Executive summary

In our Bangladesh recently the internet provides online purchasing, if although it is not vastly
than other developed country. This reason is occurred for consumer behavior about the internet.
This consumer behavior is influenced by many factors. If E-marketers know the factors affecting
online consumer behavior, and the relationships between these factors and the type of online
buyers, then they can further develop their marketing strategies to convert potential customers
into active ones, while retaining existing online customers.

This project is a part of study, and focuses on factors which online consumers keep in mind hole
shopping online. This research is found that demographic, aesthetic, interactivity, trust, usability
are the five dominant factors which influence consumer perceptions of online purchasing.

Consumer behavior is said to be an applied discipline as some decisions are significantly affected
by their behavior or expected actions. The two perspectives that seek application of its
knowledge are micro and societal perspectives.

The online purchasing behavior of online shoppers and factor influencing online shopping
behavior and its future perspective. Internet is changing the way consumers shop and buy goods
and services, and has rapidly evolved into a global phenomenon. Many companies have started
using the Internet with the aim of cutting marketing costs, thereby reducing the price of their
products and services in order to stay ahead in highly competitive markets.

Companies also use the Internet to convey, communicate and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction surveys with customers. Customers use
the Internet not only to buy the product online, but also to compare prices, product features and
after sale service facilities they will receive if they purchase the product from a particular store.
Many experts are optimistic about the prospect of online business.

In addition to the tremendous potential of the E-commerce market, the Internet provides a unique
opportunity for companies to more efficiently reach existing and potential customers. Although
most of the revenue of online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence. It has been more
than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners
of electronic commerce constantly strive to gain an improved insight into consumer behavior in
cyberspace. Along with the development of E-retailing, researchers continue to explain E-
consumers‟ behavior from different perspectives. Many of their studies have factors or
assumptions which are based on the traditional models of consumer behavior, and then examine
their validity in the Internet context.

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Chapter One: Introduction

Background

Objectives of the Study

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33
Background:
Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with the aim
of cutting marketing costs, thereby reducing the price of their products and services in order to
stay ahead in highly competitive markets. Companies also use the Internet to convey
communicates and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not only to buy the
product online, but also to compare prices, product features and after sale service facilities the
will receive if they purchase the product from a particular store. Many experts are optimistic
about the prospect of online business.

In addition to the tremendous potential of the E-commerce market, the Internet provides a unique
opportunity for companies to more efficiently reach existing and potential customers. Although
most of the revenue of online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence .It has been more
than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners
of electronic commerce constantly strive to gain an improved insight into consumer behavior in
cyberspace. Along with the development of E-retailing, researchers continue to explain E-
consumers „behavior from different perspectives. Many of their studies have posited new
emergent factors or assumptions which are based on the traditional models of consumer
behavior, and then examine their validity in the Internet context.

Objectivity of the study:

With a view to drawing a complete picture on consumer behavior factors affecting in online
purchasing in Dhaka city, the objectives of this study are set as follows:

• Broad
To explore the all factors that affect online consumer behavior.
• Specific
1) To know the situation of internet using ;
2) To study customer’s level of satisfaction with regard to online shopping;
3) To examine whether customer’s prefer online shopping to physical stores;
4) To discover the problems of using internet;
5) To focus on consumer behavior in online purchasing.

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Chapter Two: Theoretical Framework:
Literature Review

Literature Review

Factors of online consumer behavior

33
33
Review of literature:

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can change human behavior
and human interactions to a very large extent. Web based shopping behavior is one 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 behavior will be explored. A
cross cultural data set will be collected and an illustrative description of the shoppers will be
provided. As a final step the cross cultural differences between several shoppers will be
explored. One question which will run as a theme throughout the course of this paper is, “Will
the traditional consumer behavior theory and research be altered by the advent of web based
shopping?”
There is a huge difference between a physical store and its electronic counterpart. A help button
on the home page of the web-shopping site replaces the sales clerks‟ friendly advice and service.
The familiar layout of the physical store becomes a maze of pull down menus, product indices
and search features. Now more than ever, the promise of electronic commerce and online
shopping will depend to a great extent upon the interface and how people interact with the
computer. At the same time, there are some inherent difficulties in maintaining an online
inventory. In a regular store, the managers can pull out a product from the shelf if they feel that it
is not fast moving or has no demand. This is a privilege that cannot be extended to the online
retail store.

Atanasov (2001) in their study it is anticipated that the worldwide market for business-to-
business and business-to-consumer e-commerce will total $3.1 trillion in 2004 as compared to
$350.4 billion in fiscal 2000-2001. Among the most profitable products and services sold online
are consumer goods such as books, videos, music, computers and other tech products, and travel
(Schmerken, 2001). Other profitable sectors include investment transactions, which Schmerken
(2001) considers to have generated a wave of corporate spending on e-commerce. The Internet
and its myriad e-commerce or marketing sites, represents what researchers believe to be the
security concerns of online shoppers and potential shoppers. These researchers and others
reported that online buyers are also concerned about security issues when making online

33
purchases. Though many consumer concerns regarding the inherent safety of financial
transactions online have been resolved through the development of sophisticated encryption
programs, many consumers require additional assurance that their financial data will be held in
confidence. Other security issues that were identified by Mauldin and Arunachalam (2002) focus
on retailer disclosures, information risk, product risk, and familiarity with the retailer and the
product. Generally, Mauldin and Arunachalam (2002) found that intent to purchase rather than
merely browsing online increases in direct association with a sense of security and comfort.
Retailers who offer their products online are therefore advised to emphasize product disclosure
and retailer disclosure and reduced information risk in their e-commerce sites. Though most
online retailers do provide clear descriptions of security procedures, some Internet shoppers still
avoid using credit cards online. Overcoming resistance to this fear is one of the key tasks that
must be under taken.

Kamali and Loker (2002), in their study Internet retail sales represent a new and increasingly
vital commercial milieu. E-commerce or electronic commerce saw sales revenues grow 12.1
percent in 2001 to $31.4 billion a figure expected to reach $81.1 billion by 2006 (Kamali &
Loker, 2002). While it is clear that many more consumers are electing to shop online than in the
past a shift in behavior that may be due to the sense that online shopping is safer and more secure
than it was initially and to the adoption of alternative shopping avenues. This essay will examine
these issues, arguing that browsers become buyers in cyberspace as perception of safety, product
quality, and retailer reliability increase an idea also advanced by Li, Luo, Lepkowaska-White and
Russell.

Anita desai (2003) in her study E-tailing is the practice of selling retail goods on the internet. It
is the abbreviated version of “electronic retailing” which essentially constitutes business to
consumer transaction. While the concept of online retailing or e-tailing is no longer in its nascent
stage; it continues to evolve, as advanced e-commerce applications act as a potent catalyst in the
development of e-tailing. The idea of online retailing or e-tailing which almost every net-savvy
individual is familiar with; offers a convenient mode of shopping online and the consumer gets
to choose from a diverse range of products and services as opposed to the analogous physical
shopping experience. Furthermore, online retailers or e-tailers get to expose and sell their

33
products to a global audience through their e-stores. (Also termed as online stores, internet,
shops, web shops etc.) The E-commerce industry plays a vital role in its growth and
development. The consumer or buyer is usually provided with detailed information and
description of the product which helps them make a judicious choice before making an online
purchase. For consumers who face a paucity of time or want a diverse range of products to
choose from, e-tailing proves to be an ideal option. Every e-tailer wants his/her share of domain
amidst the vast World Wide Web galaxy. Due to the intense competitory quotient involved,
every e-tailer out there wants to offer their customer/buyer a smooth and pleasant shopping
experience. Therefore, e-tailing is just not restricted to putting up products for sale for consumers
to buy. As consumers today are well-informed, it is understood that they would make a well
informed decision as well. This involves a fair amount of product research, price comparison and
checking the credibility of the e-store.

Petrovic Dejan (2006) in his study on Analysis of consumer behavior online explained that the
most relevant behavioral characteristics of online consumers and examine the ways they find,
compare and evaluate product information. Comparison of the newly collected survey data with
the existing consumer behavior theory resulted in detection of a number of issues related to a
specific consumer group. The purpose of this report is to translate these findings into a set of
implementation activities on strategic and technological level. Execution of these
recommendations will result in better conversion of visitors into customers and encourage
customer loyalty and referrals. The focus group of this study will be young adults aged between
eighteen and thirty-four interested in buying a mobile phone or a related product.

Ogenyi Ejye Omar, Alan Hirst (2006) in their study they evaluates women's attitude as an
overall inclination towards apparel shopping online via e-mail questionnaire. Its findings suggest
that women generally show positive attitudes towards shopping online for apparel. Women who
shop for apparel online are aware of some of the discouraging features of online shopping, but
these features do not deter them from buying online. The implication for online retailers is that
they should focus on making the experience of online shopping more accommodating and more
user-friendly. This is important because the positive features of online shopping ('convenience',
'usefulness', 'ease of use', and 'efficiency') appear to be more important than the negative features

33
('lack of security', 'privacy of information' and 'online fraud').
Shun &Yunjie (2006) in their study showed that there are product types, which are more likely
to be sold online such as software, books, electronics and music. Reason for this is that when
purchasing these types of products, one does not require personal inspection and most, if not all
features, can be outlined in the product description and images. Most products in the mobile
phone family belong to this category. According to the recent research on consumer behavior on
the Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006), there are four distinct
consumer groups with different intentions and motivations:
 Exploration
 Entertainment
 Shopping
 Information

David Anderson (02.02.2006) in their research carried out by a consumer behavior researcher at
Henley Management College has investigated what drives people to search online. The findings
reveal that convenience, time-efficiency and personal control are the key drivers for consumers
to search online, rather than cost. It also shows that the relationship between traditional and
online retailing outlets needs to be more unified E-shopping has changed the face of retail, and
surfers are now looking for spring sale bargains. This is following a bumper e-Christmas, where
Internet shopping soared almost 50% during the 10-week run-up to Christmas 2005 (IMRG).
However, the new findings reveal that convenience and personal control are the key drivers for
consumers to search online. Dr Susan Rose, from Henley Management College, said: “What
motivates online shoppers is the ability to shop, where, when and how they like. Nowadays
people can shop over their Shreddies in the morning. The research, that analyses data from 304
electrical goods Internet shoppers, provides businesses with a guide to getting the information
highway buzzing with potential customers. Big-ticket items such as digital TVs, cameras, or
iPods now feature on our e-shopping list. The Internet provides a rich source of information
about brands and retail channels that enable us to search and find information to help us with our
final purchase decision. For businesses there are some steps to help them embrace the Internet
revolution with success. A key factor driving Internet use for „online window shopping‟ is its
usefulness in our personal lives. The Internet frees time and makes the information search

33
process, Research suggests that people search online for some goods, yet buy from a traditional
high street retailer, or look around for goods in shops, then take their search online. In turn, it is
essential for retailers who operate both on and off line to ensure that they embrace a joined up
process that appears seamless to the customer. Some retailers have still to successfully unite the
two retailing methods - this is key to contemporary customer service. Factors such as how much
the medium challenges us mentally and our confidence to navigate and understand the
technology can turn us on or off the idea of browsing online for products. A clear divide is
appearing between the occasional online shopper and the regular experienced user. Concerns
about how easy the system is to use have almost disappeared for online shopping enthusiasts, but
for occasional users etailingsites need to be easy to navigate. Websites must be accessible and
operate efficiently. The research found that the expectation of getting a good financial deal is still
a strong motivator to seek out products online, but this is secondary to the importance but, many
people steer clear of electronic buying because of security worries. Only once online retailers can
reassure customers about fraud and privacy, will the online shopping curve really take off.
Worries about the risk involved, in terms of financial transaction and privacy remain. A move
from „big brands‟ to „bargains‟ may only take place once.

Music Videos, Lyrics - Daily updated collection of music videos and lyrics. Majority of young
adults interviewed for purpose of this research tend to be active information seekers. A high level
of technological confidence within this group tends to be an encouraging factor when it comes to
product information research online. The following analysis presents both, focus group results
and behavioral theory in a parallel fashion divided into two main research topics:
1. Information Retrieval and
2. Search Patterns
Perception of Product Information Online These two areas is mutually dependent and
particularly important in a market where consumers have the power to choose the right product
from a number of competing suppliers. Well-structured product information that cannot be found
easily online is as much of a problem as is having easily accessible information that does not
meet the consumer's expectations.

Jianwei Hou, Cesar Rego (2007) in their study in traditional auctions, it is often assumed that

33
bidders are a homogenous group. However, since most online bidders are average consumers
instead of professional bidders, we suspect that online bidders are a heterogeneous group. The
purpose of this paper is to explore the types of online bidders based on their real bidding
behavior in the context of consumer-to-consumer online auction market. A cluster analysis is
employed and four types of online bidders are finally identified in a private value auction,
namely, goal-driven bidders, experiential bidders, focused bidders, and opportunistic bidders.
The profile and performance of each group are also discussed.

Scott M. Smith, Chad R. Allred, William R. Swinyard(2008) in their research paper they
discusses online shopping in context of diffusion of innovation theory. It proposes that online
shopping is a discontinuous innovation whose adoption rate is influenced by several of Rogers'
(2004) diffusion deterrents. A new 12-item 'Computer Competence Index' (CCI) is proposed and
tested using data from an internet-administered US probability study of 1800 online users.
EShoppers are profiled using a tertile split of the CCI. Each tertile's demographics, computer
activities, computer-oriented lifestyles, and online purchase activities are reported. Evidence is
presented that concepts related to the diffusion of innovation may explain resistance in the
growth of online shopping.
Anders Hasslinger; Selma Hodzic; Claudio Opazo (2008-02-01) in their study they showed
that developed into a new distribution channel and online transactions are rapidly increasing.
This has created a need to understand how the consumer perceives online purchases. The
purpose of this dissertation was to examine if there are any particular factors that influence the
online consumer. Primary data was collected through a survey that was conducted on students at
the University of Kristianstad. Price, Trust and Convenience were identified as important factors.
Price was considered to be the most important factor for a majority of the students. Furthermore,
three segments were identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments we found a variation of the different factors importance and established implications
for online book stores.

Ruiliang Yan, John Wang (2009) in their research it provides a useful framework to help
business marketers identify the effect of consumer online purchase costs on firm performances in
online and traditional channel competition. A game theory model is developed to determine the

33
optimal strategies for online and traditional retailers. We demonstrate that consumer online
purchase costs always have a valuable impact on firm profits, and further show that consumer
online purchase costs always have a much more valuable impact on firm profits whenever the
traditional retail transaction costs and the product web-fit change. We also find that consumer
online purchase costs have a greater impact on the retailer's profits in a Stackel berg competitive
system than in a Bertrand competitive system. Based on our results, managerial implications are
discussed and probable paths of future research are identified.

Tomomi Hanai, Takashi Oguchi (2009) in their study to investigate what kind of information
contributes to trust formation in online shopping. Twenty-seven female undergraduate students
were recruited and asked to evaluate the trustworthiness of 20 online shopping websites. All the
online shopping websites dealt with branded products where there is greater emphasis on the
trustworthiness of online shops or products. The results show that information described on the
websites was classified into two categories, firstly, information about the shop and its procedures
and services. Secondly, the concrete information necessary for the consumption process, such as
payment information and return information, which heightens the reliability of these shops. The
term “brand” originally refers to a “description or trademark which indicates a type of product
made by a particular company.” However, in modern Japanese society it refers to those branded
products that are perceived to have a higher quality than other similar products. Thus, the term
“brand” authenticates that its products belong to a high-class, and the people who possess these
branded products are regarded as “exclusive people” through the “basking-in-reflected glory
process” (Cialdini, Borden, Thorne, Walker, Freeman, & Sloan, 1976). The branded products
interest female young people and recently they have been more inclined to purchase them via
online shopping. However, they tend to refrain from purchasing these products via online
shopping due to their distrust of it. Consequently, it becomes more and more important to
analyze what kind of information contributes to trust formation in online shopping. Female
Undergraduate Students‟ Attitudes toward Branded Products First, we introduce several surveys
for determining the attitude towards, and ownership of, branded products among female young
people, especially female undergraduate students in Japan, who are the target group of this study.
Info plant (2007) showed that nearly half of all people are interested in some branded products.
Although branded products generally attract the attention of various kinds of people, young

33
females are especially interested in branded products. Infoplant (2007) revealed that more than
60% of females fewer than 20 years of age and nearly 80% of females in their twenties have
purchased some branded products. Furthermore, the percentage of people who usually buy new
branded products is about 20% among females under 20 years of age and more than 10% in
females in their twenties.

A.M. Sakkthivel (2009) in their research paper aims to identify the impact of demographics on
consumer buying behavior towards online purchase of different products based on the
involvement and investment (High, Medium and Low). It attempts to unearth the impact of the
demographics on online purchase which is at present relatively limited. It would help the
marketers to identify the demographic profile of consumers which is otherwise not known due to
the intangible nature of internet. The findings would help the marketers to design their offerings
based on the demographic profile of online consumers and would help the online marketers to
identify and segment the online consumers which will enhance their focus and eventually leads
to financial growth.

Harris Interactive (2009) in their study of online customer experience. The survey found that
online customer experience reached an inflection point in 2009. The percent of consumers who
have experienced problems when conducting transactions online showed its first substantial
decrease in five years -- from approximately 87% in all previous Tealeaf surveys to 80% in
2009. While the percent of consumers experiencing online transaction problems, at 80%, remains
high (the potential online shopping dollars impacted by transaction problems rings up at $47.6
billion), this improvement points to a growing business focus on delivering better customer
experiences. The survey sheds light on forces driving this accelerated online customer
experience focus, including the down economy and increased consumer power due to
experience-sharing via social media. It also examines consumer behavior when transacting
online, call center behavior related to online issues and mobile commerce. Verticals represented
in the findings include retail, insurance, travel and financial services.

San Francisco, CA – 6th October 2009 - the leader in online Customer Experience
Management software (CEM), today announced the results of the 5th annual survey of online

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consumer behavior, commissioned by Tealeaf and conducted by Harris Interactive® [results
available at www.tealeaf.com/Harris]. The survey found that 48% of U.S. online adults say that
they are now conducting more online transactions than they did in the past given the current
economic climate. However, 80% of adults who have conducted an online transaction in the past
year experience problems when doing so in 2009. Previous Tealeaf surveys have consistently
shown that approximately 87% were affected.
This improvement over prior years may be attributed to a growing business focus on delivering
better online customer experiences. While this reported decline in online transaction issues is
good news, online customer experience is still very much a work in progress. The percentage of
consumers affected by issues such as error messages (38%), endless loops (19%) and login
problems (28%) is still extremely high. 1 Further, the resulting business impact is significant, as
32% of those who experience issues when conducting transactions online would simply take
their business elsewhere (to either an online or offline competitor) or abandon the transaction
entirely. In 2009, $47.6 billion will potentially be impacted by online transaction problems, on
U.S. shopping websites alone.

Bikramjit Rishi (2010) in their study on online shopping is an innovative option of distribution
available in the hands of marketers. It is innovative and creative because marketers can
experiment with it in form, content, visibility and availability. In India online shopping is
considered as a relevant alternative channel for retailing and it is now an important part of the
retail experience. This research study is an empirical study to find out the motivators and
decisional influencers of online shopping. The sample has been selected from the youth
population as this group of people actually use internet to buy online. The study highlights that
reliability; accessibility and convenience are the major motivator factors which motivate the
Indian consumer to buy online. Similarly, reluctance and preference are the two decisional
factors which influence the decision.

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Factors of online behavior:

Usability Interactivity Trust Aesthetics

• Convenience • Customer • Transaction • Style/atmosphere

service/after security
• Site speed sales • Product
• Customer data information
• Timeliness • FAQ & chat misuse
room • Pricing
• Ordering/payment • Guarantees/return
process policies • Difficulty in
choosing
• Search facilities • Physical evidence
and process • specification

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Chapter Three: Research
Methodology

Methodology

Research method
Research strategy

Descriptive research method

Sample design

33
33
Methodology:
At any given time there are millions of people online and each of them is a potential customer for
a company providing online sales. Due to the rapid development of the technologies surrounding
the Internet, a company that is interested in selling products from its web site will constantly has
to search for an edge in the fierce competition. Since there are so many potential consumers, it is
of the out most importance to be able to understand what the consumer wants and needs. The
importance of analyzing and identifying factors that influence the consumer when he or she
decides to purchase on the Internet is vital. Since the Internet is a new medium for there have
been new demands set by the consumer. That is why it is crucial for the online retailers to know
what influences the online consumer. Analyzing consumer behavior is not a new phenomenon.
The renowned marketing expert Philip Kotler has published several works on the topic of
consumer behavior theories. These theories have been used for many years not only to
understand the consumer, but also create a marketing strategy that will attract the consumer
efficiently Hence, understanding and identifying the consumer is closely related to the directions
a company will take with their marketing strategy. These theories can also be applied to identify
the online consumer and to create certain consumer segments. However, some distinctions must
still be made when considering traditional consumer behavior and online consumer behavior.

Since online retailing is a new retailing medium and online consumer behavior is diverse from
traditional consumer behavior, one must identify what influences the online consumer.
Analyzing the process that the online consumer goes through when deciding and making a
purchase over the Internet, shows some factors that consumers consider these factors need to be
identified and taken into account by online retailers in order to satisfy consumer demands and
compete in the online market.

Research method:
Data for this study was collected by means of a Survey conducted in Dhaka city. The sample size
was 30. .The Questionnaire (shown in Annexure) was used mainly to test the model proposed for
Attitude towards online shopping. The type of research was both exploratory as well as
Descriptive. Likert five point scales ranging from Strongly Agree to strongly disagree was used
as a basis of Questions. We took around five different factors by studying the existing models of
consumer attitudes that play an important role in online purchase, and then proposed a model
leading to online shopping. This model was then tested in our research by the mode of factor
analysis in SPSS.

33
Research strategy:
There are two strategies used for collecting data. Such as:

Usually when a study is conducted, secondary data is not sufficient enough and needs to be
completed with primary data which is collected by the research.

Descriptive research method:

We will conduct our research in order to collect primary data and reach the objective of the
Dissertation. We will also be discussing which different types of Methodologies that were used.
We then collected primary data through a survey. The main purpose of the survey was to collect
data about Online Consumer Behavior. In the study there are three methods are used for survey.
Such as:
Survey
method

Telephone Personal Electronic

interviewing interviewing interviewing

Sample design:
The factors that we intended to examine can be applied to and investigated at any population that
uses the Internet and buys online products Online. Since there are time and resource restraints, a
specific Population had to be identified in order to generalize and create relevant segments. We
decided that the sample size should contain 30 respondents and we collected answers from 30
respondents. The populations for this research are divided into four categories:

Population

Govt.
Student Professional Business
employed

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Chapter Four: Data Analysis

Age of respondents

Gender of respondents
Types of respondent related with internet
connection
Cross tabulation

Hypothesis test
Open handed question analysis

33
33
 1. Age of respondents:

30 above
6.7%

15-20
25-30
36.7%
26.7%

20-25
30.0%

Fig: 1.1

INTERPRETATION:

The above diagram shows us the percentage in the age of respondents. As it shows that from age
15-20 the number of respondents are36.7 % and from age of 20-25 it is 30 % and from 25-30 it is
26.7% and from 30 above is 6.7% this is the above data which is shown by the this pie chart.

33
2. Gender of respondents:

Genderofrespondent

46% Male
Female
54%

Fig: 2.1

INTERPRETATION:

As our respondents are mostly from the Dhaka city, we use to get more data from males as
they were ready to give their experiences, it this graph itself is showing more percentage of
males rather than females, the percentage of male respondents is 54% and percentage of
female respondents is only 46%.

33
3. Types of respondent related with internet connection:

100

90

80

70

60

50

40

30
do you have internet
Percent

20
no
10

0 yes
student govt.employed
professional business

what's your occupation?

Fig: 3.1

INTERPRETATION:

33
From the diagram we see that the percentage of the student 63%, professional13%, Govt
employed 7%, business 17%. The main target of the study is student & business. But in the
study the percentage of using internet of student is lower than other types of respondent.
From the study we summarized that income is the main factor for the student for using
internet.

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 4. Cross tabulation:
4.1. SEX * AGE * if you have internet connection, what you like to search? * What’s your
occupation? Cross tabulation
AGE Total
What’s yourIf you have internet 15-20 20-25 25-30 30
occupation? connection, what you above
like to search?
student communication SEX female Count 11 11
% within100.0% 100.0%
SEX
% within100.0% 100.0%
AGE
% of100.0% 100.0%
Total
Total Count 11 11
% within100.0% 100.0%
SEX
% within100.0% 100.0%
AGE
% of100.0% 100.0%
Total
communication, newsSEX male Count 4 1 5
& information
% within 80.0% 20.0% 100.0%
SEX
% within 57.1% 100.0% 62.5%
AGE
% of 50.0% 12.5% 62.5%
Total
female Count 3 3
% within 100.0% 100.0%
SEX
% within 42.9% 37.5%
AGE
% of 37.5% 37.5%
Total
Total Count 7 1 8
% within 87.5% 12.5% 100.0%
SEX
% within 100.0% 100.0% 100.0%
AGE
% of 87.5% 12.5% 100.0%
Total
professional communication, newsSEX male Count 1 3 4
& information
% within 25.0% 75.0% 100.0%
SEX
% within 100.0% 100.0% 100.0%
AGE
% of 25.0% 75.0% 100.0%
Total
Total Count 1 3 4
% within 25.0% 75.0% 100.0%

33
 SEX
% within 100.0% 100.0% 100.0%
AGE
% of 25.0% 75.0% 100.0%
Total
govt.employed communication, newsSEX male Count 2 2
& information
% within 100.0% 100.0%
SEX
% within 100.0% 100.0%
AGE
% of 100.0% 100.0%
Total
Total Count 2 2
% within 100.0% 100.0%
SEX
% within 100.0% 100.0%
AGE
% of 100.0% 100.0%
Total
business all SEX male Count 1 2 2 5
% within 20.0% 40.0% 40.0% 100.0%
SEX
% within 100.0% 100.0% 100.0% 100.0%
AGE
% of 20.0% 40.0% 40.0% 100.0%
Total
Total Count 1 2 2 5
% within 20.0% 40.0% 40.0% 100.0%
SEX
% within 100.0% 100.0% 100.0% 100.0%
AGE
% of 20.0% 40.0% 40.0% 100.0%
Total
Fig: 4.1.1

INTERPRETATION:

From the cross tabulation analysis we see that there is female are lack behind in using internet.
There are many female have no own internet connection. If they have, they could always busy to
communication which age is 15-20. The table also shows that there are larger respondent
attached with internet for communication, news & information not for purchasing. Only business
persons are used internet for all purposes. Especially all students are engaged with the internet
for communication not for other perspective. Tables summarized that male are so experienced in
using internet.

33
5. Hypothesis test:

5.1. H0: Online consumer behavior is affected by usability.

H1: Online consumer behavior is affected by usability.

T-Test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
AVG 30 9.4000 1.9582 .3575

One-Sample Test
Test Value = 30

t df Sig. (2- Mean 95%

tailed) Difference Confidence
Interval of
the
Difference
Lower Upper

AVG -57.620 29 .000 -20.6000 -21.3312 -19.8688

Fig: 5.1.1

INTERPRETATION:

The observed two tailed significance level is less than 5%, for that null hypothesis are rejected
and alternative hypothesis accepted. It means that online consumer behavior is affected by
usability. The elements of the usability:

1. Convenience

2. Site speed

3. Timeliness

4. Ordering/payment process

5. Search facilities and process.

33
 5.2. H0: Online consumer behavior is affected by interactivity.

H1: Online consumer behavior is not affected by interactivity.

T-Test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

AVG 30 3.4667 1.0080 .1840

One-Sample Test
Test Value = 30

t df Sig. (2- Mean 95%

tailed) Difference Confidence
Interval of
the
Difference
Lower Upper

AVG -144.174 29 .000 -26.5333 -26.9097 -26.1569

Fig: 5.2.1

INTERPRETATION:

The observed two tailed significance level is less than 5%, for that null hypothesis are rejected
and alternative hypothesis accepted. It means that consumer behavior is affected by interactivity.
The elements of the interactivity are:

1. Customer service/after sales

2. FAQ & chat room

33
 5.3. H0: Online consumer behavior is affected by trusty.

H1: Online consumer behavior is not affected by trusty.

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

AVG 30 7.7667 2.8123 .5135

One-Sample Test
Test Value = 30
t df Sig. (2- Mean 95%
tailed) Difference Confidence
Interval of
the
Difference
Lower Upper

AVG -43.301 29 .000 -22.2333 -23.2835 -21.1832

Fig: 5.3.1

INTERPRETATION:

The observed two tailed significance level is less than 5%, for that null hypothesis are rejected
and alternative hypothesis accepted. It means that trusty influences in the online consumer
behavior. The elements of the trusty are:

1. Transaction security

2. Customer data misuse

3. Guarantees/return policies

4. Physical evidence

33
 5.4. H0: Online consumer behavior is affected by aesthetics.

H1: Online consumer behavior is not affected by aesthetics.

T-Test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
AVG 30 8.7333 2.5855 .4721

One-Sample Test
Test Value = 30

t df Sig. (2- Mean 95%

tailed) Difference Confidence
Interval of
the
Difference
Lower Upper

AVG -45.051 29 .000 -21.2667 -22.2321 -20.3012

Fig: 5.4.1

INTERPRETATION:

The observed two tailed significance level is less than 5%, for that null hypothesis are rejected
and alternative hypothesis accepted. It means that Aesthetics affects in the online consumer
behavior. The aesthetics elements are:

1. Style/atmosphere

2. Product information

3. Pricing

4. Difficulty in choosing

5. Specification

33
 6. Open handed question analysis:

In the survey for the study we see that there are many recommendation and additional services
written by respondent. Some points of these are:

• They want to bank facilities’ for online purchasing with easy process.

• Infrastructure development of our internet situation.

• To reduce the charge of internet connection and its equipments.

• To concern about the online purchasing.

• They want to need vast advertisement for online purchasing.

• To provide facilities for the E-tailer.

• To increase the literature people for using internet.

• They want to entertainment in online purchasing.

• They want to govt. intervention in internet sector.

33
Chapter Five: Conclusion, Limitation,
Recommendations

33
Conclusion:
In our country recently, the internet usage is grown up. But in the study we see that there are
many respondents are engaged in communication and other purpose. But they are not engaged
with the online purchasing. Only in the study in the business persons engaged with it. So many
respondents have no experience about online purchasing. The business person also engaged with
online purchasing for maintaining their business with other country. They are also not using
online purchasing in the country. They always buy things physically. All of the respondents say
that this situation is occurred for lacking of facilities. In our country there is few retailer are
maintenance e-commerce. Which had it, they have no advertisement about this and all are used
credit card for purchasing. But in our country few people have credit card. So if they give
facilities of debit card, all will be influenced in online purchasing. A few days ago, the HAT
BAZZAR gives the facility through the DUTCH BANGLA BANK.

On the other hand, we see that there are some of respondent have no own internet connection
especially female. Because high charge of using internet. According to them if they have own
internet they will be used it for communication and news. They are not known about the process
of online purchasing and they prefer to buy something with physically.

In the study found that it is a challenge for E-marketers to convert low frequency online buyers
into regular buyers through successful website design and by addressing concerns about reliable
performance. Thus, the online retailing raises more issues than the benefits it currently offers.
The quality of products offered online and procedures for service delivery are yet to be
standardized. Till the same is done, the buyer is at a higher risk of frauds.

Limitation:
The limitation of the study is:

• In the survey there is selected only Dhaka city

• Only four categories of respondent is selected

• The sample size is not more than 30.

• There is no illiterate person in the survey.

• Time limitation

• Only searched a few numbers of journal

33
Recommendations:
As we came to know after researching on this topic we recommend that, there is so much lack of
concern about the online. And in our country there are so much illiterate people. Only skilled
people use it perfectly. But in our country low advertising is also responsible to increase the
online purchasing. From the open handed question we see that all respondent want to security in
the online purchasing in transaction. one more thing is that there should be transaction of money
is very slow they have to make it fast so that customer don’t have to face much problem to pay
for the product, if customer is going to face some problem he is not going to visit our site and
buy product .

Following implications should be followed:

• To increase the literate people

• To decrease the charge on using internet and equipment.

• Fast transaction

• Increasing the govt. intervening

• Increasing the people awareness.

33
Chapter six: References

33
References:

http://analogik.com/article_analysis_of_consumer_behaviour_online.asp [27april 2010]

http://www.essays.se/essay/e1fb0c636f/ [13april 2010]

http://www.tealeaf.com/Harris/[12april]

http://inderscience.metapress.com/app/home/contribution.asp?
referrer=parent&backto=issue,2,6;journal,15,40;linkingpublicationresults,1:110844,1[11april 2010]

http://www.inderscience.com/search/index.php?
action=record&rec_id=32383&prevQuery=&ps=10&m=or1m[12 may 2010]

(International Journal of Business Innovation and Research 2010 - Vol. 4, No.3 pp. 195 - 209)

http://www.lotsofessays.com/viewpaper/1693412.html [11april 2010]

http://www.inderscience.com/search/index.php?
mainAction=search&action=record&rec_id=11032&prevQuery=&ps=10&m=or[22april [11april 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol. 1, No.2 pp. 169 - 182)

http://www.inderscience.com/search/index.php?
mainAction=search&action=record&rec_id=11032&prevQuery=&ps=10&m=or[2 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol. 1, No.2 pp. 169 - 182)

http://www.inderscience.com/search/index.php?
mainAction=search&action=record&rec_id=10096&prevQuery=&ps=10&m=or [8 may 2010]

(International Journal of Electronic Marketing and Retailing 2006 - Vol. 1, No.1 pp. 67 - 82)

.http://www.inderscience.com/search/index.php?
mainAction=search&action=record&rec_id=19151&prevQuery=&ps=10&m=or

(International Journal of Internet Marketing and Advertising 2008 - Vol. 4, No.4 pp. 302 - 327) [1 may 2010]

http://www.inderscience.com/search/index.php?
mainAction=search&action=record&rec_id=27851&prevQuery=&ps=10&m=or [2 may 2010]

(International Journal of Electronic Finance 2009 - Vol. 3, No.3 pp. 284 - 296)

.http://www.inderscience.com/search/index.php?
mainAction=search&action=record&rec_id=14847&prevQuery=&ps=10&m=or [16 april2010]

(International Journal of Electronic Marketing and Retailing 2007 - Vol. 1, No.4 pp. 322 - 338)

33
Appendices

a. Questionnaire

b. Map of the Research Area

c. Introduction of the Research Group Members

33
 1. QUESTIONNAIRE

Name of the respondent ………………………………

1. Age:

1) 15-20 2) 20-25 3) 25-30 4) 30 above

2. Sex:

1) Male 2) Female

3. What is your occupation?

1) Student 2) Professional 3) Govt. employed
4) Business

4. Do you have your own internet connection?

1) Yes 2) No

5. If you have internet connection, what you will like to search?

1) Purchasing

2) Communication

3) Communication, News & Information

4) All

6. Income is main factor to purchase something by online process

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

7. Online purchasing saves your time

33
1) Strongly agree 2)Agree 3)Neutral 4)Disagree
5)Strongly disagree

33
8. Anywhere any time shopping (24 hours x7 days)

2) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

9. Price negotiating is impossible on internet

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

10.Speed of internet affects in online shopping

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

11.Lack of physical evidence affects on purchase decision

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

12.Difficulty to choose a product because of intangibility

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

13. It takes more time to search specific product

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

14.Search engine helps to decide which site to use for online shopping

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

15.Product Information in detail can reduce the online consumer’s

uncertainties.

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

33
16.Transaction security is principal concern in online purchasing

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

17.Customer data misuse in online purchasing

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

18. Cumbersome processes required for ordering and settling online

transactions

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

19.After sales service is expected from online purchasing

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

20.Guarantees and return policies is needed to clearly define in online

purchasing

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

21.FAQ & Chat room help to further investigation about the product

1) Strongly agree 2)Agree 3)Neutral 4)Disagree

5)Strongly disagree

22.As a consumer, give your opinion regarding any additional services

………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………

Thank you for your participation.

33
2. Research Area

33
 3. Introduction of the Research Group Members

Seria Name of the Member Exam Roll

l No.
1 ASIF UZ ZAMAN 119
2 ISHRAT TARANNUM 043
3 SUJAN BISWAS 135
4 MD. RUHUL AMIN 123
5 OMAR FARUQUE 043
6 JESEE BIGGLE 175

33