TABLE OF CONTENT

CHAPTER NO
1
2
3
4
5

6
7

TOPIC
INTRODUCTION
LITERATURE REVIEW
RESEARCH OBJECTIVES
HYPOTHESIS AND LIMITATIONS OF STUDY
HYPOTHESIS
LIMITATIONS OF THE STUDY.
RESEARCH METHODOLOGY
PARTICIPANTS & APPARATUS
RESEARCH METHODS
METHOD SELECTION
QUESTIONNAIRE DESIGN
DATA ANALYSIS AND INTERPRETATION
HYPOTHESIS
FINDINGS, CONCLUSION AND
RECOMMENDATION
FINDINGS OF THE STUDY
CONCLUSION
RECOMMENDATION
BIBLIOGRAPHY
APPENDIX

PAGE NO

CHAPTER ONE
INTRODUCTION

80

INTRODUCTION
This study attempts to analyze the features related to the buying behaviour of online
shoppers. Consumer buying behaviour in respect of online shopping was studied using
different socio-economic variables. It also provides a support that helps researchers
understand the drivers of consumers' attitude and goal to shop on the Internet, and
consumers' perceptions regarding ease of use and usefulness. Conclusions derived from
the analysis can be used as useful guide for market orientation. The outcomes of the study
suggest that assessment of consumer buying behaviour can contribute to a better
understanding of consumer buying behaviour in respect of online shopping.
Key words: Online shopping, Buying Behaviour, Consumers etc.
Indian consumers as a whole spend about 55% of the total consumption expenditure on
food items. According to a survey conducted by ORG, the expenditure on non-food items
has recorded large growth that the expenditure on food items. Consumers decide whether,
what, when, from whom, where and how much to buy. They can avail various mediums to
buy the products. But currently we are living in the age of internet.
According to a study, "About 44 percent students use Internet in India and overall 72% of
young people access Internet on regular basis. Due to the vast usage of Internet, the
buying patterns have been changed. It has changed the way goods are purchased and sold,
resulting to the exponential growth in the number of online shoppers. However, a lot of
differences concerning online buying have been discovered due to the various consumers'
characteristics and the types of provided products and services. Attitude toward online
shopping and goal to shop online are not only affected by ease of use, usefulness, and
enjoyment, but also by other factors like consumer individuality, situational factors,
product distinctiveness, previous online shopping understanding and faith in online
shopping. Therefore, understanding who are the ones consuming and why they choose to
use or keep away from the Internet as a distribution channel, is a critical matter for both emarketing managers and consumer thinkers. There are lots of companies which are
providing the platform to consumers to buy the products through online. Online
consumers tend to be better educated. Higher computer literacy makes internet shopping
smarter.Their awareness about the internet also makes them better positioned to identify
80

and take decision for products and services. By the internet, consumers find that they no
longer have to accept fixed prices for the products and services and through the click of a
few buttons the lowest priced, highest quality product can be found. The concept of online
shopping developed gradually, after the launch of the World Wide Web. Charles Stack was
the first person to create an online book store in 1992. Even Pizza Hut opened an online
pizza shop, whereas eBay and Amazon took the concept of online shopping to an entirely
new level. Online shopping began in full swing since the year 1996. Overall, 71 million
users accessed Internet in year 2009, with 52 Million "active" users who accessed it
atleast once in a month.
The internet is being developed rapidly since last two decades, and with relevant digital
economy that is driven by information technology also being developed worldwide. After
a long term development of internet, which rapidly increased web users and highly speed
internet connection, and some new technology also have been developed and used for web
developing, those lead to firms can promote and enhance images of product and services
through web site. Therefore, detailed product information and improved service attracts
more and more people changed their consumer behaviour from the traditional mode to
more rely on the internet shopping. On the other liand more companies have realized that
the consumer behaviour transformation is unavoidable trend, and thus change tlieir
marketing strategy. As the recent researches have indicated that the internet shopping
particularly in business to consumer (B2C) has risen and online shopping become more
popular to many people. According to the report. The Emerging Digital Economy II.
published by the US Department of Commerce, in some companies, the weight of ecommerce in total sales Is quite high. For instance, the Dell computer company have
reached 18 million dollars sales through tlie internet during the first quarter of 1999. As a
result, about 30% of its 5.5 billion dollars total sales were achieved through the internet
(Moon. 2004). Therefore, to understand internet shopping and its impact on consumer
behaviour could help companies making use of it as a form of doing e-business.
There are many reasons for such a rapid developing of internet shopping, which mainly
due to the benefits that internet provides. First of all. the internet offers different kind of
convenience to consumers. Obviously, consumers do not need go out looking for product

80

information as the internet can help them to search from online sites, and it also helps
evaluate between each sites to get the cheapest price for purchase. Furthermore, the
internet can enhance consumer use product more efficiently and effectively than other
CHANNELS to satisfy their needs. Thorough the different search engines, consumers save
time to access to the consumption related information, and which information with
mixture of images, sound, and very detailed text description to help consumer learning and
choosing the most suitable product (Moon. 2004). However, internet shopping has
potential risks for the customers, such as payment safety, and after service. Due to the
internet technology developed, internet payment recently becomes prevalent way for
purchasing goods from tlie internet. Internet payment increase consumptive efficiency, at
the same time, as its virtual property reduced internet security. After service is another way
to stop customer shopping online. It is not like traditional retail, customer has risk that
some after service should face to face serve, and especially in some complicated goods.
Electronic commerce has witnessed an exponential growth resulting in greater use of this
tool by the traders. Also the competition in e-commerce is intensified. Therefore it
becomes more important for online retailers to understand the antecedents of consumer
acceptance of online shopping. Such knowledge is essential to customer relationship
management, which has been recognized as an effective business strategy to achieve
success in the electronic market. The current research is an effort to understand the
satisfaction and loyalty pattern of the buyers shopping online.
When people buy things, they will engage in a decision making process. One of the major
problems of E- commerce web sites is that they fail in supporting the customers in this
process. By understanding the customer's needs and concerns the marketer can provide
better products and services.

80

LIMITATIONS OF STUDY

People were not ready to fill in the questionnaire

Many of the surveyed people did not reply all the questions.

The time period given for study was very limited.

The sample size was very small which is may not represent the entire population of
Indian women.

Many of the people did not even know the working of a computer

80

CHAPTER TWO
LITERATURE REVIEW

80

LITERATURE REVIEW
E-Business probably began with electronic data interchange in the 1960s. However,
suggests that it was only in lite 1990s, primarily via the Internet, that E-BUSINESS lias
emerged as a core feature of many organizations. In his opinion, the hope was that eBusiness 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.
By undertaking research on a regular basis, we learn more about our customers' shopping
needs and styles. This helps us to deliver all the necessary reassurances, product ranges
and services. We conducted this survey during our peak selling period as we are in the
process of developing our range of online interactive services, such as Live Chat.
Powerful multimedia sales tools will soon become standard in the online shopping arena.
In three years, you'll be just as likely to click and watch a product related video of your
intended purchase on your computer before you buy - as you are to have an email address
today." Research showed that the Internet applied a bigger influence than for offline
media for electronics compared to that clothing, beauty or home improvement as would
be expected. Internet Marketing has changed the way people buy and sell good and
service. It has added lot of convenience and easy to the whole process of buying. Internet
buying prevalence is highest in the United States, where 93% of Internet users have
bought on-line, and it is growing rapidly in India as well.
The topic of online consumer believer has been examined under various contexts over the
years. Although researchers from a variety of business disciplines leave 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 tills area.

80

Trust is a key factor that determines the success of Business to Consumer (B2C) ecommerce transactions. Previous researchers have identified several critical factors that
influence trust in the context of online shopping. This research focuses on available
security measures which assure online shopper s safety and great sales promotions and
online deals which stimulate customers to shop online.
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 have 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. 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 observable. In contrast, trust may play a central role hete in enhancing
customer satisfaction. Model trust as an endogenous Conned entity that ultimately impacts
customer satisfaction and we elucidate the linkages between trust and other factors related
to the performance of die online service provider and to the service environment 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 are 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 behaviour leave 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.
In online buying, die rate of diffusion and adoption of the online buying amongst
consumers is still relatively low in India. In view of above problem an empirical stud)' of
online buying behavior was undertaken. Based on literature review, four predominant
psycho graphic parameters namely attitude, motivation, personality and trust were studied

80

with respect to online buying. The online buying decision process models based on all die
four parameter 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 die factors of internet and consumer shopping behaviors towards
internet shopping, this chapter would provide academic research reviews and relative ideas
expressed in die literature that associated with this subject. Furthermore, a number of
hypotheses will be tested to answer the research questions that mentioned already in die
introduction. Due to die recent research shows that internet stopping becomes a full and
effective business model, therefore there are several studies that already investigated more
or less related on internet shopping and consumer behaviour. In die following chapter,
some point of view will be taken from literatures, and needs careful review to achieve
diem as die basis of die subsequent research investigation.
This chapter will begin with the briefly talk about the traditional landscape of shopping,
and following the principles of consumer shopping behaviour. Through indicated that, the
essence of internet shopping consumer behaviour will be indicated in the second section.

80

Online Shopping Behavior: An Empirical Study

With the increasing internet literacy, the prospect of online marketing is increasing in
India. The consumers indulging in online shopping consider many factors. If companies
analyze the factors affecting consumer behavior towards online shopping and the
relationships between these factors and the type of online buyers, then they can devise
effective 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.
The two perspectives that seek application of its knowledge are micro and societal
perspectives.
The micro perspectives involve understanding consumer for the purpose of helping a firm
or organization to achieve its objectives. The people involved in this field try to
understand consumers in order to be more effective at their tasks. Whereas the societal or
macro perspective applies knowledge of consumers to aggregate- level faced by mass soar
society as a whole. The behavior of consumer has significant influence on the quality and
level of the standard of living.
How they approach in the new market, What are the problems faced by them while
accepting local culture and customs, how they compete with the local competitors How
they respond to the customers behavior towards their products and services.
I have developed a survey indicating online shopping behavior and acceptance among
customers in India. The model was tested with a survey sample (n=100). Factor analysis
technique was used to classify these factors which buyers keep in mind while shopping
online. The survey was accomplished on 100 outline shopping experience.

12

Shopping Sites
PC Data Online issued top 20 web retailers on January 2001. The chart below is
based on PC Data Online data.
Rank
1
2
3
4
5
6
7
8
9

Web Site
www.amazon.com
www.barnesandnoble.com
www.ticketmaster.com
www.half.com
www.jcpenny.com
www.drugstore.com
www.walmart.com
www.cdnow.com
www.shopintuit.com

Consumer Orientations
Consumers make online shopping for both goal-oriented and experiential reasons, but
goal-oriented motives are more common among online shoppers than are experiential
motives. Greenfield Online suggested that online shoppers like to use Internet shopping
because of its convenience and timesaving. This report found that convenience-oriented
consumers prefer to buy on the Internet and experience-oriented consumers don't.
proposed that frequent Web buyers are higher in the convenience orientation but lower in
the experiential orientations than occasional Web buyers and no differences were assumed
in the recreational orientation and the economy orientation. It has been suggest that
consumers can be categorized into two types: recreational and convenience shoppers.
They proposed that the social aspect of shopping motivates the recreational shopper. Some
research proposed that online shopping is not attractive to consumers who prefer to social
interaction or experience. It is found that consumers who are oriented to convenience is
more likely to use the Internet to buy goods and consumers who value social interaction is
less likely to use the Internet for shopping.
Through these findings, it is assumed that consumers who want convenience are more
likely to purchase on the Internet than consumers who like experiencing product.
Consumers who are convenience-oriented are more likely to purchase online than those
who are not. Consumers who are experience-oriented are less likely to purchase online
than those who are not.
Design of Online Shopping
13

Why does electronic shopping exist? For customers it is not only because of the high level
of convenience, but also because of the broader selection; competitive pricing and greater
access to information. For organizations it increases their customer value and the building
of sustainable capabilities, next to the increased profits.
Online stores are usually available 24 hours a day, and many consumers have Internet
access both at work and at home. A visit to a conventional retail store requires travel and
must take place during business hours.
Searching or browsing an online catalog can be faster than browsing the aisles of a
physical store. Consumers with dial-up Internet connections rather than broadband have
much longer load times for content-rich web sites and have a considerably slower online
shopping experience.
In most cases, merchandise must be shipped to the consumer, introducing a significant
delay and potentially uncertainty about whether or not the item was actually in stock at the
time of purchase. Bricks and clicks stores offer the ability to buy online but pick up in a
nearby store. Many stores give the consumer the delivery company's tracking number for
their package when shipped, so they can check its status online and know exactly when it
will arrive. For efficiency reasons, online stores generally do not ship products
immediately upon receiving an order. Orders are only filled during warehouse operating
hours, and there may be a delay of anywhere from a few minutes to a few days to a few
weeks before in-stock items are actually packaged and shipped. Many retailers inform
customers how long they can expect to wait before receiving a package, and whether or
not they generally have a fulfillment backlog. A quick response time is sometimes an
important factor in consumers' choice of merchant.

14

Literature Review
The current literature on consumer online purchasing decisions has mainly concentrated
on identifying the factors, which affect the willingness of consumers to engage in Internet
shopping. In the domain of consumer behavior research, there are general models of
buying behavior that depict the process which consumers use in making a purchase
decision. These models are very important to marketers as they have the ability to explain
and predict consumers' purchase behavior. The classic consumer purchasing decisionmaking theory can be characterized as a range extending from routine problem-solving
behaviors, through to limited problem solving behaviors and then towards extensive
problem-solving behaviors. The traditional framework for 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 provides the 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. 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.
There are several indicators, belonging to four major categories; the value of the product,
the shopping experience, the quality of service offered by the website and the risk
perceptions of Internet retail shopping. There are some nine factors associated with users'
perception of online shopping. Among those factors the risk perception of users was
demonstrated to be the main discriminator between people buying online and people not
buying online. Other discriminating factors were; control over, and convenience of, the
shopping process, afford ability of products, customer service and ease of use of the
shopping site.

15

Experts tested a model of consumer attitude towards specific web base stores, in which
perceptions of the store's reputation and size were assumed to affect consumer trust of the
retailer. The level of trust was positively related to the attitude toward the store, and
inversely related to the perception of the risks involved in buying from that store.
Researchers concluded that the attitude and the risk perception affected the consumer's
intention to buy from the store. Consumer risk perceptions and concerns regarding online
shopping are mainly related to aspects involving the privacy and security of personal
information, the security of online transaction systems and the uncertainty of product
quality. It is found that trust is interwoven with risk. One of the consequences of trust is
that it reduces the consumer's perception of risk associated with opportunistic behavior by
the seller. Lack of trust is frequently reported as the reason for consumers not purchasing
from Internet shops, as trust is regarded as an important factor under conditions of
uncertainty and risk in traditional theories.
Online Shopping In India
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. 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. The cost of
internet usage is also getting lower, with good competition among the providers. 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.

16

Factors That Boost Online Shopping in India

Rapid growth of cybercafs 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.
Considering the prior studies, this study selected several factors below in order to explain
what influences consumer online purchasing behavior.

Demographics (Age, Income, Gender, and Education)

Perceived Risk

The Reputation of Retailers

Consumer Orientations (Convenience-oriented and Experience-oriented)

Price

Type of Access

17

Consumer choice behavior in online and traditional supermarkets: The effects of brand
name, price, and other search attributes are brand names more valuable online or in
traditional supermarkets? Does the increasing availability of comparative price
information online make consumers more price-sensitive? We address these and related
questions by first conceptualizing how different store environments (online and traditional
stores) can differentially affect consumer choices. We use the liquid detergent, soft
margarine spread, and paper towel categories to test our hypotheses. Our hypotheses and
the empirical results from our choice models indicate that: (1) Brand names become more
important online in some categories but not in others depending on the extent of
information available to consumers brand names are more valuable when information
on fewer attributes is available online. (2) Sensory search attributes, particularly visual
cues about the product (e.g., paper towel design), have lower impact on choices online,
and factual information (i.e., non-sensory attributes, such as the fat content of margarine)
have higher impact on choices online. (3) Price sensitivity is higher online, but this is due
to online promotions being stronger signals of price discounts. The combined effect of
price and promotion on choice is weaker online than offline.

18

CHAPTER THREE
RESEARCH
AIMS AND
OBJECTIVES

19

RESEARCH OBJECTIVES
AIMS AND OBJECTIVES
It is clear from the overview of internet and internet shopping development that
ecommerce is being used in many corporations due to the dramatic development of
technology and competitive advantages of web selling. Moreover, the expansions of the
usage by individuals also become main contributors to the development of internet
shopping. Relatively few studies have investigated in the internet shopping and impact on
consumer behaviour. The previous studies are more focus on the marker's point of view,
such as how to establish a more efficient marketing channel online rather than the
traditional offline channel. Therefore, this research will combines with previous studies
from literature reviews, and focus on the impact of the internet shopping on consumer
behaviours to find out a comprehensive analytical framework which showing the essential
ingredient of marketing and business to satisfying the consumer's needs, and a deeply
understanding of online consumer behaviour as a reference for any e-commerce company
to make marketing strategies.
By carry out this work, the following research questions will be answered:
1. Recent status related to internet shopping in the INDIA.
2. The impacts of factor of Internet shopping influence online consumer beliaviours.
3. Through analyze data collected from the questionnaire survey to indicate the
current online consumer beliaviours.
4. Examine the business strategies affect online consumer behaviour in conclusion,
and applications and recommendations for future research.

20

Objectives of the Study

The main objective of the study is to discover the key factors that influence online
buying behaviour of consumers in India.

To understand the internet usage pattern of the respondents

To analyse the type of products the respondents' shop online

To analyse the relationship between frequency of purchase and factors such as

Home page presentation, website security, ease of payment.

To offer suitable suggestions for the present study

21

CHAPTER FOUR
HYPOTHESIS AND
LIMITATIONS OF
STUDY

22

HYPOTHESIS AND LIMITATIONS OF STUDY

HYPOTHESIS ANALYSIS
From the T-Test analysis we can conclude that the hypothesis was accepted because
significance difference Ls more than the confidence level (.05).that means perception of
male and female Ls same regarding the secure transaction through online and also they
have shown same intention to shop through online in future.
From the T-Test analysis we can conclude that the hypothesis was accepted because
significance difference is more than the confidence level (.05). that means perception of
different age group is same regarding the secure transaction through online and also they
leave shown same intention to shop through online in future.
HYPOTHESIS
1. Intention to buy online does not vary according to age group.
2. Intention to buy online does not vary according to gender.
3. Secure shopping across internet does not vary according to age group.
4. Secure shopping across internet does not vary according to gender.
LIMITATIONS OF THE STUDY.
1. The study has been conducted based on the data acquired from the online buyers of
India only and the findings may not be applicable to other countries of the world
because of socio- cultural differences.
2. Sample size is wry small.

23

CHAPTER FIVE
RESEARCH
METHODOLOGY

24

RESEARCH METHODOLOGY
Data Collection Methods
Both the primary and secondary data collection methods were considered. The primary
data was collected through a questionnaire designed exclusively for the study. Secondary
data was taken from Research papers, Journals, Magazines and Websites.
The study includes respondents in India.
Sources of Data:
This study uses both Primary Data and Secondary Data. The data were collected from 200
respondents through mailed questionnaires.
The Secondary Data has been collected from books, articles, magazines and from
websites.
Sample Design
Samples were collected from consumers and buyers of online shopping in which the total
sample size of respondents are 200.
Questionnaire
Survey method was adopted for this study. For the purpose of the survey, a structured
questionnaire was prepared and distributed to the consumers and buyers to study about
their preference and satisfaction of online shoppers (online buyers).
PARTICIPANTS & APPARATUS
The survey was taken in INDIA by sending questionnaire as many as possible. Only those
participants who have completed the questionnaire will be accounted as valid survey.
Computers with facilities for internet access, Google Drive were used to perform the
survey, and use SPSS software and Microsoft Office Excel to do statistic and data analysis.
RESEARCH METHODS
The research method of this study is a survey research, which collect information from
participant through a questionnaire. The purpose of this research is to analyse the current
And future behaviours from consumers to help marketing manager making strategies
25

according feedback from participants. These behaviours include attitudes, believes,

attribute, motivation and behaviour of sampled participants, and that will be taken on a
series of measurements based on specific research point. After questionnaires sent out and
later collected data from feedbacks, the quantitative research method will be used in this
research. Researchers then use SPSS and excel programmes help to analyse the outcome
from the samples and generalize the conclusion in whole points of view of consumer
behaviour. In addition to the collected data some other data such as it from official reports
of governments or organizations will also be used to assist complementarities of research.
METHOD SELECTION
This section is dedicated to selection of research method in this paper. The research
methods can be classified in many ways, but the most common difference is between
qualitative and quantitative approaches. Qualitative research method can be broadly
defined as "any kind of research that produces findings not arrived at by means of
statistical procedures or other meatus of quantification" . It also can be simply says that
this research method is non quantitative. In contrast, quantitative research method deal
with measurable characteristics by using structured questions(e.g. questionnaire) and a
formalised procedure of data collection.
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 E- commerce web sites. In addition, some demographic data will also collect from die
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 die respondents themselves, and die 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
26

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 die lack of answers for the important questions. In the most
cases it can enable researchers to reduce die amount of data needed to collect in order to
keep die result reliable. The complete questionnaire is given at die end (Appendix).
Methodology
Sampling Technique:
For the purpose of study 150 respondents were chosen. Convenience sampling has been
adopted.

27

CHAPTER SIX
DATA ANALYSIS AND
INTERPRETATION

28

DATA ANALYSIS AND INTERPRETATION

1. Last time made a purchase over the internet.
Options
Last week
Last 15 days
last month
Last year

Respondents
9
17
34
40

29

Interpretation
According to survey Last time made a purchase over the internet 9 respondent says that
last week,17 says last 15days,34says last month and 40 says last year

30

2. Items have you purchase on the internet.

Options
Books
Tickets
Video / DVD's/Games
Electronics equipment
Computer hardware / software
Clothing
Music

Respondents
10
80
25
18
12
8
22

Percentage
10%
80%
25%
18%
12%
8%
22%

Interpretation
According to survey 80% respondent have purchaged ticket while 8% preferred clotheing.
Other like Books 10%,Video games 25%, electronic equipment18%, Computer&
software12% and music 20%.

31

3. Mode of payment
Options
Credit cards
Debit cards
Online Bank transfer
Cash on delivery

Respondents
27
10
8
55

Interpretation
According to survey 27 respondents make payment through Credit cards, 10 Debit cards, 8
Online Bank transfer and 55 payment Cash on delivery.

32

Factor affecting online shopping

Information about product and Services
Rating
Respondent

1
10

2
16

3
18

4
24

5
32

Average Score of respondent = (10*1+16*2+3*18+4*24+5*32)/100=352/100=3.52

Interpretation
According to all score, it can be interpreted that information about product and service is a
important factor while using online shopping.

33

5. Time saving
Rating
Respondent

1
12

2
8

3
28

4
22

5
30

Average Score of respondent = 350/100 =3.50(same as early calculate)

Time saving

Rating

Interpretation
According to this score,it can be interpreted that time saving can be consider as an
important factor while using online shopping.

34

6. Convenience
Rating
1
2
3
4
5
Respondent
8
17
16
26
33
Average Score of respondent = (8*1+17*2+16*3+26*4+33*5)/100=359/100=3.59

Interpretation
According to this score, it can be interpreted that convenience in online shopping is an
important factor.

35

7. Security
Rating
1
2
3
4
Respondent
0
0
24
46
Average Score of respondent = (24*3+46*4+30*5)/100=406/100=4.06

5
30

Interpretation
According to this score, it can be interpreted that security in online shopping is an
important factor.

36

8. Attractive offer's (Deals/Discount)

Rating
Respondent

1
10

2
38

3
37

4
10

5
5

Average Score of respondent = (10*1+38*2+37*3+4*10+5*5)/100=262/100=2.62

Interpretation
According to this score, it can be interpreted that attractive offers are neither important
factor nor unimportant factor for online shopping.

37

9. Delivery time and mode of payment

Rating
Respondent

1
7

2
13

3
25

4
22

5
33

Average Score of respondent =( 7*1+13*2+25*3+22*4+33*5)/100=361/100=3.61

Interpretation
According to this score, it can be interpreted that Delivery time And mode of payment in
online shopping is an important factor

38

10.Satisfaction level for your experience of online shopping

Rating
Respondent

1
0

2
0

3
24

4
46

5
30

Average Score of respondent = (24*3+46*4+30*5)/100=406/100=4.06

Interpretation
According to this score, it can be interpreted that satisfaction level in online shopping is an
important factor.

39

Tills chapter starts to present and analyse the data collected from the questionnaires. All
data will be analyzed by computer, the SPSS software Google Drive and Microsoft Office
Excel was used to enter the data and design the graphs in order to help the researcher be
able to explore and analyse the data.
Years of using internet
Table 1 Years of using internet
Period of Usage
Less than 1 Year
1-2 Years
3-4 Years
More than 5 Years
Total

No. Of Respondents
15
75
23
37
150

Percentage
10
50
15
25
100

Source: Primary Data

It is inferred from the above table that 50% of respondents are internet users for a period
of 1-2 years. It is perceived that 50% of respondents could have online shopping
experience between 1-2 years.

40

Ranking of factors for which internet is used by the respondents

It could be seen from the above table weighted average rank is given to each factor. It is
thus inferred that the respondents use the internet primarily for online purchase. Secondly
they use it for searching product information. Thirdly internet is used for looking out jobs
followed by surfing. Chatting is ranked five hence gaining least importance.
Type of products purchased
Table 3 Type of products purchased
Products
Books
CD/Video
Software
Flowers
Travel / Hotel Bookings
Electronic Goods
Tickets

No. Of Respondents
43
26
75
34
67
70
110

Percentage
29
17
50
56
45
47
73

It is evident from the above table that majority of the respondents book tickets online
followed by purchase of flowers.

41

Mode of Payment
Table 4 Mode of Payment
Mode of Payment
Credit Card
Personal Cheque
Bank Transfers
Others

No. Of Respondents
28
79
31
12
150

Percentage
19
52
21
8
100

It is inferred that Cheque is the most preferred mode of payment by online shoppers.
Feeling of security while shopping Online
Table 5 Feeling of security while shopping Online
Response
Yes
No

No. Of respondents
84
66
150

Percentage
56
44
100

It is concluded that majority 56% feel shopping Online is Secure.

42

The online factors have no significant influence over frequency of purchase.

Buying patterns of online shoppers
Particulars
Search online but buy and pay
at stores
Search and buy online

No. of Respondents
20

Percentage of Respondents
10 %

122

61 %

but pay in cash on delivery

Search, buy and pay online

29 %

Problems faced through online purchasing

Particulars Respondents
Problems faced
Problems not faced with

No. of Respondents
46
154

Percentage of
23 %
77 %

online shopping

Frequency of online purchasing

Particulars
About once annually
2 - 5 purchases Annually
6 -10 purchases Annually
11 purchases and above

No. of Respondents
24
92
52
32

Percentage of Respondents
12 %
46 %
26 %
16 %

annually
Recommendations to non online buyers for online shopping
Particulars

No. of Respondents

Percentage of Respondents

Recommended
178
89 %
Not Recommended
22
11 %
Respondents are facing problems at the time of online buying (23%) Maximum numbers
of respondents are suggesting to non online buyers to be online buyers (89%) Most ofthe
respondents Search and buy online but pay in cash on delivery (61%)

43

CHAPTER SEVEN
FINDINGS,
CONCLUSION AND
RECOMMENDATION

44

FINDINGS, CONCLUSION AND RECOMMENDATION

According to survey Last time made a purchase over the internet 9 respondent says
that last week,17 says last 15days,34says last month and 40 says last year
According to survey 80% respondent have purchased ticket while 8% preferred
clothing. Other like Books 10%,Video games 25%, electronic equipment18%,
Computer& software12% and music 20%.
According to survey 27 respondents make payment through Credit cards, 10 Debit
cards, 8 Online Bank transfer and 55 payment Cash on delivery.
According to all score, it can be interpreted that information about product and
service is a important factor while using online shopping.
According to this score, it can be interpreted that time saving can be consider as an
important factor while using online shopping.
According to this score, it can be interpreted that convenience in online shopping is
an important factor.
According to this score, it can be interpreted that security in online shopping is an
important factor.
According to this score, it can be interpreted that attractive offers are neither
important factor nor unimportant factor for online shopping.
According to this score, it can be interpreted that Delivery time And mode of
payment in online shopping is an important factor
According to this score, it can be interpreted that satisfaction level in online
shopping is an important factor.

45

FINDINGS OF THE STUDY

Now a day's everyone using die internet
People use to buy die products thorough online because of many reason such as its
save money, time and we used to get huge information regarding any products.
Most of them feel secure while transaction thorough online.
Intention of buying die product thorough online does not differ according to age
group and gender.
Security on internet shopping does not differ according to gender and intention
buying is also not differ according to gender.

50% of respondents are internet users for a period of 1-2 years.

The respondents use the internet primarily for online purchase

73%of the respondents use online for booking tickets followed by purchase of
flowers.

The most preferred mode of payment by online shoppers is Credit / debit card

56% feel shopping Online is Secure

Home page presentation and website security are associated with frequency of
online purchase.

46

CONCLUSION
This research shows that online shopping is having very bright future in India. Perception
towards online stopping is getting better in India. With die use of internet, consumers can
shop anywhere, anything and anytime with easy and safe payment options. Consumers can
do comparison shopping between products, as well as. online stores.
This study is mainly focus on die factors from die Internet and examines those factors that
affect die consumer's online shopping behaviours. The research focus on die Internet
shopping (include the nature of Internet shopping. E-commerce website, and online
security, privacy, trust and trustworthiness) and online consumer behaviours (include
background, shopping motivation and decision making process). Those factors were
looked at and examined to reveal the influence at online consumer behaviours. In addition,
die

previous

researches

were

used

to

help

researchers

understanding

more

comprehensively. Moreover, die customer's purchase decision making process was also
examined to identify die potential (actors. The information search Is the most important
factor that helps the customers find die suitable products or services for their needs.
Therefore, the online retailers have to enhance and improve die information supporting
such as provide much detailed product information and use internal search engine in order
to increase die efficient of information search. For die evaluation stage, customers more
think a lot of die reputation from die E-Commerce website, and the payment security for
die purchase stage. At die post-purchase stage, die factor of after services which Is die
most concerned about. Overall, the factors from the Internet that influenced or prevented
online consumer behaviours need to be carefully concerned by the online retailers, who
can utilize the appropriate marketing communications to support the customer's purchase
decision making process and improve their performance.
This study is mainly focus on the online factors and examines those factors that affect the
consumer's online shopping behaviours. The online retailers have to attract customers and
at the same time provides right products or services to fit the customer's needs.

The most preferred product of online buying is travelling tickets and clothing
remains the least preferred choice of online shoppers.
47

Among the payment options, Payment on delivery through cash in the safest choice
of payment, while credit card are next preferred choice, online bank transfer is
least preference choice.

Online shoppers seek for clear information about product and service, time saving,
convenience, security and delivery on time are all important factor for online
shopping. The offers with punch lines "Attractive offers" do not attract online
shoppers.

Most of the consumers who have experienced online shopping are very satisfied.

48

RECOMMENDATION
1) People should buy the product through online because we can have all the
detail of the product and we can also compare with other product.
2) We can save money through buying online.
3) We can also save money.
SUGGESTIONS:

Online retailers should focus on better home page presentation to appeal the prospects and
sustain the existing buyers.
Web security should be ensured enabling a smooth online shopping. The search option is
the most important factor that helps the customers find the suitable products or services for
their needs. Therefore it is necessary for the online retailers to improve the information
supporting such as provide much detailed product information and use internal search
engine in order to increase the efficient of information search.

Consumers should be educated on online shopping procedures with proper steps to

be following while online shopping.

Transactions should be safe and proper security should be assured to the people
making online purchases.

Government should play a pivotal role in encouraging online shopping

E-marketers must give a thought to secure, time saving, information about product
and services factors when they design their online product strategy.

The study highlights that convenience, accessibility, scope, attraction, reliability,

experience and clarity are the important factors considered by the online shopper.

Usage of internet includes the consumer's purchase of product as well as the

consumer intention to secure for product related information while experiencing
the new technology.

Banking should promote Debit card, Credit card facility in online shopping.

49

BIBLIOGRAPHY

50

51

BIBLIOGRAPHY
www.google.com
www.yahoo.com
www.wikipedia.com
www.amazon.com
www.barnesandnoble.com
www.ticketmaster.com
www.half.com
www.jcpenny.com
www.drugstore.com
www.walmart.com
www.cdnow.com
www.shopintuit.com

52

APPENDIX

53

QUESTIONNAIRE FOR ONLINE BUYING BEHAVIOR

1. Last time made a purchase over the internet.
Options
Last week
Last 15 days
last month
Last year

Respondents

2. Items have you purchase on the internet.

Options
Books
Tickets
Video / DVD's/Games
Electronics equipment
Computer hardware / software
Clothing
Music

Respondents

Percentage

3. Mode of payment
Options
Credit cards
Debit cards
Online Bank transfer
Cash on delivery

Respondents

Factor affecting online shopping

Information about product and Services
Rating
Respondent

54

5. Time saving
Rating
Respondent
6. Convenience
Rating
Respondent
7. Security
Rating
Respondent
8. Attractive offer's (Deals/Discount)
Rating
Respondent
9. Delivery time and mode of payment
Rating
Respondent
10.Satisfaction level for your experience of online shopping
Rating
Respondent

55

Do you haw Internet access? *

Yes No
From how long you are using the Internet? 44
Less than a month Less than 1 year I - 2 years 2-4 years More tlian4 years
How often do you use the Internet for the fallowing purpose? *
Very often
Search product info
Surfing (e.g. read news/articles)
Chatting (e.g. MSN/ICQ)
Research a topic
Looking for a job
Internet shopping
Other (Please Specify):

Often

How do you feel after the Online Shopping? *

Not Satisfied
Satisfied
Very much satisfied
Cant Say
Gender
Male
Female
Which age group do you belong to? *
Under 18 years
18-30 yeais
31-39 yeais

56

Occasionally

Never

 50-59 yea is
Over 60 years

57

Are you? *
Full-time employment
Part-time employment
Student
Unemployed
Housewife/husband
Retired

58