A Study On Online Shopping Behavior of Hostel Students
A Study On Online Shopping Behavior of Hostel Students
A Study On Online Shopping Behavior of Hostel Students
ON
A Study On Online Shopping Behavior Of Hostel
Students
2014-2015
Invertis University
CERTIFICATE
Administration (BBA) from Invertis University, Bareilly, has completed and submitted the
Project Guide
2
ACKNOWLEDGEMENT
Doing such project report is an arduous task in itself. I was fortunate enough to get support
from a large number of people whom I shall always remain grateful. I would like to express
my deep gratitude to all those who, directly or indirectly made this project report possible.
First of all I would like to thank my parents for encouraging me throughout my life, whatever
the circumstances were, their blessing were always with me and my dearest sibling for her
love.
I would like to express my gratitude to Mrs. Rachna Saxena (HOD BBA, Invertis
University, Bareilly) who gave me an opportunity to do a research study on the chosen topic.
I would like to express my sincere thanks to my project guide Mr. Tarun Gupta
(Assistant Professor, Department Of Management, Invertis University, Bareilly) who
devoted his precious time from his busy schedule to guide and help me at all times. It is under
his valuable guidance, constant interest and encouragement that I have been able to complete
this project.I would also like to thank Mr. Rajeev S.Bhandari(Assistant Professor,
Department Of Management, Invertis University, Bareilly) for his invaluable support and
encouragement.
I would appreciate all the respondents who took out their valuable time to give their views
and filled the questionnaire. Lastly, I take this opportunity to thank my friends who chipped-
in with some valuable suggestions for the betterment of this project.
3
PREFACE
The research has helped me to get a practical knowledge about to ananlyse environment
stimulus, changes, and current requirements as an important suffix to the theortical
knowledge into the business environment.
One cannot merely depend on the theortical knowledge,classroom lectures make the
fundamental concepts but the research facilities the help in learning of the practical situation.
It is in the sense that the research has significant role to play in the subject of business
management. To develop healthy managerial and administrative skills in potenial knowledge
of real environment.
Shikhar Mani
B.B.A V “B”
4
TABLE OF CONTENT
1 OBJECTIVES 6
3 INTRODUCTION 9-12
7 FINDINGS 42-44
9 CONCLUSIONS 46
10 LIMITATIONS 47
11 BIBLIOGRAPHY 48
12 QUESTIONNAIRE 49-51
5
OBJECTIVES OF THE STUDY
2. To study the factors affecting the Online Shopping behavior of hostlers of Invertis
University.
3. To identify their preferences towards different e-shopping websites and the features
of websites in general.
4. To study perception of hostlers and their satisfaction level towards online shopping.
6
RESEARCH METHODOLOGY
The procedure using, which researchers go about their work of describing, explaining and
predicting phenomena, is called Methodology. Methods compromise the procedures used for
generating, collecting, and evaluating data. Methods are the ways of obtaining information
useful for assessing explanation.
RESEARCH DESIGN:
Descriptive Research study is done for the study of consumer buying behavior.
RESEARCH INSTRUMENT:
PRIMARY DATA
Primary data are those, which are collected for the first time, and they are original in
character. A suitable combination of Questionnaire techniques, & discussion with the
respondents was used to collect the required primary data. Primary data gives higher accuracy
and facts, which is very helpful for any research and its findings. The primary data has been
collected through structured questionnaire.
SECONDARY DATA
The secondary data are those, which are already collected by someone for some purpose and
are available for the present study. Secondary data was collected from the magazines,
websites, newspapers, and other such sources.
7
STATISTICAL TOOLS USED
PERCENTAGE METHOD
In this project percentage method test and used. The following is the Formula:
SAMPLING PLAN:
Sample Size : 75
Sampling Unit : Hostel students of Invertis University( belonging to the age group of 20-
25)
Sample Procedure : Random Sampling
Sampling Method : Questionnaire
Research Design : Descriptive research design
Survey Area : Invertis University Hostel
8
INTRODUCTION
India will have the world’s second-largest Internet user base by this December,
overtaking the US. This is among the many interesting findings in the ‘Internet in
India 2015’ Report released by the Internet and Mobile Association of India (IAMAI)
and IMRB International.
According to report, India will have 402 million Internet users by December 2015 and
its user base has increased by 49 per cent compared to last year. In October, 317
million Indian users accessed Internet. China has the largest Internet user base, with
over 600 million users.
It is not surprising anymore that mobile is responsible for a big chunk of this growth.
In Urban India, the mobile Internet user base grew by 65 per cent over last year to
reach 197 million in October 2015. In Rural India, the mobile Internet user base is
expected to reach 87 million by December 2015 and 109 million by June 2016.
Ninety-four per cent of users access the Internet through their mobile phones in
Urban India. However, 64 per cent also use the desktop or laptop to access the
Internet. But 90 per cent of those who use the mobile to access the Internet consider it
their primary device for browsing.
An unsettling revelation is the gender gap when it comes to access to Internet. Men
account for 71 per cent of Internet users, while women account for just 29 per cent.
The demographic data in the report also point to some interesting trends. In rural
India, 75 per cent of the users fall in the 18–30 years age bracket, while 11 per cent
are younger than 18 and 8 per cent are in the 31–45 years group. In Urban India, 32
per cent of monthly active users are college-going students.
Online communication, social networking, and entertainment are the top reasons for
accessing the Internet. Only 24 per cent of urban users and 5 per cent of rural users
accessed the Internet for online shopping.
India's e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6
billion in 2013.
Increasing Internet penetration and growing preference for shopping online will drive
the e-commerce market in India to USD 15 billion by 2016 with a whopping 100
million people going online to shop(as revealed by Google India)
Compared to 8 million in 2012, about 35 million people are now buying everything
from apparel to electronics to cosmetics and furniture from online stores.
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When it comes to e-tailing electronics and apparel are the biggest categories in terms
Of sales.
Online travel accounts for nearly 71 percent of the e-commerce business in India.
E-tailing, on the other hand, accounts for only 8.7 percent of organised retail and a
minuscule 0.3 percent of total retail sales.
The year 1991 noted a new chapter in the history of the online world where e-commerce
became a hot choice amongst the commercial use of the internet. At that time nobody would
have even thought that the buying and selling online or say the online trading will become a
trend in the world and India will also share a good proportion of this success.
Flipkart:
Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal.
range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.
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In May 2014, Flipkart received $210 million from DST Global, in July 2014 it raised $1
billion led by existing investors Tiger Global and South Africa's media group Naspers and in
May 2015 it raised $550 million from some of its existing investors. Flipkart's last
fundraising round in May 2015 had pegged its valuation at $15 billion.
Amazon:
commerce and cloud computing company with headquarters in Seattle, Washington. It is the
eaming,software, video games, electronics, apparel, furniture, food, toys and jewelry. The
company also produces notably, Amazon, Kindle, E-book readers, Fire tablets, Fire
infrastructure services Amazon also sells certain low-end products like USB cables under its
Kingdom and Ireland, France, Canada, Germany,Italy, Spain, Netherlands, Australia, Brazil,
Japan, China, India and Mexico. Amazon also offers international shipping to certain other
11
countries for some of its products. In 2011, it professed an intention to launch its websites
In 2015, Amazon surpassed Wal-Mart as the most valuable retailer in the United States
by market capitalization.
Snapdeal:
Snapdeal is an online marketplace, New Delhi, India. The company was started by
Kunal
Bahl, a Wharton graduate as part of the dual degree M&T Engineering and Business
program
at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010. Investors in
the
Capital, Saama Capital, Nexus Ventures, Intel Capital, and Ratan Tata\. When
Snapdeal
12
DATA INTERPRETATION AND ANALYSIS
a)Yes 70
b)No 5
Interpretation:
Out of the total females 44% shop online and out of the total boys 56% shop online.
13
2. If yes, how often do you make online purchase?
Once in a month 13 9 4
Once in 2-3 months 19 9 10
More than once in 6 months 3 2 1
1-3 times in a year 10 5 5
As & when required 25 14 11
Once in a month
19%
As & when required
36%
14
14
11
10
9 9
5 5
4
2
1
F M F M F M F M F M
Once in a month Once in 2-3 moths More than once in 1-3 times a year As & when required
6months
Interpretation:
• 36% of students do online shopping whenever its needed or required. Out of girls
32% girls shop once in 2-3 months compared to 23% of boys in the same
category.19% of students “shop once in a month”.
• Only 4% of students fall in category of online shoppers who shop “More than once in
6months”.
15
3. What is the average amount that you spend per purchase while shopping online?
Up to Rs 500 6
Rs 500-1000 30
Rs 1000-5000 33
Above Rs 5000 1
Rs 1000-5000
47%
Rs 500-1000
43%
Interpretation:
• 47% of student spend an average amount of Rs1000-Rs5000 per purchase while shopping
online followed by 43% who like to spend Rs500-Rs700 per purchase.
16
4. Generally when do you prefer making online purchase?
Depends upon
mood or desire
46%
Interpretation:
46% of students prefer to shop online depending upon their mood or desire,26%
of students shop as and when required followed with 24% of students who only
shop during heavy discount period offers(like-online shopping festivals, big
billion day etc) .
17
5. How do you make payments mostly when shopping online?
Debit Card 8
Credit Card 7
Cash On Delivery 54
Third Party 0
Third Party(e.g
Paypal,Paytm
Wallet etc)
0%
Credit Card
Debit Card 10%
12%
Cash On Delivery
78%
Interpretation:
73% students would make C.O.D payments when shopping online and 12% would do
using debit card and 10% with credit card and 0 % with third party i.e. pay tm wallet
or PayPal.
18
6. What purchase(s) do you usually make when you shop online?
Apparels 26
Electronics Goods 28
Accessories 34
Books 24
Beauty and Personal Care Products 8
Footwear 25
Tickets (railways or airways) 16
Luggage/Bags 6
Other (sports accessories etc.) 2
Other(sports
Luggage/Bags accessories)
Tickets(Railways or 4% 1%
airways)
9% Apparels
15%
Footwear
15% Electronic Goods
17%
19
Usually Made Online Purchase
male female
24
20
17
16
14 14
13 13
8 8
6
4 4
2 2 2 2
0
Interpretation:
20% prefer accessories, 17% prefer electronic goods and 30% prefer apparels and
footwear.14% like to shop for books.
20
7. Which of the following websites do you prefer for online shopping?
a) Flipkart.com 53
b) Amazon. In 12
c) Jabong.com 6
d)Snapdeal.com 19
e) Others (Homeshop18, Lens cart etc.) 4
Others(Homeshop
18,Lenscart etc) Most preferred E-shopping Sites
4%
Snapdeal.com
20%
Flipkart.com
57%
Jabong.com Amazon.in
6% 13%
Interpretation:
57% population prefer flipkart,20% like snap-deal and 13
% prefer amazon.
21
8. Which medium do you prefer for online shopping?
Male Female
a) Laptop/P.C 43 29 14
b)Smartphone 27 10 17
c) Tablet 0 0 0
Smartphone
39%
Laptop/P.C
61%
22
Preferred Medium For Online Purchase
Male Female
29
17
14
10
0 0
Interpretation:
Laptop is a preferred medium over smart phones as 61% are using laptops and
39% are using smart phones.
23
9. What is/are the reason(s) for e-shopping?
a) Saves Money 23
b) Saves time 31
c) Convenient 16
Saves Money
Range &
23%
Availablity Of
Products
30%
24
Common Reasons To Shop Online
Male Female
20
19
18
12
11
0 0
Interpretation:
31% find e-shopping time saving,23% find it money saving and 16% find it
convenient.
25
10. Have you felt any problem in online purchasing?
a) Yes 21
b) No 49
a) Delay in delivery 12
b) Cheap Quality 4
c) Damaged Product 2
d) Non-Delivery 5
e) Others (fake) 1
Yes
30%
No
70%
26
Problems Faced In Online Shopping
Others(fake)
4%
Non-Delivery
21%
Delay In Delivery
50%
Damaged
Cheap Quality
Product
17%
8%
Interpretation:
70% people have never faced any problem in e-shopping and out of 30% people
who have faced some problems in e-shopping 50% say the problem was “delay in
delivery”.
Non-delivery has 21% and cheap quality has 17% share.
27
11. How do you rate your experience of Online Purchase?
Satisfied
73%
Interpretation:
73% students are satisfied and 19% say they are very much satisfied with their
online purchasing experience.
28
12. Do you feel secure while shopping online?
a) Yes 60
b) No 10
No
14%
Yes
86%
Interpretation:
86% feel secure while e-shopping and 14% of the population is insecure.
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13. Does cash on delivery option influences you to do online shopping?
a) Yes 63
b) No 7
Yes
90%
Interpretation:
90% of the population says C.O.D option plays an influencing role in e-shopping and 10%
think it doesn’t.
30
14. How do you like to do online shopping?
Through E-
shopping Apps
30%
Through E-
shopping
Websites or using
Browsers
70%
Interpretation:
70% students prefer Websites/browsers to shop online whereas 30% prefer using apps.
31
15. Features you think are necessary for an online shopping website to have?
b) Multiple Payments 23
d) Customer Friendly 30
e) Credibility 9
h) Others (review/feedback) 3
32
Others(Review.Feed Social Networking
back etc) Integration
2% 5%
Comparison
Between Sites Multiple Payment
14% Gateways
18%
Customer Care
Service
Privacy & Secure
17%
Checkout
14%
Credibility
7%
Customer Friendly
23%
Interpretation:
Customer friendly feature has a % share of 23% ,18% is of multiple payment gateways and
31% is for customer care service and privacy checkout followed by 14% is for comparison
between sites.
33
16. Rank the factors which you consider important in refraining/stopping you from shopping
online? (Ranking is to be done numerically like 1, 2, 3, 4…..)
34
Rank 1 Rank 2 Rank3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8
Categories
Risk of identity 18 8 10 2 9 11 7 10
theft (hacking)
Risk of Not 12 19 13 4 15 2 6 3
Getting What
You Paid For
Difficulty in 9 18 9 11 13 4 7 4
Returning
Products/Items
Waiting to 5 8 6 20 11 9 8 8
Receive the
Product (delivery
issues)
Complex 2 10 4 8 7 19 15 10
Compared To
Traditional
Shopping
Lack of Trust 5 8 14 7 11 10 8 12
Worthiness of
Vendors
More Expensive 12 0 6 5 6 8 15 23
Than Sold In
Retail Stores
35
25
20
Risk Of Not Getting What You Paid
For
Difficulty In Returning Products/Items
15
Waiting To Receive The
Product(delivery issues)
Complex Compared To Traditional
10 Shopping
Lack Of Trust Worthiness Of Vendors
0
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank6 Rank 7 Rank 8
Interpretation:
Out of the various reasons for refraining/stopping people for shopping online the 1st rank is
occupied by “Risk of identity theft”,2nd rank by “Risk of not getting what you paid for and 3rd
by “Lack of trust worthiness of vendors”.
36
17.Do you think the feature of “Track The Order” is an important factor influencing the
online shopping decision?
Yes 62
No 8
Yes
89%
Interpretation:
37
18. Does “free shipping” option motivates you to shop online?
a) Yes 62
b) No 8
No
16%
Yes
84%
Interpretation:
38
19. Do you visit retail stores before purchasing a product online?
a) Yes 15
b) No 55
Yes
21%
No
79%
Interpretation:
21% say they visit retail stores before purchasing anything online.
39
20. Do you search for complete information about the product on the net before making
online purchase?
a) Yes 60
b) No 10
No
14%
Yes
86%
Interpretation:
86% of the population search for complete information on net before e-purchase.
40
21. Do you want to add any new category of your choice in the list of e-shopping categories?
a) Yes 3
b) No 67
No
96%
Interpretation:
96% say they don’t want to add any new category to the list of e-shopping category as they
get everything they want.
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FINDINGS
• Out of total students (boys and girls) 93% likes to do online shopping which is a large
majority. Boys contribute 56% and Girls 44% in the total figure of respondents doing
online shopping.
• 36% of students, a large chunk of population do online shopping whenever its needed
or required. Out of girls 32% girls shop once in 2-3 months compared to 23% of boys
in the same category.19% of students “shop once in a month”.
Out of boys 2% of boys would spend up to 500 per purchase when they shop online
and 2% would spend above Rs 5000 per purchase compared to 16% of girls who
would spend up to 500 per purchase and 0% on purchase above Rs 5000
• 46% of students prefer to shop online depending upon their mood or desire,26% of
students shop as and when required followed with 24% of students who only shop
during heavy discount period offers(like-online shopping festivals, big billion day etc)
.
• 77% students would make C.O.D payments when shopping online and 11% would do
using debit card and 10 with credit card and 0 % with third party i.e paytm wallet or
paypal.
42
II. Preferences Of Hostel Students While Making Online Purchase
• Accessories and Electronic Goods are the two most preferred online shopping
categories amongst all.
• Preferences of apparels, footwear and books taken in descending order of sequence
are the other three popular choices amongst students.
• In the category of online Ticket purchase, we have 88% boys and only 12% girls and
similarly for Electronic goods we have 86% boys and only 14% girls.
• Beauty/Personal Care products and luggage/bags are the two least preferred
categories.
• The most preferred online shopping website amongst students is Flipkart.com with a
share of 57% votes in its favor then its snapdeal.com followed by Amazon. In.
• Students rarely look for any other alternatives like- jabong, shopclues,
lenscart,voxpop etc.
• 70% hostlers have never encountered any sort of problem in their online purchase.
• Delay in delivery is the main issue with the remaining 30% after that its non-delivery
and cheap quality of products.
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IV. Factors That Affect Online Shopping Behavior Of Students:
• Three main reasons that influence hostlers to go for e-tailing in the order of preference
are :
time saving, range and availability of products and economical (saves money).
Relatively less students find convenience as an influencing factor.
“Online shopping saves money” is surely not the mantra for girls as only 17% support
this on the other hand 83% of boys find it really money saving.
• Risk of identity theft, Risk of not getting what you paid for, difficulty in returning
products and lack of trust worthiness of vendors are the four important factors which
would stop or refrain or discourage students from online shopping.(the factors are in
the order of priority)
• 89% students think tracking the order is an important factor which influences their
online shopping decision
• 23% girls out of the total girls don’t consider “tracking the order” feature so
important.
• 84% of students find “free shipping” option as a motivating factor to shop online.
• 79% of students do not visit a retail store before making an online purchase.
• 86% students search for complete information about the product on the net before
making online purchase.
• 96% of students do not wish to add any new category in the list of e-shopping
categories.
4% want to add beer, psychedelic drugs. Alcohol and some personal use
items.
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SUGGESTIONS AND RECOMMENDATIONS
• On the basis of the findings of my research I would like to give the following
suggestions:
E-commerce websites should come up with lucrative offers on quarterly basis to lure
girls since they shop more (compared to boys)during this period.
Range and Availability of products in the price range of Rs1000-5000 and Rs500-1000
should be given special consideration as 90% of shoppers fall in this category.
E-tailing websites should also work considerably in building trust and friendly relationship
with customers by coming with better privacy policies as this would encourage shoppers to
use other mode of payments like debit cards, credit cards etc as well.
• Since Flip kart has got a strong hold in e-commerce market as the majority prefers it
over other e-shopping websites so it should keep on delivering good and other
websites like Snap deal and Amazon should work on their delivery services, range
and availability of products especially in electronic goods and accessories segment
and making better connect with potential customers to stay in race and make the
competition tougher.
• E-commerce sites should take the privacy issue really serious as well as the
deliverance of authentic products with better return policies to make themselves
credible before the eyes of customers.
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CONCLUSION
A successful webstore is not the just a good looking website with the dynamic
technical features but is also emphasis on building the relationship with customers
with making money. Firstly understanding the customer’s needs and wants is very
essential for building a relations with the customers keeping companie’s promises
gives a customer a reason to come back and meeting the expectations gives them a
reason to stay.
It shows the company value towards its customers over the website communication.
Customers needs and the expectations are the not the same age, gender, experience,
culture are all the important factors. Users with more online influence focus on the
variables that directly influence the task .
To increase the online purchases business must use the significant time and money,
define, design, development, test, implement and maintain the webstore. It is very
easy to lose the customer but very difficult to gain the customer.
To remain in the online business a webstore should responding the customers emails,
notifying the customers problems and always being honest towards the customer.
Price factor and after sale factor play an important role in e-commerce business so
online marketers should give due importance to it as well as work on satisfying the
existing customer each time and offer new schemes day by day to attract new ones.
46
LIMITATIONS
1. The Study was confined only to the hostel students of Invertis University so the
study may not be generalized in a broader perspective.
2. As not all respondents would have been able to understand the questionnaire
correctly or misread the questions so there is a little chance of marking wrong answers
or incorrect choices.
47
BIBLIOGRAPHY/ REFERENCES
1. Online and upcoming the Internet’s Impact on India by Mckinsey & Company
2. Google India Study reports numbers about online shopping in India; ‘Electronics’ Top
Search but ‘Apparels’ most bought by Team YS January 29 2013.
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Annexure
Q3.What is the average amount that you spend per purchase while shopping online?
49
Q7. Which of the following websites do you prefer for online shopping?
a) Flipkart.com b) Amazon. In
c) Jabong.com d) Snapdeal.com
a) Yes b) No
a) Yes b) No
a) Yes b) No
50
Q15. Features you think are necessary for an online shopping website to have?
a) Social networking integration b) Multiple payment gateways (debit card, credit card etc.)
Q16. Rank the factors which you consider important in refraining/stopping you from
shopping online?
Q17. Do you think the feature of “tracking the order” is an important factor influencing the
online shopping decision?
a) Yes b) No
a) Yes b) No
a) Yes b) No
Q20. Do you search for complete information about the product on the net before making
online purchase?
a) Yes b) No
Q21. Do you want to add any new category of your choice in the list of e-shopping
categories?
a) Yes b) No
51