Professional Documents
Culture Documents
“Online shopper motivation: An examination of online shopping behavior of the shoppers in context to
Jalandhar city”
SCHOOL OF BUSINESS
LOVELY PROFESSIONAL UNIVERSITY
(2015-2017)
1
TOPIC APPROVAL PERFORMA
School of Business
Program : P371::MBA
PROPOSED TOPIC : A study of consumer behaviour towards online shopping in context to Jalandhar city, Punjab
2 Project Feasibility: Project can be timely carried out in-house with low-cost and available resources in 6.67
the University by the students.
3 Project Academic Inputs: Project topic is relevant and makes extensive use of academic inputs in UG 6.33
program and serves as a culminating effort for core study area of the degree program.
4 Project Supervision: Project supervisor’s is technically competent to guide students, resolve any issues, 6.67
and impart necessary skills.
5 Social Applicability: Project work intends to solve a practical problem. 6.67
6 Future Scope: Project has potential to become basis of future research work, publication or patent. 5.67
PAC Member 1 Name: Krishan Gopal UID: 11255 Recommended (Y/N): Yes
PAC Member 2 Name: Dr. Anand Thakur UID: 11374 Recommended (Y/N): NO
DAA Nominee Name: Rajesh Poonia UID: 17434 Recommended (Y/N): Yes
Final Topic Approved by PAC: Online shoppers motivation: An examination of online shopping behaviour of the shoppers in context
to Jalandhar city.
PAC CHAIRPERSON Name: 11834::Dr. Rajesh Verma Approval Date: 29 Nov 2016
11/29/2016 11:18:32 AM
2
TO WHOM SO EVER IT MAY CONCERN
This is to certify that the project entitled “Online shopper motivation: An examination of online shopping
behavior of the shoppers in context to Jalandhar city”. Carried out by Mr. Muhammed Jamsheer PK , Mr.
Junaid VK Thakur and Mr. Ishfaq Bashir have been accomplished under my guidance and supervision as duty
registered MBA students of the Lovely Professional University, Phagwara. This project is being submitted by
them in the partial fulfilment of the requirement for the award of the Master of Business Administration from
Lovely Professional University. Their dissertation represents the original work and is worthy of consideration
for the award of the degree of Master of Business Administration.
Supernova Chakraborty
Assistant Professor
(Mittal School of Business)
3
DECLARATION
“Muhammed Jamsheer pk”, hereby declare that the work presented herein is genuine work done originally by me and
has not been published or submitted elsewhere for the requirement of a degree program. Any literature, data or works
done by others and cited within this dissertation has been given due acknowledgment listed in the reference section.
4
DECLARATION
“Junaid vk”, hereby declare that the work presented herein is genuine work done originally by me and has not been
published or submitted elsewhere for the requirement of a degree program. Any literature, data or works done by others
and cited within this dissertation has been given due acknowledgment listed in the reference section.
5
DECLARATION
“Ishfaq Bashir”, hereby declare that the work presented herein is genuine work done originally by me and has not been
published or submitted elsewhere for the requirement of a degree program. Any literature, data or works done by others
and cited within this dissertation has been given due acknowledgment listed in the reference section.
6
ACKNOWLEDGEMENT
With the profound reference it is a great privilege to express our heartfelt thanks to all those people who helped
us to complete this project work. We express our sincere gratitude to the management of the LOVELY
PROFESSIONAL UNIVERSITY.
We deeply express our gratitude to our project mentor, Mrs. Supernova Chakraborty, for her consistent
cooperation, guidance and encouragement at all levels for making this study purposeful. Without her guidance
this project would have not been successful.
We are also thankful to our parents, our source of inspiration, encouragement and strength.
Every effort has been made to enhance the quality of work. However, we owe the sole responsibility of the
shortcoming, if any, in this study.
Muhammed Jamsheer PK
Ishfaq Bashir
Junaid VK
(Mittal School of Business, LPU)
7
TABLE OF CONTENTS
8
ABSTRACT
We have been witnessing the rapid growth of E-commerce sites and online shopping since the beginning of the 21st
century. In the competitive field of online marketing the consumer’s behavior and motivations is changing day-by-
day. However, till now limited research has been carried out in India to explore the consumer’s motivations towards
online marketing. The aim of this study is to shed light on the buying behavior and motivations of consumers by
using hedonic and utilitarian motivational theory. The study also investigates whether convenience, cost saving,
information availability, perceived risk and social interactions influence online shopping. We use survey for the
purpose of primary data collection. The analysis will be reveals the influence of convenience, cost saving,
information availability, perceived risk and social interactions in online shopping. The findings of the study will
hold practical implications for Indian E-commerce websites by providing insightful information about the relevant
factors that motivate consumers to shop online.
9
CHAPTER-1
INTRODUCTION
In the 21st century electronic marketing has brought a great revolution into our day-to-day life. Since the
beginning of the century most of the business organizations have been experiencing technological change in
every dimension of business. Two decades before the term “online shopping” was a strange things to us, but
today in this technological Era it has become part of us. Rapid growth in the field of online marketing made us
rethink the various strategies using to attract consumers over the past several years. There are several factors
that influence the purchase behavior of consumers and the aim of this study is to shed light on the customer’s
motivation towards online shopping in context to Jalandhar city area.
Over the past 10 years, the Internet has changed our life drastically. In the recent years, traditional media has
waned since the growing use of social media such as blogs, Twitter, Facebook, and other Web 2.0 platforms.
On these social media platforms, consumers are now able to contribute, share and access information
extensively on the World Wide Web. Given these characteristics, the new Internet not only shapes consumers’
perceptions but also empowers consumers in Internet marketing, developing a new change in consumer
10
behavior over the years. Internet and technologies such as social media, mobile devices, and apps have also
helped consumer decision making by reducing search costs and potentially increasing the number of
alternatives for the consumers to choose. The Internet has made it hard for the consumers to hide. Most of the
technologies reveal the personal information and identities including their location, activities and buying
behavior to advertisers and others. Now consumption has become a very public activity. Going beyond merely
acquiring and using, consumers are now sharing information about their purchases on social media. And, when
consumers are dissatisfied, they have the powerful megaphones of the Internet, mobile devices, and social
media, consumer complaints and concerns then have to be swiftly addressed.
Past researches have addressed the importance of shopper’s motivation towards online shopping in different
countries including India. Given the increasing number of online shopping which is mainly related to the
browsing activity, consumers browse online for a longer period and tend to make unplanned purchases.
Contributing to a fuller theoretical understanding of shopper’s motivation towards online shopping will provide
11
insight to E-commerce companies, advertisers, marketers, and even consumers about which variables influence
shopper’s behavior to buy online. E-commerce websites may use the findings of the study to improve their
marketing strategies. In a highly competitive environment, only those online shopping websites who exceed
the expectations of their customers in terms of providing an enjoyable shopping experience can survive and
successful in the future. Advertisers and marketers can also benefit from the study by understanding the impact
of shopper’s motivations and behavior and how advertising can be used in-order to stimulate these factors. As
for the consumer, they can gain a better understanding of which factor of motivation influence while shopping
online.
12
CHAPTER-2
REVIEW OF LITERATURE
The development of the Internet has increased the popularity of online shopping (Lian & Lin, 2007). Online
shopping has become the third most popular Internet activity, following e-mail using/instant messaging and
web browsing (Li & Zhang, 2002). Internet usage and online shopping has been increasing and it has been on
the spotlight of so many researchers. Online shopping motivation become an attracting subject for a number of
studies over the past years. Wolfinbarger and Gilly (2001) state that online shopping provides a more
convenient and comfy shopping environment as the space that e-shopping provides is not the same in traditional
shopping.
When a person senses the urge to buy a product, the person will shop for the intended product. However,
shopping is not only about purchasing a product, as prior to the feeling of acquiring a product there are some
causes or needs as to why an individual decides to go shopping. These causes or needs are called shopping
motivation (Jansen, 2006).
Motivation is an important aspect in understanding the behavior of a consumer. Tauber’s (1972) research
paper entitled “why do people shop” was the first research paper investigated shopping motivation. In the
research paper( Tauber, 1972) indicates that the people are motivated by psychological needs which can be
categorized into personal motivation (i.e. role playing, diversion, self-gratification, learning about new trends,
physical activity and sensory stimulation) and social motivation (i.e. social experiences, communication with
others, peer group attractions, status and authority, and pleasure of bargaining). According Hirschman et al.,
(1982) motivation can be generally categorized as utilitarian and hedonic. Research on hedonic and utilitarian
motivation has primarily sought to elucidate why people shop. Utilitarian shopping motivation reflects the idea
that a shopping activity is a work assignment while hedonic motivations highlight the notion that shopping
could provide amusement and inner worth (Babin et al., 1994). In general utilitarian motivation replicates “the
task-related value of a shopping experience, while hedonic motivation expresses the value obtained in the
shopping experience itself independent of task related activities” (Overby & Lee, 2006).
Consumer shopping tends to simultaneously involve more than one type of motivation. Hedonic and utilitarian
shopping motivations were proposed to structure a number of motivations in previous studies (Babin et al.,
1994; Babin and Darden, 1995; Cardoso and Pinto, 2010). Furthermore, researchers suggest that both
utilitarian and hedonic shopping motivations should be considered together in analyzing consumer shopping
behaviors (Babin et al., 1994; Babin and Darden, 1995). Hedonic value reflects the emotional and
psychological aspects of the shopping experience; and utilitarian value relates to the achievement of shopping
objective in an efficient manner (Hirschman and Holbrook, 1982; Holbrook and Hirschman,
1982). Based on research about utilitarian versus hedonic consumption experiences, Hirschman and
13
Holbrook (1982) developed a scale demonstrating that hedonic and utilitarian shopping value dimensions
exist and are related to a number of important individual consumption variables such as compulsive buying,
unplanned purchases, time pressure, pleasure, arousal and overall satisfaction.
14
2.1.3 Cost saving
According to To et al., (2007) one of the main motivators of adopting e-shopping is the fact that the internet
as a medium for conducting purchases provides some degree of financial incentives to saving money. E-stores
allow consumers to benefit from price promotion towards the same products which they would otherwise
purchase in traditional stores (Rox, 2007). Further, Miller (2000) indicates that “virtual online stores allow
vendors to save expenditure that e-trailers enable consumers to purchase at a lower price.” According to Lim
and Dubinsky (2004), e-shopping provides customers with the advantage of both having an abundant variety
of products and the ability to compare prices against other e-stores so as to benefit from value for money.
According to Zeithaml (1988), some shoppers perceive value when the price is low, while others perceive
value when there is a balance between quality and price. Shopper’s perceived value also tends to differ across
buying situations and shoppers (Pan and Zinkhan, 2006). Arnold and Reynolds (2003) show that value
shopping is one of several hedonic shopping motivations. It is thus reasonable to expect that perceived product
value is positively related with hedonic hopping.
15
easily be utilitarian in approach due to its task perspective.
16
CHAPTER-3
RESEARCH METHODOLOGY
This part of the study is going to discuss the research methods involved in the study. This chapter is going to
deal with design of the study, research objectives, sample design, reliability check and pilot testing, hypothesis
to be tested, data collection and data analysis tools and techniques going to use in the study.
17
Sample size has been decided on the basis of 10:1 ratio (10 samples for every item of the questionnaire), as
per the basic assumption of multivariate analysis. There are 18 items in the questionnaire, so a minimum
required sample for the study will be 180 respondents and the sample considered for this study will be 200
respondents, so the criteria will be a well met.
3.4 Instrumentation
Questionnaire design
The questionnaire comprised of two sections. The first section gathered information on demographic profiles
of respondents. Questions about age, gender, income details and educational level were asked. The second part
of the questionnaire consist of 18 questions. The questionnaire was developed for the study based on multi item
scale of previous studies. All the items were in five point likert scale (1 is for strongly agree and 5 for strongly
disagree).
Factor Analysis is a statistical method used to describe the variations among the observed and correlated
variables in terms of a potentially lower number of unobserved variables called factors. For example, it is
possible that variations in say six observed variables mainly reflect the variations in two unobserved variables.
Factor analysis searches for such joint variations in response to unobserved latent variables. The observed
variables are modeled as linear combinations of the potential factors. There are two types of factor analysis
which we are going to use in the study:
1) Exploratory factor analysis and 2) confirmatory factor analysis. Exploratory factor analysis is used to
measure the underlying factors that affect the variables in a data structure without setting any predefined
structure to the outcome. Confirmatory factor analysis on the other hand is used as tool in market research and
analysis to reconfirm the effects and correlation of an existing set of predetermined factors and variables that
affect these factors.
Regression Analysis is a statistical process for estimating the relationships among different variables. It
includes many techniques for modeling and analyzing several variables, when the focus is on the relationship
between a dependent variable and one or more independent variables. Regression analysis is mainly used for
18
forecasting or prediction, where its use has a substantial value with the field of machine learning. Regression
analysis is also used to understand which among the independent variables are related to the dependent variable,
and to explore the forms of these relationships. In certain restricted circumstances, regression analysis can also
be used to infer the causal relationships between independent and dependent variables.
19
Annexure I
QUESTIONNAIRE
We are students from Lovely School of Business. As a part of the course a survey on “Online shopper
motivation: An examination of online shopping behavior of the shoppers in context to Jalandhar city” is
being conducted. You are the one of the respondents to participate in this survey. Your cooperation would be
highly appreciated. All information provided by you will be kept confidential and only be used for research
purpose.
1. Level of income
a) Below 5,000
b) Between 5,000-10,000
c) 10,001-15,000
d) 15,001-25,000
e) 25,001-35,000
f) Above 35,000
2. Level of Education
a) High School
b) Under graduate
20
(QUES. 1 – 18)
(a) Strongly Agree (b) Agree (c) Neutral (d) Disagree (e) Strongly Disagree
V. More efficient
22
Annexure II
References
Jansen, F. P. J. (2006), “German Sunday shoppers in Roermond: Shopping motivations and choice
criteria”, Unpublished thesis, Marketing Department, Tilburg University.
Tauber, E. M. (1972), “Why do people shop?”, Journal of marketing, 36(4).
Hirschman, E., C, & Holbrook, M., B. (1982), “Hedonic Consumption: Emerging Concepts, Methos
and Propositions”, Journal of Marketing, 46, 92-101.
Overby, J., & Lee, E. (2006), “The effects of utilitarian and hedonic online shopping value on consumer
preference and intentions”, Journal of Business Research, 59(10-11), 1160-1166. doi:
10.1016/j.jbusres.2006.03.008.
Wolfinbarger, M., & Gilly, M. C. (2001), “Shopping online for freedom, control, and fun”, California
Management Review, 43(2).
Kourouthanassis, P. E., Giaglis G. M., and Vrehopoulos, A.(2008), “Enhancing the user experience
with pervasive information systems”, International Journal of Information Management, vol. 27, no. 5,
pp. 319-335, 2008.
Arnold, M.J. and Reynolds, K.E. (2003), “Hedonic shopping motivations”, Journal of Retailing, Vol.
79, pp. 77-95.
Childers, T. L., Carr, C. L., Peck, J., & Carson, S. (2001), “Hedonic and utilitarian motivations for
online retail shopping behavior”, Journal of Retailing, 77(4), 511-535. Babin, B.J. and Darden, W.R.
(1995), “Consumer self-regulation in a retail environment”, Journal of Retailing, Vol. 71 No. 1, pp. 47-
70.
Babin, B.J., Darden, W.R. and Griffin, M. (1994), “Work and/or fun: measuring hedonic and utilitarian
shopping value”, Journal of Consumer Researc, Vol. 20 No. 3, pp. 644-56.
Creswell, J.( 1994) Research design: Qualitative and quantitative approaches, London Press: Sage.
Saunders, M., Lewis, P. & Thornhill, A. (2009) Research Methods for Business Students, Harlow:
FT/Prentice Hall
Saunders, M.N.K., Lewis, P. and Thornhil, A. (2000), Research Methods for Business Students, Prentice
Hall, London.
Kumar, R. (1996), Research Methodology- A Step by Step Guide for Beginners, Sage, London
Beauchamp, M.B. and Ponder, N. (2010), “Perceptions of retail convenience for in-store and online
shoppers”, The Marketing Management Journal, Vol. 20 No. 1, pp. 49-65.
Berry, L. L., Seiders, K., & Grewal, D. (2002), “Understanding Service Convenience”, Journal of
Marketing, 66(3), 1-17.
23
Childers, T. L., Carr, C. L., Peck, J., & Carson, S. (2001), “Hedonic and utilitarian motivations for
online retail shopping behavior”, Journal of Retailing, 77(4), 511-535.
Bakos, J.Y. (1997), “Reducing buyer search costs: Implications for electronic marketplaces”,
Management Science, vol. 43, no. 12, pp. 1676-1692, 1997.
Rox, H., (2007), “Top reasons people shop online may surprise you,” http://www.
associatedcontent.com/article/459412/top_reasons_people_shop_online_may.html?cat=3,
Associatecontent.com.
Doolin, B., Dillon, S., Thompson, F. and Corner, J.L. (2005), “Perceived risk, the internet shopping
experience and online purchasing behaviour: a New Zealand perspective”, Journal of Global
Information Management, Vol. 13 No. 2, pp. 66-88.
Griffin, M., Babin, B.J. and Modianos, D. (2000), “Shopping values of Russian consumers: the
impact of habituation in a developing economy”, Journal of Retailing, Vol. 76 No. 1,pp. 33-52.
To, P., Liao, C., & Lin, T. (2007), “Shopping motivations on Internet: A study based on utilitarian and
hedonic value”, Technovation, 27(12), 774-787. doi: 10.1016/j.technovation.2007.01.001.
Eastlick, M.A. and Feinberg, R.A. (1999), “Shopping motives for mail catalog shopping”, Journal of
Business Research Vol.45, No 3, pp. 281–90.
GIRARD, Tulay; KORGAONKAR, Pradeep; SILVERBLATT, Ronnie. Relationship of Type of
Product, Shopping Orientations, and Demographics with Preference for Shopping on The Internet,
Journal of Business and Psychology, v.18, n.1, p.101-120, 2003.
ROHM, Andy; SWAMINATHAN, Vanitha. A Typology of Online Shoppers Based on Shopping
Motivations, Journal of Business Research, v.57, n.7, p. 748-757, 2004.
Miller, N.G (2000). Retail leasing in a web enabled world. J. Real Estate Portfolio Manage., 6: 167-
184.
Babin, B. J., Darden, W. R., & Griffin, M. (1994). Work and/or fun: Measuring hedonic and utilitarian
shopping value. Journal of Consumer Research, 20(4), 644–656.
Vijayasarathy, L. R. (2004). Predicting consumer intentions to use on-line shopping: The case for an
augmented technology acceptance model. Information & Management, 41(6), 747–762.
Weitz, B. A. (2005). Electronic retailing. In M. Krafft & M. K. Mantrala (eds.), Retailing in The 21st
Century Current and Future Trends (pp. 309–323). Berlin, Germany: Springer.
Suki, N. B. M., Ahmad M. I., & Thyagarajan, V. (2002). Motivation and concern factors for internet
shopping: A Malaysian perspective. The Electronic Journal for Ecommerce Tools and Applications, 1,
1–18.
Miyazaki, A. D., & Fernandez, A. (2001). Consumer perceptions of privacy and security risks for online
24
shopping. The Journal of Consumer Affairs, 35(1), 27–44.
Hirschman, E.C. and Holbrook, M.B. (1982), “Hedonic consumption: emerging concepts, methods and
predispositions”, Journal of Marketing., Vol. 46, Summer, pp. 92-101.
Miyazaki, A. D., & Fernandez, A. (2001). Consumer perceptions of privacy and security risks for online
shopping. The Journal of Consumer Affairs, 35(1), 27–44.
Lian, J. W., & Lin T. M. (2007). Effects of consumer characteristics on their acceptance of online
shopping: Comparisons among different product types. Computers in Human Behavior, 24(1), 48–65.
Li, N., & Zhang, P. (2002). Consumer online shopping attitudes and behavior: Annassessment of
research. Eight Americas Conference on Information Systems, 508–517.
Lim, H. and Dubinsky, A.J., (2004), “Consumers’ perceptions of e-shopping characteristics: An
expectancy-value approach”, The Journal of Services Marketing, vol. 18, no. 6, pp. 500-513.
Zeithaml, V.A. (1988), “Consumer perceptions of price, quality, and value: a means-end model and
synthesis of evidence”, Journal of Marketing, Vol. 52 No. 3, pp. 2-22.
Pan, Y. and Zinkhan, G.M. (2006), “Determinants of retail patronage: a meta-analytical perspective”,
Journal of Retailing, Vol. 82 No. 3, pp. 229-43.
25