Professional Documents
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Particulars Chapter
Page number
1.Introduction (Theoretical Foundation, Evolution of subject and its Dimensions 1.1 Executive summary 1.2 Introduction 1.3 Theoretical Foundation 1.3.1 Online Shopping in India 1.3.2 Rising connectivity 1.3.3 Factors that Boot Online Shopping in India 1.3.4 Few Facts about Online Shopping
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Review of literature Need,Objectives ,Scope & Methodology 3.1 Need 3.2 Objective 3.3 Scope of Study and Methodology 3.3.1 Scope of Study 3.3.2 Research Methodology 3.3.3 Research Strategy 3.3.4 Descriptive research method 3.4 Sample Design 36 36 36 37 39-44 45-58 63-67 63 64 5 34 35
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5.2 Conclusion 5.3 Limitations& Recommendations 6 7 References Appendix,(Questionnaire.Terms, Abbreviations,Documents,Performa,Financial Statements 65-69 69-73 74-78
Fig 1.1 Fig 1.2 Fig 1.3 Fig 1.4 Fig 1.5 Fig 1.6 Fig 1.7 Fig 1.8 Fig 1.9 Fig 2.0 Fig 2.1 Fig 2.1 Fig 2.2 Fig 2.3 6
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CHAPTER-1
INTRODUCTION TO SUBJECT
1.1Executive 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.
The online purchasing behavior of online shoppers and factor influencing online shopping behavior and its future perspective. 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 highly competitive markets. Companies also use the Internet to convey, communicate and disseminate information, also to conduct satisfaction surveys with ahead in
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 10
purchase the product from a particular store. Many experts are optimistic about the prospect of online business.
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-toconsumer 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 Econsumers behavior from different perspectives. Many of their studies have factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.
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1.3Theoretical Foundation
The Internet has developed an into a new distribution channel and online transaction are rapidly increasing. This has created a need to under how the consumers perceive online purchasing. Price, Trust and Convenience were identified as important factors. Price was considered as to be a most important factor for a majority of the students. The internet has created a paradigm shift of the traditional way people shop. A consumer is no longer bound to opening a times or specific location. So he can become active at virtually any time any place and purchase the products or services. The internet is relatively a new medium for communication and the information exchange that has present in everyday life. The number of internet user is constantly increasing which is also signifies that online purchasing is increasing. The rapid increasing is explained by the consumer behavior. The internet is considered a mass medium that provides the consumers with purchase characteristics as no other medium. Certain
characteristics are making it more convenient for the consumer compared to the traditional way of shopping, such as the ability to any time view and purchase products visualize the needs with products and discuss products with other consumers. Online shopping is the process of consumer go through the when they decide the shop on the internet. The internet has developed into a new distribution channel and the evaluation of this channel. E-commerce has now identified. Using the internet to shop online has become 13
one of the primary reasons to use the internet combined with searching for products and finding the information about them. Therefore internet develop the h Companies use the Internet to also
convey, communicate and disseminate information, to sell the 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. Due to the rapid development of the technologies surrounding the Internet, a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition. Since there are so many potential consumers, it is of the out most importance to be able to understand what the consumer wants and needs.
1.3.2Rising Connectivity
If we observe the growth of Internet Subscribers from the above graph, 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 system has also started in India. This will increase the usage as it goes more on wireless internet. Indians are proving every 14
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 Indias online buying is crossing the overall global averages.
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CHAPTER-3
NEED, OBJECTIVES, SCOPE & METHODOLOGY
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3.1 Need
The need of this research is to identify and get insight into what main factors the online consumer takes into consideration when most he buy products on internet what affects their shopping behaviour, basic need of this research is to find out what are the main factors affect the online consumer when considering and making a purchase over Internet.
3.3 Scope of the Study and Methodology 3.3.1 Scope of the study
At any given time there are millions of people online and each of them is a potential customer for a company providing online sales. Due to the rapid development of the technologies surrounding the Internet, a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition. Since there are so many potential consumers, it is of the out most importance to be able to understand what the consumer wants and needs. The importance of analyzing and identifying factors that influence the consumer when he or she decides to purchase on the Internet is vital. Since the Internet is a new medium for there have been new demands set by the consumer. That is why it is crucial for the online retailers to know what influences 34
the online consumer. Analyzing consumer behavior is not a new phenomenon. The renowned marketing expert Philip Kotler has published several works on the topic of consumer behavior theories. These theories have been used for many years not only to understand the consumer, but also create a marketing strategy that will attract the consumer efficiently Hence, understanding and identifying the consumer is closely related to the directions a company will take with their marketing strategy. These theories can also be applied to identify the online consumer and to create certain consumer segments. However, some distinctions must still be made when considering traditional consumer behavior and online consumer behavior. Since online retailing is a new retailing medium and online consumer behavior is diverse from traditional consumer behavior, one must identify what influences the online consumer. Analyzing the process that the online consumer goes through when deciding and making a purchase over the Internet, shows some factors that consumers consider these factors need to be identified and taken into account by online retailers in order to satisfy consumer demands and compete in the online market.
3.3.2Research Methodology
Data for this study was collected by means of a Survey conducted in Lovely Professional University. The sample size was 100. .The Questionnaire (shown in Annexure) was used Mainly to test the model proposed for Attitude towards online shopping. The type of research was both exploratory as well as Descriptive. Likert five point scales ranging from Strongly Agree to strongly disagree was used as a basis of Questions. We took around eleven different factors by studying the existing models of consumer attitudes that play an important role in online purchase, and then proposed a model leading to online 35
shopping. This model was then tested in our research by the mode of factor analysis in SPSS.
3.3.3Research Strategy
When collecting data to approach the purpose of a research there are two ways in which the data can be collected. In order to acquire a General knowledge about the topic, secondary data is primarily used and is one of the ways by which data can be collected. The second way to collect data is the primary data collection. Usually when a study is Conducted, secondary data is not su fficient enou gh and needs to be completed with primary data which is collected by the research.
identify what impact the factors Price, Tru st, and Convenience have on Online Consu mer Segments.
3.4Sample Design
The factors that we intended to examine can be applied to and investigated at any population that u ses the Internet and bu ys online produ cts Online. Since there are time and resource res traints, a specific Population had to be identified in order to generalize and create relevant segments. We decided that the sample size should contain over 100 respondents and we collected answers from100 respondents. The populations for this research are the University was
university students at the Amity University Uttar Pradesh chosen on a convenience basis.
Convenience sampling involves using samples that are the easiest to Obtain and is continu ed until the sampling size that is need is reached.
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CHAPTER- 4
DATA ANALYSIS
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AGE
0% 14% 7% 31% AGE 15-20 20-25 48% 25-30
30-ABOVE
Figure 1.1
INTERPRETATION The above diagram shows us the percentage in the age of respondents. As it shows that from age 15-20 the number of respondents are31 % and from age of 20-25 it is 48 % and from 25-30 it is 14% this is the above data which is shown by the this pie chart
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14
MALE 86 FEMALE
Figure 2.2
INTERPRETATION As our respondents are mostly from the hostel of Lovely professional University and the campus of university itself, we use to get more data from males as they were ready to give their experiences, it this graph itself is showing more percentage of males rather than females, the percentage of male respondents is 86% and percentage of female respondents is only 14%.
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ADDRESS
24
RURAL 76 URBAN
Figure 3.3
INTERPRETATION The above diagram is showing the percentage of demography of respondents and what is the percentage of respondents who lives in rural or urban region,, the above diagram is showing that 76% of the respondents are from urban areas and 24% of the respondents are from urban area.
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0 4
10
5
OCCUPATION STUDENT PROFESSIONAL GOVT.EMPLOYEE 90
SELF EMPLOYED
OTHER
Figure 4.4
INTERPRETATION This graph help us to know the occupation of the respondents, this is to know that which segment of people are buying more products on the internet whether they are the segment of students o government employees or professional , the above graph shows that the segment of the students i.e. 90% of the students are using internet and use to buy online products.
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MONTHLY INCOME
20000-30000
94 30000-40000 40000ABOVE
Figure 5.5
INTERPRETATION This above graph shows the percentage of monthly income of the different respondents, and it show that less than 10000 income respondents have buyed more online products because most of them are students and they use to buy music Cds, gadgets, laptops .
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35
NO
Figure 6.6
INTERPRETATION This graph show us the percentage of respondents who have their own internet connections, its shows that 65% of respondents have their own internet connections and 35% people dont have their internet connection.
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EASY PAYMENT
NO HIDDEN COST WIDE RANGE OF PRODUCTS NO TRAVEL TO SHOP
10
Figure 7.7
INTERPRETATION This graph shows us what motivates the people to buy internet, as from above result we found out that no travel to shop is the main thing which motivates the people to buy products online.
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Do you feel that the online marketers are providing competitive prices?
6 27 YES 67 NO
CANT SAY
Figure8.8
INTERPRETATION This diagram shows us that whether online marketers are giving competitive price or not and result which is came is that most of the people thought that online marketers are providing competitive prices than physical stores. And result shows 67% of people says that it provides competitive prices and only 27% people says no.
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Q9
WHAT
PRODUCTS
DDO
YOU
BUY
ONLINE?
20
12
T-SHIRTS
MOBILE
LAPTOP
Figure 9.9
INTERPRETATION The above graphs gives result that most of time people use to buy books25% but the margin with other things is very less as music Cds have percentage of 20 and mobile 23%So this graph shows us this useful data .
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Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL STORE
DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN SHOPPING AT PHYSICAL BRICK AND MORTAR STORE?
0 12
45
YES 38 NO
CAN'T SAY
Figure 10.1
After analyzing the above graph shows that the people are in favour of that online shopping is better than physical store, The percentage of people who says online shopping is better is 45% and the people who says it not good is 38 %. Still the percentage of people who says yes is more than other who says no.
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Figure 11.1
INTERPRETATION This graph shows that 35% people use to visit e-bay for online shopping,40% use to go at amazon.com because % of people who buys books is more than any other products so people mostly visits amazon.com, 16 % people do at yahoo shopping and for other people use to visit at BestBuy and others.
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WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING?
WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR ONLINE SHOPPING?
3 18 10
17
32
20
ONLINE ADVERTISING
TV ADVERTISING OTHERS
Figure 12.1
INTERPRETATION This diagram shows us what affects people to buy products on internet and it shows that 32% people came to know about shopping sites through online advertisements. And they attracted towards it and start getting products from there. And 20% people decision is affected by special offers by the offers and the discounts given by the sites.
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Figure 13.1
INTERPRETATION This diagram shows that mostly people uses credit card to pay their payments 78% people use to pay by credit/debit card and 5% through bank transfer and 15% through pay pal and 2 from paypal.
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YES 48 NO
Figure 14.4
This graph shows that whether people faces any problem while doing online shopping or not and the result shows that 48% people says that they have faced problem while buying online and 28% people says that they dont face any problem and 14 says that we cant say
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List of Tables
Age 15-20 20-25 25-30 30 and above Fig 1 Gender Male Female Fig 2 Address Rural Urban Fig 3 Occupation Student Professional Govt.employee Self employed Others Fig 4 Income of respondents Respondents 76 24 No of respondents 31 48 14 0 % of respondnts 31 48 14 7
Respondents 86 14
No of respondents 90 4 5 1
% of Respondents 59
94 3 3
Fig 5 Internet connection Yes No Fig 6 WHAT MOTIVATES YOU TO BUY ONLINE
EASY PAYMENT NO HIDDEN COST WIDE RANGE OF PRODUCTS NO TRAVEL TO SHOP
% of Respondents 37 5 10 46-47
Fig 7 Do you feel that the online marketers are providing competitive prices Yes No Cant,say Fig 8 What products you buy on internet Books Music t-shirts Mobile Laptop % respondents
67 27 6
% Respondents 24 25 12 23 20 60
Fig 9 Do you feel that online shopping is better than shopping at physical brick mortar store Yes No Cant ,say Fig 10 Which of the following stores have you visited online e-bay Yahoo shopping Amazon Best buy Others Fig 11 What factors help you to decide which site is use for online shopping Search engine Personal recomdations Special offers on sites Online advertising TV advertising Others Fig 12 How do you make your payments online Credit card/debit card Bank transfer Pay pal Any other Fig 13 Have you face any problems while shopping online % Respondents
45 38 12
% of Respondents 35 16 40 10 4
% of respondents 18 10 20 32 17 3
% of respondents 78 5 15 2
% of respondents
61
48 28 14
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CHAPTER-5
Summary, conclusion, Limitations, Recommendations
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Summary
The three segments that were found show a significant difference in the primary factor of concern. The general distribution showed that the factor price was the primary factor for the entire population sample, and that second factor was trust was closely followed by convenience. When we segmenting the respondents through the different variables we found that segment one were mainly trust oriented and the respondents had a high positive attitude towards purchasing books online. Other segment was mainly price and convenience oriented therefore took the most consideration to the opinions and experiences of the Reference groups. As they low disposable income and were somewhat convenience oriented when acquiring information about low prices, we chose to label them price easers. We found that most of the time youngster who are from the age of 20-25 shops a lot on the net rather than other age limits. People used to do online shopping because of its convenience rather than its pricing, But the main thing which is very common in the most of the people about online shopping is its risk of privacy i.e. hacking of account number getting passwords and all.
CONCLUSION
Increased Internet penetration, a hassle free shopping environment and high levels of Net saviness see more and more Indians 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 its an option. In addition to above, efforts need to be taken to educate the online 64
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.
The products that are purchased most online in India, according to Juxtconsult, are books and CDs - making up 25 percent of all online purchases. "Ironically, computer hardware and software, despite having the home advantage are among one of the least bought products online, with only 13 percent buying them," says the report. "In sum, the online market in India is blossoming but is yet to take off in a considerable way. The Internet is still being used more for searching than buying products and services. Though a noticeable proportion of net users are also net consumers, essentially, at present only a small tribe among them is driving online shopping momentum," says Juxtconsult.
LATEST
.A new trend in this space is that of Meta search engines. Ixigo and Ezeego are two players in this space. A Meta search engine searches all the online travel sites (including the airlines sites as well) and displays the best deals for the user. Travel websites, such as Make My Trip India Pvt. Ltd and Yatra Online Pvt. Ltd, are battling to win over Indias Rs16,000 crores ($400 million) religious travel market Opportunity in Online Travel Industry: $2billion Online travel company MakeMyTrip (MMT) has recorded sales of Rs. 1000 crore for the financial year ending March 2008, as per a release.
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Consumers often display a bias for brands that they know well and have had a good experience in the past. Thus products of brands with a favorable bias will score over the products of less popular brands. A few would risk buying expensive jewelry from an unknown jeweler online.
Seasonality
E-Commerce Market is faced by seasonal fluctuations. As told by an Industry player, .August to February is the peak seasons for sale, while March to July is the dry seasons for sale.. During the peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day, New Year, Christmas, Mothers Day, Friendship Day etc. are. On these occasions younger generations prefers buying and sending gifts online.
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Online frauds and breach are the biggest barriers to online sales. As a result, prospective buyers prefer staying away from revealing their credit card and bank details.
Recommendations
As we came to know after researching on this topic we recommend that, the online sellers have to make their payment transparent, and as people are coming on their sites and they are buying their products , so retailers have to give more discounts to their customers so that they can visit again and again to their site , and it also helps to make people more aware about the low rick shopping of the net, and one more thing is that there should be transaction of money is very slow they have to make it fast so that customer dont 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 . Following implications should be followed Discount prices A transfer and reliable retailer Fast transactions Focus on customer satisfaction
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