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TOPIC:

A COMPARATIVE STUDY ON CUSTOMER


SATISFACTION TOWARDS ONLINE AND
OFFLINE SHOPPING
CHAPTER-1
INTRODUCTION
INTRODUCTION

Shopping is part of every day’s life. Some get the necessities from shopping, others get
something more. It is viewed as a way to release the stress, a way to complete some
desire in the mind, or a way to add some flavor to the mechanical way of life. Shopping
is probably one of the oldest terms used to talk about what we have all been doing over
the years. Then again, in ancient times, the terms that would have been used would be
‘trading’ or ‘bartering’ and probably even ‘market.’ So what has traditional shopping
have to offer now that the internet has opened up a wider and more enticing market to the
current consumers. In general, there are two types of shopping: traditional shopping and
On-line shopping. Nowadays, more and more people would ‘go shopping ‘via Internet,
thanks to the prevalence of the computer. Clicking in one word, thousands of items will
pump out on the screen based on choice. No need to wade across a long road and nudge
through hustling crowds to get a pair of fancy shoes. Just a click on the key board, make
the choice and the goods will be delivered, right on the spot. Online shopping has
become an increasingly common staple of life in the 21st century. Its popularity can be
credited to the fact that convenience is highly valued in our world today. Shopping
online offers the opportunity to buy anything and everything you need while on a flight
or getting ready for bed. Online shopping has become a popular shopping method ever
since the internet has declared a takeover. The increase in technology provides good
opportunities to the seller to reach the customer in much faster, easier and in economic
way. Online shopping is emerging very fast in recent years. Now a day the internet holds
the attention of retail market.

On the other hand the purchasing of product from traditional market is continuing since
years. Many customers go for purchasing offline so as to examine the product and hold
the possession of the product just after the payment for the product. In this contemporary
world customer’s loyalty depends upon the consistent ability to deliver quality, value and
satisfaction. Some go for offline shopping, some for online and many go for both kind of
shopping. The focus of the study is on the consumer’s choice to shop on internet and at
the traditional stores at the information gaining period. However online shopping is
easier for the people and less price than the offline shopping. While making any purchase
decision consumer should know the medium to purchase whether online shopping or the
offline shopping. Consumer should decide the channel for them which can best suit to
their need and wants and which can satisfy them. In this competitive world how
consumer can decide the particular medium for their purchase of goods is very important
to understand in a managerial point of view. The internet shopping is the third best and
most popular activity over internet after online shopping next comes the e-mail using,
instant messaging and web browsing. These are even more important than watching or
getting entertain by the internet or getting any information or news, this are the two very
common thought which comes to the people’s mind when considering the internet users
do when they are online. The behavior of online shopping is also known as online buying
behavior and internet shopping. Buying behavior means the purchase of good over
internet using web browser. Online shopping attitude and behavior are related to the
consumer. Previous studied have focused on why the products of the online shopping is
different from other products. Many studies have focused that the high touch products
that the consumer feels when they need to touch, smell or try the product. It requires the
offline shopping at the purchasing stage because it cannot be done in the online
shopping. Even with the increase in the online shopping and the recognition that online
shopping is more likely to impose the pressure on offline shopping or traditional
shopping. The research is very limited in this area or field. Online or e-shopping is a kind
of electronic shopping which allow the consumer to purchase goods over the internet
directly from the seller using a web browser. There are some alternative names of online
shopping those are as follow- e-web store, e-shop, e-store, internet shop, web-shop, web-
store, online store, online store front and virtual store. Mobile commerce or m-commerce
is described as purchasing from the online retailer by the mobile optimized online sites
or application g, where the online channel is used to perform research and the offline
channel is used to perform purchase. The terms “online” and “offline” have specific
meanings in regard to computer technology and telecommunication in which “online”
indicates a state of connectivity, while “offline” indicates a disconnected state.

What is Online Shopping?

Online shopping or e-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. Alternative names are e-web-store, e-shop, estore, internet shop, web-shop,
web-store, online sort, virtual store etc. Simply put, it is any form of sale that is done
over the internet. Shopping has certainly gotten a new definition since the arrival of the
internet. Because of what the internet has to offer, that is, any person or company from
any part of the world who is able to post and sell goods on the internet via a website is
able to sell. What’s more, any consumer does not have to worry about having to find
means to exchange monetary paper because not just online banking is made available;
the consumer is given the option to pay through different payment methods. These days,
it is even easier to find the most difficult of all products, by easily typing in the product
or item that a customer is looking for. No worry about the location because logistic
companies are also joining the bandwagon, so to speak, and helps in making sure that
their products would be available to any and all destinations in the world. In fact, there
are more and more advantages and benefits to online shopping and why people choose to
do this type of shopping over traditional shopping.

What is Traditional Shopping?

Having the ability to physically choose and check out what an item or product is like,
would look like, and its features are the benefits of traditional shopping. This is why
some consumers still prefer the traditional type of shopping over online shopping
because for one, it allows them to meticulously check out an item. E-shopping is the
place where buyers and sellers don not meet each other which result to lack of awareness
about the product.

Though the customer visit the online shopping site, does not show any interest for
purchasing the product some of the reasons are lack of trust, lack of physical touch and
feel, security issues etc.

The increase in technology provides good opportunities to the seller to reach the
customer in much faster, easier and in economic way. Online shopping is emerging very
fast in recent years. Now a day the internet holds the attention of retail market. Millions
and millions of people shop online. On the other hand the purchasing of product from
traditional market is continuing since years. Many customers go for purchasing offline so
as to examine the product and hold the possession of the product just after the payment
for the product. In this contemporary world customer’s loyalty depends upon the
consistent ability to deliver quality, value and satisfaction. Some go for offline shopping,
some for online and many go for both kind of shopping. The focus of the study is on the
consumer’s choice to shop on internet and at the traditional stores at the information
gaining period. However online shopping is easier for the people and less price than the
offline shopping. While making any purchase decision consumer should know the
medium to purchase whether online shopping or the offline shopping. Consumer should
decide the channel for them which can best suit to their need and wants and which can
satisfy them. In this competitive world how consumer can decide the particular medium
for their purchase of goods is very important to understand in a managerial point of view.
The behaviour of online shopping is also known as online buying behaviour and internet
shopping. Buying behaviour means the purchase of good over internet using web
browser. Online shopping also consist the same five steps which is related to traditional
shopping behaviour. The typical way of online shopping when the consumer need some
product or service they go through the internet and browse or search the things they need
and their information. But rather than searching actively, many a times potential
consumers are attracted by the information about the product they want. They see many
products online and choose the best one which suits him/her. Then they purchase that
product and finally the transaction takes place and post sales service provided by the
online sites. Online shopping attitude and behaviour are related to the consumer.
Previous studied have focused on why the products of the online shopping is different
from other products. Many studies have focused that the high touch products that the
consumer feels when they need to touch, smell or try the product. It requires the offline
shopping at the purchasing stage because it cannot be done in the online shopping. Even
with the increase in the online shopping and the recognition that online shopping is more
likely to impose the pressure on offline shopping or traditional shopping. The research is
very limited in this area or field. Online or e-shopping is a kind of electronic shopping
which allow the consumer to purchase goods over the internet directly from the seller
using a web browser. There are some alternative names of online shopping those are as
follow- e-web store, e-shop, e-store, internet shop, web-shop, web-store, online store,
online store front and virtual store. Mobile commerce or m-commerce is described as
purchasing from the online retailer by the mobile optimized online sites or application
(app).

In general the population from high level of income and high level of learning are more
favourable to do online shopping. The population who are more knowledgeable and
more explored to the internet are more into online shopping. The increase in technology
increases the online shopping by the consumer. The increase in technology creates a
favourable attitude towards the consumer for online shopping.

Factors Affecting Online Shopping

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:

 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 also there may arise a risk of product size and colour as it may differ in
real view or sense. Sometimes the product ordered is kind of damaged.
 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.
 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. This
particular activity makes them irritated and anxiesious over any kind of fatal online
dealing.
 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.
 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.
 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.
 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 there nature
and thoughts, some kind of people trust online dealing some kind of people are in
fear of online dealing. Trust carry a lot of points examples- trust about the same
product size quantity weight and security etc.
 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.
 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.
 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 vise-versa.
 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.
 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.
 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.
 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. Purchase of girly material are very
convenient in offline shopping as it is not dealt with any kind of uncomfortable
situation. 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.
 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. Offer carry a
great influence in shopping.
 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.
 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.

Factors Affecting Offline Shopping:


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:

 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.
 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.
 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.
 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.
 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 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.
 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.
Difference Between Online and Offline Shopping

There are some differences between online and offline shopping:

 Online shopping as the name suggest is done over internet and therefore you do
not have stand in line or go anywhere from your home to purchase the stuff you
like whereas in offline shopping if you want to buy you have to go nearby mall or
shop and then purchase the item you like from there.
 In online shopping one can look many products and that too multiple times
without buying them and therefore it offers lot of flexibility whereas in case of
offline shopping one does not have too much of choices as one has to buy the
product which is available at shop and if that product is not available then either
you buy the product which is your second choice or wait for that product to come
and then buy.
 In online shopping if one is buying products like shoes or clothes then one cannot
try the product before placing the order and therefore the chances of actual
product being different from perceived product is high whereas in case of offline
shopping there is no such risk because consumer try it first and then buy and
therefore there is no scope of difference between actual and perceived product.
 Online shopping is transparent in the since that one can compare the price of
product over different websites to ensure that he or she buys the product at
cheapest price, however in case of offline shopping one does not have this luxury
because the buyer has to purchase the product at a price which is quoted by seller
as there is no way of finding whether the price quoted by seller is fair or not.
 In case of online shopping thousands of different products are available at one
place or website where as in case of offline shopping this is not possible and
hence if you want to buy mobile and trousers then you have to go to different
shops as these products are different and hence it leads to time wastage. Hence
one can say that when it comes to time saving online shopping definitely scores
over offline shopping.
CHAPTER-II

REVIEW OF LITERATURE
REVIEW OF LITERATURE

The extensive literature review has been conducted to gain deeper understanding of
research about online and offline customer and their experience. The review clarifies
and simplifies the dominant dimension consumer consider when they make any
online purchase decision. Following this, the major theoretical gap related to
understanding what and why consumers do, and do not purchase using the Internet is
explored with respect to the theories of retail change and consumer behaviour theory
with particular reference to the buying decision process. More specifically, the study
examined the interrelationships among quality, value, satisfaction, and loyalty when
consumers choose to shop online.

Chaing and Dholakia (2021) 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.

Iyer and Eastmen (2019) found that the population of senior who are more literate,
more knowledgeable and who are more aware of the technology and those who have
a positive behaviour towards online shopping and internet are more into online
shopping. But the population of senior who are less aware of the internet and the
shopping sites are less involved in the shopping sites because they do not have a
positive attitude towards online shopping rather they are much more interested in
offline shopping and the seniors who are more involved in the internet uses more
online sites for purchasing the goods over the internet. The senior which have more
knowledge about the internet and the shopping sites they compares both the shopping
i.e. online and offline shopping for their purchasing of goods. However their
knowledge and the use of internet by them has no connection with their age and their
satisfaction level while purchasing online.

Selvakumar (2016) concentrated on consumer’s perception of the product sold online


and the issues considered important to online shopping. This study was conducted
among the online shoppers at Coimbatore which is in Tamil Nadu state. It is to
analyse the impact of consumer opinion and the attitude. Questionnaire was made to
collect the data from the population; these questionnaires were given to college going
students. The total sample size is 150 respondents. The finding of this study shows
that improvement and accessibility influence the customer’s intention to shop online.

Riley et.al (2010) addressed to know why the people and from where they get influence
to purchase grocery from online shopping. This research aims to know the role of all the
factors which are situational in the process of adaption of grocery shopping from online.
Qualitative research is carried out by the researcher which helps the researcher to gain
the knowledge about the depth of the consumer of grocery product and their behaviour.
Researcher also includes the quantitative method in his research to find the factors which
influence them to purchase grocery from online shopping. By merging both the
qualitative and quantitative study the researchers find the importance of the specific type
of institution. Many shopper are found that they starts discontinuing the online shopping
of grocery once there initial point of shopping of grocery created a problem for them
they stop doing online shopping.

Tabatabaei (2009) has explored the opinion of the consumer who are purchasing
online and the consumer who are purchasing from offline market. The objective is to
know why the traditional customer chooses to shop online and what are the factor
influence then to purchase online and what are the factor for them to not use the sites
for shopping. He has done a survey of 264 respondents in a small mall and then those
data were analysed by him. All the customer of this study is literate and has
knowledge on computer and internet. The survey consists some of the question like
demographic profile, computer knowledge and the knowledge over the internet. The
outcome of the study was that the consumers of online shopping use to shop online
more than one time in a month and the consumer of offline shopping shop one to five
times in a year from shopping sites.

Jiang et, al (2008) shown in their empirical study about US customer worries on internet
security, while shopping over the internet can influence online buying behaviour and
these worries may lead to identify theft. A good strategy to increase consumer trust while
ordering online could be third party certification programs. The result of this study was
that displays of third party logos have direct effect on consumer’s perception of logos,
which influence the transfer of trust towards e-retailer.

Jarvelainen (2007) analysed 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. I-e.
Security and confidentiality issue, that how consumer select their purchasing
channels. 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.

Soopramanien and Robertson (2007) conducted a study in UK on acceptance and


practice of online shopping. Their exploration shows that the online consumers
choose different course of action based on the apparent beliefs. They found that, how
socio demographic variables, attitude and beliefs towards internet shopping effect on
the both decision to practice and use of online shopping channels. They categorised
online buying behaviour as the one who purchase from online sites and the one who
only browse online sites and purchase from the store, and third those who do not buy
online. The study do not covered the buyers who choose products in stores and buy
online.

Suki and Suki (2007) conducted their study in Malaysia. This study is an empirical
study. They create a model in which they are identifying the influence of the real
value, the real risk and the actual enjoyment of the consumer of online shopping. The
consumers who are adopting the online shopping they are in the prominent risk and
the prominent indicators. The consumer of Malaysia of online shopping has a
perception about the involvement of risk in shopping and their risk is mostly related
to the security and the privacy. It includes the security and privacy of the personal
information of customer ,transaction of online shopping, the quality of the product
and the uncertainty about the product whether the product will reach the consumer or
not.

Devaraj et.al (2006) critically analysed an empirical study in USA regarding examination
of online channel preference. He examined the behavioural and economic features that
add to online consumer's satisfaction and further head to their preference of online
channel. The results indicate that asset specificity and uncertainty structure variables the
electronic marketplace are related with the conduct constructs such as, personalization,
website design, time responsiveness, security and reliability of the online channel.
Further, it was found that, personalization, time responsiveness, security, and reliability
are also significantly linked to the consumer satisfaction outcome with the channel.
Website design has not significant effect to online consumer's satisfaction. Finally, it was
indicated that satisfaction resulting from the above conduct variables was strongly
related to the consumer's preference online channel preference.

Jin and Kato (2004) attempted from that eBay market watch 88% of online graded cards
are graded 8 or above. According to Beckett price guide, the value of a card grade 8
often doubles the value of card graded 7. This is collective to the experiment outcomes.
It was clear that most graded cards traded online are significantly superior in quality than
ungraded cards in both retail and online market.

Danaher et.al (2003) focused on the loyalty of the 100 brands over the online shopping
and offline shopping of 19 product of the grocery. They compared the grocery items of
both the shopping with starting model which is a new segmented of Dirichlet model, this
model has very dominant features which gives the exact classes for the brand choice and
also gives the real model for the purchasing behaviour. The outcome of the study
revealed that the reality of the high brands by the high market shares bought the online
shopping much greater than the expected. But in case of the small share brand it is just
reversed. However in the traditional shopping the expectations and the observations is
not at all links to the brand share.

Chaing and Roy (2003) focused on the consumer choice to shop on the internet and at
the physical stores during the information acquisition period. A convenience sample of
34 students enrolled in undergraduate marketing class to select the product for testing, 56
products were developed based on the popularity of online shopping. The result shows
that the consumer perceives shopping offline as inconvenient, online shopping intention
was expected to be greater for search products than experience product.

Li and Zhang (2002) examined the representative existing literature on consumer online
shopping attitudes and behaviour based on an analytical literature review. In doing so,
this study attempts to provide a comprehensive picture of the status of this subfield and
point out limitations and areas for future research. They decided to restrict their search of
research articles to the period of January 1998 to February 2002. The other two criteria
for selection are the articles are empirical in nature, and the articles measure at least one
of the identified factors in our taxonomy they searched three primary IS conference
proceedings volumes: International Conference on Information Systems (ICIS),
Americas Conference on Information Systems (AMCIS), and Hawaii International
Conference on Systems Science (HICSS). They also checked the reference sections of
the selected articles to identify and include additional prominent articles in this area.
CHAPTER-III

OBJECTIVES OF THE STUDY


OBJECTIVES OF THE STUDY

 To analyses the significant difference between the online and offline consumer
groups in terms of demographic, technology use, availability and attitude of the
consumer.
 To examine the factors influencing the consumer to switch from the offline
shopping to online shopping and online to offline shopping.
 The factor influencing the consumer to shop solely online and solely offline.
 To analyses whether the qualification of the consumer affect the online shopping
and offline purchasing.
CHAPTER-IV
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

It enumerates the description of the sampling plan, research instruments used for the
collection of data pretesting of questionnaire, the use of statistical tools and techniques
for the analysis of the collected data.

Scope:

Scope was limited to the geographical boundary of the Ludhiana district of Punjab.

Need of Study:

It is very difficult task to know the consumer behavior about online shopping and offline
shopping. So, I conduct a survey to compare online and offline shopping modes.

Research Design:

It is an arrangement of plan, which guides the collection of data and analysis of data. The
purpose of research design is to ensure that the data collected is accurate and relevant.
Any research work requires clarity of objective to be achieved effectively research. The
descriptive design used for this survey.

Selection of Population:

The study has been conducted in the Ludhiana area. The population for this research is
student, job consumers and home consumers.

Research Instruments:
For the purpose of research, questionnaire was used to interview the respondents. The
questionnaire was developed so as to obtain responses relevant to objects of the research.
While designing the questionnaires every attempt was made to make it precise so that the
purpose of filling up the responses does not consume time. To find the general attitude,
perception, beliefs and intention of people towards their perception, a questionnaire was
developed. The questionnaire, which was administrated to the respondents for the
purpose of collection primary data, was a structured one.
Sample size: Determining the size of sample that is needed for a particular piece of
research. For this research 50 sample size is taken for the interviews. From this sample
size the calculation of simple percentages for each variable is done.

Data Collection Method:

Primary Data: Questionnaire development is the critical part of primary data collection
method. For this I will prepare a questionnaire in such a way that it will be able to collect
all relevant information regarding the project.

Secondary Data: It will be collected to add the value to the primary data. This may be
used to collect necessary data and records by different websites, magazines, annual
reports, journals, reference books, and newspapers etc.
CHAPTER-V
DATA ANALYSIS AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

1) Age

Options Respondents Percentage


18 to 25 years old 36 72%
Over 26 years 14 28%
Total 50 100%

Age

28%

18 to 25 years old
Over 26 years

72%

Interpretation:
The survey showed, 72% consumers are 18 to 25 years old and 28% consumers over 26
years.
2) Gender

Options Respondents Percentage


Male 30 60%
Female 20 40%
Total 50 100%

Gender

40% Male
Female

60%

Interpretation:
The survey showed, 60% consumers of online and offline shopping are male and 40%
consumers are female.
3) Do you trust on Online Shopping?

Options Respondents Percentage


Yes 41 82%
No 9 18%
Total 50 100%

18%

Yes
No

82%

Interpretation:
Out of data surveyed, 82% consumers trust on online shopping and 18% consumers are
not trusted on online shopping.
4) Which option do you prefer to choose?

Options Respondents Percentage

Online shopping 50 100%

Offline shopping 00 0

Total 50 100%

Online shopping
Offline shopping

100%

Interpretation:
The maximum consumers are satisfied with online shopping and 100% consumers prefer
to online shopping.
5) If you prefer Online Shopping on which Website did you shop?

Options Respondents Percentage


Flipkart 10 20%
Snapdeal 10 20%
Shopclues 0 0%
Amazon 25 50%
Myntra 3 6%
Voonik 2 4%
Total 50 100%

60%

50%
50%

40%

30%

20% 20%
20%

10%
6%
4%
0%
0%
Flipkart Snapdeal Shopclues Amazon Myntra Voonik

Interpretation:
The survey shows that, 50% of online shopping consumers use Amazon, 20% 0f online
shopping consumers use Flipkart, 20% of online shopping consumers use Snapdeal , 7%
of online shopping consumers use Myntra , 3% of online shopping consumers use
Voonik for shopping
6) What are the most important criterion when you buy in Offline Shopping ?

Options Respondents Percentage


Salesman advice 7 15%
Price 11 22%
Quality 23 45%
Payment facility 9 18%
Total 50 100%

45%
45%
40%
35%
30%
22%
25%
18%
20% 15%
15%
10%
5%
0%
Salesman advice Price Quality Payment facility

Interpretation:

Analysis showed 45% consumers think that quality, 22% consumers think that price,
18% consumers think that payment facility and 15% consumers think that salesman
advice is the most important criterion when they buy in offline shopping.
7) What are the most important criterion when you buy in Online Shopping ?

Options Respondents Percentage


Delivery 21 42%
Price 7 15%
Quality 12 23%
Payment security 10 20%
Total 50 100%

20%

42%

Delivery
Price
Quality
23% Payment security
15%

Interpretation:

Analysis showed 42% consumers think that delivery, 23% consumers think that quality,
20% consumers think that payment security and 15% consumers think that price is the
most important criterion when they buy in online shopping.
8) Do you like Bargaining ?

Options Respondents Percentage


Yes 35 70%
No 15 30%
Total 50 100%

30%

Yes
No

70%

Interpretation:

Out of data surveyed 70% consumers like bargaining while 30% consumers do not.
9) Please tick the reason why you choose Offline Shopping ?

Options Respondents Percentage


Better return policies 17 34%
Prefer to touch product 18 36%
No product disappointment 4 8%
Discounts 11 22%
Total 50 100%

22%
34%

Better return policies


8% Prefer to touch product
No product disap-
pointment
Discounts
36%

Interpretation:

The surveyed showed 36% consumers think that they can touch the product, 34%
consumers think that there are better return policies, 22% consumers think that there are
discounts on their shopping and 8% consumers think that there is no disappointment
about the product in offline shopping.
10) How long have you been using internet Services ?

Options Respondents Percentage


Less than one year 34 68%

More than one year 16 32%

Total 50 100%

32%

Less than one year


More than one year

68%

Interpretation:

Analysis showed 68% consumers are using internet from less than 1 year while 32%
consumers are using internet from more than one year.
11) Please tick the reason why you choose Online Shopping ?

Options Respondents Percentage


Saving valuable time 30 60%
Organizing finance 3 6%
Shipping gifts directly 10 20%
Finding items which 7 14%
might not see in stores
Total 50 100%

70%

60%
60%

50%

40%

30%

20%
20%
14%
10% 6%

0%
Saving valuable time Organizing finance Shipping gifts directly Finding items which
might not see in stores

Interpretation:

The surveyed showed 60% consumers think that they can save their valuable time, 20%
consumers think that there is the facility of shipping gifts directly, 14% consumers think
that they can see those items that might not see by them in stores and 6% consumers
think that they can organize their finance easily in online shopping.
12) How far are you willing to travel to shop in Offline Shopping ?

Options Respondents Percentage


Less than 10 miles 43 86%

More than 10 miles 7 14%

Total 50 100%

14%

Less than 10 miles


More than 10 miles

86%

Interpretation:

Analysis showed 86% consumers are willing that they can travel less than 10 miles and
14% consumers are willing that they can travel more than 10 miles for offline shopping.
13) How often do you browse the shopping websites?

Options Respondents Percentage


Daily 5 10%
Every alternate day 10 20%
Twice a week 10 20%
Once a week 7 14%
Rarely 3 6%
Never 15 30%
Total 50 100%

35%

30%
30%

25%

20% 20%
20%

15% 14%

10%
10%
6%
5%

0%
Daily Every alternate Twice a week Once a week Rarely Never
day

Interpretation:

The above data shows that, most of them browse shopping websites twice a week followed
by rest. And it is cleared from above chart that the majority of elder consumers never browse
any shopping website as they prefer to shop offline.
14) Do you think online shopping is a platform that save your time and energy ?

Options Respondents Percentage


Yes 28 56%
No 15 30%
Can’t say 7 14%
Total 50 100%

14%

Yes
No
56% Can’t say
30%

Interpretation:

To analyze the buyers opinion about online shopping, this question was asked. And it has
been observed that majority of customers from both the age groups agrees that purchasing
online saves time and energy. But collectively, maximum elderly respondents do not agree
with this.
15) Do you believe online shopping is less expensive as compared to offline shopping ?

Options Respondents Percentage


Yes 28 56%
No 17 34%
Can’t say 5 10%
Total 50 100%

10%

Yes
No
34% Can’t say
56%

Interpretation:

Majority of consumers believes that online shopping is less expensive than offline shopping.
But, there is a contradiction as the elder respondents believes that buying over internet is
expensive as compared to buy from markets or stores.
16) "Offline shopping will disappear in the future" What is your consent regarding this?

Options Respondents Percentage


Strongly agree 0 0%
Agree 0 0%
Neutral 3 6%
Disagree 7 14%
Strongly disagree 40 80%
Total 50 100%

90%
80%
80%

70%

60%

50%

40%

30%

20%
14%
10% 6%
0% 0%
0%
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation:

Offline shoppers totally disagree that offline shopping will disappear in future. In fact,
majority of young generation that are highly indulged in online shopping also does not agree
that offline shopping will extinct.
17) Do you get irritated due to unnecessary botheration by an online website after the
moment you browse an item?

Options Respondents Percentage


Always 10 20%
Sometimes 15 30%
Never 10 20%
No botheration 15 30%
Total 50 100%

35%

30% 30%
30%

25%

20% 20%
20%

15%

10%

5%

0%
Always Sometimes Never No botheration

Interpretation:
From above representation, it has been observed that being bothered due to unnecessary
poking by online websites, young respondents are still most likely to purchase over internet.
CHAPTER-VI
FINDINGS, SUGGESTION AND
LIMITATIONS OF THE STUDY
FINDINGS OF THE STUDY:

The primary object of this study was to compare online and offline shopping modes.
The findings are:

 The survey showed, 72% consumers are 18 to 25 years old and 28% consumers
over 26 years.
 The survey showed, 60% consumers of online and offline shopping are male
and 40% consumers are female.
 Out of data surveyed, 82% consumers trust on online shopping and 18%
consumers are not trusted on online shopping.
 The maximum consumers are satisfied with online shopping and 100%
consumers prefer to online shopping.
 The survey shows that, 50% of online shopping consumers use Amazon, 20%
0f online shopping consumers use Flipcart , 20% of online shopping
consumers use Snapdeal , 7% of online shopping consumers use Myntra , 3%
of online shopping consumers use Voonik for shopping.
 Analysis showed 45% consumers think that quality,22% consumers think that
price,18% consumers think that payment facility and 15% consumers think
that salesman advice is the most important criterion when they buy in offline
shopping.
 Analysis showed 42% consumers think that delivery,23% consumers think
that quality, 20% consumers think that payment security and 15% consumers
think that price is the most important criterion when they buy in online
shopping.
 Out of data surveyed 70% consumers like bargaining while 30% consumers do
not.
 The surveyed showed 37% consumers think that they can touch the
product,35% consumers think that there are better return policies,20%
consumers think that there are discounts on their shopping and 8% consumers
think that there is no disappointment about the product in offline shopping.
 The surveyed showed 60% consumers think that they can save their valuable
time,20% consumers think that there is the facility of shipping gifts
directly,13% consumers think that they can see those items that might not see
by them in stores and 7% consumers think that they can organize their finance
easily in online shopping.
 Analysis showed 67% consumers are using internet from less than 1 year
while 33% consumers are using internet from more than one year.
 Analysis showed 87% consumers are willing that they can travel less than 10
miles and 13% consumers are willing that they can travel more than 10 miles
for offline shopping.
SUGGESTIONS:

Online Shopping:
1. Shop from the home
Shopping online gives the best experience of purchasing a thing from home. Without
going to the market. Buy anytime from anywhere you prefer.

2. Saves money
With lots of exciting offers, discounts, and coupons online shoppers save money a lot.
Also, summer offers, winter offers, and occasion sales are always there. Many gift cards
reduce expenses too.

3. More options to choose


Only by navigating web pages of different websites, you can choose your product by
reading the reviews carefully and wisely.

4. Easy return and cancel of items


You can cancel any online ordered product or return any purchase if you do not feel they
meet your expectation. If you paid for the product then your money will be refunded
within some days on your account.

5. No pressure to buy


There is no pressure to buy anything while shopping online. But in offline shopping, you
may suffer this. You can select your desired items without any pressurization from the
owner or sellers of the store.

6. Low transportation fees


If you need to send or bring large and heavy items to some places or your home. It was a
headache. But in online shopping, you do not have to think about it anymore. They will
be delivered to your recommended place.

7. Time saver
Standing in a queue for hours to buy something, that era is gone. You do not have to wait
outside of any store any longer. You can buy according to your time. Even in the
restaurants and cinema halls, you can buy tickets from earlier, so you do not have to wait
outside now. Save your precious time and utilize it.
8. Safe from the crowd
In this time of covid, it is very important not to go to any crowded places. These crowds
can affect your health. And it can become a cause of pickpocketing too. So, it is safe to
shop online without going among the masses.

9. Easy to compare
Open multiple web pages of online stores and compare your products with each other
and with multiple other options. Read and watch reviews see how they are compared and
decide which one to buy.

10. Multiple payment options


Another important feature of online shopping is you can access many options for
payment. Cards, UPI, QR code payments, internet banking, and many other options are
available for payment online. You can choose a cash-on-delivery option too if you do not
feel safe with internet payment options.

Offline Shopping:
1.   No time delivery
Go to the store and get what you want without delay in offline shopping. You do not
have to wait for 5 to 7 days for getting the product, which happens with online shopping.

2.   Choose by experience
Choose any product with your personalized experience. Touch and feel the product,
know how it is then buy if you want or not. Online shopping does not give you this
option.

3.   Quick return
Returning any product is easy in offline shopping as getting the product without delay.
Go to the store on the day they take the return and return or exchange the product
immediately.

4.   Satisfaction of shopping
As I stated earlier, getting satisfaction while shopping with friends or family or your
loved one is different. You can never get that satisfaction or joy in online shopping.

5.   Personalized recommendation from the staff


When you shop online it takes much time to research before buying any product. But
when you shop offline, some staff handle plenty of customers each day and know what
will suit them. So you can get personalized recommendations from them before buying
anything recklessly.

6.   Purchase immediate products


Your daily and immediate needs like vegetables, medicines serve the offline shopping,
just go and buy them immediately.

7.   Pay by cash or other options


It has been seen in many stores that they are providing the opportunity to pay by cash or
other options like cards, QR codes, UPI, etc. this allows people to buy more offline.

8.   Safety
In electronic payments, your cash may be stuck, or not paid in time. This give-and-take
policy is much more transparent than online payments.

9.   Size and fitting


Choose items according to your size and fitting. If needed you can give trials in many
shopping stores then buy with satisfaction.

10.  People without much knowledge of the digital world can visit


Many people in this world, mainly rural and illiterate, do not get access to the mobiles or
internet. So, shopping offline is the best option for them to have the things they want
without facing any problems.
LIMITATIONS:

Due to resources and time constraints the study was limited to the only Ludhiana area.
Since the sample size was 50. So finding and concluding of the study are only suggestive
not conclusive in spite of the best and honest efforts. Lack of customer support, while
asking the consumer they were behaving rudely and not responding to the questions.
Basically based on primary data, hence we cannot argue that the research is applicable in
each condition, time and place.
CHAPTER-VII
CONCLUSION
CONCLUSION

Online shopping is a new experience and has greatly impacted the lives of consumers in
its short time of existence. 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. The results of this survey underscore the need for businesses
to take the online market seriously. The survey conducted revealed a positive attitude
and behavior toward online shopping even by those consumers who still like traditional
stores. These consumers are mostly in low and high age groups. Those consumer groups
have time to spend in traditional stores and malls and value the offline shopping
experience for social reasons, such as meeting with friends. These consumers appear to
be more knowledgeable by gathering information online and then purchase it from
traditional stores. Rapid growth of e- commerce has resulted in a E-transformation in the
global retail infrastructure. Internet has emerged as a cost effective means of doing
business. Despite being faced with numerous bottlenecks, Thanks to rising internet and
higher incomes and more savvy population. Secured online payments, better to
Electronic Stores, return policies and exciting discounts could help the Perceptions of
Shopping Benefits. Considering the demographic profiles of online users; gender, age
and education have significant association to web shopping in the current Indian
scenario.

The overall results prove that the respondents 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 country.
Online shopping organizations can use the relevant variables and factors, identified
from the study, to formulate their strategies and plans in the country. The organizations
can prioritize the consumer implicit and explicit requirements in online shopping
environment. The results can also be used by various organizations to identify their
target customer segments. The results of the study can be utilized by practitioners in
relooking or revamping their strategies for online shopping. Online websites should pay
more attention to the female segments as results prove that females shop more in online
shopping as compared to men.
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QUESTIONNAIRE
QUESTIONNAIRE

1) Age

a) 18-25 years old b) Over 26 years

2) Gender

a) Male b) Female

3) Do you trust on Online Shopping?

a) Yes b) No

4) Which option do you prefer to choose?

a) Online shopping b) Offline shopping

5) If you prefer Online Shopping on which Website did you shop?

a) Flipkart b) Snapdeal c) Shopclues

d) Amazon e) Myntra f) Voonik

6) What are the most important criterion when you buy in Offline Shopping ?

a) Salesman advice b) Price

c) Quality d) Payment facility

7) What are the most important criterion when you buy in Online Shopping ?

a) Delivery b) Price

c) Quality d) Payment security

8) Do you like Bargaining ?

a) Yes b) No

9) Please tick the reason why you choose Offline Shopping ?

a) Better return policies

b) Prefer to touch product

c) No product disappointment

d) Discounts
10) How long have you been using internet Services ?

a) Less than one year

b) More than one year

11) Please tick the reason why you choose Online Shopping ?

a) Saving valuable time

b) Organizing finance

c) Shipping gifts directly

d) Finding items which might not see in stores

12) How far are you willing to travel to shop in Offline Shopping ?

a) Less than 10 miles

b) More than 10 miles

13) How often do you browse the shopping websites?

a) Daily b) Every alternate day

c) Twice a week d) Once a week

e) Rarely f) Never

14) Do you think online shopping is a platform that save your time and energy ?

a) Yes b) No

c) Can’t say

15) Do you believe online shopping is less expensive as compared to offline shopping ?

a) Yes b) No

c) Can’t say

16) "Offline shopping will disappear in the future" What is your consent regarding this?

a) Strongly agree b) Agree

c) Neutral d) Disagree

e) Strongly disagree

17) Do you get irritated due to unnecessary botheration by an online website after the
moment you browse an item?

a) Always b) Sometimes
c) Never d) No botheration

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