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PGDM 2014-2016
Improvement for term 4th
Business Research Methods
Soma Arora
Factors Affecting E-shopping
Original
Ph: +91-8800882823
email: [email protected]
Sl.
Roll No.
Name
1
1301-316
Ankur Kumar
2
1301-308
Akshat Khare

Executive Summary
Online shopping has increased many folds in our country and this catches everyones
interest as to what are the reasons which are affecting consumers mindset and what is it that
makes them buy laptops online.
We have our focus on the consumers who have recently bought or are going to buy a laptop
online and would ask them a set of questions from which we would try to try to deduce the
reasons that effect their buying.
Our way of conducting the research is through a questionnaire in which we will ask 50
respondents, taking into consideration most of the important variables which affect online
shopping.

Purpose of Study

A study of factors affecting online purchase of laptops

Scope
The scope of our project is limited to why customers would buy a laptop online. The study
aims at finding out the reasons/factors behind the purchase of a laptop online and what
affects the mindset of the consumer.
The project does not include why a consumer buys a certain brand of laptop or predict which
laptop a consumer is going to buy. The study works through primary and secondary data
analysis using statistical tools to evaluate a consumers behavior through online
portals/platforms compared to retail shopping. The primary concentration of this paper is on
buying behavior of laptops and extend to other accessories.

Parameters affecting online shopping

Price
Price is a very big factor when online shopping is considered. Prices are generally low when
a product is purchased online when compared to the retail price of the product. This
perception is widely prevalent amongst the consumers and hence they prefer buying laptops
online. Also comparison of process becomes very easy and the consumer benefits out of this
by availing the best and lowest price. Prices of products are comparatively less online as
companies do not have the overheads of running a physical store and hiring staff.

Convenience
In an era where time has become a precious resource, people do not want to invest time
travelling, visiting a store and looking for a laptop. They also have the option of comparing
the different products online with much less effort. As they are aware of their requirements,
they make their purchase online and the product reaches their doorstep and they also have
many methods of making the payment.

Promotions
Promotions or promotional offers are a great way to attract customers. Companies offer
lucrative offers online which make online purchase a better choice than retail purchasing.
Very commonly used promotional schemes are CASHBACK and Bundling of Offers.

Discount Coupons
Discount coupons act very well with the price conscious segment of customers. They can be
sent to the customers through various methods like the mail, newspapers, internet or mobile
services. They incentivize the customers to buy the product through an online channel rather
than a retail channel.

Efficiency
As the internet is an ocean of information, searching for a particular laptop according to an
individuals requirement is effortless. The consumer just has to know his necessities and the
internet does the job for him by displaying various options according to his preference and
the consumer can choose from the list in front of him. Here the dependency of the customer
on sales people is reduced and this method is much more efficient and effective.

Product range
Websites offer the consumers with a wide variety of products and features which a physical
store cannot manage. The plethora of laptops, discounts and offers will be easily accessible
and the consumer can choose as per his liking. All this can be done without the need to
travel to many shops to view different laptop brands and features.

Interact
Customers have the liberty to ask opinion from other customers about a particular product.
There are forums, feedback sections in the companys website or social media sites which
the customer can go to and get real-time information on the products. Companies have their
reputation at stake as accessibility to other customers has increased and the comments
every single customer make matters to the company.

Service
(1) Customer communication channels/ease of vendor contact.
(2) Response to customer needs.
(3) Accessibility of sales people.
(4) Reliability of the purchasing process/process uncertainty.
(5) Timeliness of orders or services/waiting time.
(6) Availability of personalized services.
(7) Ease of return and refunds.
(8) Fraud.
(9) Delivery (speed, tracking and tracing).
(10) Transaction costs

When the different dimensions of the customers requirement are analyzed, it can be seen
that consumers prefer purchasing a product from a retail shop compared to an online
purchase when there is no difference in the prices. The personalized service that they
receive from the staff at a physical shop is something that cannot be obtained in online
shopping. Also, any query can b asked and can b answered immediately without the
consumer having to wait for a reply. Also delivery of the product is immediate and there is no
doubt about the safety of the transaction.

Safety
The concept of safety is very crucial for online shopping. As customers cannot physically see
the seller, they have a doubt in mind. Also the safety of the payment, quality of the product,
warranty, website authenticity, refund/return policy and many other details make online
shopping a risky alternative to the physical shopping. Since there are many cases of
fraudulent websites, consumers are always dubious about the safety of making online
purchases.Hence the presence of safety measures or boards to ensure the safety and
security of transactions & websites are very important to gain customers.

Research Methodology
Qualitative research is the research that addresses business objectives through techniques
that allow the researcher to provide elaborate interpretations of market phenomena without
depending on numerical measurements. Its focus is on discovering true inner meanings and
new insights.
Quantitative research is the research that addresses business objectives through empirical
assessments that involve numerical measurements and analysis.
A survey would be conducted amongst 50 respondents to cover both the qualitative and
quantitative aspects of the research problem. A large sample has to be obtained for
meaningful results.

The survey and interview questions are designed to answer the primary research question:
1. What are the influencing factors on decisions by people to purchase laptops online?
b) Comparing online purchasing with retail purchasing?
c) What are the pros and cons of purchasing online and of purchasing in a retail store?
d) Which method is more prevalent amongst consumers and why?

Data Collection
Survey for quantitative data

A questionnaire is created with the purpose of collecting metric data and some qualitative
data. Likert scale is used to get the data for all the variables each on a five point scale.
The questionnaire is designed on factors which include time, price, service, efficiency, safety,
convenience, promotions, variety. The data then would be gathered from the questionnaire
analysed and compared.
The survey primarily has been divided into three parts:
General questions
Questions on online purchase
Questions on purchase of laptops online
General questions asked are on the gender, highest level of qualification and the income
levels of respondents. This would be used as collection of personal details, excepting name,
contact or other personal information.
The second part concerns the question on online purchasing behavior which encompassed
the internet usage, the online payment methods and other online activities.
The final part of the survey is the crux which focuses on the studys main findings i.e.
purchasing of laptops online testing key variables forming the integral part of statistical
analysis and Intention of the respondents to purchase online forming our dependent
variable.
The online system of survey through Google forms would be used.