A

Project Study Report

On

“AN ANALYSIS OF CONSUMER’S ONLINE AND OFFLINE SHOPPING

BEHAVIOUR”

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

(MBA)

(2017-2019)

Guided By: - Submitted By:-

Dr. KULWINDER KAUR SARITA YADAV

Assistant Professor MBA Part 2
 CERTIFICATE OF ORIGINALITY

This is to certify that the project titled ‘An Analysis of Consumer’s Online and Offline
Shopping Behavior’ is an original work of the student and is being submitted in partial
fulfillment for the award of the Master’s degree in Business Administration at Pacific Academy
of Higher Education &Research University, Udaipur. This report has not been submitted earlier
either to this University or to any other University/Institution for the fulfillment of the
requirement of a course of study.

SIGNATURE OF GUIDE SIGNATURE OF STUDENT

Place: Place:
 ACKNOWLEDGEMENT

This project report is an insightful experience of my live research project submitted to fulfill the
requirement of two years full time of M.B.A degree.

I would like to thank my project guide Dr. Kulwinder Kaur Gujral, Assistant Professor,
Faculty of Management, Pacific University for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge her for extending valuable
guidance, support for literature, critical reviews of project and the report and above all the moral
support she had provided to me at all stages of this project.

I would like to thank the management & all faculty members for giving me numerous
assignments beyond this project and expose me to the entire gamut of activities and made me to
learn beyond my competence.

(Signature of Student)

Sarita Yadav

MBA IV
 EXECUTIVE SUMMARY

I have undertaken this research project to understand customer’s behaviour towards online and
offline shopping. Through this study I also analyzed the factors that influence the customers
online and offline shopping behavior.

The report contains the brief description of the online shopping and offline shopping. It contains
the findings and analysis of the survey conducted to gather primary data, to judge the importance
of various attributes that influence the satisfaction of customers in different manner and to the
different extent. These attributes are classified as Initial Experience, service delivery and
Grievance Handling.

Further an attempt has been made to know the overall satisfaction of the customers. In this
research study 40 respondents from these customers were taken. After analyzing the results of
the questionnaire we conclude that now a days e-commerce industry is providing innovative
services day by day, but still there are a lot of customers who are even not aware about these
services. The usage of these services is a different issue, they are focusing only to provide the
innovative services to the customers not focusing too aware them regarding these services and
also there is a need to aware the customers about the use and benefits to the services provided by
the e-commerce industry.

This project gave me a great learning experience and at the same time it gave enough scope to
implement my analytical ability. Online shopping has become increasingly popular, due to
convenience (and often lower prices). Especially in the holiday season, online shopping saves an
individual the hassle of searching several stores and then waiting in long queues to buy a
particular item.

Online shopping is a form of electronic commerce which allows consumers to directly

buy goods or services from a seller over the Internet using a web browser. Consumers find a
product of interest by visiting the website of the retailer directly or by searching among
alternative vendors using a shopping search engine, which displays the same product's
availability and pricing at different e-retailers.
 TABLE OF CONTENTS

S. No. CONTENTS Page No.

1 Introduction

2 Key players of E-Commerce industry

3 Review of Literature

4 Research Methodology

5 Data Analysis and Interpretation

6 Facts and Findings

7 Suggestions

8 Conclusion

9 Annexure
 CHAPTER -1

INTRODUCTION

E-commerce creates new opportunities for performing profitable activities online. It promotes
easier cooperation between different groups: businesses sharing information to improve customer
relations; companies working together to design and build new products/services; or
multinational company sharing information for a major marketing campaign. The term e-
commerce was coined back in the 1960s, with the rise of electronic commerce – the buying and
selling of goods through the transmission of data – which was made possible by the introduction
of the electronic data interchange. Fast forward fifty years and e-commerce has changed the way
in which society sells goods and services. E-commerce has become one of the most popular
methods of making money online and an attractive opportunity for investors. 24/7 accesses
customers to shop or conduct other transactions 24 hours a day, all year round from almost any
location. Have more choices to Customers not only have a whole range of products that they can
choose from and customize, but also an international selection of suppliers.

By the price comparisons the Customers can ‘shop’ around the world and conduct comparisons
either directly by visiting different sites, or by visiting a single site where prices are aggregated
from a number of providers and compared. Improved delivery processes. This can range from the
immediate delivery of digitized or electronic goods such as software or audio-visual files by
downloading via the Internet, to the on-line tracking of the progress of packages being delivered
by mail or courier. An environment of competition where substantial discounts can be found or
value added, as different retailers vie for customers. It also allows many individual customers to
aggregate their orders together into a single order presented to wholesalers or manufacturers and
obtain a more competitive price. Benefits of e-commerce to society Enables more flexible
working practices, which enhances the quality of life for a whole host of people in society,
enabling them to work from home. Not only is this more convenient and provides happier and
less stressful working environments, it also potentially reduces environmental pollution as fewer
people have to travel to work regularly. It Connects the people to enables people in developing
countries and rural areas to enjoy and access products, services, information and other people
which otherwise would not be so easily available to them.

Airline and travel tickets, banking services, books, clothing, computer hardware, software, and
other electronics, flowers and gifts are some popular products and services that can be purchased
online. Several successful e-businesses have established their business models around selling
these products and services. Ecommerce has the potential to generate revenue and reduce costs
for businesses and entities. Marketing, retailers, banks, insurance, government, training, online
publishing, travel industries are some of the main recipients of e-commerce.

OFFLINE SHOPPING
Offline shopping is a traditional way of purchasing services or products by directly visiting to the
store/shop/ or vendor. Advantages of offline shopping include the opportunity for customers to
establish personal connections with your business, which can build loyalty. Some customers may
prefer to buy only after touching or trying on a product, which may reduce the number of product
returns for certain businesses. The offline model is the only option for many businesses. For
example, although a restaurant can advertise on social media or put up its menu online, it
obviously cannot serve customers online. Similarly, a car dealership is unlikely to be as effective
without its sales staff walking buyers through the buying or leasing process.

Offline Shopping is supposed to make you feel happy about yourself. It is a way of bringing fun
and joy while doing it. It has its own joy when you try on clothes and ask your friends how it
looks on you. In offline shopping you physically is present near the collection you want to
choose from and try out the clothes by yourself. Sometimes it is not prominent in the images.
The texture and material of the fabric can be known. It is of great help when the sales person
helps you in every step from choosing the correct size to providing you with choices of colors.
There is no requirement of waiting three to four days for the item when you can get it right away
and therefore use it right then and there. Returning the product can be done by the customer
herself/himself and this will avoid delay and trust issues.
Offline shopping is totally different with it. You get to see the product that you want to buy,
understand the materials of the product. If you were to buy clothes, you won’t be worried about
getting the wrong size for it. One of the advantages of offline shopping is consumers will feel safe
with their money. The advantages of offline shopping are that consumers get to move around and
enjoy the environment of a shopping mall. It also allows customer to actually see the product they
would like to purchase. One of the best features is that offline shopping allows consumers to
receive the product immediately. If it was a birthday gift or a valentine gift, consumers will have
more time to think of wrapping up the gift. In conclusion, Offline shopping would be a much more
of a convenient method if the shopper would be more interested in looking at the details and
specifications of the product that he or she wants to buy before planning to purchase the product.

Factors Affecting Consumer’s Offline Shopping Behaviour

Offline shopping has existence since the existence of mankind. Offline shopping gives different
types of benefits to the customer. There are some factors which affect the shopping offline those
are as follow:

1. Less number of choices: There are limited numbers of choices when it comes to offline
shopping. The numbers of varieties are limited. The ranges of products available in the
shops are limited. Sometimes, the stocks are old and are up for discount and sale.
Basically in offline or any shop we get less numbers of choices as it consists of manual
work. We have to choice in that less number of materials due to manual factor.
2. Time consuming: It takes a lot of time to go shopping to a store. Distance from home or
workplace to the store is time consuming. It is also time consuming while trying out the
outfits in a store or even going through other products. In off-line shopping customer
move one place to another and one shop to another in search of their desired product.
3. Information: What generally happens is that the information provided by a shopkeeper
isn’t correct. Also this information doesn’t always suit our needs. And we buy products
according to what they say when we ourselves don’t have adequate knowledge about the
 products. Such purchases are based on goodwill when we happen to know the
shopkeepers.
4. Authenticity: Offline shopping is more authentic than online shopping. While buying the
product we can feel the texture of it and know what it’s like. We exactly know what we
are buying while buying anything offline. But in online shopping, we don’t always know
what exactly we are buying. This is because what we see on the websites is not always
what we buy when the product reaches us.
5. Taste and preference: The taste and preferences of the customer change from time to
time. While buying any product from a store we have the flexibility and the choice to try
out 9 outfits. But while buying any product from a website we don’t have this facility.
Therefore, buying offline caters more to the changing taste and preferences of the
customers.
6. Bargaining: In offline store a customer can do physical bargaining to the seller unlike
shopping online. In online shopping a customer cannot do bargaining as the price of the
product is fixed. Some of the customer purchased products depending upon bargaining so
they do not go for online shopping as they feel shopping online is more costly than the
market.

ONLINE SHOPPING
Online Shopping System helps in buying of goods, products and services online by choosing the
listed products from website (E-Commerce site). The proposed system helps in building a
website to buy, sell products or goods online using internet connection. Purchasing of goods
online, user can choose different products based on categories, online payments, delivery
services and hence covering the disadvantages of the existing system and making the buying
easier and helping the vendors to reach wider market. In day to day life, we will need to buy lots
of goods or products from a shop. It may be food items, electronic items, house hold items etc.
Now a day, it is really hard to get some time to go out and get them by ourselves due to busy life
style or lots of works. In order to solve this, B2C E-Commerce websites have been started. Using
these websites, we can buy goods or products online just by visiting the website and ordering the
item online by making payments online.

This online system of buying goods has several disadvantages. It requires lots of time to travel to
the particular shop to buy the goods. Since everyone is leading busy life now a day, time means a
lot to everyone. Also there are expenses for travelling from house to shop. More over the shop
from where we would like to buy something may not be open 24*7*365. Hence we have to
adjust our time with the shopkeeper’s time or vendor’s time.

Online customers must have access to the Internet and a valid method of payment in order to
complete a transaction, such as a credit card, debit card, cash on delivery or a service such
as PayPal .A typical online store enables the customer to browse the firm's range of products
and services, view photos or images of the products, along with information about the product
specifications, features and prices. 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, and 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.

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.

Factors Affecting Consumer’s Online Shopping Behaviour

Online shopping becomes relevant in the last decade. The kind of business online retailer are
doing is proof enough that they are providing some benefits to customer which offline shopping
does not give to the customer. These are the factors affecting online shopping:

1. Risk: When customer buy products from online shopping they do not touch or feel the
product in a physical sense .Hence we understand that lot of risk is involve while
buying an online product whether it will reach us on proper time or not is also a
concern and a also there may arise a risk of product size and color as it may differ in
real view or sense. Sometimes the product ordered is kind of damaged.

2. Convenience: Online shopping is much more convenient than offline shopping.

Instead of taking out your vehicle and visit shop to shop you can just sit at your home
and do the shopping. It is convenient to sit at one place and shop the product of our
choice without moving from place to place. Once you have decided on what you want
to buy the payment process is seamless and the order is delivered to your place. Online
shopping makes things more convenient. We can have a lot of choice over there in any
kind of material we want to deal with that too without any fear of dealing with any
dealer or distributers. Online shopping is convenient in its real sense as it do not carry
any dealing with issues of asking for wanted items or issues of asking for desired kind
of items which helps in avoiding the part of waiting, asking, questioning about the
product.

3. Anxiety: People’s anxiety of exploring the sites and experimenting over them is also a
matter of concern. Sometimes people those who are not very known to any sites like
flip kart, myntra or any sites they just feel like it’s a tough kind of activity over net
and its complicated in there sense as they are not very fond of doing online shopping
 as it takes a time to even understand the product about its details.

4. Previous online experience: How has been a person’s experience in past as far as
online shopping is concerned is a major story of concern. Previous experience is what
matters actually as its hamper or sometime it keep good view or mood of people.
There are two experiences one is about good and another is about bad. Both has its
own and different affect in the mind of buyers. So these factors also influence online
shopping or e shopping.

5. Pricing Policy: Online retailers gets an inherent advantage in pricing as they don’t
have to bear expenses like store rent, bills etc. They can pass their price directly to
customer and generally offer a lower price to customer than offline market. Even
when shipping charges are included than also it is better than the offline shopping.
Hence, determines the level of online shopping. Lower the price- higher the mood to
demand, higher the price –lower the demand. Price of any commodity also influences
the purchasing power of any specific buyer. Consumer generally prefer mild or normal
price with good quality and do not want to spend or expense lot for any kind of stuff.
So buying and selling both are simultaneously affected by the price of product.

6. Quality: The quality of product at online sites and offline stores vary a lot and then
this determines the frequency of online shopping. Quality also carries good affecting
nature over any kind of shopping. As consumer or buyer want to have a good quality
of product as they spent their huge sum of money. In general, qualities is a primary
need over any kind of purchasing as it somewhat secure or give a good sense of
buying or kind of guarantee about the product preferred.

7. Online trust: It depends on customer perception whether they trust a particular site
and its product and services. Hence the frequency of online shopping also depends
upon whether they trust a particular site or not. People are different in their nature and
thoughts, some kind of people trust online dealing some kind of people are in fear of
online dealing. Trust 6 carry a lot of points examples- trust about the same product
size quantity weight and security etc.

8. Tangibility of the product: At the store the customer gets to touch and feel the
product they purchase before buying which help the customer to take the decision to
 buy the product or not whether the product will suit the customer need or not.
Whether, we can and see feel a product is also a reason which determines whether a
person’s wants to go for shopping or not. Tangibility of any product also determines
the online shopping. Without touching the preferred or desired substance nobody can
get its security about the worthiness or quality or sense of any preferred product.

9. Delivery time: The product ordered by the customer in online shopping takes a
minimum of six to seven days to deliver the product to the customer. But in offline
shopping the possession of the goods is immediately transferred to the buyer. So this
is a major factor which affects the online shopping. People want a good delivery time;
they prefer to get a product in a desired time or in short time of duration. Duration is
the second major factor affecting the demand of product.

10. Income: The person whose income is more, do more online shopping as compared to
the person whose income is less. Income plays a major role to purchase online
products. Higher income people prefers to purchase online more than offline as it
gives them reliability and convenient. Higher the income higher wills the purchasing
of online product and vice-versa.

11. Taste and preference: The taste and preference of the customer vary from customer
to customer and time to time, taste and preference also a factor which influences
online shopping. Taste and preference of age group also matters in online shopping.
Old people buy or purchase product for their kind of use. Young generation or
teenagers use to purchase their taste of product. Taste and preference move in tend of
ages and choices. Every customer or buyer choices are different in nature as per their
ages.

12. Information: The information given in the site may not be correct or may not be
appropriate information. The full information about the quality of the product may not
reach to the customer. Hence it will affect the online buying of the customer.
Information provided by the preferred sites may be not the same about the detail of the
product. May be with the provided information and details customers are not very
satisfied. Sometimes it happens that even many customers use to buy the product after
 their full knowledge of details as they prefers the detail are accurate and good in sense.
Information related to product may vary in its real sense when it arrives or delivered to
relevant customer.

13. Variety: The kind of variety that a customer gets online is hard to match any product
purchased offline. The online retailer’s stock products from the entire major brand and
a customer can find any product in their listing no matter how hard to find it is in the
offline store. Online and offline both shopping provide variety of range from various
brands. Variety in it itself is the foremost dealing factor which influence the market.
Larger the variety of product in shop higher the selling and vice-versa. People
generally prefer to move where they get more variety of products.

14. Discreet shopping: While buying some products like lingerie customers don’t feel
comfortable to purchase it in offline store. Shopping online is discreet and some online
portals also provide discreet shopping. There is no person to who is to ask for any kind
of intimate product, customer can easily cope with offline as they can go and purchase
their usable items without any kind of hesitations.

15. Offers: Apart from offering products at lower price most online shopping regularly
come up with discount offers in association with bank, brand etc. Which entail
customer to get additional saving while buying products online? Offline stores only
give offer or discount during stock clearance or when the manufactures gives the
discount on the products. Online shopping always provides offers at all the time and
day. In every purchase we get some offers even if there is no festival or carnivals.
Offers are a great factor which attract customer to purchase online.

16. Instant gratification: Customer buying offline gets their products as soon as they
pay for it but in online shopping customer have to wait for their product to get their
product. Under normal circumstances waiting a day or two does not matter much but
when a customer want to get the product instantly than offline shopping become
necessary.

17. Available product and services: Online shopping offer customers more benefit by
providing more variety of goods and services that they can choose from. There are
some goods which a customer can only find online.
Key Players of E-Commerce Industry

Amazon is an American multinational technology company based in Seattle, Washington that

focuses in e-commerce, cloud computing, and artificial intelligence. Amazon is the largest
Internet company by revenue in the world and the second largest employer in the United States.
Amazon is the largest e-commerce marketplace and cloud computing platform in the world as
measured by revenue and market capitalization. Amazon.com was founded by Jeff Bezos on July
5,1994 and started as an online bookstore but later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, so
ftware, video games, electronics, apparel, furniture, food, toys, and jewelry.

The company also owns a publishing arm, Amazon Publishing, a film and television
studio, Amazon Studios, produces consumer electronics lines including Kindle e-
readers, Fire tablets, Fire TV, and Echo devices, and is the world's largest provider of cloud
infrastructure services. Amazon has separate retail websites for some countries and also offers
international shipping of some of its products to certain other countries. 100 million people
subscribe to Amazon Prime.

To the full extent permissible by applicable law, Amazon disclaims all warranties, express or
implied, including, but not limited to, implied warranties of merchantability and fitness for a
particular purpose. Amazon does not warrant that this site; information, content, materials,
products (including software) or services included on or otherwise made available to you through
this site; their servers; or electronic communications sent from Amazon are free of viruses or
other harmful components. Amazon will not be liable for any damages of any kind arising from
the use of this site or from any information, content, materials, products (including software) or
services included on or otherwise made available to you through this site, including, but not
limited to direct, indirect, incidental, punitive, and consequential damages, unless otherwise
specified in writing.

APPAREL

CLOTHING

ELECTRONICS

The company created a record by selling 1 lakh books in a single day in 2013. Flipkart
crossed the 100 million mark in registered customers in 2016. Flipkart is one of India’s
leading e-commerce marketplaces. It was founded in October 2007 and its headquarters are in
Bengaluru. It was founded by Sachin Bansal and Binny Bansal. This online venture was
initially started as an online bookstore and as the popularity of the company grew, it expanded
and diversified its operations. As of now, the company offers 80 million+ products spread
across more than 80 categories such as mobile phones & accessories, computers and
accessories, laptops, books and e-books, home appliances, electronic goods, clothes and
accessories, sports and fitness, baby care, games and toys, jewelry, footwear, and the list goes
on. Flipkart has 100 million registered users and more than a million sellers on its electronic
commerce platform. To ensure prompt delivery to its customers, the company has invested in
setting up warehouses in 21 states.

This online platform attracts ten million page hits every day and around eight million
shipments are processed every month. We will process Product orders placed by customers
who follow Special Links from your site to the Flipkart Site. We reserve the right to reject orders
that do not comply with any requirements that we periodically may establish. We will be
responsible for all aspects of order processing and fulfillment. Among other things, we will prepare
order forms, process payments, cancellations, and returns, and handle customer service. We will
track sales made to customers who purchase Products by using Special Links from your site
to the Flipkart Site and will make available to you reports summarizing this sales activity. The
form, content and frequency of the reports may vary from time to time in our discretion.

APPAREL

CLOTHING AND ELECTONICS

Myntra is a one stop shop for all your fashion and lifestyle needs. Being India's largest e-
commerce store for fashion and lifestyle products, Myntra aims at providing a hassle free and
enjoyable shopping experience to shoppers across the country with the widest range of brands
and products on its portal. The brand is making a conscious effort to bring the power of fashion
to shoppers with an array of the latest and trendiest products available in the country. Myntra's
value proposition revolves around giving consumers the power and ease of purchasing fashion
and lifestyle products online. Offerings such as the largest in-season product catalogue, 100%
authentic products, cash on delivery and 30 day return policy make Myntra, the preferred
shopping destination in the country. To make online shopping easier for you, a dedicated
customer connect team is on standby to answer your queries 24x7.

APPAREL

CLOTHING AND ELECTONICS

Snapdeal is one of India’s leading e-commerce companies with its headquarters located in New
Delhi. Snapdeal was launched in 2010, a time when the e-commerce market in India was at a
nascent stage. The company was co-founded by Kunal Bahl and Rohit Bansal. Snapdeal
currently offers more than 60 million products across various categories such as mobiles &
tablets, computers, office & gaming, electronics, home & living, men’s and women’s fashion,
sports, fitness & outdoors, daily needs, motors & accessories, books, music, real estate, and
financial services. The company has more than 3 lakh sellers on its e-commerce platform that
cater to millions of users. Snapdeal has a wide logistics network and it delivers to more than
6000 cities and towns in India.

APPAREL

CLOTHING AND ELECTRONICS

 CHAPTER – 2

REVIEW OF LITERATURE
N. Saravana Bhavan (2015) entitled “A Study on Consumers Attitude towards Online Shopping
analyzed entire online process of developing, marketing, selling, delivering, servicing and paying
for products and services. Coimbatore city population is highly tech savvy and the city was
dotted with the firms of 83 many successful entrepreneurs. Hinterland has many industries,
estates, corporate hospitals and good number of engineering colleges

Chaing and Dholakia (2014) carried out a study in which they examined the purpose the
customer to purchase goods online during their shopping. Mainly there are three variable in their
study those affects the consumer to purchase online or to go offline. Those are the accessibility
features of the shopping sites, the type of the products and their characteristic, and the actual
price of the product. The study revealed that the accessibility and the convenience of the
shopping sites create the intention in the customer to purchase or not. When there are difficulty
faced by a consumer to purchase online then the customer switch to the offline shopping for the
purchase behaviour and the consumer face difficulty in offline purchasing then they go to the
online purchasing. After relating both the medium of shopping the consumer said that the online
shopping is more convenient for them and gives more satisfaction which inspires the consumer
to purchase online in the internet.

Sunita Guru (2013) a study of trust and perceived risk in Online Shopping found that online
shopping is predominately male, young, single and educated. Internet usage pattern in terms of
average time spent, place of accessing internet, main tasks accomplished and types of sites
visited using internet between both buyers, and non-buyers were almost same.

Pawan Kumar (2013) a paradigm shift in buying behavior among Indian consumers found that
the consumers have perceived online shopping in a positive manner. This clearly justifies the
project growth of online shopping in the country. However, the frequency of online shopping is
relatively less in the count.
Hausman and Siekpe (2009) analyzed a practical study in US regarding the e effect of web
interface features on consumer online purchase intention. E-commerce system is different from
traditional information system. It has both features of information system and marketing
channels. It contains machine and human element. An empirical l finding shows that to know the
motivation factors for online shopper, cognitive and psychological factors do have meanings.
The study finds both human and computer factors are necessary for antecedent for online
shopping.

Koo et.al (2008) have conducted an empirical study, they examined the motivational effects of
personal values on benefits, attributes, and re-patronage intention in the perspective of shopping
online. The study conclude that personal values of social affiliation and self actualization serves
as underlying beliefs in shaping, consumer’s online shopping motives. In addition online store
attributes are positively related to pre-patronage intention.

Harn and Adeline (2008) focused in Malaysia about Web navigation behaviour of Malaysian in
relation to online purchasing. There finding shows that most of the shoppers were well educated
with minimum bachelor degree, their age varies between 19 to 34 and they all are unmarried.
This study proved successfully that the web navigation behaviour is important factor to
determine the probability of online purchasing, and it does not have significant affect for online
purchasing decision. The most dissatisfying factor was slow downloading rate of web pages. The
finding provide some insight while designing website, taking into consideration that it should be
easy to use ,attractive and user friendly with faster downloading time.

Jarvelainen (2007) analyzed in her empirical study in Finland that there are many online
information seekers who choose to stop the shopping process just before the finishing point of
the transaction. The reason behind this is intensely rooted in the internet based trust outcomes.
The study focuses on e-commerce background. The finding of this study shows that constancy,
trust worthiness, and usefulness as well as ease of the use of the system are essential, while the
first imprint of online seller is significant, considering the behavioural intention.
 CHAPTER – 3

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It may be understood as a
science of studying how research is done scientifically. In it we study the various steps that are
generally adopted by a researcher in studying his research problem along with logic behind them.

TITLE OF THE STUDY: An Analysis of Consumer’s Online and Offline Shopping Behavior.

DURATION OF PROJECT: The duration of project 40 days.

OBJECTIVES OF RESEARCH

Primary Objectives

1. To analyze consumer’s behavior regarding online and offline shopping.

2. To undertaken a comparative study between online and offline shopping.

Secondary Objectives

1. To know perception of people about online shopping.

TYPE OF RESEARCH

Quantitative Research- Quantitative research is defined as the systematic investigation of

phenomena by gathering quantifiable data and performing statistical, mathematical or
computational techniques. Quantitative research gathers information from existing and potential
customers using sampling methods and sending out online surveys, online polls,
questionnaires etc., the results of which can be depicted in the form of numerical.

SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

 Sampling Population: customers who are using online and offline facility.
 Sampling unit: customers who are using online and offline facility.
  Sampling size: 40 Customers
 Sampling Technique: simple randomly sampling

COLLACTION OF DATA

The data is collected is of the Primary and Secondary type:

PRIMARY DATA:- The primary data is collected by approaching the individuals with well

structured Questionnaire and was filled after making them understand the use of the information.

This was done to make sure that the information provided is true and close ended questions are

used while conducting the survey.

 The primary data was collected through the well structured Questionnaire.

SECONDARY DATA:-

Secondary research is a means to reprocess and reuse collected information as an indication for

betterments of the service or product.

 The secondary data was collected through the Internet, Research papers, Websites,
Journals and Magazines on e-commerce.

PROBLEM STATAEMENT: A comparative study between online and offline shopping

behaviour.

RESEARCH GAP: A research gap is defined as a topic or area for which missing or
insufficient information limits the ability to reach a conclusion for a question. A research need is
defined as a gap that limits the ability of decision-makers (policy-makers, patients, practitioners)
from making decisions.

RESEARCH DESIGN: A research design is the set of methods and procedures used in
collecting and analyzing measures of the variables specified in the problem research. The design
of a study defines the study type and sub-type, research problem, hypotheses, independent and
dependent variables, experimental design, and, if applicable, data collection methods and a
statistical analysis plan. A research design is a framework that has been created to find answers
to research questions.

SCOPE OF THE STUDY:

 Thus this study will be beneficial to the online marketer in making the strategy to
fulfill the need of customer through knowing the attitude and satisfaction level.
 To determine which factor influences the consumer to go for online shopping.
 To find out which feature of the website attracts the user to purchase the product from online
shopping website.

LIMITATION OF STUDY

 Finding of the study based on the assumption that respondents have the correct
information.

 The study limited due to time, costs.

 Due to unwillingness of providing any information, the respondents filled the

questionnaire casually which might have affected the conclusions
 CHAPTER – 4

DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC PROFILE

Age (in years): a) 15-25 b) 25-35 c) 35-45 d) above 45

Age Respondents %
15-25 10 25%
25-35 14 35%
35-45 9 22%
above 45 7 18%
Total 40 100%

AGE

18%
25%
15-25
25-35
35-45
22%
above 45

35%

Interpretation: Out of 40 respondents 25% respondents belong to the age group 15-25 years,
35% are belong 25-35 years, 22% are belong 35-45 years, and also 18% are belong 45 years
above age.
GENDER: a) Male b) Female

Gender Respondents %
Male 24 60%
female 16 40%
Total 40 100%

GENDER

40%
Male
female

60%

INTERPRETATION: Out of 40 respondents 60% respondents are males and remaining 40%
are females.
EDUCATIONAL QUALIFICATION

Educational Qualification Respondents %

Intermediate 6 15%
Graduate 12 30%
Post Graduate 18 45%
Others 4 10%
Total 40 100%

Educational Qualification

10%
15%

Intermediate
Graduate
Post Graduate
30% Others
45%

INTERPRETATION: Out of 40 respondents 15% are intermediates, 30% respondents are

graduates, 45% are post graduates and 10% are other qualified.
OCCUPATION

Occupation Respondents %
Employment 10 25%
Business 8 20%
Self Employed 12 30%
Any Others 10 25%
Total 40 100%

occupation

25% 25%

Employment
Business
Self Employed
Any Others

20%
30%

INTERPRETATION: Out of 40 respondents 25% are in employment, 20% are in business,

30% are self-employed and 25% are in any others occupation.
MONTHLY INCOME (in Rs)

Monthly Income
( in Rs) Respondents %
Below 10,000 4 10%
10,000-30,000 15 37%
30,000-50,000 12 30%
above 50,000 9 23%
Total 40 100%

monthly income (in rs)

10%

23%

Below 10,000
10,000-30,000
30,000-50,000
37% above 50,000

30%

INTERPRETATION: Out of 40 respondents, 10% respondents have income below 10

thousand, 37% are have income between 10 to 30 thousand, 30% are have income between 30 to
50 thousand and 23% are have income above 50 thousand.
1. Do you do online shopping?

Particulars Respondents %
Yes 24 60%
No 16 40%
Total 40 100%

40%

Yes
No

60%

INTERPRETATION: Out of 40 respondents 60% respondents were do online shopping while

40% were don’t prefer online shopping.
2. Which factor do you consider most while purchasing online?

Particulars Respondents %
Price competitive 7 29%
Less time consuming 5 21%
Easier way of purchase 3 12%
Attractive product offers 9 38%
Total 24 100%

29%
38%
Price competitive
Less time consuming
Easier way of purchase
Attractive product offers

21%
12%

INTERPRETATION: The analysis of the above chart show that 29% of respondents prefer
price competitive, 21% of respondents less time consuming, 12% of respondents easier way to
purchase, remaining 38% of respondents from attractive product offers consider most while
purchasing online.
3. Which factors influence you to buy offline?

Particulars Respondents %
Check product quality 18 45%
Reliability 6 15%
Better return policies 4 10%
In store discount 12 30%
Total 40 100%

30%

Check product quality

45%
Reliability
Better return policies
In store discount

10%

15%

INTERPRETATION: The analysis of the above chart show that 45 % of respondents prefer
check product quality, 15% of respondents prefers reliability, 10% of respondents prefer better
return policy, remaining 30% of respondents prefer in store discount.
4. Have you felt any problem while conducting online purchase?

Particulars Respondents %
Yes 8 33%
No 16 67%
Total 24 100%

33%

Yes
No

67%

INTERPRETATION: Majority of respondents 67% replies no and remaining 33% gives

positive response while conducting online purchase.
5. If, yes what kind of problem?

Particulars Respondents %
Delay in delivery 1 12%
Product damage 2 25%
Cheap quality of product 3 38%
Others 2 25%
Total 8 100%

12%

25%

Delay in delivery
Product damage
25%
Cheap quality of product
Others

38%

INTERPRETATION: The analysis of the above chart shows that 12% of respondents say that
there is problem of delay in delivery on online purchase, 25% of respondents say that there is
product damage and 38% of respondents say the products are of cheap quality and 25% of
respondents are others.
6. If, you never had online shopping, please specify the reason?

Particulars
I Don't know about online shopping
Risk of credit card and transaction
Internet illiteracy
Risk of identity theft
Duplicate quality
Total
Respondents %
1 6%
2 12%
3 19%
4 25%
6 38%
16 100%

6%

12% I Don't know about online

shopping
38% Risk of credit card and
transaction
Internet illiteracy

19%
Risk of identity theft

Duplicate quality

25%

INTERPRETATION: The analysis of the above chart shows that 6% of respondents say that
they don’t know about online shopping, 12% of respondents say that there is risk of credit card
and transaction, 19% of respondents say that there is internet illiteracy, according to 25% of
respondents says there is risk of identity theft and 38% of respondents were from duplicate
quality.
7. How frequently do you do online shopping?

Particulars Respondents %
Every month 9 37%
Quarterly 7 29%
Seldom 4 17%
Once a week 3 13%
Never 1 4%
Total 24 100%

4%

13%

37% Every month

Quarterly
17% Seldom
Once a week
Never

29%

INTERPRETATION: The analysis of the above chart show that 37% of respondents were
from every month, 29% were from quarterly, 17% were from seldom, 13% of were from once a
week and 4% of were from never frequently do online shopping.
8. Which external factors influence your online purchasing decision?

Particulars Respondents
More variety of products 8
Social media 9
Time saving 4
Fast delivery 2
Other market promotion 1
Total 24

X f d = (X-A) fd
1 8 -2 -16
2 9 -1 -9
3 4 0 0
4 2 1 2
5 1 2 2
15 24 0 -21

A=15/5=3
A=3

X = 3+(-21)/24
X = 2.125

INTERPRETATION: Majority of respondents prefer social media in external factors which

influence to online purchasing decision.
9. How much time do you spend on each online shopping?

Particulars Respondents %
1-2 Hours 8 33%
2-5 Hours 10 42%
5-8 Hours 6 25%
Total 24 100%

25%
33%

1-2 Hours
2-5 Hours
5-8 Hours

42%

INTERPRETATION: The analysis of the above chart show that 33% of respondents say that
they spend 1-2 Hours, 42% of respondents say that they spend 2-5 Hours on each online
shopping and remaining 25% of respondents say that they spend 5-8 hours.
10. Which devices are used by you for online shopping?

Particulars Respondents %
Desktop computer 8 33%
Mobile 16 67%
Total 24 100%

33%

Desktop computer
Mobile

67%

INTERPRETATION: Out of 24 respondents 33% respondents were used desktop

computer while 67% were used mobile for online shopping.
11. How much money per month do you spend on each online shopping?

Particulars Respondents %
500-5000 8 33%
5000 - 10,000 6 25%
10,000 - 15,000 5 21%
Above 15,000 5 21%
Total 24 100%

21%

33%

500-5000
5000 - 10,000
10,000 - 15,000
Above 15,000
21%

25%

INTERPRETATION: Out of 24 respondents 33% of respondents were spend from 500-5000

Rs , 25% of respondents were spend from 5,000 to 10,000 Rs, 21% of respondents were spend
10,000 to 15,000 Rs and 21% of respondents were spend above the 15,000 money per month on
each online shopping.
12. Which E-Commerce companies do you generally visit and like to use?

Particulars Respondents
Amazon 9
Flipkart 6
Myntra 4
Shopclues 2
Snapdeal 3
Total 24

X f d = (X-A) fd
1 9 -2 -18
2 6 -1 -6
3 4 0 0
4 2 1 2
5 3 2 6
15 24 0 -16

A= 15/5=3
A=3

X = 3+ (-16)/24
X = 3.666666667

INTERPRETATION: Majority of respondents prefers Amazon e-commerce companies to

generally visit and like to use.
13. Do you look for deals or compare prices before make your online purchase?

Particulars Respondents %
Yes 16 67%
No 8 33%
Total 24 100%

33%

Yes
No

67%

INTERPRETATION: Majority of respondents 67% reply yes and remaining 33% gives
negative response for deals or compare prices before make online purchasing.
14. When you go offline shopping, do you like to go along with friends or family who help
you in making choices?

Particulars Respondents %
No, I like to shop alone 18 45%
Yes 22 55%
Total 40 100%

45%
No, I like to shop alone
Yes
55%

INTERPRETATION: Majority of respondents 55% are like to go along with friends or

family for help in making choices when they do online shopping and remaining 45%
respondents prefer to go alone offline shopping.
15. Which payment method do you usually use when purchasing products online?

Particulars Respondents %
Paypal 4 17%
Credit Card 8 33%
Debit Card 10 42%
Other, please specify 2 8%
Total 24 100%

8%
17%

Paypal
Credit Card
Debit Card

42% Other, please specify

33%

INTERPRETATION: The analysis of the above chart shows that 17% of respondents were use
PayPal, 33% of respondents were use credit card, 42% of respondents were use debit card and
8% were from others usually use payment method when purchasing products online.
16. Which method of purchase gives you more variety of products?

Particulars Respondents %
Online shopping 18 75%
Offline shopping 6 25%
Total 24 100%

25%

Online shopping
Offline shopping

75%

INTERPRETATION: From the above chart it is clear that 75% of respondents say online
shopping method of purchase gives more variety of products and 25% of respondents say offline
method of purchase gives more variety of products.
17. Which method of purchase gives you do better product offers?

Particulars Respondents %
Online shopping 20 83%
Offline shopping 4 17%
Total 24 100%

17%

Online shopping
Offline shopping

83%

INTERPRETATION: From the above chart it is clear that 83% of respondents say online
shopping method of purchase gives better product offers and 17% of respondents say offline
method of purchase gives better product offers.
18. Which method of purchase is more comfortable?

Particulars Respondents %
Online shopping 14 58%
Offline shopping 10 42%
Total 24 100%

42%
Online shopping
Offline shopping

58%

INTERPRETATION: From the above chart it is clear that 58% of respondents say online
shopping method of purchase is more comfortable and 42% of respondents say offline method of
purchase is more comfortable.
19. Which shopping would you prefer in case of purchase of electronic equipments and
expensive items?

Particulars Respondents %
Online shopping 9 37%
Offline shopping 15 63%
Total 24 100%

37%

Online shopping
Offline shoping

63%

INTERPRETATION: From the above chart it is clear that 37% of respondents prefer online
shopping in case of purchase of electronic equipments and expensive items and 63% of
respondents prefer offline shopping in case of purchase of electronic equipments and expensive
items.
20. Which method of purchase has easy replacement policy?

Particulars Respondents %
Online shopping 19 79%
Offline shopping 5 21%
Total 24 100%

21%

Online shopping
Offline shopping

79%

INTERPRETATION: : From the above chart it is clear that 79% of respondents say online
shopping method of purchase has easy replacement policy and 21% of respondents prefer offline
shopping method of purchase has easy replacement policy.
 CHAPTER – 5

FACTS AND FINDINGS

1. 67 percent of the online population has used the mobile device to purchase goods and
services.
2. Most online shoppers use debit cards to pay. In fact, 42 percent of online purchases are
made by debit card.
3. The biggest e-commerce store now is Amazon and second is flipkart.
4. Online shoppers are more motivated to buy online with more comfortable and Varity of
products.
5. 42 percent of online population spends time 2-5 hours on each online shopping.
6. Most of the online users influence by social media for online purchasing decision.
7. 33 percent of online population spends 500 to 10,000 per month on each online
shopping.
8. 67 percent of online users deals or compare prices before make online purchasing.
9. 22 percent of online population is like to go along with friends or family which helps to
making choices in online shopping.
10. In case of purchasing electronic equipments and expensive items 63 percent of
population prefers offline shopping.
11. 45 percent of online population prefer product quality factor in online shopping which
influence to buy online.
 CHAPTER- 6

SUGGESTIONS

1. Use a debit card instead of any other payment method.

2. Do not purchase from spam or phishing emails.

3. Buy from a mobile device, not from PC.

4. Compare prices of products through price comparison sites.

5. Purchase electronic equipments and expensive items from offline shopping.

6. Read return/refund policy.

7. Buy from trusted websites.

 CHAPTER – 6

CONCLUSION

 The survey conducted revealed a positive attitude and behavior toward online shopping
even by those consumers who still like traditional stores.
 Online shopping has made consumers more effective and efficient in their shopping
behavior and has driven businesses to a new level, forcing many to make the necessary
adjustments and changes to reach the new market of knowledgeable consumers.
 Technology has made significant progress over the years to provide consumers a better
online shopping experience and will continue to do so for years to come.
 With the rapid growth of products and brands, people have speculated that online
shopping will overtake in-store shopping.
 The research indicates that shift in buying behavior towards online is positive due to
reasons like cash on delivery, discounts, schemes & quality of products offered.
 Increasing awareness towards use of internet, satisfactorily results in online shopping,
rise in standard of living, occupation, influence of friends and attractive offers had
affected purchase decision making.
 ‘Y’ generations which are youths between the age group of 18-35 years were mostly
attracted towards online shopping of electronic product through smart phones.
 E-consumers decision making mostly influenced by marketing influences like the Price,
Advertisements on TV, Newspapers & Magazines, Free samples, Quality of product &
Brand Image impacts most on consumers’ willingness to buy online.
 Electronic items were less demanded from the e-shopping but clothes are much more
demanded by the consumers.
 There are several products which are not delivered by the shopping sites in the preferable
area, it is seen that with the advancement of the technology the preference of the online
shopping increases.
 CHAPTER – 7

ANNEXURE

BIBLOGRAPHY
https://www.google.com/

http://www.eurocommission.com.in/

http://www.bangkokshotels.com/en/apdip.html

http://www.linkedin.com

https://www.marketresearch.com/

https://www.ssrn.com/index.cfm/en/

http://www.portal.acm.org/

https://en.wikipedia.org/wiki/Online_shopping#Advantages

http://www.thefreedictionary.com/shopping

https://www.answers.com/Q/What_impact_does_online_shopping_have_on_traditional_stores_and_s
hopping_mall
 QUESTIONNAIRE

DEMOGRAPHIC PROFILE

Name:
Age (in years): a) 15-25 b) 25-35 c) 35-45 d) above 45
Gender: a) Male b) Female
Educational qualification: a) Intermediate b) Graduate c) Post Graduate d) Others
Occupation: a) Employment b) Business c) Self Employed d) Any others
Monthly income (in Rs): a) Below 10,000/- b) 10,000/-30,000/-
c) 30,000/-50,000 /- d) above 50,000/-

1. Do you do online shopping?

a) Yes
b) No

2. Which factor do you consider most while purchasing online?

a) Price competitive
b) Less time consuming
c) Easier way of purchase
d) Attractive product offers

3. Which factors influence you to buy offline?

a) Check product quality
b) Reliability
c) Better return policies
d) In store discount

4. Have you felt any problem while conducting online purchase?

a) Yes
b) No

5. If, yes what kind of problem?

a) Delay in delivery
b) Product Damage
c) Cheap quality of product
d) Others
6. If you never had online shopping, please specify the reason?
a) I Don’t know about online shopping
b) Risk of credit card and transaction
c) Internet illiteracy
d) Risk of Identity theft
e) Duplicate quality

7. How frequently do you do online shopping?

a) Every month
b) Quarterly
c) Seldom
d) Once a week
e) Never

8. Which external factors influence your online purchasing decision?

a) Advertisement
b) Social media
c) Time saving
d) Fast delivery
e) Other market promotion

9. How much time do you spend on each online shopping?

a) 1-2 Hours
b) 2-5 Hours
c) 5-8 Hours

10. Which devices are used by you for online shopping?

a) Desktop computer
b) Mobile

11. How much money per month do you spend on each online shopping?
a) 500/ - 5000/-
b) 5000/-10,000-
c) 10,000/-15,000/-
d) Above 15,000/-

12. Which E-commerce companies do you generally visit and like to use?
a) Amazon
b) Flipkart
c) Shopclues
d) Myntra
e) Snapdeal
13. Do you look for deals or compare prices before make your online purchase?
a) Yes
b) No

14. When you go offline shopping, do you like to go along with friends or family who
help you in making choices?
a) No, I like to shop alone
b) Yes

15. Which payment method do you usually use when purchasing products online?
a) PayPal
b) Credit Card
c) Debit Card
d) Other, please specify

16. Which method of purchase gives you more variety of products?

a) Online shopping
b) Offline shopping

17. Which method of purchase gives you do better product offers?

a) Online shopping
b) Offline shopping

18. Which method of purchase is more comfortable?

a) Online shopping
b) Offline shopping

19. Which shopping method would you prefer in case of purchase of electronic
equipments and expensive items?
a) Online shopping
b) Offline shopping

20. Which method of purchase has easy replacement policy?

a) Online shopping
b) Offline shopping