“CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING AND

THEIR SATISFACTION”

Bachelor of Management Studies

Semester V

Submitted

In Partial Fulfillment of the requirements

For the Award of Degree of

Bachelor of Management Studies

By

NIKHIL.KHUBCHANDANI

Roll no-85

H.R COLLEGE OF COMMERCE AND ECONOMICS

VIDYASAGAR PRINCIPAL K.M. KUNDNANI CHOWK

123, D.W. ROAD, CHURCHGATE, MUMBAI – 400 020

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 DECLARATION

I, NIKHIL.KHUBCHANDANI the student of T.Y.B.M.S. Semester V (2016- 2017) hereby

declare that I have completed the project on ―CONSUMER BEHAVIOR TOWARDS

ONLINE SHOPPING AND THEIR SATISFACTION”

The information submitted is true and original to the best of my knowledge.

_____________________

(Signature of Student)

NIKHIL.KHUBCHANDANI

Roll No-85

H.R COLLEGE OF COMMERCE AND ECONOMICS

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 CERTIFICATE

This is to certify that Mr NIKHIL KHUBCHANDANI, Roll no-85 of Third Year B.M.S.,

Semester V (2016- 2017) has successfully completed the project on ―CONSUMER

BEHAVIOR TOWARDS ONLINE SHOPPING AND THEIR SATISFACTION”

under the guidance of Miss SHWETA SINGH.

Course Coordinator Principal

Project Guide/ Internal Examiner External Examiner

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Prof PARAG THAKKAR for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator_______________, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Ms SHWETA
SINGH whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

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 EXECUTIVE SUMMARY

The growing use of Internet in India provides a developing prospect for online shopping. If E-

marketers know the factors affecting online Indian behavior, and the relationships between these

factors and the type of online buyers, then they can further develop their marketing strategies to

convert potential customers into active ones, while retaining existing online customers.

This project is a part of study, and focuses on factors which online Indian buyers keep in mind

while shopping online. This research found that information, perceived usefulness, ease of use;

perceived enjoyment and security/privacy are the five dominant factors which influence

consumer perceptions of Online purchasing.

Consumer behavior is said to be an applied discipline as some decisions are significantly affected

by their behavior or expected actions. The two perspectives that seek application of its

knowledge are micro and societal perspectives.

Internet is changing the way consumers shop and buy goods and services, and has rapidly

evolved into a global phenomenon. Many companies have started using the Internet 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 feedback and also to conduct satisfaction surveys with customers.

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 TABLE OF CONTENTS

SERIAL NO. TITLE PAGE NO.

1 DECLARATION

2 ACKNOWLEDGEMENT

3 CERTIFICATE

4 EXECUTIVE SUMMARY

5 INTRODUCTION

 STATEMENT OF THE PROBLEM

 OBJECTIVE OF THE STUDY
 SIGNIFICANCE OF THE STUDY

6 INTRODUCTION OF ONLINE SHOPPING IN INDIA

7 ADVANTAGES AND DISADVANTAGES OF ONLINE

SHOPPING

8 ONLINE SHOPPING SITES

9 PORTERS 5 FORCES IN ONLINE SHOPPING

10 LITERATURE REVIEW

12 RESEARCH METHODOLOGY
 RESEARCH DESIGN

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  RESEARCH METHODS
 DATA COLLECTION METHODS
 QUESTIONNAIRE DESIGN
 SAMPLING
 LIMITATIONS OF THE STUDY
 HYPOTHESIS FOR THE STUDY

13 CLASSIFICATION,TABULATION AND ANALYSIS OF

DATA

14 FINDINGS

15 CONCLUTIONS

16 SUGGESTIONS AND RECOMMENDATIONS

17 BIBLIOGARPHY

18 ANNEXURE

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 STATEMENT OF THE PROBLEM

This study will primarily investigate consumer behavior towards online shopping and their

satisfaction.

It is about all those factors that must be considered while purchasing a product online and

simultaneously knowing the customer‘s perception and satisfaction towards those products.

Thus, the research is titled “CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING

AND THEIR SATISFACTION”

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 SIGNIFICANCE OF THE STUDY

In recent years, online shopping has become very popular. The growth of technology has made

these a part and parcel of everyday lifestyle. The advent of plastic money or the debit /credit card

and the smooth access to the World Wide Web has brought the shops from around the world to

the desktop. We personally have seen many of our friends surfing through various online

shopping sites and purchasing things. Student community has become so strong that even the

parents seek the help and advice of their children before conducting big purchases. This is solely

because of their exposure to web and social media. Moreover, while it comes to personal

purchases, students are very particular that they get best products available in the market and

seek all the possible ways to secure the best products. This is where the role of online shopping

sites emerges. Students who are well versed in the use of internet and active in social media,

know about online markets and have tried at least some of them. The study is very relevant

because it can give a clear picture of the future of online markets in India and the emerging

trends in this particular field. The various factors that influence online shopping habits and its

merits and demerits are also dealt with. The study also tries to have a comparison of online

shopping habits among different age group as well as income group.

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 OBJECTIVES OF STUDY

This project research helps to find out what are the main factors affect the online consumer when

considering and making a purchase over Internet.

The objectives of the study are:

 To study the online shopping behavior of customers.

Sub-Objectives

 To study the factors influencing online shoppers and consumers.

 To study the customers level of satisfaction with regard to online shopping.

 To examine whether customers prefer online shopping to physical stores.

 To study the customers barriers in online shopping.

 To Analyse the demographics ie age,gender,income factors that affect online shopping.

 To examine what the consumer had bought through online shopping

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 ONLINE SHOPPING IN INDIA

The birth and growth of Internet has been the biggest event of the century. E-commerce in India

has come a long way from a timid beginning in the 1999-2000 to a period where one can sell and

find all sorts of stuff from a high end product to a meager peanut online. Most corporations are

using Internet to represent their product range and services so that it is accessible to the global

market and to reach out to a larger range of their audience.

Computers and the Internet have completely changed the way one handles day-to-day

transactions; online shopping is one of them. The Internet has brought about sweeping changes

in the purchasing habits of the people. In the comfort of one's home, office or cyber cafe or

anywhere across the globe, one can log on and buy just about anything from apparel, books,

music, jewellery to digital cameras, mobile phones, MP3 players, video games, movie tickets,

rail and air tickets. Ease, simplicity, convenience and security are the key factors turning the

users to buy online.

It is a fact that a great online shopping revolution is expected in India in the coming years. There

is a huge purchasing power of a youth population aged 20-25 in the urban area.

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,

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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.

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 RECENT DEVELOPMENTS

The number of users logging on to the Internet is growing by leaps and bounds. The number of

Indians who are online is expected to touch to 100 million by 2016-17, from the present 38.5

million according to the research conducted by IAMAI. The numbers indicate a growing sense of

comfort with the use of Internet for shopping. Accompanying this growth, there is an increasing

maturity in the way people use the Internet. It's a classical curve. Online users typically start by

using e-mail, gradually move 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 India it is just sprouted and beginning to perish. 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.

Indian customers are increasingly getting comfortable with online shopping, and there is a higher

acceptability for the concept. India has 25 million Internet users and more is now turning to

online shopping. There has been an influx of online shopping sites in India with many companies

hitching onto the Internet bandwagon. The revenues from online shopping are expected to more

than double by 2016-17. The online sales during the festival season had increased rapidly

especially during Diwali and Ramzan which recorded a sales of Rs115 crore, a 117 per cent

increase from the Rs53 crore in the year 2014-15(source IAMAI). These figures clearly show

that online shopping has truly come of age and consumers are keen to shop on the net. Effective

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customer communication on products plus reduced shipping costs and timely delivery has helped

online marketers to seize a slice of the Rs 115 crore sales.

Online shopping has become the latest trend among shoppers. Indians are becoming more

comfortable with e-commerce. The consumer‘s 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

India.

Though a miniscule amount in the global context, the Indian online shoppers‘ population would

make its presence felt quite remarkably. The potential of the Indian e-market can be gauged from

the fact that 16 percent of Indian consumers want to buy online in the next six months, making it

the third most online-potential country after Korea (28 percent) and Australia (26 percent)

(Source:IMRB). This is an indication of a growing breed of Indian consumers who are not only

better equipped but also more confident of the online transactions.

Indian 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. Some of the

companies that have benefited are baazee.com, indiatimes.com, rediff.com, indiamart.com,

fabmart.com, traveljini.com and sifymall.com.

Indiamart.com has witnessed a growth of more than ten times in just two years in its online gifts

domain. In the online travel domain, the company was able to generate an average $8,000 worth

of room bookings/month for its premium client. It is expected to touch $15-20,000/month/client

by the year-end, which is over 100 percent growth (Source:Indiamart). Brick-and-mortar

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businesses are also building up e-commerce revenues. In the year 2005-06 Samsung India

recorded a 120 percent jump in online buying from its site over the year 2004-05 (Source:

Samsung). Nirula‘s witnessed more than double growth in its B2C e-commerce revenues in the

year 2005-06 and is positive for the next one to two years (Source: Nirula‘s). Companies like

eBay India have seen a large increase in the number of sellers and buyers from B and C cities

and in a year the eBay community (buyers and sellers) base has increased to 1.7 million users,

which shows that more Indians are shopping online (Source: eBay). Online sales are currently

marked by a single digit growth, but the leading garment retailers like Pantaloon, Shoppers‘ Stop

and Globus have already made business strategies to enter into the world of e-retailing. Famous

apparel brand Zodiac has already started online stores. The main motive of these retailers

through online sales is to reach the global markets and the small towns where they do not have

the outlets. Thus the India's Internet shopping sector is preparing for a massive growth, which is

fuelled by increasing broadband usage and growing e-commerce.

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ONLINE ACTIVITIES

The Internet has entered the mainstream consciousness over the past decade. This has happened

primarily because the web has got a graphical interface and Internet has moved from

governmental control to private hands. The activities which are happening on the Internet are

email and instant messaging, general web surfing or browsing, reading news, hobby searches,

entertainment searches, shopping and buying online, medical information searches, travel

information searches, tracking credit cards, and playing games.

Communication i.e. email, chat or instant message is the basic activity for which Internet is used.

It is the single most important reason for people to go online. E-mail provides the opportunity to

communicate more often with a much broader circle of people than one can reach by telephone

or by mail in a convenient way. In India too email constitutes the major activity on the Internet.

It was found that more elderly people are increasingly using email as compared to the younger

generations.

In India the top five online activities are e-mail, surfing, chatting, search and job search. Some

of the sites, which are commonly used for these particular activities, are:

 Yahoo -Most preferred communication portal, tops for email and chat

 Indiatimes –Best event and sports news provider.

 Naukri-Best recruitment portal

 Google-Best information domain

 Shaadi-Best for matrimonial services

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 eBay-Best online shopping portal

(Source:IAMAI)

In India online trading, travel, recruitment, ticketing, real estate, classifieds and social

networking are a few spheres ripe for investment.

EMPLOYMENT

Today online job search market is expanding tremendously. According to IAMAI the number of

online job seekers had reached 6.5 million in 2014-15 and is expected to across 9.2 million in the

year 2015-16. The market size of the Indian online recruitment industry in 2014-15 was 145

crore and it is estimated to reach Rs 241 crore for 2015-16 (source IAMAI) this is mainly

because of the increase in the internet penetration which has lead to an increase in the users for

whom net has become a convenient way to meet their needs. Every year thousands of graduates

pass out and look for employment opportunities, for these job seekers Internet is the most

convenient (24 hour a day) and the comprehensive medium to research and look for jobs.

Internet is advantageous to both the job seekers (saves time and cost) and to the recruiters (easy

access to the best talent pool) as a result there is a win a win situation.

BANKING & TRADING

The net banking is increasing and it is estimated that 4.6 million Internet users are using Internet

for banking purposes and it is expected to grow to 16 million plus by 2016-17 (Source IAMAI).

Trading stocks is also becoming a fast booming activity amongst the Indians. The traders feel

that trading through Internet is not that cheap but the convenience provided by online trading is

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worth the costs involved. Traders can keep a regular check on various stocks and it is easier to

compare them. They can not only buy and sell stocks but can also find the track record of various

stocks, do technical analysis, can access live news from international news agencies such as

Reuters, CNBC and can find opinions from other leading brokers which help them do decide

whether to buy or sell. More and more traders today are making the immense use of these

services, which shows that there is a huge potential in this sector.

MATRIMONIAL

As the popular adage goes, "Marriages are made in heaven" but today with so many matrimonial

portals in the market they help one find the best match for themselves. Some of the popular

marriage portals are shaadi.com, bharatmatrimony.com, Yahoo India matrimony, MrnMrs.com,

Matricorp.com and jeevansaathi.com.

These marriage portals have increased because there is a rise in the career orientation among

youngsters and increasing work pressures have resulted in less time for socializing. These

youngsters are becoming more independent and are now making their own decision in respect of

choosing their life partners. The marriage portals provide them the medium to interact with the

people who match their required profiles. These portals not only help in finding a better match

but also provide with services of astrologers, decorators, wedding planners and caterers thus

providing a whole lot of services in one basket. More Indians are registering to these matrimonial

portals and there seems to be a huge growth in the coming years.

ONLINE TICKETING

The growth in the online travel business today is phenomenal. The Indian online travel business

is worth $350-400 million and is growing at 40-50 per cent year by year, as the online population

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of the country is estimated to be 25 million (Source:IMRB). There has been a significant increase

in online ticket booking in India with a double-digit growth, which has also lead to an increase in

Indian tourism. This growth in the travel industry has definitely leaded to the increase in the

travel portals. The scope for growth is immense in this sector as more Indians are using the

Internet.

Travel sites like MakeMyTrip.com (MMT) has been growing at about 20 per cent month-on-

month, for the last four months, selling 1,400 tickets a day on an average (Source:

MakeMyTrip.com). The online booking in India was mainly stared because of the low cost

carriers like Air Deccan which sells most of it tickets online. The revenue of the Indian Railway

Catering and Tourism Corporation (IRCTC) has also increased phenomenally because of the

online ticketing. The advantages of online ticketing are both for providers and for consumers as

the providers benefit from infrastructure cost while for users it is a convenient way to book

tickets.

Thus Internet has become an indispensable part of life and has reduced the world to a global

village. Many corporates are getting into this bandwagon, as there seem to be a humongous

growth in the coming years. Airline, cinema, hotel bookings, etc are all increasingly going

online. The future of online business is bright therefore companies are providing more

convenient services to the consumers and thereby changing their mindsets and attitudes towards

life.

It is a fact that a great online shopping revolution is expected in India in the coming years. There

is a huge purchasing power of a youth population aged 18-40 in the urban area.

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If we observe the growth of Indian online transactions (Info by: IAMAI), it is getting doubled

year by year.

The usage of internet in India is only 4% of the total population. This is also getting increased

day by day as the costs of computers are decreasing and net penetration is increasing. The cost of

internet usage is also getting lower, with good competition among the providers. Wi-Fi &

Wimax is also getting tested in Bangalore and other cities in India. This will increase the usage

as it goes more on wireless internet. Indians are proving every time that they can beat the world

when it comes to figures of online shopping. More and more Indians are going to online

shopping and the frequency of India‘s online buying is crossing the overall global averages

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FEW FACTS ABOUT ONLINE SHOPPING

The figures from IAMAI show that the internet users in India will grow to 300 million by 2015

Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35

year range.

 Indian online matrimonial sector is worth around $230 million.

 Worldwide E-commerce is only growing at the rate of 28%, since India being a younger

market, the growth of e-commerce is expected at 51% in the coming years.

 In line with global trends finally India has also started shopping online these days. As per

the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to

$522 million in 2007 and it is expected to rise above $700 million by end March 2015.

In India

Over $50 Billion and growing rapidly - Most popular online shopping products include: books

(45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (35%), apparel

(35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music downloads

(21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools (16%), home

appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), etc.

Payments

Online shoppers commonly use a credit card to make payments, however some systems enable

users to create accounts and pay by alternative means, such as:

 Billing to mobile phones and landlines

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 Cash on delivery (C.O.D., offered by very few online stores)

 Cheque/ Check

 Debit card

 Direct debit in some countries

 Electronic money of various types

 Gift cards

 Postal money order

 Wire transfer/delivery on payment

 Some sites will not accept international credit cards, some require both the purchaser's

billing address and shipping address to be in the same country in which site does its

business, and still other sites allow customers from anywhere to send gifts anywhere. The

financial part of a transaction might be processed in real time (for example, letting the

consumer know their credit card was declined before they log off), or might be done later

as part of the fulfillment process

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 CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

―Awareness, Future Demand Focus for Emerging Markets & Current Issues‖ Malls springing up

everywhere and yet people are E-shopping! And not in small numbers either. Consumers are

more rational nowadays and have ability to get the choices from the market. Awareness among

the consumers is spread through internet. The number of internet users is increasing day by day

which attracts people who have an option to buy online. It was never thought that Indians would

go in for e-shopping in such a big way. Ticketing, travel bookings and even books and movies

seem fine to buy online. Knowing that in India sizes vary from brand to brand and quality is

inconsistent, even of some electronic items, how is it that there are people buying these items

online? In India there are some segments of people who have not yet tried purchasing over

internet.

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FEW FACTORS THAT BOOST ONLINE SHOPPING IN INDIA

 Rapid growth of cybercafés across India

 Access to Information

 The increase in number of computer users

 Reach to net services through broadband

 Middle-class population with spending power is growing. There are about 200 million of

middle-class population good spending powers. These people have very little time to

spend for shopping. Many of them have started to depend on internet to satisfy their

shopping desires.

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 ADVANTAGES OF ONLINE SHOPPING

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 expected—consumers 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).

Information and reviews

Online stores must describe products for sale with text, photos, and multimedia files, whereas in

a physical retail store, the actual product and the manufacturer's packaging will be available for

direct inspection (which might involve a test drive, fitting, or other experimentation).

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Some online stores provide or link to supplemental product information, such as instructions,

safety procedures, demonstrations, or manufacturer specifications. Some provide background

information, advice, or how-to guides designed to help consumers decide which product to buy.

Some stores even allow customers to comment or rate their items. There are also dedicated

review sites that host user reviews for different products. Reviews and now blogs gives

customers the option of shopping cheaper organise 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.

Price and selection

One advantage of shopping online is being able to quickly seek out deals for items or services

with many different vendors (though some local search engines do exist to help consumers locate

products for sale in nearby stores). Search engines, online price comparison services and

discovery shopping engines can be used to look up sellers of a particular product or service.

Shipping costs (if applicable) reduce the price advantage of online merchandise, though

depending on the jurisdiction, a lack of sales tax may compensate for this.

Shipping a small number of items, especially from another country, is much more expensive than

making the larger shipments bricks-and-mortar retailers order. Some retailers (especially those

selling small, high-value items like electronics) offer free shipping on sufficiently large orders.

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Another major advantage for retailers is the ability to rapidly switch suppliers and vendors

without disrupting users' shopping experience

DISADVANTAGES OF ONLINE SHOPPING

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.

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 has 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.

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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:

 Sticking with known stores, or attempting to find independent consumer reviews of their

experiences; also ensuring that there is comprehensive contact information on the website

before using the service, and noting if the retailer has enrolled in industry oversight

programs such as trust mark or trust seal.

 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.

 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".

 Using strong passwords, without personal information. Another option is a "pass phrase,"

which might be something along the lines: "I shop 4 good a buy!!" These are difficult to

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 hack, and provides a variety of upper, lower, and special characters and could be site

specific and easy to remember.

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).

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Lack of full cost disclosure

The lack of full disclosure with regards to the total cost of purchase is one of the concerns of

online shopping. While it may be easy to compare the base price of an item online, it may not be

easy to see the total cost up front as additional fees such as shipping are often not be visible until

the final step in the checkout process. The problem is especially evident with cross-border

purchases, where the cost indicated at the final checkout screen may not include additional fees

that must be paid upon delivery such as duties and brokerage. Some 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.

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 opt-out 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

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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.

Hands-on inspection

Typically, only simple pictures and or descriptions of the item are all a customer can rely on

when shopping on online stores. If the customer does not have prior exposure to the item's

handling qualities, they will not have a full understanding of the item they are buying. However,

Written and Video Reviews are readily available from consumers who have purchased similar

items in the past. These can be helpful for prospective customers, but these reviews can be

sometimes subjective and based on personal preferences that may not reflect end-user

satisfaction once the item has been received.

Because of this, many consumers have begun going to real-world stores to view a product,

before purchasing online. To combat the process, Target has requested distributors give them

equally low prices, or alternatively, exclusive products available at their store only

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Untimely Delivery of Products

It might take a few minutes to search, book and pay for products and services online, but the

delivery of the product may take unreasonable time.

It is a challenge for E-marketers to convert low frequency online buyers into regular buyers

through successful website design and by addressing concerns about reliable performance. Thus,

the online retailing raises more issues than the benefits it currently offers.

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 ONLINE SHOPPING SITES

Snapdeal deals with online marketing of products including Mobiles,Electronics, Fashion

accessories, Apparel, Footwear, Kids, Home and Kitchen, Sports, Books; and services like

Restaurants, Spas & Entertainment. It was launched by Kunal Bahl, a Wharton graduate and

Rohit Bansal, alumnus of IIT Delhi, in February 2010.

PRODUCT CATEGORIES PROVIDED BY SNAPDEAL.COM

 Mobiles & Accessories

 Men‘s & Women‘s Apparel

 Watches, Bags & Accessories

 Electronics & Cameras

 Computers & Peripherals

 Perfumes, Beauty & Health

 Jewelry

 Books & Movies

 Footwear

 Home, Kitchen & Appliances

 Infants, Kids & Toys

 Sports & Hobbies

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  Travel Packages

Amazon.com is an American multinational electronic commerce company with headquarters in

Seattle, Washington, United States. It is the world's largest online retailer. The company also

produces consumer electronics - notably the Amazon Kindle e-book reader - and is a major

provider of cloud computing services.

Amazon has separate retail websites for the following countries: United States, Canada, United

Kingdom, Germany, France, Italy, Spain, Japan and China, with international shipping to certain

other countries for some of its products. It is also expected to launch its websites in Poland,

Netherlands and Sweden.

Jeff Bezos incorporated the company (as Cadabra) in July 1994, and the site went online as

amazon.com in 1995. Amazon.com started as an online bookstore, but soon diversified, selling

DVDs, CDs, MP3 downloads, software, video games, electronics, apparel, furniture, food, toys,

and jewelry.

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The company was founded in 1994, spurred by what Bezos called called his "regret minimization

framework", which he described as his effort to fend off regret for not staking a claim in the

Internet gold rush.

The company began as an online bookstore. While the largest brick-and-mortar bookstores and

mail-order catalogs might offer 200,000 titles, an online bookstore could sell far more. Bezos

wanted a name for his company that began with "A" so that it would appear early in alphabetic

order. He began looking through the dictionary and settled on "Amazon" because it was a place

that was "exotic and different" and it was the river he considered the biggest in the world, as he

hoped his company would be. Since 2000, Amazon's logotype is an arrow leading from A to Z,

representing customer satisfaction. A goal was to have every product in the alphabet.

Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was started

by two IIT graduates, Sachin Bansal and Binny Bansal, in the year 2007. They were working in

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Amazon.com previously. Earlier, Flipkart mainly dealt with books but now, it has expanded to

electronic goods and a variety of other products.

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian

Institute of Technology Delhi. They worked for Amazon.com before quitting and founding their

own company. Initially they used word of mouth marketing to popularize their company. A few

months later, the company sold its first book on flipkart.com—John Woods' Leaving Microsoft

to Change the World. Today, as per Alexa traffic rankings, Flipkart is among the top 30 Indian

Web sites and has been credited with being India's largest online bookseller with over 11 million

titles on offer. Flipkart broke even in March 2010 and claims to have had at least 100% growth

every quarter since its founding. The store started with selling books and in 2010 branched out to

selling CDs, DVDs, mobile phones and accessories, cameras, computers, computer accessories

and peripherals, and in 2011 Pens & stationery, other electronic items such as home appliances,

kitchen appliances, personal care gadgets, health care products etc. Further in 2012, Flipkart

added A.C, Air coolers, School supplies, Office supplies, Art Supplies & life style products to its

product portfolio. Today, Flipkart employs over 4500 people.

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SOME OTHER EXAMPLES OF ONLINE SHOPPING SITES

Myntra is an Indian ecommerce site. It is regarded as India‘s top 3rd online site to shopproducts.

Myntra allows its users to chose varieties of dress. One can choose any type ofdress of any brand

from Myntra. The Best Thing about Myntra is its product quality and service.Now, Myntra is

merged into Flipkart to compete

Amazon, but myntra.com is still running as aseparate website and entity. Buying clothes and

gifts online can be best done via Myntra.

Started with Mobile Recharge and Bill Payment website now Paytm selling everything from

Home Decor, Clothing, Laptops to Mobile at killer price. In very short time period Paytm has

grown very fastly and able to place under our Top 10 Indian Shopping Website list.

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After almost 6month of dominating at number 1 ebay has come down at number two on

indiafreestuff.in list. EBay.in is the Indian version of the popular online shopping portal

eBay.com – world‘s online marketplace. Ebay has a diverse and passionate community of

individuals and small businesses. Ebay offers used and fresh items with a wide network of

international shipping. http://www.ebay.in

Shopclues is famous for their heavily discounted Jaw Dropping deals. Shopclues is one of

the best online stores that offers a wide variety of cameras, Computer accessories, Mobile, Gift,

Jewellery, Cosmetics, toys, clothes, books and bag. Their Jaw Dropping deal has become most

liked deal of 2012.

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 Here you find large range appliances, kitchen, cameras, mobiles, laptops, site, Indian, gifts,

apparel, buy, online, gifts. And more, HomeShop18 is a venture of theNetwork18 Group, India‘s

fastest growing media and entertainment Group. Network18 operates India‘s leading business

news television channels – CNBC TV18 and CNBC Awaaz. HomeShop18 has also launched

India‘s first 24 hour Home Shopping TV channel. The company has its headquarters in Noida,

UP. The website has received the ‗Best shopping site‖ award from PC World Magazine in 2008

FutureBazaar.com is owned and operated by Future Bazaar India Ltd futurebazaar offers you

wide range with good price The people of behind this company are same from bigbazaar,

pantaloon and ezone.

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Firstcry.com India‘s largest store for Kids selling 70000+ items from 400+ top International and

Indian brands.

Jabong Fashion & Lifestyle Store offers you great discount on all listed product. They offers

wide range of products from Apparel to Home needs

Pepperfry is one of leading Indian website in selling lifestyle products ranging from men and

womens clothing, home decor, jewellery, perfumes and cosmetics, furnitures, bags and

accessories.

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 Groupon :-Groupon India launched in 2011 offers Products and Service deals at good discount.

 Groupon Coupons

 Groupon Deals & Offers

Zovi.com :- Zovi is one stop destination for all shopping needs from Clothing to Accessories at

very reasonable price.

 Zovi Coupons

 Zovi Deals & Offers

Infibeam.com – India‘s Online Shopping Platform offers Buy Mobile Phones, Books, Apparel,

Jewellery, Cameras, Watches, Send Gifts to India, New/ Used Cars & Bikes in India a report

says 40 lakh visits per month by Indians on this site.

 Infibeam Coupons

 Infibeam Deals & Offers

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 Shopping.indiatimes.com :- Shopping.Indiatimes.com has a wide array of products that range

from electronic items to products related to health & beauty, home appliances, fashion, music,

movies and games.

 Indiatimes Coupons

 Indiatimes Deals & Offers

Tradus.com – Tradus.in is owned by ibibo from books to clothes they sell

you everything and after buying Buytheprice.com they have become bigger. Tradus offers the

Online Shopping in India to buy Books, Mobiles, Cameras, Watches, Apparel, Home

Appliances, Ipods & Many More at Lowest Price & Free shipping although their refunding

process takes more than expected time and they don‘t ship all over India but still at no 3 on our

list.

 Tradus Coupons

 Tradus Deals & Offers

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 Futurebazaar.com -FutureBazaar.com is owned and operated by Future Bazaar India Ltd

futurebazaar offers you wide range with good price The people of behind this company are same

from bigbazaar, pantaloon and ezone.

 Futurebazaar Coupons

Futurebazaar Deals & Offers

Koovs.com:- Koovs offers best offers in dining, luxury, technology, entertainment, utilities,

health care, fashion, travel & adventure and plenty more.

 Koovs Coupons

 Koovs Deals & Offers

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 Bestylish.com :- Bestylish is one stop destination for all your footwear shopping, they have

good range with good price.

 Bestylish Coupons

 Bestylish Deals & Offers

Zoomin.com :- Now not only Photo gifts but also you can buy Camera, Mobile, ‚ Accessories

and more from zoomin with discounted rate.

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PORTER 5 FORCE ANALYSIS IN ONLINE SHOPPING

Porters Five Forces is a framework for describing factors that affect the profitability and

attractiveness of industries. Named after Michael E. Porter, this model identifies and analyzes

5 competitive forces that shape every industry, and helps determine an industry's weaknesses

and strengths.

1. Supplier Power

2. Buyer Power

3. Competitive Rivalry

4. Threat of Substitutes

5. Threat of New Entry

PORTER 5 FORCES FOR ONLINE RETAILER

Supplier power:

Here, suppliers are the manufacturers of finished products. For any product, there are

many suppliers online, so they can‘t show power on online retail companies. For example, if

you take computers category, there are many suppliers like Dell, Apple ,Lenovo and

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Lenovo, and Toshiba everyone wants to sell their products through online retails like Flipkart

,Amazon,Snapdeal etc. Selling online saves a lot of money for the manufacturers, and as many

people nowadays prefer purchasing product through online stores, Companies cannot afford to

lose this channel. So, in this industry the supplier power is low.

Buyer power:

Buyers in this industry are customers who purchase products online. Since this industry is

flooded with so many players, buyers are having lots of options to choose. With many

competitors like Amazon.com, eBay, Snapdeal etc. Customers get a wide range of choices.

Customer would prefer the one who would provide goods at reasonable price, deliver it fast and

provide them with other benefits like Cash on Delivery, EMI facilities, other offers etc. Here

Buyers have more power.

Competitive Rivalry:

Competition is very high in this industry with so many players like Jabong, Snapdeal, Amazon,

Homeshop18 etc. Many competitors means more choices for the customer to choose from. This

also increases the cost incurred by the company to stay in the customer‘s mind i.e. on Promotions

and Advertisements etc. Giving the customer better deals, making customer‘s experience

delightful and continuous innovation can help a company to stay at top even with tons of

competitors around.

Threat of New Entrants:

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Threat of new entrants is very high in this online retail industry because of following

reasons:

 Indian government has allowed 51% FDI in multi-brand online retail and 100% FDI in

single brand online retail. So, this means foreign companies can come and start their own

online retail companies.

 There are very less barriers to entry like less capital required to start a business, less

amount of infrastructure required to start business. All you need is to tie up with suppliers

of products and you need to develop a website to display products so that customers can

order products, and a tie up with online payment gateway provider like bill desk.

 Industry is also going to grow at a rapid rate. It is going to touch 76 billion $ by 2021.

Industry is going to experience an exponential growth rate. So, obviously no one wants to

miss this big opportunity. With the new entrants like Jabong, Snapdeal etc. rapidly racing

towards the top Position.

Threat of substitute

 Substitute for this industry as of now is physical stores. Their threat is very low for this

industry because customers are going for online purchases instead of going to physical

stores as it will save time, effort, and money. With the advent and penetration of internet

and smart phones, future in retail belongs to online retail.

 When we compare relative quality, relative price of product a person buys online with

physical store, both are almost same and in some cases, online retail store offers more

discounts and this attracts the customer to purchase products online.

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PORTERS 5 FORCES OF ONLINE RETAILERS

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 MARKETING MIX OF ONLINE SHOPPING

The elements of marketing mix are also being applied for online marketing. Marketing

mix is essential for analysing the business. Marketer analyses the parameters then select

appropriate strategy in order to face the market complexion effectively. The 7Ps of marketing is

being applied in the online marketing industry. The effect of marketing mix is being explained

below diagram

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DIFFERENT MODELS OF CONSUMER ATTITUDE TOWARDS ONLINE SHOPPING

By:Mary Ann Eastlick

This chart shows how consumer attitude toward online shopping can lead either to approach

coping (wanting to shop online) or to avoidance coping (deciding not to search or shop online).

Someone who is optimistic toward the benefits of online shopping will develop approach coping.

A person who is pessimistic toward online shopping will think of the drawbacks to it and decide

to purchase in physical stores instead, which is avoidance coping.

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 CONSUMERS INTENTION TO SHOP ONLINE

Consumer‘s intention to shop online refers to their willingness to make purchases in an Internet

store. Commonly, this factor is measured by consumer‘s willingness to buy and to return for

additional purchases. The latter also contributes to customer loyalty. Consumer‘s intention to

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shop online is positively associated with attitude towards Internet buying, and influences their

decision-making and purchasing behavior. In addition, there is evidence of reciprocal

influencbetween intention to shop online and customer satisfaction

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 LITERATURE OVERVIEW

A literature review is a select analysis of existing research which is relevant to your topic,

showing how it relates to your investigation. It explains and justifies how your investigation may

help answer some of the questions or gaps in this area of research. A literature review is not a

straightforward summary of everything you have read on the topic and it is not a chronological

description of what was discovered in your field

NATIONAL REVIEW OF LITERATURE

Rajeev Kamineni (2004) in his study finds that World Wide Web can change human behavior

and human interactions to a very large extent. Web based shopping behavior is one major

example to point out the trends in this direction. This study is of a very exploratory nature and it

intends to establish the differences between several web-based shoppers from different parts of

the world. Several critical factors associated with online shopping behavior have been explored.

A cross cultural data set has been collected and an illustrative description of the shoppers has

been provided. As a final step the cross cultural differences between several shoppers explored.

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ArchanaShrivastava, UjwalLanjewar, (2011) in online buying, the rate of diffusion And

adoption of the online buying amongst consumers is still relatively low in India. In view of

above problem an empirical study of online buying behavior was undertaken. Based on literature

review, four predominant psychographic parameters namely attitude, motivation, personality and

trust were studied with respect to online buying. The online buying decision process models

based on all the four parameters were designed after statistical analysis. These models were

integrated with business intelligence, knowledge management and data mining to design

Behavioral Business Intelligence framework with a cohesive view of online buyer behavior. For

better understanding the factors of internet and consumer shopping behaviours towards internet

shopping, this chapter would provide academic research reviews and relative ideas expressed in

the literature that associated with this subject. Furthermore, a number of hypotheses will be

tested to answer the research questions that mentioned already in the introduction. Due to the

recent research shows that internet shopping becomes a full and effective business model (Black,

2005), therefore there are several studies that already investigated more or less related on internet

shopping and consumer behaviour. In the following chapter, some point of view will be taken

from literatures, and needs careful review to achieve them as the basis of the subsequent research

investigation

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 INTERNATIONAL REVIEW OF LITERATURE

E-Business probably began with electronic data interchange in the 1960s (Zwass, 1996).

However, (Melao, 2008) suggests that it was only in the 1990s, primarily via the Internet, that e-

Business has emerged as a core feature of many organizations. In his opinion, the hope was that

e-Business would revolutionize the ways in which organizations interact with customers,

employees, suppliers and partners. Some saw e- Business as part of a recipe to stay competitive

in the global economy.

Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan,

MoezLimayem,(2002) The topic of online consumer behavior has been examined under various

contexts over the years. Although researchers from a variety of business disciplines have made

significant progress over the past few years, the scope of these studies is rather broad, the studies

appear relatively fragmented and no unifying theoretical model is found in this research area. In

view of this, provide an exhaustive review of the literature and propose a research framework

with three key building blocks (intention, adoption, and continuance) so as to analyze the online

consumer behavior in a systematic way. This proposed framework not only provides us with a

cohesive view of online consumer behavior, but also serves as a salient guideline for researchers

in this area.

Burke, R.R. (2002), Trust is a key factor that determines the success of Business to Consumer

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(B2C) e-commerce transactions. Previous researchers have identified several critical factors that

Influences trust in the context of online shopping. This research focuses on available security

measures which assure online shopper safety and great sales promotions and online deals which

stimulate customers to shop online.

Abel Stephen (2003) in his paper represents the findings of research studies that address e-

commerce design and associated consumer behavior. The innovation of e-commerce has affected

not only the marketplace through the facilitation of the exchange of goods and services, but also

human behavior in response to the mechanisms of online services. Researchers have identified

and hypothesized on relevant subject matters ranging from Web usability, marketing channels

and other factors influencing online buying behavior. Though researchers h ave focused on what

appear different aspects of online buying behavior, their studies may be shown to be interrelated

and interdependent, even to the extent of revealing constructs upon which e-commerce, in terms

of future design and research, could be built

Balasubramanian, S., Konana, P. and Menon, N.M. (2003), In this environment,

Some traditional service quality dimensions that determine customer satisfaction, such as

The physical appearance of facilities, employees, and equipment, and employees responsiveness

and empathy are unobservable. In contrast, trust may play a central role here in enhancing

customer satisfaction. Model trust as an endogenously formed entity that ultimately impacts

customer satisfaction, and we elucidate the linkages between trust and other factors related to the

performance of the online service provider and to the service environment. The classic consumer

purchasing decision-making theory can be characterized as a continuum extending from routine

problem-solving behaviors, through to limited problem solving behavior and then towards

extensive problem-solving behaviors [Schiff man et al., 2001]. The traditional framework for
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analysis of the buyer decision process is a five-step model. Given the model, the consumer

progresses firstly from a state of felt deprivation (problem recognition), to the search for

information on problem solutions. The information gathered provide sthe basis for the evaluation

of alternatives. Finally, post-purchase behavior is critical in the marketing perspective, as it

eventually affects consumers‘ perception of satisfaction/dissatisfaction with the product/service.

This classic five stage model comprises the essence of consumer behavior under most

contexts. Nevertheless, the management of marketing issues at each stage in the virtual

environment has to be resolved by individual E-marketers. Peterson et al. [1997] commented

that it is an early stage in Internet development in terms of building an appropriate dedicated

model of consumer buying behavior. Decision sequences will be influenced by the starting

point of the consumer, the relevant market structures and the characteristics of the product in

question. Consumers' attitude towards online shopping is a prominent factor affecting actual

buying behavior. (Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and

NO.2, 2005)

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 RESEARCH METHODOLOGY

Introduction

Research methodology is a way to systematically solve the research problem, as to

how research is done scientifically. It consist of the different methods that generally adopted by

researcher to study his research problem along with logic behind them. It is necessary for the

researcher to develop certain tests.

Marketing research specifies the information required to address these issues; designs the

method for collection information manages and implements the data collection process; analysis

the results and communication the findings and their implication.

Research definition:

―Research is careful inquiry or examination to discover new information and relationship

and to expand and to verify exiting knowledge,‖

Research always starts with questions or a problem. Its purpose is to find answer to

questions through the application of the scientific method. It is a systematic and intensive study

directed towards a more complete knowledge of the subject studies.

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 RESEARCH METHODS

Primary as well as Secondary research was employed in this project.

Primary research is the first hand research that the researcher collects, by interacting with the

sample population and the conclusions and analysis he/she draws from the data that has been

obtained.

Primary research in this project involved interacting with 100 consumers to know, understand

and comprehend the consumer behavior towards online shopping and their satisfaction.

Secondary research is the background research done by the researcher on already existing

information regarding the topic.

This helps the researcher in determining whether previous research papers have been written on

that particular topic and if and how new ground on that particular topic can be covered. It also

helps the researcher in building a base for the questions to be asked to the sample population and

to construct an informative questionnaire and ask all the right questions. Secondary research in

this project involved reading and examining various research papers, journals and books

written,magazines,publications

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 RESEARCH DESIGN:

The purpose of the methodology is to design the research procedure. This includes the overall

design, the sampling procedure, the data collection method and analysis procedure.

Marking research is the systematic gathering recoding and analyzing of data about problem

retaining to the marketing of goods and services.

The essential purpose of marketing research is to provide information, which will facilitate the

identification of an opportunity of problem situation and to assist manager in arriving at the best

possible decisions when such situations are encountered.

Basically there are two types of researches, which according to their applicability, strength,

weaknesses, and requirements used before selecting proper type of research, their suitability

must be seen with respect to a specific problem two general types of researches are exploratory

and conclusive.

1. Exploratory Research Design:

It is also known as qualitative research, it seeks to discover new relationships it aims a defining

the main problem & inducing the identification of the relevant variables and the possible

alternative solutions it can further be divided in to three parts.

2. Conclusive Research: ---

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It is also known as quantitative research; it is designed to help executives of action that is to

make decision.

When a marketing executive makes a decision are course of action is being selected from among

a number of available. The alternatives may be as few as two or virtually infinite. They may be

well defined or only vaguely glimpsed.

The type of research here is “Descriptive Research Design”. This kind of design is used for

more precise investigation or of developing the working hypotheses from an operational point of

view. It has inbuilt flexibility, which is needed because the research problem, broadly defined

initially, is transformed into one with more precise meaning in exploratory studies, which in fact

may necessitate changes in research procedure for gathering relevant data.

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 SOURCE OF DATA COLLECTION

The sources of data collection methods are as follows:-

a) Primary data:-
The primary data is that which details we collect first time from the market and also used

first time in the research. We also say that the information is first time in the research decision.

To collect the primary data questionnaire is prepared structure non-disguise questionnaire is

prepared.

 Primary data:- Questionnaire

b) Secondary data:-
Secondary data are those data which are already collected by someone for some purpose

and are available for the present study; secondary data are already collected by the internet,

journals, research papers and library‘s books. When the secondary data are sufficient, the

researcher has to be satisfied with the primary sources of data. Secondary data can be used as

bases for comparison with primary data have been collected by questionnaire.

 Secondary data: Websites, Books, E-Journals,Magazines

Primary data i.e. collected for the first time. It is fresh and originally collected by the survey. I

have used only primary data in calculating the study and collect the data.

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 DATA COLLECTION METHODS

Quantitative Data: Surveys

This method captures information through the input of responses to a research instrument

containing questions (such as a Questionnaire). Information can be input either by the

respondents themselves (E.g.: An Online Survey) or, the researcher can input the data (E.g.: a

phone survey, a one-on-one survey, a mall intercept, etc).

The main methods for distributing surveys are via a website, postal mail, phone, or in person.

However, newer technologies are creating additional delivery options including through wireless

devices, such as smart phones and technologies wherein the information gets recorded in real

time and can be viewed and intercepted very easily through pie charts and bar graphs.

Surveys for this study were conducted via one-on-one personal interviews with consumers at

their households or workplaces.

Most consumers were forthcoming with their responses and displayed significant interest and

involvement.

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Qualitative Data Collection

Qualitative data collection requires researchers to interpret the information gathered, most often

without the benefit of statistical support. If the researcher is well trained in interpreting

respondents‘ comments and activities, this form of research can offer very good information.

However, it may not hold the same level of relevancy as quantitative research due to the lack of

scientific controls with this data collection method. For example, a researcher may want to know

more about how customers make purchase decisions. One way to do this is to sit and talk with

customers using one-on-one interviews. However, if the interview process allows the researcher

to vary what questions are asked (i.e., not all respondents are asked the same questions), then this

type of research may lack controls needed to follow a scientific approach.

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QUESTIONNAIRE DESIGN

The design of questionnaire is very rely on what data need to be collected and how to analyze

the data, and the questions asked in the questionnaire are need to be defined prior to data

collection. According to the aims and objectives of this study, the questionnaire was conducted

to collect data about the impacts of Internet shopping on consumer behaviors within the

summarized framework in associated with the respondent‘s online shopping experience. From

this survey, there are following information will be gathered,the respondent‘s experience of

Internet use, the purpose of using Internet, the product categories which consumers purchased

online, attitudes to Internet shopping, and feedback for Ecommerce web sites. In addition, some

demographic data will also collect from the respondents, such as gender, ages, and employment

details. In the respect of how it is going to be administered, all of the questionnaires are sent by

Google Drive and thus these questionnaires are completed by the respondents themselves, and

the answering process is totally without any of intervention from the researcher. After the

questionnaire sent out, the return of such questionnaires are very accordingly. Moreover, there

are some factors of doing questionnaires in this research. For example, the questionnaire have to

taking a long time to collect, and the time available to complete the data collection and entry is

quite limited. After the survey finished and all the data gathered, some of the questionnaires may

not acceptable for research due to the lack of answers for the important questions. In the most

cases it can enable researchers to reduce the amount of data needed to collect in order to keep

the result reliable. The complete questionnaire is given at the end (Appendix).

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 SAMPLING

STUDY:-

―CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING AND THEIR

SATISFACTION‖

SAMPLING UNITS:-

The sampling units are taken from Chembur area.

SAMPLE SIZE:-

The sample size taken was 100.

SAMPLING METHOD:-

The sampling method used for the project was ―Random Sampling‖. This type of sampling is

also known as probability sampling where each and every item in the population has an equal

chance of inclusion in the sample and each one of the possible samples .This procedure give each

item an equal probability of being selected

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LIMITATIONS FOR THE STUDY

 The paucity of time and resources was the major constraint.

 The sample size was limited.

 The sample was taken from the population residing in Mumbai only. Thus the results are
not applicable to the whole of India.

 Non co-operation of some respondents has also affected the research results.

 Being an opinion survey, a lot of subjectivity is involved in the study.

 The possibility of respondents being biased cannot be ruled out.

 The limited knowledge of the respondents regarding the topic may hamper the true
conclusion of the study.

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 STATISTICAL TOOL USED:

The main statistical tools used for the collection and analyses of data in this project are:

 Pie Charts

 Tables

 MS excel

 Bar Graphs

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HYPOTHESIS OF THE STUDY

Hypothesis 1: Age group between 20-25 years surf internet most.

Hypothesis 2: More Male Users Are Frequent Online Shoppers Than Women

Hypothesis 3 : There is relation between respondent‘s educational level and online shopping

Hypothesis 4: There is relation between respondent‘s Income level with their buying behaviour

Hypothesis 5: Respondents find e-shopping more convenient because they do not have to go to

the physical store.

Hypothesis 6: Most of the respondents are hesitant to purchase items over internet because of

lacking of the touch and feel factor

Hypothesis 7-Snapdeal is the most prefeered online shopping site

Hypothesis 8- Online Adverstising Is The Most Important Factor Which Helps For The

Selection Of Site For Online Shopping

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 TABULATION ,CLASSIFICATION AND ANALYSIS OF DATA

1. What is the age of the respondent?

PARTICULARS NUMBER

15-20 20

20-25 48

25-30 17

30 AND ABOVE 15

TOTAL 100

CHART

AGE
15% 15-20
20%

20-25

17% 25-30

30 ABOVE

48%

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The above diagram shows us the percentage in the age of respondents. As it shows that from the

number of respondents are 20% in Age group 15-20 and from 20-25 age group. It is 48% from

25-30 and it is 17% from 25-30 and 30 above it is 15%. The above chart shows that high

respondents of online shopping fall in 20-25 age group.

Thus the Hypothesis-Age group 20-25 shops a lot stands true

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2. WHAT IS THE GENDER OF THE RESPONDENT??

PARTICULARS NUMBER

MALE 72

FEMALE 28

TOTAL 100

28%
Female

72%
Male

Among the 65% 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 Indian

women are flocking to Internet there is a possibility that they might end up in a purchase. Also
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an increase in the spending power in the hands of the women might lead to an increase in the

online shopping.

THUS THE HYPOTHESIS-MORE MALES ARE FREQUENT ONLINE SHOPPERS

THAN WOMEN STANDS TRUE

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3.WHAT IS THE EDUCATIONAL QUALIFICATION OF THE RESPONDENT??

PARTICULARS NUMBER

GRADUATE 35

POST GRADUATE 54

MATRICULATE 8

NON MATRICULATE 3

TOTAL 100

3%
8%
Non
Matriculate
Matriculate

54% 35%

Postgraduate Graduate

Educational difference is a significant demographic variable, which shows that regular shoppers

who were better educated made more purchases online. 89% of the shopping has been done by

the regular shopper whose is educated with a graduate or postgraduate degree. This shows that

frequency of purchase is more in case of a higher educated regular shopper as compared to a

online shopping done by a regular online shopper with matriculate (8%) and non matriculate

(3%).

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THUS THE HYPOTHESIS-THERE IS A RELATION BETWEEN EDUCATION AND

ONLINE SHOPPING STANDS TRUE

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4. What is the monthly income of the respondents?

PARTICULAR NUMBER

10,000-20,000 11

20,000-30,000 45

30,000-40,000 29

40,000 ABOVE 15

TOTAL 100

CHART

MONTHLY INCOME

15 11 10000-20000

20000-30000
29 45 30000-40000

40000 ABOVE

This above graph shows the percentage that the monthly income of the different respondents, and

it show that respondents between 20,000-30,000 have bought more online products because most

of them are graduates and they use electronic products like music cds, mobiles, laptops , trendy

clothes, etc .

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THUS THE HYPOTHESIS-THERE IS A RELATIONAL WITH THE MONTHLY

INCOME AND ONLINE SHOPPING STANDS TRUE

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5. What motivates you to buy products online?

PARTICULARS NUMBER

EASY PAYMENT 10

NO HIDDEN COST 7

NO TRAVEL TO SHOP 46

WIDE RANGE OF PRODUCTS 37

TOTAL 100

CHART

MOTIVE
7%
No Travel To Shop
10%
Wide Range Of
46% Products
Easy Payment
37%
No Hidden Cost

THUS THE HYPOTHESIS-RESPONDENTS FIND ONLINE SHOPPING MORE

CONVINIENT BECAUSE THEY DO NOT HAVE TO TRAVEL TO SHOP STANDS

TRUE .

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 6.What product do you buy on internet????

PARTICULARS NUMBER

BOOKS 25

MUSIC CD‘S 20

APPAREL 12

MOBILE 23

LAPTOP 20

TOTAL 100

CHART

PRODUCTS

BOOKS
20%
25%
MUSIC CD'S

APPAREL
23%
20% MOBILE

12% LAPTOP

The above graphs gives result that most of time people use to buy books 25% but the margin

with other things is very less as music Cds & laptops share the same % i.e. 20% and mobiles is

23%. While apparel have the lowest of 12%. So this graph shows us this useful data

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7.Do you feel that online shopping is better than shopping at physical store?

PARTICULARS NUMBER

YES 47

NO 40

CAN‘T SAY 13

TOTAL 100

CHART

COMPARISON

CAN'T SAY
13%
YES
47%
NO
40%

After analyzing the above graph shows that the people are in favor of that online shopping is

better than physical store, the percentage of people who says online shopping is better is 47%

and the people who say it not good is 40 %. Still the percentage of people who says yes is more

than other who says no.

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8. Which of the following stores have you ever visited for shopping online?

PARTICULARS NUMBER

EBAY 30

SNAPDEAL 16

AMAZON 40

FLIPKART 10

OTHERS 4

TOTAL 100

ONLINE E-STORES
4%
10% EBAY
30% SNAPDEAL
AMAZON
40% FLIPKART
16%
OTHERS

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This graph shows that 30% people visit e-bay for online shopping, 40% go at amazon.com for

electronic products, 16 % people go to snapdeal for affordable deals, 10% people visit flipkart &

remaining 4% go to other sites.

THUS THE HYPOTHESIS-SNAPDEAL IS THE MOST PREFERRED SITE FOR

ONLINE SHOPPING DOES NOT STAND TRUE AS PEOPLE PREFER AMAZON

MORE

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9. Have you faced any problems while shopping online?

PARTICULARS NUMBER

NO 33

YES 53

CAN‘T SAY 14

TOTAL 100

CHART

PROBLEM FACED

14% YES
53% NO
33%
CAN'T SAY

This graph shows that whether people faces any problem while doing online shopping or not and

the result shows that 53% people says that they have faced problem while buying online and

33% people says that they don‘t face any problem and 14 says that we can‘t say.

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10. What according to u are the barriers in online shopping???

PARTICULARS NUMBER

PRIVACY AND SECURITY 33

ABSENCE OF TOUCH AND FEEL FACTOR 21

LACK OF CUSTOMER SERVICE 16

HASLE OF RETURNING 14

OTHERS 16

TOTAL 100

7% 33%
9% Others Privacy &
Unfamiliar
Security

14%

Hassle of

returning

16%
21%
Lack of
Inability to
Customer
touch & feel
Service

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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.

THUS THE HYPOTHESIS -MOST OF THE RESPONDENTS ARE HESITANT TO

PURCHASE ITEMS OVER INTERNET BECAUSE OF TOUCH AND FEELFACTOR

PROVES NOT TO BE TRUE AS MAJORITY GO WITH SECURITY CONCERN

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11. What factors help you to decide which site to use for online shopping?

PARTICULARS NUMBER

SEARCH ENGINE 20

ONLINE ADVERTISING 28

PERSONAL RECOMMENDATIONS 32

SPECIAL OFFERS 8

OTHERS 12

TOTAL 100

Chart Title
others
12%
Search
engine
20%
online
advertising
28%

Personal
special offers recommendatio
8% n
32%
32% of the people help to decide to purchase the product through personal recommendation and

then 28% online advertising,20% from search engine and few of the people decided from other

factors.

THUS THE HYPOTHESIS-ONLINE ADVERSTISING IS THE MOST IMPORTANT

FACTOR WHICH HELPS FOR THE SELECTION OF SITE FOR ONLINE SHOPPING

DOES NOT STAND TRUE AS PEOPLE PREFER PERSONAL RECOMMENDATIONS.

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12. Overall were u satisfaied with the experience of online shopping ????

PARTICULARS NUMBER

YES 65

NO 35

TOTAL 100

CHART

SATISFIED
70 65

60

50

40 35

30

20

10

0
YES NO

65% people are in the favor of online shopping where as 35% is not. This is what the above bar

chart signifies.

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 FINDINGS

Now the current scenario there has been increasing number of buyers and sellers towards online

shopping day by day. because the people preferring to purchase the product through online

shopping due to saving of time another aspect is product is delivering at home with nominal

delivery charge that‘s why people prefer online shopping instead of physical store.

Online stores are usually available 24 hours in a day, and many consumers have Internet access

both at work and at home even at villages. They may shop the products through online shopping

at any time with any devices may be mobile phones, tablets, PC‘s, Laptop etc.

Another aspect is product is available at reasonable price as compare to physical store price in

market and people‘s mentality is ―if product is available at Reasonable price so why should

purchase from physical store‖.

Most of the people in professional segments are prefer to buying the products due to having lack

of time and avoided to visits at physical stores.

Most of the people motivate to buying the product because of their facilities and no need to

travel to shop or physical store and the product is deliver at home with paying nominal charges.

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 CONCLUTIONS

Increased Internet penetration, a hassle free shopping environment providing to the online

shoppers with one click and the product is delivered at home so, that‘s why more Indians prefer

shopping online. But at the same time the companies need to reduce the risks related to consumer

incompetence by tactics such as making purchase websites easier to navigate, and introducing

Internet kiosk, computers and other aids in stores. The goal is not to convert all shoppers to

online purchasing, but to show them it‘s an option. In addition to above, efforts need to be taken

to educate the online buyers on the steps that need to be undertaken while making an online

purchase. Moreover, the feedback of an online buyer should be captured to identify flaws in

service delivery. This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises. I found that it is a

challenge for E-marketers to convert low frequency online buyers into regular buyers through

successful website design and by addressing concerns about reliable performance. Thus, the

online retailing raises more issues than the benefits it currently offers. The quality of products

offered online and procedures for service delivery are yet to be standardized. Till the same is

done, the buyer is at a higher risk of frauds.

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 SUGGESTION & RECOMMENDATIONS

After researching this topic, I would recommend some suggestions and listed are as follows as:

 First of all I recommend that the online sellers have to make transparent payment

transactions because sometimes the online shoppers unaware about hidden cost. So, there

must be transparency regarding price between online sellers and shoppers.

 Online sellers also helps to make people more aware about the low risk towards

shopping of the net because online shoppers facing the fraudulent.

 One more thing is that there should be transaction of money is very slow they have to

make it fast so that customer don‘t have to face much problem to pay for the product, if

customer is going to face some problem he is not going to visit our site and buy product

 Online sellers have to give more offers to their customers so that they may visit again

and again to their site.

 There are some implications should be followed by the online sellers are as follows as:

 Discount prices

 Cash back offers

 Fast transactions

 Focus on customer satisfaction

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 BIBLOGRAPHY

JOURNALS

 Alba, J., Lynch, J., Weitz, B., Janiszewski, C., Lutz, R., Saywer, A. and Wood, S.,

―Interactive Home Shopping: Consumer, Retailer, and Manufacturers Incentives to

Participate in Electronic Marketplaces‖, Journal of Marketing, Vol. 61, No. 3: 38-53,

1997.

 Butler, P. and Peppard, J., ―Consumer purchasing on the Internet: Process and Prospects‖,

European Management Journal, Vol. 16, No. 5: 600-610, 1998.

 Kotler Philip, (2003) marketing management, eleventh edition, Pearson education, Delhi.

 Prussakov Evgenii, Online shopping through consumer‘s eyes, Am Navigator, 2008.

 Price Lisa, The best of Online Shopping, Ballantine Books, 2001

 Simpson Paul, Online Shopping: The rough Guide,3rd edition, 2000

 Lillian Clark and Peter Wright, A review of Common Approaches to understanding

Online Consumer Behaviour, PP- 5.87- 5.122

 Tonita Perea Monsuwe, Benedict G. C. Dellaut and KodeRuyter, What Drives

Consumers to shop Online? A literature review, PP- 765-789.

 Donthu, Naveen and Adriana Garcia (1999), The Internet Shopper, Journal of

Advertising Research, V39 (3), 52-58.

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RESEARCH PAPERS

 Research report By: IAMAI

 Emerald, Framework for consumers‘ intentions to shop online, research report

 Http://www.ijsrp.org/research-paper-0613.php?Rp=P181300

WEBSITES

 Amazon.in

 Myntra.com

 Jabong.com

 Snapdeal.com

 Flipkart.com

 http://www.emeraldinsight.com/doi/full/10.1108/17554191311303367

 http://shodhganga.inflibnet.ac.in/handle/10603/2695

 Ebay.in

 http://www.ebay.in/?aff_source=Google_cpc

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 https://www.google.co.in/#q=project+report+on+consumer+perception+towards+online+

shopping+in+india

 www.abhinavjournal.com

 Http://www.studymode.com/essays/attitude-of-indian-consumers-towards-online

647049.html

 Shopcules.com

 Groupon.com

 Koovs.com

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SURVEY – CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING AND THEIR

SATISFACTION

Dear Survey Respondent,

I am Nikhil Khubchandani from H.R. College of Commerce and Economics, who is conducting

this research as a part of my academic requirements.

The purpose of this study is to assess –. CONSUMER BEHAVIOR TOWARDS ONLINE

SHOPPING AND THEIR SATISFACTION

Your responses will be kept confidential.

Thank you for participating in my survey!

Nikhil Khubchandani

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 ANNEXURE

QUESTIONNAIRE

Name: _________________________

Address: _______________________________________________

1. What is your age group?

a) 15-20

b) 20-25

c) 25-30

d) 30 and above

2 . In which gender u belong?

a) Male

b) Female

3. What is your Educational Qualification???

a) Graduate

b) Post graduate

c) Matriculate

d) Non-matriculate

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4.What is your monthly income???

a) 10,000-20,000

b) 20,000-30,000

c) 30,000-40,000

d) Above 40,000

5. What motivates you to buy products online?

a) Easy payment

b) No hidden cost

c) No travel to shop

d) Wide range of products

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6. What products you buy on internet?

a) Books

b) Music CDs

c) Apparel

d) Mobile

e) Laptop

f) Other [specify] ___________

7. Do you feel that online shopping is better than shopping at physical store?

a) Yes

b) No

c) Can‘t say

8. Which of the following stores have you ever visited for shopping online?

a) e-bay

b) Snapdeal

c) Amazon

d) Flipkart

e) Other [please specify]

9. Have you faced any problems while shopping online?

a) Yes

b) No

c) Specify _________________________

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10. What are the barriers in online shopping?

a) Privacy And Security

b) Absence Of Touch And Feel Factor

c) Lack of customer service

d) Hassle of returning

e) Others

11. What factors help you to decide which site to use for online shopping?

a) Search engine

b) Personal recommendation

c) Special offers on sites

d) Online advertising

e) Other_________

12. Overall were you satisfied with the experiences of online shopping?

a) Yes

b) No

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