TAM model. In order to focus on the relationships among
trust and TAM Concepts, we examine these studies again within the TAM framework.
The results are summarized in
Table 1: Trust and the constructs of Technology Acceptance Model
Study ResultsBhattacherjee (2002) Familiarity Trust;Trust, Familiarity
Willingness to transactDe Ruyter et al. (2001) Organizational reputation,
Perceived risk, Relative advantage TrustTrust intentions towards adopting e-
servicesGefen (2000) Familiarity Trust;Familiarity Trust Intention to Inquire,
Intention to purchaseGefen (2002) Trust Window-Shopping Intention, Purchase
IntentionGefen and Straub (2000) Social presence Trust;PEOU PU Trust
Social presence PU (ns.); PEOU,PU, Trust Intention to useGefen, Karahanna
andStraub, 2003aTrust Intention to Inquire, Intention to purchaseJarvenpaa et al.
(1999, 2000) Perceived size, perceived reputation Trust in storeTrust Attitude
toward online store Willingness to buy Kim and Prabhakar (2002) Propensity to
trust, structural assurances, word of mouth referrals TrustKoufaris and Hampton-

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Sosa(2004)PEOU, PU TrustTrust Intention to Return, Trust Intention to
purchaseKoufaris and Hampton-Sosa(2002)Enjoyment, Perceived Control PEOU,
PU; PEOU , PU TrustTrust Intention to Return, Intention to purchaseNs =
not significantKoufaris and Hampton-Sosa (2002, 2004) and Pavlou (2003) suggested
that customer PEOU and PU ofThe website has positively effects on trust of e-
vendor. These authors believe trust could reduce the need for Consumers to
understand, monitor, and control the situation and facilitate transaction and make it
effortless. In The e-commerce context, trust would reduce the consumers need to
monitor the vendors actions and check every detail, which make on-line transactions
easier. Accordingly, the following

Hypotheses were tested in this Study:

H7: A consumers PEOU toward using online store positively affects his /her trust U
toward using the online store.
H8: A consumers PU toward using online store positively affects his /her trust U
toward using the online store.
Most studies indicated that trust plays a significant role in determining a customers
actions regarding thatCompany. Empirical research has shown that trust increases
customer intention to purchase a product from Company (Jarvenpaa et al., 2000) as
well as intention to return to that company (Doney and Cannon, 1997).Some research
indicated that customer trust (a belief) influences customer attitude. Based to the
TAM, we Believed trust affects attitude directly and trust also affects intention
indirectly through attitude.
H9: A consumers trust toward using online store positively affects his /her attitude
toward using the online store.
H10: A consumers trust toward using online store positively affects his /her intention
toward using the online store.

Trust is most important aspect in online shopping (Chellappa,

2007).
Martine, Robert.(2008) found that trust is depend on variable like
Social presence
Vendor credibility
Security
Vendor reliability
Self- efficacy.

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Methods and Measures
With purposive sampling method, a total of 3360 questionnaires were distributed
through the 120Executive MBA students and 4 lecturers of National Dong Hwa
University in Taiwan. 2035 questionnaires werereturned. We set a critical standard to
define the valid questionnaire. A questionnaire having more than 10items clicked
continually in the same score was considered to be invalid. Although the critical
standard reduced the number of questioners, it could improve the quality of valid
questionnaires. As a result, 88 were eliminated
-4-
0.94*** 0.32***
H3:0.48***
H9:0.58***
H1:0.90***
H7:0.56***
H8:0.24**
H2:0.06
H10:0.08
H5
H6
H4:0.03
for conflicting and incompletion and 689 respondents claimed they have never bought
online. Eventually, 1258valid questionnaires were collected. The net response rate is
37.8%. With descriptive statistical analysis, there wasa relatively even split between
males (46%) and females (54%) respondents. The majority of respondents agefrom
21-35 years old representing 69% of the whole responses. Furthermore, most
respondents possess a college degree or above (88%). In terms of occupation, the
respondents reveal a quite even distribution: student (19%),service trades (20%),
finance (15%), government/military (14%), business (12 %) and industries (9%).The
measures for attitude, behavioral intention, and actual usage toward using were
adopted from Davis
(1989), Suh and Han (2003), Chau and Hu (2002). Six items to measure trust were
adopted from Bhattacherjee(2002), Suh and Han (2002), and Pavlou (2003).
All items used a seven point response format, from 1 =strongly disagree to 7 =
strongly agree. Table 2 presented the results of factor analysis and alpha coefficients
foreach construct with reliability analysis. The result of reliability analysis is shown
as Table 2. Conbachs alphaValues of each construct are from 0.71 to 0.90, indicating
a level above the 0.70, the threshold recommended byNunnally (1967). Most of them
are even above the 0.8. Additionally, the variance extracted values are from 53%To
69%, exceeding 50%. It reveals that the scale of trust exhibits strong internal
reliability.

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Table 2 the Result of Reliability Analysis
Number of Items Variance Extracted Scale Reliability (alpha)
Perceived ease of use (PEOU) 6 61.20% 0.87
Perceived usefulness (PU) 6 63.29% 0.88
Attitude 6 65.68% 0.89
Behavior Intention 5 65.91% 0.87
Usage (Actual Using Behavior) 4 53.19% 0.71
Trust 6 69.28% 0.90

Result and Discussion

After assessing the reliability and validity of measurement model, we tested the
hypothesis and overall fit of the path model by using the maximum likelihood (ML)
technique to estimate the parameters. The scale foreach factor was set by fixing the
factor loading to one of the indicators (items). The path coefficients and overall
Model fix indices of research model are drawn as Figure 1.

Figure 1 the Role of Trust in Customer Online Using Behavior

With the empirical results, the path coefficients of PEOU to PU (H1), PU to attitude
(H3), attitude toGFI=0.77 TLI=0.83 RMSEA=0.08AGFI=0.74 CFI=0.85 2/df=
7.95NFI=0.83

Intention Behavior PU Attitude Trust PEO-5-

Behavioral Intention (H5), behavior intention to behavior (H6) are significant at the
0.001 significance. In otherwords, H1, H3, H5, and H6 are supportive. However, the
effects from PEOU to attitude (H2) and PU tointention (H4) are not significant. It
implies that there is a linear causal relationship amongPEOU-PU-attitude-behavioral
intention-behavior.The purpose of this study was to explore the role of trust in the
mechanism of online shopping. Wehypothesized that trust is the consequence of
PEOU and PU, and trust is also the antecedent of attitude andintention. The empirical
results indicate that trust played similar roles as PU because it is the consequence
ofPEOU and the antecedent of attitude. As in previous researches, consumer trust, as
PU, led to increase the usingintention (Gefen, 2000, Gefen and Straub, 2003, 2003).
However, trust does not influence intention directly. Trust affects intention through
the attitude mediator variable. Besides, trust might affect PU, but this is notsupported
in all online behavior models.It is noteworthy that consumer trust has a stronger effect
on attitude (=0.58) than PU does (=0.48C).
Itcorresponds to the result of Gefen and Straub (2003). It implies that online shopping
service depends not onlyon the operational characteristics of websites, its PU and
PEOU, but also, and possible to a greater degree onconsumer trust toward
thewebsites. Therefore, managers need to take this into account in their website
planningefforts (Gefen and Straub, 2003

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Customer Research in online shopping:

The explosion of social networks and consumer-generated media over the last few
years continues to have a significant impact on advertising as consumers reliance on
word-of-moutin the decision-making process either from people they know or
online consumers they dont has increased significantly.

According to Nielsens latest Global Trust in Advertising report, which surveyed

more than 28,000 Internet respondents in 56 countries, 92 percent of consumers
around the world say they trust earned media, such as recommendations from friends
and family, above all other forms of advertisingan increase of 18 percent since
2007. Online consumer reviews are the second most trusted source of brand
information and messaging, with 70 percent of global consumers surveyed online
indicating they trust messages on this platform, an increase of 15 percent in four
years.

The survey also showed that nearly six-in-10 global online consumers (58%) trust
messages found on company websites, and half trust email messages that they signed
up to receive. On the Web, four-in-10 respondents rely on ads served alongside search
engine results, 36 percent trust online video advertisements, and one-third believe the
messages in online banner adsan increase of 27 percent since 2007. Sponsored ads
on social networks, a new format included in the 2011 Nielsen survey, are credible
among 36 percent of global respondents.Display ads (video or banner) on mobile
devices such as tablets and smartphones are trusted by one-third of global
respondents, which is slightly higher than the reported consumer trust level of text ads
on mobile phones (29%). While the reported consumer trust level in mobile phone
advertising is still low, it increased 61 percent since 2007 and 21 percent since 2009.
When it comes to traditional, paid media, while nearly half of consumers around the
world say they trust television (47%), magazine (47%) and newspaper ads (46%),
confidence declined by 24 percent, 20 percent and 25 percent, respectively, between
2009 and 2011. Still, in 2011, overall global ad spend saw a seven percent increase
over 2010, according to Nielsens most recent Global AdView Pulse. This growth in
spend was driven by a 10 percent increase in television advertising.

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Online shopping industry in India

India has an internet user base of about 137 million as of June 2012. The penetration
of e-commerce is low compared to markets like the United States and the United
Kingdom but is growing at a much faster rate with a large number of new
entrants.The industry consensus is that growth is at an inflection point with key
drivers being:

Increasing broadband Internet (growing at 20% MoM) and 3G penetration.

Rising standards of living and a burgeoning, upwardly mobile middle class
with high disposable incomes
Availability of much wider product range (including long tail and Direct
Imports) compared to what is available at brick and mortar retailers
Busy lifestyles, urban traffic congestion and lack of time for offline
shopping
Lower prices compared to brick and mortar retail driven by
disintermediation and reduced inventory and real estate costs
Increased usage of online classified sites, with more consumer buying and
selling second-hand goods.
Evolution of the online marketplace model with sites like ebay, Infibeam,
and Tradus

These are some factors which suggest this industry is very attractive.

Flipkart story is not just about stupendous success and mind-numbing numbers. Much
more than that, it's about redefining customer experience and breaking online
shopping inertia.Started in 2007 by Sachin Bansal and Binny Bansal -- both from the
Indian Institute of Technology-Delhi (IIT) and with prior experience in Amazon -- the
Bangalore-based firm ships close to 30,000 items per day.Or, in other words, 20
products per minute."We are clocking daily sales of Rs.2.5 crore ($ 0.5 mn). Our
growth rate has been 100 percent quarter on quarter," SachinBansal, CEO of Flipkart,
told IANS.But the interesting part is that around 60 percent of Flipkart's orders are
cash or card on delivery."Indian consumers are much more cautious about shopping
online as compared to the West. They are reluctant to divulge credit card details. The

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cash on delivery service has helped a lot of traditional consumers turn to online
shopping," he adds.Also, the model has unbolted the lock to a whole new customer
base which hasn't been exposed to the benefits of plastic money as yet or those with a
default technological handicap."I've never understood how to pay by card online. The
best I can do is use an ATM. I wish more websites had the cash on delivery option,"
says Sneha Anand, a school teacher.SaloniNangia, senior vice president (retail) at
Technopak, attributes Flipkart's success to the "superior customer experience it
offers".

"Right from browsing to delivery, you can track your order. You can pre-order an
unreleased book, get good prices, even the customer service is very strong. Raise any
issue, it's efficiently resolved," Nangia told IANS. Adds Sachin Bansal: "When we
started, the customer experience offered by e-commerce sites was below average. Our
aim was to address this. We feel that it's this focus on customer satisfaction and
ownership of the customer experience that has worked in our favour."The superior
customer service notwithstanding, Flipkart's biggest draw has probably been the huge
discount it offers -- much to the envy of offline stores."I was waiting to lay my hands
on Haruki Murakami's new book '1Q84'. But it was way too expensive at Rs.1, 000.
But Flipkart had a flat 30 percent discount, and I got it in Rs.700," says
MadhuraVishvakarma, a Delhi University student. Though all bookstores get up to
50-60 percent discounts from publishers, the low overheads -- one of the numerous
virtues of online stores -- enables Flipkart to pass on the savings in the form of
discounts. Flipkart started with books, but now deals in 12 product categories. The
company stocks nearly 11.5 million titles, "making us the largest book retailer in
India. As per data, we have 80 percent share of the online book market",
SachinBansal says.

So will this trend spell doom for offline bookstores?

"No," believes AnujBahri of Bahrisons."There's a huge market for everyone to co-

exist. Besides, Flipkart's market is totally different, young people of 20-25 age groups
buy books from them. Some 80 percent of their business is chic literature. The more
sensible and mature readers will always go to a bookstore," Bahri told IANS. But
Nangia of the Gurgaon-based Technopak begs to differ."The traditional stores are to
suffer. Internationally also that has been the trend."She believes the increasing "access

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to internet, more iPads, smart phones, sophisticated technology that gives 3D view of
products, time poor consumers, increasing costs of real estate, will all lead to a shift to
digital commerce".

But with Amazon, considered a big shark in online retail space, already knocking at
India's door, will that result in dwindling fortunes for Flipkart?"No, India is a huge
market, there is much more space for more e-retail stores," says Nangia. Bahri,
however, feels there is a palpable danger. "Flipkart works because of discounts.
Amazon can offer greater discounts as it can take bigger losses being a bigger
company. That will change the dynamics," he said.Already, there are players like
Infibeam, Naaptol and Lets buy in the market. According to an Associated Chambers
of Commerce and Industry of India (Assocham) survey, the online retail market in
India may grow to Rs.70 billion (over $1.30 billion) by 2015 from Rs.20 billion in
2011 as internet access improves.

Research Objective
To identify the factors responsible for online sales growth
To identify the factors responsible for online sales decline.
To assess the importance of advertising for e-retailer.
To assess the satisfaction level of customer towards online shop

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METHODOLOGY :
One way of our plan to achieve the objective of the study is to follow many steps.
Firstly, choose the right type of research which was descriptive research the reason
behind choosing this type is because it collects information in an structured and
formal manner. Secondly, we choose the sample size to collect the data and the
information. Thirdly, both primary and secondary data were used but we used primary
data as the main source of information .Finally, we distribute the questionnaire as an
ending step for collecting primary data and solving the problem.

POPULATION :
The population was all males as well as females as they are more curious about
new and unique products and interest in online shopping in any country and those
who shop online were considered as a representative sample of that population.

SAMPLE MEAN:
The sample plan that has been used to select the sample from the population was
randomly because the questionnaire was distributed in the GLA university for the
students only.

SAMPLE SIZE:
Our sample size was around 44 respondents which are as it required in the guideline
step and we think is enough to measure customers trust and attitude towarsd online
shopping.

DATA ANALYSIS TOOL Descriptive Statistics, Factor Analysis, SPSS

DATA COLLECTION TOOL Questionnaire

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of .623
Sampling Adequacy.
Bartlett's Test of Approx. Chi-Square 577.53
Sphericity 0
df 253

Sig. .000

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Analysis and Data Interpretation

15
Q1- Till which extent is availability of secure modes for transmitting
information in your online store.

SECURITY

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 17 37.8 38.6 38.6

Agree 19 42.2 43.2 81.8

somewhat agree 7 15.6 15.9 97.7

Disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

T
Analysis & Interpretation:
From the survey it was found that 42.2% respondent are, 37.8% respondent are
strongly agree, 15.6% are somewhat agree, and 2.2% are disagree about it.

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Q 2- my online store has provision for enough alternate non-online modes of payment.

AMOP

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 8 17.8 18.2 18.2

Agree 30 66.7 68.2 86.4

Somewhatagree 5 11.1 11.4 97.7

Disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 66.67% respondent are agree, 17.8% respondent are
strongly agree, 11.1% are somewhat agree, and 2.2% are disagree about it.

17
Q 3- my online store has concern over security of transactions over the internet.

SOT

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 23 51.1 52.3 52.3

Agree 16 35.6 36.4 88.6

somewhat agree 5 11.1 11.4 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 35.56% respondent are agree, 51.11% respondent
are strongly agree, 11.11% are somewhat agree, and 2.22% are disagree about it.

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Q 4- The online store from where you shop is well known.

FAMOUS

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 16 35.6 36.4 36.4

Agree 18 40.0 40.9 77.3

somewhat agree 9 20.0 20.5 97.7

Disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 40% respondent are agree, 35.56% respondent are
strongly agree, 20% are somewhat agree, and 2.2% are disagree about it

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Q 5- you are confident about Right shopping even if u have never experience the same
before?

SELFEFFICACY

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 14 31.1 31.8 31.8

Agree 17 37.8 38.6 70.5

somewhat agree 11 24.4 25.0 95.5

Disagree 1 2.2 2.3 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 37.78% respondent are agree, 31.11% respondent
are strongly agree, 24.44% are somewhat agree, 2.2% are strongly disagree and 2.2%
are disagree about it

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Q 6- There is always a feeling of belongingness whenever you do interact through your
online store.

BELONGINGNESS

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 9 20.0 20.5 20.5

Agree 25 55.6 56.8 77.3

somewhat agree 5 11.1 11.4 88.6

Disagree 5 11.1 11.4 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 55.56% respondent are agree, 20% respondent are
strongly agree, 11.11% are somewhat agree, and 11.11% are disagree about it.

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Q 7- There is very easy possibility of social networking by your online store website.

NETWORKING POSSIBILITY

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 12 26.7 27.3 27.3

Agree 20 44.4 45.5 72.7

somewhat agree 10 22.2 22.7 95.5

Disagree 1 2.2 2.3 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 44.44% respondent are agree, 26.67% respondent
are strongly agree, 22.22% are somewhat agree, 2.2% are strongly disagree and 2.2%
are disagree about it

22
Q 8- Transaction through your online store is always safe.

SAFETY

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 7 15.6 15.9 15.9

Agree 19 42.2 43.2 59.1

somewhat agree 12 26.7 27.3 86.4

Disagree 5 11.1 11.4 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 42.22% respondent are agree, 15.56% respondent
are strongly agree, 26.67% are somewhat agree, 2.2% are strongly disagree and
11.11% are disagree about

23
Q 9- Transaction through your online store is always reliable.

REALIBILITY

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 13 28.9 29.5 29.5

agree 18 40.0 40.9 70.5

somewhat agree 9 20.0 20.5 90.9

disagree 3 6.7 6.8 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 40% respondent are agree, 28.29% respondent are
strongly agree, 20% are somewhat agree, 2.2% are strongly disagree and 6.67% are
disagree about it.

24
Q10. How much you satisfies with the the delivery of your online store.

DELIVERYSATISFACTION

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 14 31.1 31.8 31.8

agree 21 46.7 47.7 79.5

somewhat agree 7 15.6 15.9 95.5

disagree 2 4.4 4.5 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 46.67% respondent are agree, 31.11% respondent
are strongly agree, 15.56% are somewhat agree, and 4.4% are disagree about it.

25
Q11- My online store "website" is efficient & quick.

EFFICIENTQUICK

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 8 17.8 18.2 18.2

agree 28 62.2 63.6 81.8

somewhat agree 6 13.3 13.6 95.5

disagree 1 2.2 2.3 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 62.22% respondent are agree, 17.78% respondent
are strongly agree, 13.33% are somewhat agree, 2.22% are strongly disagree and
2.22% are disagree about it.

26
Q12. Your online store customer care satisfies you most of the time.

CUSTOMERSATISFACTION

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 8 17.8 18.2 18.2

agree 23 51.1 52.3 70.5

somewhat agree 10 22.2 22.7 93.2

disagree 1 2.2 2.3 95.5

strongly disagree 2 4.4 4.5 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 51.11% respondent are agree, 17.78% respondent
are strongly agree, 22.22% are somewhat agree, 4.44% are strongly disagree and
2.22% are disagree about it.

27
Q13. From giving order to received product everything is going well.

PROCESS

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 13 28.9 29.5 29.5

agree 18 40.0 40.9 70.5

somewhat agree 8 17.8 18.2 88.6

disagree 5 11.1 11.4 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 40% respondent are agree, 28.89% respondent are
strongly agree, 17.78% are somewhat agree, and 11.11% are disagree about it.

28
Q14. There is enough variety of products available by you online store.

VARIETYOFPRODUCTS

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 10 22.2 22.7 22.7

agree 23 51.1 52.3 75.0

somewhat agree 6 13.3 13.6 88.6

disagree 5 11.1 11.4 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 51.11% respondent are agree, 22.22% respondent
are strongly agree, 13.33% are somewhat agree, and 11.11% are disagree about it.

29
Q15. Your online store has comparesion pricing facility.

PRICECOMPARISON

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 16 35.6 36.4 36.4

agree 19 42.2 43.2 79.5

somewhat agree 7 15.6 15.9 95.5

disagree 1 2.2 2.3 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 42.22% respondent are agree, 35.56% respondent
are strongly agree, 15.56% are somewhat agree, 2.22% are strongly disagree and
2.22% are disagree about it.

30
Q16. While surfing your online store website you feel boring.

MONOTONOUS

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 12 26.7 27.3 27.3

agree 13 28.9 29.5 56.8

somewhat agree 7 15.6 15.9 72.7

disagree 11 24.4 25.0 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 28.89% respondent are agree, 26.67% respondent
are strongly agree, 15.56% are somewhat agree, 2.22% are strongly disagree and
24.44% are disagree about it.

31
Q17. How much you are satisfies with your online shopper.

SATISFACTION

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 10 22.2 22.7 22.7

agree 20 44.4 45.5 68.2

somewhat agree 9 20.0 20.5 88.6

disagree 5 11.1 11.4 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 44.44% respondent are agree, 22.22% respondent
are strongly agree, 20% are somewhat agree, and 11.11% are disagree about i

32
Q18. Online shopping better than manual shopping.

COMPARISION

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 8 17.8 18.2 18.2

agree 21 46.7 47.7 65.9

somewhat agree 6 13.3 13.6 79.5

disagree 7 15.6 15.9 95.5

strongly disagree 2 4.4 4.5 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 46.67% respondent are agree, 17.78% respondent
are strongly agree, 13.33% are somewhat agree, 4.44% are strongly disagree and
15.56% are disagree about it.

33
Q19. Online shopping really save your time.

TIMESAVING

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 20 44.4 45.5 45.5

agree 14 31.1 31.8 77.3

somewhat agree 4 8.9 9.1 86.4

disagree 5 11.1 11.4 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 31.11% respondent are agree, 44.44% respondent
are strongly agree, 8.89% are somewhat agree, 2.22% are strongly disagree and
11.11% are disagree about it.

34
Q20. Before going to online shopping you plan it.

PREPLANNING

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 8 17.8 18.2 18.2

Agree 24 53.3 54.5 72.7

somewhat agree 8 17.8 18.2 90.9

Disagree 4 8.9 9.1 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 53.33% respondent are agree, 17.78% respondent
are strongly agree, 17.78% are somewhat agree, and 8.89% are disagree about it.

35
Q21. Your friend Recommendation is more influencing than advertisement.

REFERENCE

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 10 22.2 22.7 22.7

Agree 22 48.9 50.0 72.7

somewhat agree 8 17.8 18.2 90.9

Disagree 3 6.7 6.8 97.7

strongly disagree 1 2.2 2.3 100.0

Total 44 97.8 100.0

Missing System 1 2.2

Total 45 100.0

Analysis & Interpretation:

From the survey it was found that 48.89% respondent are agree, 22.22% respondent
are strongly agree, 17.78% are somewhat agree, 2.22% are strongly disagree and
6.67% are disagree about it.

36
 Reliability Statistics
Reliability Statistics

Cronbach's
Alpha N of Items

.894 23

Rotated Component Matrixa

Rotated Component Matrixa

Component

1 2 3 4 5 6 7

SECURITY .548

AMOP .826

SOT .725

FAMOUS

SELFEFFICACY .519 .614

BELONGINGNESS .752

NETWORKINGPOSSIBI .690
LITY

SAFETY .864

REALIBILITY .780

DELIVERYSATISFACTI .613
ON

EFFICIENTQUICK .813

CUSTOMERSATISFACT .611
ION

PROCESS .674

VARIETYOFPRODUCT .868
S

PRICECOMPARISON .593

MONOTONOUS .790

SATISFACTION .586 .509

COMPARISION

TIMESAVING .673

PREPLANNING

REFERENCE .627

MONTHLYINCOME -.693

GENDER -.868

37
 Descriptive Statistics

Descriptive Statistics

Mean Std. Deviation Analysis N

SECURITY 1.8182 .78571 44

AMOP 1.9773 .62835 44

SOT 1.5909 .69276 44

FAMOUS 1.8864 .81315 44

SELFEFFICACY 2.0455 .93894 44

BELONGINGNESS 2.1364 .87845 44

NETWORKINGPOSSIBILIT 2.0682 .89955 44

Y

SAFETY 2.4091 .97213 44

REALIBILITY 2.1136 .99337 44

DELIVERYSATISFACTION 1.9318 .81833 44

EFFICIENTQUICK 2.0682 .78940 44

CUSTOMERSATISFACTIO 2.2273 .93668 44

N

PROCESS 2.1136 .96968 44

VARIETYOFPRODUCTS 2.1364 .90453 44

PRICECOMPARISON 1.9091 .91036 44

MONOTONOUS 2.4545 1.20955 44

SATISFACTION 2.2045 .92960 44

COMPARISION 2.4091 1.10639 44

TIMESAVING 1.9318 1.10806 44

PREPLANNING 2.1818 .84283 44

REFERENCE 2.1591 .93866 44

MONTHLYINCOME 4.6591 .64495 44

GENDER 1.3182 .47116 44

38
FINDINGS:

if online shopper companies want to satisfies their customer than they have to
manage these things as per correlation analysis.
o Safety
o Reliability
o Belongingness
o Variety

In this report we take 22 variables on which online shopping heavily depends

from these 22 variables 7 variables have 73 percent of weightage these
variables are Networking possibility, safety, Alternative modes of payment,
Efficient & quick web services, variety of products, monotonous, customer
satisfaction.
Technology plays a significant role in online shopping the usefulness of
technology depends on two variables that is (PEOU) Perceived ease of use,
(PU) Perceived usefulness. PEOU Represent benefits of using technology, PU
represents Time and effort devoted to use technology.
A large part of online shoppers feel monotonous while surfing online shopper.
Product variety is another matter for online shopper.
Female yet not motivated for online shopping.
Online shoppers need to work to make their shop more connected to people.
Only half customer is happy with their online shopper.
Online industry become more competitive day on day so to win competition
online shopper needs to develop unique websites.
As per are research we find Friend and relatives Recommendations is highly
effective to motivate other for online shopping.
Consumer belongingness is very poor with their online shopper.
Online shopping industry is so lucrative and profitable but in that industry
only those will survive who consumer base will increase significantly.

39
RECOMMENDATIONS:

Trust in online shopping is difficult and challenging to achieve, so

marketers should be aware of how to gain customers trust, here
are some recommendation that we realized from the graphs and
tables and we advise marketers to:
Online shopping marketers have to adjust the prices and to make
the products and services affordable for customers.
Promotions can be useful and supportive in purchasing decision.
Online shoppers have to increase their variety of products.
They needs to give excellent services to their customer because
online industry in India is in developing phase if someone
dissatisfies by online shopper now than this industry needs more
time to capture significant market share.
When be manual shopping we have strong belongingness with
particular seller that thing is missing in with online shopper so
online shopper needs to increase their physical appearance in
market.
In online shopping female consumer do very less shopping online
to mitigate this problem online shopper needs to customize their
websites for women.
Online shopper needs to increase customer satisfaction ratio to
achieve new milestone in future.

Online shopping marketers have to focus on the market segments with

their appropriate products along with unique way of promotion and
customer satisfaction on each phase to win customer trust.

40
CONCLUSION:

While doing study we find that at the time of online shopping customer does not
physically interact with online shopper therefore customers do not have Trust and
reliability with online shoppers result market share of online shopper is very less in
compression to manual shopping.So trust is major components in online shopping.
Trust is depends on security, reliability, belongingness, social presence and self
efficacy of website. These are five panaceas to win customer Trust towards online
shoppers.

This study most of are respondents is young age between 20 to 30 year and their
response about online shopper is nice but still lot area yet to cover by these online
shopper to capture another slice of Indian customer. Few consumers highly
dissatisfied by online shopping. Main reason behind is Delivery system back supply
chain is not performing in a way in that it should perform.web security is another
major area of concern for online shopper because a large group people afraid in given
their bank details. Although market of online shopping growing rapidly in metro
cities.

LIMITATIONS:

when under process in this study we face many problem like lack of time and
experience are major respondent is university MBA student some of them never do
online shopping but even than they give their response. Another problem is we
distributed are questionnaire on many places but we didnt get response from all.
These things may affect are final conclusion.

41
REFERENCES
[Bhattacherjee, 2002] Bhattacherjee, A., 2002, Acceptance of E-Commerce Services:
The Case of Electronic
Brokerages, IEEE Transactions on Systems, 304, 411- 420.
[Chau & Hu, 2002]Chau, P. Y. K. & Hu, P. J., 2002, Examining a Model of
Information Technology
Acceptance by Individual Professionals: An Exploratory Study, Journal of
Management Information
Systems, 184, 191-230.
[Davis, 1989] Davis, F. D., 1989, Perceived Usefulness, Perceived Ease of Use, and
User Acceptance of
Information Technology, MIS Quarterly, 13, 319-339
[De Ruyter, Wetzels&Kleijnen, 2001] De Ruyter, K., Wetzels, M. &Kleijnen, M.,
2001, Customer Adoption
of E-Services: An Experimental Study, International Journal of Service Industry
Management, 122,
184207.
[Gefen, 2000] Gefen, D., 2000, E-Commerce: The Role of Familiarity and Trust,
Omega: The International
Journal of Management Science, 286, 725-737.
[Gefen, 2002] Gefen, D., 2002, Reflections on the Dimensions of Trust and
Trustworthiness among Online
Consumers, The DATA BASE for Advances in Information Systems, 333, 38-53.
[Gefen & Straub, 2003] Gefen, D. & Straub, D., 2003, Managing User Trust in B2C
e-Services, e-Service
Journal, 2 (2), 7-23.

42
 APPENDIX
Q1- Till which extent is availability of secure modes for transmitting information in
your online store.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 2- my online store has provision for enough alternate non-online modes of

payment.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 3- my online store has concern over security of transactions over the internet.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 4- The online store from where you shop is well known.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 5- you are confident about Right shopping even if u have never experience the
same before?
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 6- There is always a feeling of belongingness whenever you do interact through

your online store.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 7- There is very easy possibility of social networking by your online store website.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 8- Transaction through your online store is always safe.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q 9- Transaction through your online store is always reliable.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

43
Q10. How much you satisfies with the the delivery of your online store.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q11- My online store "website" is efficient & quick.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q12. Your online store customer care satisfies you most of the time.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q13. From giving order to received product everything is going well.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q14. There is enough variety of products available by you online store.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q15. Your online store has comparesion pricing facility

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q16. While surfing your online store website you feel boring

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q17. How much you are satisfies with your online shopper.
a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q18. Online shopping better than manual shopping.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q19. Online shopping really save your time.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

Q20. Before going to online shopping you plan it.

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

44
Q21. Your friend Recommendation is more influencing than advertisement

a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree

NAME-

AGE-

GENDER-

45