A Project Report on

A STUDY ON “CONSUMER’S PERCEPTION ON ONLINE

SHOPPING IN INDIA”

Project Report Submitted In Partial Fulfillment of the Requirements the

Degree of

BACHELOR OF COMMERCE (HONS.)

By

SALONI SAHU
(ROLL No.- 151141132043)

Under the Supervision of

MR. AMITABH GAUTAM

INSTITUTE OF BANKING, ECONOMICS & FINANCE

BUNDELKHAND UNIVERSITY, JHANSI

May, 2018

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 INSTITUTE OF BANKING, ECONOMICS AND FINANCE,
BUNDELKHAND UNIVERSITY, JHANSI

CERTIFICATE

This is to certify that SALONI SAHU (ROLL No.-151141132043) has carried out the
research work presented in this Project Report entitled “CONSUMER’S PERCEPTION
ON ONLINE SHOPPING IN INDIA” for the award of Bachelor of Commerce
(Hons.) From Institute of Economics and Finance, Bundelkhand University,
Jhansi under my supervision.

Sign:-

DATE: MR. AMITABH GAUTAM

ASST. PROFESSOR

INSTITUTE OF ECONOMICS & FINANCE

2
 DECLARATION

I hereby declare that the project report entitled “CONSUMER’S PERCEPTION ON

ONLINE SHOPPING IN INDIA” which is being submitted in partial fulfillment of the
requirement of the degree of Bachelor of Commerce(Hons.) is the result of the
project carried out under the guidance and supervision of Mr. Amitabh Gautam,
Asst. Professor, Institute of Banking,Economics and Finance, Bundelkhand
University, Jhansi. I further declare that it has not been previously submitted to any
other Institution/ University for any other degree/diploma.

DATE: SALONI SAHU

PLACE: Jhansi SIGN:

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 ACKNOWLEDGMENT

I would like to express my gratitude to my supervisor Mr. Amitabh Gautam for the
useful comments, remarks and engagement through the learning process of this
bachelor dissertation. Furthermore I would like to thank Prof. M. L. Maurya for
introducing me to the topic as well for the support on the way. Also, I like to thank the
participants in my survey, who have willingly shared their precious time during the
process of interviewing. I would like to thank my loved ones, who have supported me
throughout entire process, both by keeping me harmonious and helping me putting
pieces together. I will be grateful forever for your love.

SALONI SAHU

SIGN:

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 TABLE OF CONTENT

DECLARATION
ACKNOWLEDGEMENT
1. INTRODUCTION
2. ONLINE SHOPPING IN INDIA
3. INDIAN SCENARIO
4. E-CONSUMER BEHAVIOUR
5. OBJECTIVE
6. SCOPE
7. LITERATURE REVIEW
8. FACTORS THAT BOOST ONLINE SHOPPING IN INDIA
9. FEW FACTS ABOUT ONLINE SHOPPING
10. HYPOTHESIS
11. RESEARCH METHODOLOGY
12. DATA COLLECTION METHOD
13. DATA ANALYSIS
14. PAYMENTS
15. ADVANTAGES
16. DISADVANTAGES
17. FUTURE AND GROWTH OF ONLINE SHOPPING
18. FINDINGS
19. CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

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20. BARRIERS TO THE GROWTH OF ONLINE MARKET
21. PERILS AND DANGERS OF ONLINE SHOPPING
22. LIMITATIONS
23. CONCLUSION
24. QUESTIONNAIRE

Contents
SALONI SAHU .......................................................................................................................................... 4
INTRODUCTION.......................................................................................................................................... 9
ONLINE SHOPPING IN INDIA ............................................................................................................. 10
E-CONSUMER BEHAVIOUR.................................................................................................................. 14
OBJECTIVE............................................................................................................................................. 15
SCOPE..................................................................................................................................................... 16
HYPOTHESIS ......................................................................................................................................... 21
1) FOR FACTORS AFFECTING ONLINE SHOPPING ............................................................... 30
 Perceived usefulness .................................................................................................................... 30
 Ease of use .................................................................................................................................... 30
 Perceived enjoyment .................................................................................................................... 30
 Security .......................................................................................................................................... 30
 Quality of internet......................................................................................................................... 30
Interpretation: ...................................................................................................................................... 31
The principal component analysis is giving 72.584 as commutative % which is good enough
because data redundancy is less. Two components have been extracted with Eigen values more
than 1 after principal component analysis and rotated component analysis. ................................. 31
The output value shows that following factors can be safely extracted after factor analysis: . 31
 Information about online products and services ..................................................................... 31
 Perceived usefulness .................................................................................................................... 31
 Ease of use .................................................................................................................................... 31
 Perceived enjoyment .................................................................................................................... 31

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 The principal component analysis is giving 78.065 as commutative % which is good enough
because data redundancy is less. ...................................................................................................... 31
The output value shows that following factors can be safely extracted after factor analysis: . 31
 Transactions/credit card misuse ................................................................................................. 31
 Have to wait for delivery ............................................................................................................. 31
 Significant discounts are not there ............................................................................................ 31
2) FOR FACTORS CONCERNING ONLINE SHOPPING .......................................................... 32
ADVANTAGES ........................................................................................................................................ 34
Convenience ...................................................................................................................................... 34
Information and reviews.................................................................................................................. 34
Price and selection............................................................................................................................ 35
DISADVANTAGES.................................................................................................................................. 36
Fraud and security concerns ........................................................................................................... 36
Lack of full cost disclosure .............................................................................................................. 36
5.) Demographic Factors ......................................................................................................................... 44
Hypotesis............................................................................................................................................ 44
Fig. 6 Online Shopping & Gender ................................................................................................... 44
Fig. 7 Online Shopping & Educational Qualification .................................................................... 45
Hypothesis ................................................................................................................................................. 47
Fig. 9 Online Shopping & Motivating Factors ............................................................................... 47
Table 1. Future Categories of Goods ............................................................................................. 50
CHANGING ATTITUDE TOWARDS ONLINE SHOPPING .......................................................... 54
Table 2. Share of Metro Cities ........................................................................................................ 54
Here are few reasons for this: ......................................................................................................... 54
5.Increase in the number of buyers and sellers ................................................................... 56
The success of a marketplace depends on the presence of a large number of buyers and a
large number of sellers. In addition to online buyers, many offline stores have begun to sell
their products in the online marketplace. The greater the number of sellers and buyers, the
faster the market grows. ..................................................................................................................... 56
CONCLUSION ......................................................................................................................................... 62
Increased Internet penetration, a hassle free shopping environment and high levels of Net
savviness see more and more Indians shopping online. . ............................................................. 62

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 Consumers often display a bias for brands that they know well and have had a good
experience in the past. Thus products of brands with a favorable bias will score over the
products of less popular brands. A few would risk buying expensive jewelry from an unknown
jeweler online. ....................................................................................................................................... 62
The growing use of Internet in India provides a developing prospect for online shopping. If E-
marketers know the factors affecting online Indian behavior, and the relationships between
these factors and the type of online buyers, and then they can further develop their
marketing strategies to convert potential customers into active ones, while retaining existent
online customers. ................................................................................................................................. 62
QUESTIONNAIRE ...................................................................................................................................... 63
Bibliography ............................................................................................................................................... 71

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INTRODUCTION
Internet is changing the way consumers shop and buys 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 feed back 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.

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

that are based on the traditional models of consumer behavior, and then examine their

validity in the Internet context.

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ONLINE SHOPPING IN INDIA
PRINT REFERENCE THIS
Online shopping is the process of researching and purchasing products or services over

the Internet. The earliest online stores went into business in 1992, and online retailing

took over a significant segment of the retail market during the first decade of the

twenty-first century, as ownership of personal computers increased and established

retailers began to offer their products over the Internet.

Consumers across the globe are increasingly swapping crowded stores for one-click

convenience, as online shopping becomes a safe and popular option. Online shopping

has some advantages over shopping in retail stores, including the ability to easily

compare prices from a range of merchants, access to a wide selection of merchandise,

being open 24*7 and the convenience of not having to drive to a physical store. But

despite that the online shopping cannot replace the experience of shopping in a retail

store or the entertainment value of going to a mall or market. A customer who knows

exactly what he or she wants can look it up online, read and compare the information,

and purchase from the site that offers the best price or service. But a shopper who is

uncertain what to look for, or who just enjoys browsing through items on display, will

prefer a retail store where the merchandise can be seen, handled and sample.

For many people, going shopping at a mall, department store or market is a form of

entertainment and a social experience. Many people who are currently unfamiliar with

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computers and do not feel comfortable using the Internet to shop are not likely to

change their habits.

INDIAN SCENARIO

While the Internet and the World Wide Web are continuing to expand at a rapid pace,

the development of electronic commerce has been slower. Surveys indicate many

Indian Internet users employ the developing interactive medium to shop or browse for

information on products and services, but a far smaller percentage has actually made

purchases online.

The number of people and hosts connected to the net has increased worldwide. In

India too, Internet penetration has became more widespread. Online shopping though a

small proportion of the Internet activity is believed to increase in the coming years.

Some of the prominent factors leading the change are greater Internet penetration, fall

in prices of hardware, fall in the price of Internet communication, development of

better and more reliable technologies, and increased awareness among the users. Some

of the various ways in which online marketing is done in India are company websites,

shopping portals, online auction sites, etc.

E-commerce may not have taken off in India the way it should have, yet prospects are

bright. India is expected to be the third largest Internet market in the world in the next

five years. The advantages are there for both buyers and sellers

and this win-win situation is at the core of its phenomenal rise, as it is believed that e-

commerce transactions will represent the largest revenue earner especially in the

business to consumer (B2C) segment in India.

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Indian customers are increasingly getting comfortable with online shopping, and there

is a higher acceptability for the concept. India has 25 million Internet users and more is

now turning to online shopping. There has been an influx of online shopping sites in

India with many companies hitching onto the Internet bandwagon. The revenues from

online shopping are expected to increase tremendously.

According to IAMAI, the average number of transactions per month in India has gone

up from 2 lakh in 2014-15 to 4.4 lakh in 2016-17 and has doubled to 7.95 lakh

transactions per month in the year 2017-18. The online sales during the festival season

had increased rapidly especially during Diwali and Ramzan which recorded a sales of

Rs115 crore, a 117 per cent increase from the Rs53 crore in the year 2014-15 (source

IAMAI). These figures clearly show that online shopping has truly come of age and

consumers are keen to shop on the net. Effective customer communication on products

plus reduced shipping costs and timely delivery has helped online marketers to

seize

a slice of the Rs 115 crore sales. Though a miniscule amount in `the global context,

the Indian online shoppers' population would make its presence felt quite

remarkably. The potential of the Indian e-market can be gauged from the fact that

16 percent of Indian consumers want to buy online in the next six months, making it

the third most online-potential country after Korea (28 percent) and Australia (26

percent) . This is an indication of a growing breed of Indian consumers

who are not only better equipped but also more confident of the online

transactions.

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13
E-CONSUMER BEHAVIOUR

The consumers' attitude towards online shopping is known as one of the main factors

that affects e-shopping potential .Though attitudinal issues are thought to play a

significant role in e-commerce adoption, however social-demographic variables such as

the gender, income, age, and nation also affect customers in purchasing

Considering that Internet shopping, is still not at the mature stage of development, not

too much is known about consumers' attitudes towards adopting this new shopping

channel and factors that influence their attitude toward . That means that, through

motivation and perception, attitudes are formed and consumers make decisions. Thus,

attitudes directly influence decision making. Attitudes serve as the bridge between

consumers' background characteristics and the consumption that satisfies their needs.

Because attitudes are difficult to change, to understand consumers' attitudes toward

online shopping, can help marketing managers predict the online shopping intention

and evaluate the future growth of online commerce.

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 OBJECTIVE

The purpose of this research study is to investigate online Indian consumer behaviour,

which in turn will provide E-marketers with a constructional framework for fine-tuning

their online strategies. The objectives of this research are:

 To study the attitudes and behaviour of Indian consumer regarding online

shopping.

 To evaluate the contribution of online shopping in India.

 To understand the issues and challenges of online shopping in India.

 To analyze if the Indian online buying behavior is affected by demographics,

cultural and social characteristics.

 To identify factors which determine online shopping.

 To examine the satisfaction level of online purchases of Indian consumers.

 To investigate the future and growth of Online Shopping in India.

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 SCOPE

Today Internet is not only a networking media, but also as a means of

transaction for consumers at global market. Internet usage has grown rapidly

over the past years and it has become common means for delivering and trading

information, services and goods . Since online shopping is growing

tremendously in the current business scenario it is imperative to study how consumers'

make purchase decisions on the Internet. With the advent of Internet shopping,

consumers are faced with an overwhelming amount of product offerings, and

consequently have a greater degree of freedom to choose among many different

alternatives. Internet shopping carries a number of different characteristics than

traditional shopping methods.

In India the Internet has taken root and grown along many fronts in the past decade.

The research assumes significance since marketers have endeavored to cater to this

growing segment of consumers. Research undertaken within India on the profile of

Internet shoppers is piecemeal and incomplete. This empirical research intends to

explore into this issue, this study among the Internet users will help marketers to plan

highly focused online campaigns in the future.

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 LITERATURE REVIEW

The current literature on consumer online purchasing decisions has mainly concentrated

on identifying the factors which affect the willingness of consumers to engage in

Internet shopping. In the domain of consumer behavior research, there are general

models of buying behavior that depict the process which consumers use in making a

purchase decision. These models are very important to marketers as they have the

ability to explain and predict consumers’ purchase behavior.

The classic consumer purchasing decision-making theory can be characterized as a

continuum extending from routine problem-solving behaviors, through to limited

problem-solving behaviors and then towards extensive problem-solving behaviors.

The traditional framework for analysis of the buyer decision process is a five-step

model. Given the model, the consumer progresses firstly from a state of felt deprivation

(problem recognition), to the search for information on problem solutions. The

information gathered provides the basis for the evaluation of alternatives. Finally, post-

purchase behavior is critical in the marketing perspective, as it eventually affects

consumers’ perception of satisfaction/dissatisfaction with the product/service.

This classic five stage model comprises the essence of consumer behavior under most

contexts. Nevertheless, the management of marketing issues at each stage in the

virtual environment has to be resolved by individual E-marketers.

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Other discriminating factors were; control over, and convenience of, the shopping

process, affordability of merchandise, customer service and ease of use of the shopping

site. Consumer risk perceptions and concerns regarding online shopping are mainly

related to aspects involving the privacy and security of personal information, the

security of online transaction systems and the uncertainty of product quality. Trust is

interwoven with risk. Lack of trust is frequently reported as the reason for consumers

not purchasing from Internet shops, as trust is regarded as an important factor under

conditions of uncertainty and risk in traditional theories.

Ability refers to skills, competencies and characteristics that a seller has in a specific

domain. In this context, sellers need to convince buyers of the competence of their

companies in the Internet shopping business. Benevolence is the extent to which the

seller is perceived by the buyer as wanting to ‘do well’. Sellers have to convince buyers

that they genuinely want to do good things for buyers, rather than just maximize profit.

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 FACTORS THAT BOOST ONLINE SHOPPING IN INDIA

 Rapid growth of cybercafés across India

 Access to Information

 The increase in number of computer users

 Reach to net services through broadband

 Middle-class population with spending power is growing.

 There are about 200 million of middle-class population good spending powers.

These people have very little time to spend for shopping. Many of them have started to

depend on internet to satisfy their shopping desires.

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 FEW FACTS ABOUT ONLINE SHOPPING

The figures show that the internet users in India will grow to 200 million by 2020.

Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in

the 26-35-year range.

 Indian online matrimonial sector is worth around $230 million.Worldwide e-

commerce is only growing at the rate of 28%, since India being a younger market, the

growth of e-commerce is expected at 51% in the coming years.

 In line with global trends finally India has also started shopping online these

days. As per the study by IAMAI online shopping in India has rose from $11million in

1999-2000 to $522 million in 2008 and it is expected to rise above $700 million by end

March 2020.

 Indians are also Shopaholics like other Asians. There is a strong booming young

adult population in India with good levels of disposable income.

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 HYPOTHESIS

Keeping in mind the above objectives and in order to address the problem in the most

effective manner the following hypotheses have been formulated:

 There is no significant difference between the frequency of online buying among

male & females Indian consumers.

 There is no significant difference between the Indian consumers educational

background and their online purchase intention.

 There is no significant difference between the income of regular online shopper

and occasional online buyer.

 There is no significant difference between the convenience orientation of

consumers who make frequent online purchases or those who purchase

occasionally.

 There is no significant difference in the dominance of usage of shopping online

between the Generation Y shoppers (those born after 1977) and other online

buyers, that is, people over 45 years of age.

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 RESEARCH METHODOLOGY

1. Research Objective

To know and understand the consumer’s perception and awareness about internet

marketing/ shopping. This will help to know the attitude and perception of consumers

towards online shopping and what are the factors which shape the consumer’s

perception towards online shopping. Also what are key concerns from the point of view

of consumer while online shopping.

2. Determination of information needs and sources

The following was the information required:

 What is consumer’s attitude towards online shopping?

 What are the key concern areas for consumers while online shopping?

 Which factors shape the consumer’s attitude towards online shopping?

 How has been recent shift taking place in online shopping?

3. Research Framework

Eleven different factors were identified by studying the existing models of consumer

attitudes(Refer Annexure 1, 2) that play an important role in online purchase, then a

model was proposed leading to online shopping.

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The data was collected only through Questionnaires. The sample size was 100. And

random sampling was done among the internet users.

3.1 Proposed Model

After examining the 10 empirical studies, we identify a total of eleven interrelated

factors for which the empirical evidences show significant relationships. These ten

factors are perceived usefulness, perceived ease of use, perceived enjoyment,

information on online shopping, security and privacy, quality of internet connection,

attitude towards online shopping, intention to shop online, online shopping decision

making, online purchasing, and consumer satisfaction.

Six (perceived usefulness, perceived ease of use, perceived enjoyment, information on

online shopping, security and privacy, quality of internet connection )are found to be

ordinarily independent and five (attitude toward online shopping, intention to shop

online, decision making, online purchasing, and consumer satisfaction) are ordinarily

dependent variables.

Consumer satisfaction is considered to be a separate factor in this study. It can occur at

all possible stages depending on consumer’s involvement during the online shopping

process. The relationships between satisfaction, attitude, intention, decision making and

online purchasing are proposed to be two-way relationships due to the reciprocal

influences of each on the other. In addition, three of the antecedents, perceived

23
usefulness, perceived ease of use, perceived enjoyment , have been found to have

direct impact on consumer satisfaction.

Perceived Usefulness

Perceived usefulness is defined as the degree to which a person believes that using a

particular system would increase his or her job performance. It is an important factor

affecting acceptance of an information system, because the ultimate aim of any person

is the superior job performance.

Perceived Ease of Use

This is an important factor that affects the acceptance of a particular information

system. It is defined as the degree to which a person believes that using a particular

information system would be free of effort. Hence an application perceived to be easier

to use would more likely be accepted by the user.

Perceived Enjoyment

Enjoyment refers to the extent to which the activity of using a computer is perceived to

be enjoyable in its own rights. This is seen as an intrinsic source of motivation to use a

particular application.

Amount of Information

Amount of information is defined as the information which is available for the product

which a person wants to buy through online shopping. This factor eases the decision of

24
the user to actually buy the product or not, or which product to buy. This factor

becomes even more important in case of High Involvement product.

Security and Privacy

Security and privacy are the main factors which hinder the growth of online shopping.

The user is concerned about his ID and Password which can be stolen by persons with

wrong intentions and then misuse it. At the same time they are concerned that their

personal information may be sold to the third party which poses a serious threat to their

privacy.

Quality of Internet Connection

Not only is the presence of internet connection necessary but also its Quality is

important to shop online. This is an important factor which determines whether the

user would shop online or not because presence of internet is a basic necessity for this

mode of shopping

Attitude and perception towards online shopping

Consumer’s attitude and perception toward online shopping have gained a great deal of

attention in the empirical literature. It is believed that consumer attitudes will affect

intention to shop online and eventually whether a transaction is made. It refers to:-

1) The consumer’s acceptance of the Internet as a shopping channel

2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers

think that shopping at this store is appealing).

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Intention to shop online

Consumer’s intention to shop online refers to their willingness to make purchases in an

Internet store. Commonly, this factor is measured by consumer’s willingness to buy and

to return for additional purchases. The latter also contributes to customer loyalty.

Consumer’s intention to shop online is positively associated with attitude towards

Internet buying, and influences their decision-making and purchasing behavior. In

addition, there is evidence of reciprocal influence between intention to shop online and

customer satisfaction.

Online shopping decision making

Online shopping decision-making includes information seeking, comparison of

alternatives, and choice making. The results bearing on this factor directly influence

consumer’s purchasing behavior. In addition, there appears to be an impact on user’s

satisfaction. Though it is important, there are only five studies that include it.

Initially, consumers typically screen a large set of products in order to identify a subset

of promising alternatives that appears to meet their needs. They then evaluate the

subset in greater depth, performing relative comparisons across products based on

some desirable attributes and make a purchase decision.

Online purchasing

This is the most substantial step in online shopping activities, with most empirical

research using measures of frequency (or number) of purchases and value of online

26
purchases as measures of online purchasing; other less commonly used measures are

unplanned purchases

Online purchasing is reported to be strongly associated with the factors of personal

characteristics, vendor/service/product characteristics, website quality, attitudes toward

online shopping, intention to shop online, and decision making.

Consumer satisfaction

It can be defined as the extent to which consumer’s perceptions of the online shopping

experience confirm their expectations. Most consumers form expectations of the

product, vendor, service, and quality of the website that they patronize before engaging

in online shopping activities. These expectations influence their attitudes and intentions

to shop at a certain Internet store, and consequently their decision-making processes

and purchasing behavior. If expectations are met, customers achieve a high degree of

satisfaction, which influences their online shopping attitudes, intentions, decisions, and

purchasing activity positively.

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Information on
online shopping
Attitude Intention Decision Online
towards to shop Making Purchase
Security & Privacy
online online
shopping

Perceived Usefulness

Perceived Ease of use

CONSUMER SATISFACTION

Perceived Enjoyment

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 DATA COLLECTION METHOD

Primary Data

It is original primary data, for specific purpose of research project. For this project, I

have to use following common research instrument or tool-

Questionnaire-

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. The questionnaire was designed using various scaling

techniques. The questionnaire was used mainly to test the model proposed for

consumer perception towards online shopping.

This was done by going directly to the respondents or through mails.

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.

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 DATA ANALYSIS

The objectives of the research were studied with respect to a regular online shopper

who shopped more than once because they would be the right respondent to give an

insight about the online shopping. Therefore it is firstly important to understand who is

a regular online shopper. In the survey the respondents where asked the following

questions which helped to know about a regular shopper.

1) FOR FACTORS AFFECTING ONLINE SHOPPING

Respondents were asked to rate the factors influencing online shopping purchase

behavior. In all six different factors were taken in questionnaire for getting the

responses of consumers .Here are those factors:

 Information about online products and services

 Perceived usefulness

 Ease of use

 Perceived enjoyment

 Security

 Quality of internet

30
Interpretation:

The principal component analysis is giving 72.584 as commutative % which is good

enough because data redundancy is less. Two components have been extracted with

Eigen values more than 1 after principal component analysis and rotated component

analysis.

The output value shows that following factors can be safely extracted after factor

analysis:

 Information about online products and services

 Perceived usefulness

 Ease of use

 Perceived enjoyment

The principal component analysis is giving 78.065 as commutative % which is good

enough because data redundancy is less.

The output value shows that following factors can be safely extracted after factor

analysis:

 Not sure of product quality

 Transactions/credit card misuse

 Have to wait for delivery

 Significant discounts are not there

31
2) FOR FACTORS CONCERNING ONLINE SHOPPING

Respondents were asked to rate the factors of concern for online shopping purchase

behaviour. In all six different factors were taken in questionnaire for getting the

responses of consumers .Here are those factors:

 Not sure of product quality

 Cannot bargain/negotiate
 Not sure of security of transactions/credit card misuse
 Need to touch and feel the product
 Significant discounts are not there
 Have to wait for delivery

32
 PAYMENTS

Online shoppers commonly use a credit card to make payments, however some systems

enable users to create accounts and pay by alternative means, such as:

 Billing to mobile phones and landlines

 Cash on delivery (C.O.D., offered by very few online stores)

 Cheque/ Check

 Debit card

 Direct debit in some countries

 Electronic money of various types

 Gift cards

 Postal money order

 Wire transfer/delivery on payment

Some sites will not accept international credit cards, some require both the purchaser's

billing address and shipping address to be in the same country in which site does its

business, and still other sites allow customers from anywhere to send gifts anywhere.

The financial part of a transaction might be processed in real time (for example, letting

the consumer know their credit card was declined before they log off), or might be

done later as part of the fulfillment process.

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 ADVANTAGES

Convenience

Online stores are usually available 24 hours a day, and many consumers have Internet

access both at work and at home. Other establishments such as internet cafes and

schools provide access as well. A visit to a conventional retail store requires travel and

must take place during business hours.

In the event of a problem with the item it is not what the consumer ordered, or it is not

what they expected—consumers are concerned with the ease with which they can

return an item for the correct one or for a refund. Consumers may need to contact the

retailer, visit the post office and pay return shipping, and then wait for a replacement or

refund. Some online companies have more generous return policies to compensate for

the traditional advantage of physical stores.

Information and reviews

Online stores must describe products for sale with text, photos, and multimedia files,

whereas in a physical retail store, the actual product and the manufacturer's packaging

will be available for direct inspection. Some online stores provide or link to

supplemental product information, such as instructions, safety procedures,

demonstrations, or manufacturer specifications. Some provide background information,

advice, or how-to guides designed to help consumers decide which product to buy.

34
Some stores even allow customers to comment or rate their items. There are also

dedicated review sites that host user reviews for different products. Reviews and now

blogs gives customers the option of shopping cheaper org anise purchases from all over

the world without having to depend on local retailers.

Price and selection

One advantage of shopping online is being able to quickly seek out deals for items or

services with many different vendors (though some local search engines do exist to

help consumers locate products for sale in nearby stores). Search engines, online price

comparison services and discovery shopping engines can be used to look up sellers of a

particular product or service.

Shipping costs (if applicable) reduce the price advantage of online merchandise, though

depending on the jurisdiction, a lack of sales tax may compensate for this.

Shipping a small number of items, especially from another country, is much more

expensive than making the larger shipments bricks-and-mortar retailers order. Some

retailers (especially those selling small, high-value items like electronics) offer free

shipping on sufficiently large orders.

Another major advantage for retailers is the ability to rapidly switch suppliers and

vendors without disrupting users' shopping experience..

35
 DISADVANTAGES

Fraud and security concerns

Given the lack of ability to inspect merchandise before purchase, consumers are at

higher risk of fraud on the part of the merchant than in a physical store. Merchants also

risk fraudulent purchases using stolen credit cards or fraudulent repudiation of the

online purchase. With a warehouse instead of a retail storefront, merchants face less

risk from physical theft.

Phishing is another danger, where consumers are fooled into thinking they are dealing

with a reputable retailer, when they have actually been manipulated into feeding

private information to a system operated by a malicious party. Denial of service attacks

are a minor risk for merchants, as are server and network outages.

Lack of full cost disclosure

The lack of full disclosure with regards to the total cost of purchase is one of the

concerns of online shopping. While it may be easy to compare the base price of an item

online, it may not be easy to see the total cost up front as additional fees such as

shipping are often not be visible until the final step in the checkout process. The

problem is especially evident with cross-border purchases, where the cost indicated at

the final checkout screen may not include additional fees that must be paid upon

delivery such as duties and brokerage.

36
Privacy

Privacy of personal information is a significant issue for some consumers. Different legal

jurisdictions have different laws concerning consumer privacy, and different levels of

enforcement. Many consumers wish to avoid spam and telemarketing which could result

from supplying contact information to an online merchant. In response, many

merchants promise not to use consumer information for these purposes, or provide a

mechanism to opt-out of such contacts.

Many websites keep track of consumers shopping habits in order to suggest items and

other websites to view. Many larger stores use the address information encoded on

consumers' credit cards (often without their knowledge) to add them to a catalog

mailing list. This information is obviously not accessible to the merchant when paying in

cash.

Hands-on inspection

Typically, only simple pictures and or descriptions of the item are all a customer can

rely on when shopping on online stores. If the customer does not have prior exposure

to the item's handling qualities, they will not have a full understanding of the item they

are buying. However, Written and Video Reviews are readily available from consumers

who have purchased similar items in the past. These can be helpful for prospective

customers, but these reviews can be sometimes subjective and based on personal

preferences that may not reflect end-user satisfaction once the item has been received.

37
 1.) Have you purchased anything online ever?

Fig. 1 Total Purchase Online

NO
35%

YES
65%

The research showed that 65% of the Internet users had shopped online while 35%

had not bought anything. This is mainly because of the changing lifestyle and taste

patterns. As the life is getting more and more fast paced more people are moving on to

shop online mainly because of convenience. This shows that a more Internet users are

using it as a shopping medium and there is a huge potential in this sector but one

should not be carried away by this figures. There could be a possibility that only a small

section of the online shoppers are shopping or only a particular category of good had

brought about this huge number.

38
2.) How frequently did you purchase online?

Fig. 2 Frequency of Online Purchase

80% 74%
70%
60%
50%
40%
30%
20% 12%
9%
10% 5%

0%
Only Once 2-4 times 5-6 times More than 6
times

This helped to understand the purchasing behavior of the online shoppers. It was seen

that 14% of the online shoppers had shopped more than five times and 74% had

shopped 2-4 times. The frequency shows the acceptance of Internet as a shopping

medium. Though only a small amount of the online shoppers had purchased more than

6 times but still there is a huge opportunity in the Internet arena. The 65% of the

online shoppers who had shopped more than once were considered as regular shopper

and the entire analysis was based on these regular shoppers.

39
3.) The Internet Usage

It is necessary to study the amount of time spend by the regular shoppers on the world

wide web because this would give us clear picture as to understand whether usage and

time spent by the regular online shoppers has an effect on online shopping or not.

Fig. 3 Online Shopping & Internet usage by years

90%
78%
80%
70%
60%
50%
40%
30%
20% 14%
10% 6%
2%
0%
Less 1–3years 3–5years More than
than1year 5years

The diagram shows that shopping has increased with the usage of Internet over the

years. Regular shoppers who have been using Internet for more than one year had

shopped to 98% and regular shoppers who have been using Internet for more than five

years have shopped to 78%. Internet is not a new concept for these regular online

shoppers and they have been using it for more than 5 years now. The increased usage

over the years has lead to an increase in shopping, as these regular shoppers are able

to make use of the various e-commerce activities.

40
4.) The web online activity

The following classifications are done to study the online activities in case of a regular

online shopper.

Fig. 4 Online Activities

10%
32%
Shopping
20% Communication

Finance

24%
14%
Inf ormation
Entertainment
Gathering

The Internet offers four basic services communication (socializing service with peer

group or core group (email) or with new groups of people (chat), information services,

entertainment services and commerce services and shopping. The research shows 32%

of the regular online shoppers use Internet for communication while only 10% uses it

for shopping which shows that communication still forms the major activity among the

regular online shoppers.

41
Fig. 5 Online Activities by Age

70%

60% 18-30 years

50%
31-40 years
40%

30% 41-50 years

20%
above 50
10% years
0%
communication Information Finance Shopping
gathering

This classification further provides an insight that Internet is mainly used as a means of

communication in respect all the age groups of the regular online shoppers. It

contributes to 60% of the major activity among the regular online shoppers who lie

between the age group 18-30 years. It could be seen that shopping as a basic activity

on the Internet contributes to the minimum. Internet as a medium of shopping is

maximum used by regular online shoppers between the age group18-30 years, which is

18% while above 50 years it is used just to 2%. The increase in usage among the 18-

30 years is basically due to high awareness. The marketers should focus mainly on the

age group between 18-30, as they are the main drivers for growth. Thus the research

shows that though the regular shoppers are using the Internet for quiet some time now

but shopping still remains a small part of the major activity

42
Analysis :

It is true that increase in internet has lead to an increase in the online shopping as 78%

of the online shopping has been done by the regular online shopper who have been

using internet for more than five years and 36% of the online shopping have been done

among the regular shopper who uses the Internet for more than 20 hours a week. Thus

increase in usage of Internet has lead to an increase in online shopping. But shopping

still constitute a small amount of the major activity on the internet as 32% of the

regular online shoppers uses Internet for communication while only 10% uses it for

shopping. Communication still constitutes the major activity on the Internet.

43
5.) Demographic Factors

Online behavior is affected by demographics i.e. by gender, education and income.

Hypotesis

1. More male Internet users are frequent online buyers than female Internet users.

2. Regular online buyers are better educated than occasional online buyers.

3. Income is higher in case of a regular online shopper than occasional online

buyer.

Fig. 6 Online Shopping & Gender

28%
Female

72%
Male

Among the 65% of the online shopping, males (72%)had purchased more as compared

to women (28%). This shows that it is true that more males are shopping online as

compared to women. This is mainly because women still like to feel, see and touch the

product before buying. It was noticed that some of them felt shopping as a reason to

go out with the family and spend time together, which was not possible in case of

44
online shopping. As more and more Indian women are flocking to Internet there is a

possibility that they might end up in a purchase. Also an increase in the spending power

in the hands of the women might lead to an increase in the online shopping. The

research showed that 28% of the women who shopped online fall mostly in the service

and executive class with an income above Rs10,000. The marketers should make sure

that they produce the item keeping in mind the needs of the women population as they

still continue to be an important decision maker when shopping for the family.

Fig. 7 Online Shopping & Educational Qualification

3%
8%
Non
Matriculate
Matriculate

54% 35%

Postgraduate Graduate

Educational difference is a significant demographic variable, which shows that regular

shoppers who were better educated made more purchases online. 89% of the shopping

has been done by the regular shopper whose is educated with a graduate or

postgraduate degree. This shows that frequency of purchase is more in case of a higher

educated regular shopper as compared to a online shopping done by a regular online

shopper with matriculate (8%) and non matriculate (3%).

45
Fig. 8 Online Shopping & Income

40 38

35

30

25 less5000
21
5000-10000
20
10000-25000
14 15
15 above25000
11
10 8
5 5
5 3 2 3
1 1 1 1 1
0
Student Service/Executive Business Others

Income and buying behavior are positively related. It was seen that a regular online

shopper with a higher income had purchased more online as compared to lower income

online shopper. This trend was seen in all segment of the population. It is true that

more the income in the hands of the population they would indulge in shopping. The

service class had done the major purchase in all the various levels of income. It can be

seen that hardly any purchase is done among the regular online shopper whose income

lies below Rs5000.

46
6.) Motivating & Satisfaction Factors

To identify the factors which Internet users choose to buy or not buy online and how

frequently they make such purchases. Analyzing the importance of satisfaction level in

the online purchasing environment.

Hypothesis

Consumers who make frequent online purchases are higher in convenience orientation

than those who purchase occasionally.

Fig. 9 Online Shopping & Motivating Factors

7%

Product 32%
Comparison Convenience

26%

Saves Time

12%

Superior
23%
selection
Price

It is believed that consumers whether online shoppers or non-online shoppers value

price to convenience but the study contrast this popular belief. The study showed that

32% of the shopping had been done by the regular shopper who think convenience is

the main driving force while 23% of the shopping had been done for whom price was

47
the main orientation for shopping online. Other motivating forces, which had lead to

online shopping, were saves time (26%), product availability and superior selection

(12%), and product comparison (7%). Convenience here is characterized as ease of

purchase, home delivery and ability to shop 24x7. These factors motivate the regular

online shopper to buy over the Internet and regular online shoppers who value

convenience are more likely to buy on the web, as compared to occasional online

shoppers. Every connection is a potential for net shopping. Therefore the companies

should attract and retain its regular online shoppers, as the Internet is a tangled jungle

of web sites, which is possible at a click of a mouse. They should design strategies and

develop products keeping in mind the convenience factors.

48
7.) Barriers to Shopping Online

Fig. 10 Online Barriers

7% 33%
9% Others Privacy &
Unfamiliar
Security

14%

Hassle of

returning

16%
21%
Lack of
Inability to
Customer
touch & feel
Service

The main areas for concern in respect of the regular online shoppers while shopping

were privacy and security (33%). Most of them still preferred the conventional method

of shopping like the touch and the feel factor (21%). They felt that it is possible to see,

feel, touch and try the products before buying in a shopping store as compared to

Internet shopping. Other reasons that concern the regular online shoppers were

inability to reach the customer service (16%), hassle of returning the product (14%),

technical foul –ups, hesitant in purchasing from an unfamiliar source and person and

delivery costs. The marketers should formulate such strategies so that the privacy and

security concern can be taken care off.

49
 FUTURE AND GROWTH OF ONLINE SHOPPING

This can be understood by the categories of good bought by the regular online

shoppers presently and the future of the various categories.

Table 1. Future Categories of Goods

Railway tickets 83%

Airline tickets 80%

Electronic Gadgets 50%

Books 43%

Gifts 33%

Movies tickets 30%

Jewellery 23%

Computer Software 20%

Hotel Rooms/Car Rental 20%

Event Tickets 13%

Toys 13%

Infant / Child items 10%

Food / Groceries 7%

Accessories apparel 3%

CD/Videos 3%

50
 Magazines 3%

Home tools and products 3%

Sporting goods 3%

The table I shows that shows that there is a future growth in the electronic gadget and

book categories also apart from railway and airline tickets, which continues to be on the

priority list. There is a growth in these categories because traditionally products like

audio-video, apparel, and computer accessories were purchased through catalogs and

other forms of direct mail but toady online shopping serves a convenient means of

distribution channel. Another reason for the growth in these categories is because of

well-established sites for travel, audio-video (e.g., CD-Now), and computers

(e.g.www.dell.com, www.sonyvaio.com), which lure the consumers to buy these

products. These goods do well because consumers are not bothered much about the

touch and feel factors, which generally drive the shopping in India unlike categories like

apparels and groceries where it still remain an important factor while purchasing. It is

difficult to change the set mindset of consumers for certain categories of goods but still

companies should keep innovating and find means and ways to attract more online

shopping.

51
Fig. 11 Present & future categories of Goods

120%

100%

80%

60%

40%

20%

0%
Books Railway Airline Electronic Gifts Movies
tickets tickets Gadgets tickets

Present Future

It is seen that railway tickets 70% and airline tickets 93% are the most popular

categories among the online shoppers followed by books and electronic gadgets. This is

the main category, which is bringing about online shopping culture among the regular

online shoppers. The companies should bring out innovative ways so that there is a

growth in other categories of goods also. The entire shopping culture among the

regular shoppers is brought mainly by the travel categories followed by electronic

gadgets. The graph shows that online shopping is tend to grow in the coming years as

consumers want to buy more in the future.

52
 FINDINGS

The findings show that Internet usage has increased over the years and it is leading to

an increase in online shopping and also shows the consumers attitude and perception

towards online shopping.

Online shopping is affected by demographics as it has been seen that more males are

shopping online as compared women online shoppers and there is a positive relation

between education and income levels with respect to the increased online shopping

behaviour.

The most important motivating factor, which influenced the online shopping, was

convenience followed by time saving and price. Regular online shoppers considered

convenience as the main motivating factor while buying and were less price sensitive.

But the online marketers should attempt to differentiate their products or services

making the comparison easier.

One of the main concerns among the online shoppers was privacy and security.

Another reason that hindered online shopping was the touch factor. Consumers still

preferred the experience they get from traditional stores like feeling the store’s

atmosphere, interacting with a salesperson, and seeking sensory stimulation. This might

hinder the use of certain goods like grocery and apparel, as the touch factor is the main

factor, which drives the shopping for these goods. The future of online shopping is

bright especially in the categories of travel, books, electronic gadgets and gifts.

53
 CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

Malls malls springing up everywhere and yet people are e-shopping! And not in small

numbers either. E-commerce figures are going through the roof, according to Assocham

(Associated Chambers of Commerce & Industry of India). Today (2008-09) the figures

are touching Rs. 2200 crore, but are expected to increase by 150 percent by 2019-20 to

Rs 5,500 crores! And two metros - Delhi and Mumbai are driving the growth:

Table 2. Share of Metro Cities

LOGGING ONTO E-SALES

CITY Share in 16-17 Projection for 19-

20

Mumbai 24% 40%

Delhi 20% 30%

Chennai 7% 11-12%

Kolkata 7% 10-11%

Bangalore 6% 9%

Here are few reasons for this:

1. Convenience

It is the major reason. Both the cities are spread out over a large area and the

best stores in both these cities are often concentrated in certain ‘posh’ areas. In

54
 Mumbai for example there are certain items you get only in Crawford market

which is at the other end of town in South Mumbai. And demographics show that

the population of Mumbai is now concentrated in the suburbs. Of course, huge

malls have come up in the suburbs as well, and India’s biggest mall Nirmal

Lifestyle is in far-flung Mulund but often you find a better choice of sizes and styles

choice in other malls, say Phoenix (central Mumbai). And though both Mumbai and

Delhi have transport system, few people like to travel for two hours just to get to a

shop at the other end of town. Clearly the transport systems leave much to be

desired. In Delhi, safety is also an issue for women traveling alone in the evenings.

2. Literacy Rate and the Cities’ Internet Savvy Population

Most cities in India have a higher literacy rate as compared to the national average

of 64.8 percent. In fact Mumbai has a highest literacy even amongst the cities (86

per cent). Delhi too has a high literate population (81.2 per cent). Oddly, although

Bangalore has a higher literacy rate than Delhi, at 83 per cent, the city’s share of

e-commerce is not very high. Kolkatta too has a literacy rate (80.8 per cent) and

so does Chennai (80.1 percent.) If one compares these rates to literacy rates of

cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or

Warangal (73 percent) its clear why its the metros which are going to continue to

lead e-shopping.

55
3 .Home delivery concept

In any case, home delivery is a concept that Indians are familiar with and love. The

mall craze has started only now. Earlier it was a choice between sweating it out in small

crowded markets, or asking a friendly neighbourhood kirana (grocer) to deliver

groceries home and this system is still thriving.

4. Increase in the Internet users

Increasing penetration of Internet connectivity and PCs has led to an increase in the

Internet users across India. The demographic segments that have witnessed maximum

growth comprise college going students and young persons. These segments are the

users of advanced applications and technologies online and are most likely to be heavy

E-Commerce users.

5.Increase in the number of buyers and sellers

The success of a marketplace depends on the presence of a large number of buyers

and a large number of sellers. In addition to online buyers, many offline stores have

begun to sell their products in the online marketplace. The greater the number of

sellers and buyers, the faster the market grows.

56
 BARRIERS TO THE GROWTH OF ONLINE MARKET

1.) Consumer Bias

Consumers often display a bias for brands that they know well and have had a good

experience in the past. Thus products of brands with a favorable bias will score over the

products of less popular brands. A few would risk buying expensive jewelry from an

unknown jeweler online.

2.) Lack of ‘Touch –Feel-Try’ Experience

The customer is not sure of the quality of the product unless it is delivered to him and

post delivery of the product, it is sometimes a lengthy process to get a faulty or the

unsuitable product changed. Thus, unless the deliverables are as per the customers

expectations, it is hard to infuse more credibility in the e-Tailing market.

3.) Mounting Competitive Pressures

To attract customers, the competing online players are adopting all means to provide

products and services at the lowest prices. This has resulted in making the consumers

choice-spoilt, who in turn surf various websites to spot the lowest price for the product.

Thus, although the number of transactions is increasing, the value of the products sold

is continuously falling owning to high competition and leaner margins.

57
4.) Seasonality

E-Tailing Market is faced by seasonal fluctuations. As told by an Industry player,

“August to February is the peak seasons for sale, while March to July is the dry seasons

for sale”. During the peak season, occasions that drive the sales are Diwali, Rakhi,

Valentines Day, New Year, Christmas, Mother’s Day, Friendship Day etc are. On these

occasions younger generations prefers buying and sending gifts online.

5.) Credibility in Payment System

Online frauds and breach are the biggest barriers to online sales. As a result,

prospective buyers prefer staying away from revealing their credit card and bank

details.

6.) Untimely Delivery of Products

It might take a few minutes to search, book and pay for products and services online,

but the delivery of the product may take unreasonable time.

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.

58
 PERILS AND DANGERS OF ONLINE SHOPPING

Scams and internet fraud is no more news in the internet world. Scammers have gone

deep online. Millions of dollars are reported every day of the year to be lost by innocent

souls. Men and women are duped online every day without any form of comfort in their

lives. Since the internet is for all and sundry, excessive exposure to it could be

dangerous and risky. The problem with online shopping ranges from A to Z. They are

avoidable if they are known. It should be clear that not everybody online is there to buy

or sell real products. Some are there for fraud and online scams. I am a victim of such

disaster before I learnt my lesson in the hard way. Internet fraud is all over my dear

reader.

As earlier quipped, internet fraud is very common on the internet market.

Online shopping is characterized with internet catastrophes. Since online shopping in

the most popular means of shopping, it is important to note that everybody is now

online. Exposure of the internet is now the avenue for some weaklings and indolent

people to fraud innocent shopping seekers. One need to be on the watch out against

internet fraud when one is sincerely going for online shopping.

Poor network server

Sometimes in developing countries of the world has poor network provider. It could in

such a way limit one’s online shopping in any form. News has made it clear that

59
internet connections are faster than each other; some are very slow while some are

time wasters to say.

Goods in transit

Goods might be declared in transit when been tracked on the internet. This is a great

limitation. This hinders the buyer to receive the good at the stipulated time. He receives

such goods very late at the eleventh hour. It is very common to almost all shops. Steps

are on to set everything in the right order.

Currency barrier

Not every country in the world has the same currency. Dollars are popularly used but

some countries have no access to dollars. This has limited online shopping in the recent

years.

There are limitations. There are dangerous strives. There are perils. Language could

also limit online shopping. Before you pay for anything online.

60
 LIMITATION

Every study will have its problems and limitations at some point during the project.

This study is no different. The use of a non-probalistic sample in the research was a

major limitation because there was no way to make sure that the sample taken

represented the total population of the Internet users. A non-probability sample lacks

the accuracy and precision that a probability sample might offer. Though this samples

provided a better insight about the online shoppers but there could be a possibility that

a respondent may have done online shopping but is not a regular Internet user. It was

seen that some respondents were biased towards some questions. Another major

limitation encountered doing the research assignment was the issue regarding the time.

Limitation of the study is the selection of the existing studies. Owing to time limitation,

only a few number of journals were searched. This may leave some other prominent

empirical studies out. In addition, owing to the multidisciplinary nature of online

shopping, it would be very interesting to compare IS literature to other disciplines that

study online shopping attitudes and behavior.

61
 CONCLUSION

Increased Internet penetration, a hassle free shopping environment and high levels of

Net savviness see more and more Indians shopping online. .

Consumers often display a bias for brands that they know well and have had a good

experience in the past. Thus products of brands with a favorable bias will score over the

products of less popular brands. A few would risk buying expensive jewelry from an

unknown jeweler online.

The growing use of Internet in India provides a developing prospect for online

shopping. If E-marketers know the factors affecting online Indian behavior, and the

relationships between these factors and the type of online buyers, and then they can

further develop their marketing strategies to convert potential customers into active

ones, while retaining existent online customers.

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.

62
 QUESTIONNAIRE

Kindly highlight/bold your answers.

1. Do you use Internet?

 Yes  No

2. How long have you been using Internet?

 Less than 1 year  3 – 5 years

 1 – 3 years  More than 5 years

3. On the average, how much time (per week) do you spend in surfing the Web?

 0 – 5 hours  16 – 20 hours

 6 – 10 hours  More than 20 hours

 11 – 15 hours

4. Have you purchased anything online ever?

 Yes  No

5. Which category (ies) of goods have you bought through Internet?

 Books  Railway tickets

 Electronic Gadgets  Airline tickets

63
  CD/Videos  Computer Hardware

 Accessories apparel  Computer Software

 Gifts  Magazines

 Event Tickets  Movies tickets

 Hotel Rooms/Car Rental  Office Supplies

 Jewellery  Food / Groceries

 Infant / Child items  Home tools and products

 Sporting goods  Health and fitness products

 Toys  Any other, specify………………

6. When did u shop for the first time?

 Last 6 months  6 months- 1year

 1-3 year  3-5 year

 More than 5 year

7. How frequently did you purchase online?

 Only once

 2-4 times

 More than 5 times

64
  More than 6 times

8. Overall, were you satisfied with your experience of online shopping?

 Highly Satisfied

 Satisfied

 Neither satisfied nor dissatisfied

 Dissatisfied

 Highly Dissatisfied

9. Where do you most often access the Internet?

 Home  Cyber-cafes

 Office / College  Any other, specify………

10. What are the activities that you use Internet for? (Kindly rank them between 1 to

5,with 1=most used, 2=used to a large extent, 3=used to a good extent, 4=used

sometimes, 5=rarely used)

 Communication (E-mail, Instant Messaging, Bulletin Boards,

News Groups, Chat, etc.)

 Information Gathering (Research, News, Sports scores, Search

for employment, etc.)

 Entertainment (Games, Adult entertainment, Entertainment

65
 sites, Sports, Music, Web page design, etc.)

 Finance (Investment portfolio, financial research, online

banking, check stock/fund quotes, trading, etc.)

 Shopping (Researching purchases, purchasing, auctions, Selling,

Classifieds, etc.)

11. Which category (ies) of goods are you planning to buy through internet in the

near future?

 Books  Railway tickets

 Electronic Gadgets  Airline tickets

 CD/Videos  Computer Hardware

 Accessories apparel  Computer Software

 Gifts  Magazines

 Event Tickets  Beauty products

 Movies tickets  Health and fitness products

 Hotel Rooms/Car Rental  Office Supplies

 Jewellery  Food / Groceries

 Apparel gift certificates  Pharmaceuticals

 Infant / Child items  Home tools and products

66
  Sporting goods  Home appliances

 Toys  Any other, specify………………

12. What is your main motivation for buying through Internet?

 Convenience (ease of purchase, home delivery, ability to shop 24x7)

 Price

 Saves time

 Superior selection/Availability

 Product comparison

 Any other, specify………………

13. What, according to you, are the most important barriers to purchase online?

 I am worried about giving out my credit card number

 I don’t have a credit card

 I don’t like providing personal information

 I don’t want to purchase from someone with whom I am not familiar

 I enjoy going out to do my shopping

 I like to see/touch the product in person, before I buy it

 Internet is too slow / Pages take too long to load

67
  I am worried about the cost/hassle of returning the product

 Delivery costs are too high

 Prices are too high

 Technical foul-ups prevent transactions from going through

 I can’t find anything that I want to purchase on the Internet

 I don’t know how but I am uncomfortable about purchasing through Internet

 The process is expensive due to cost of access

 Any other, specify…………

PERSONAL DETAILS

14. Age:

 Below 18 yrs

 18 - 30 yrs

 31 - 40 yrs

 41 – 50 yrs

 Above 50 yrs

15. Educational Background:

 Non-Matriculate

68
  Matriculate

 Graduate

 Postgraduate

16. Occupation:

 Business/Self Employed

 Service/Executive

 Student

 Any other, specify………………

17. Gender:

 Male

 Female

18. Average Monthly Income:

 Less than Rs. 5,000

 Rs. 5,000 – Rs. 10,000

 Rs. 10,000 – Rs. 25,000

 Rs. 25,000 – Rs. 50,000

 Above Rs. 50,000

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Name: _____________________________

Contact No.: ______________________________

City: ______________________________

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Bibliography
There are no sources in the current document.

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