Vishweshwar Education Society’s

Indira Institute of Business

Management

PROJECT REPORT ON

CONSUMER BUYING BEHAVIOUR ONLINE VS OFFLINE

SHOPPING

SUBMITTED IN PARTIAL FULFILLMENT OF

MASTER OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

Submitted by Mr. / Ms. Kalyani Avinash Range.

ROLL NO. 2020032

2020-21

Under The Guidance of Dr. / Prof. Bhupendra Mishra.

1
 Vishweshwar Education Society’s
Indira Institute of Business
Management

PROJECT REPORT ON

CONSUMER BUYING BEHAVIOUR ONLINE VS OFFLINE

SHOPPING

SUBMITTED IN PARTIAL FULFILLMENT OF

MASTER OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

Submitted by Mr. / Ms. Kalyani Avinash Range.

ROLL NO. 2020032

2020-21

Under The Guidance of Dr. / Prof. Bhupendra Mishra.

2
 DECLARATION

I hereby declare that this project report submitted by me in partial fulfillment of

MASTER OF MANAGEMENT STUDIES (MMS) of the University of
Mumbai is a bonafide work undertaken by me and it has not been submitted to
any other University or institution for the award of any other degree or diploma
certificate or published any time before.

Name: Kalyani Avinash Range

Roll No.:2020032

Signature of the student

3
 Vishweshwar Education Society’s
Indira Institute of Business
Management

Certificate

This is to certify that the project entitled ‘Consumer Buying Behaviour

Online Vs Offline Shopping’ submitted by Mr/Miss Kalyani Avinash Range
in partial fulfilment of Master of Management Studies of Mumbai University is
his/ her original work and does not form any part of the projects undertaken
previously.

Date:

Dr. Susy Kuriakose Prof. Bhupendra Mishra.

------------------------------ ---------------------------
DIRECTOR (PROJECT GUIDE)

4
 ACKNOWLEDGEMENT
This project has been a great learning experience for me. I take this opportunity
to thank Dr. / Prof. Bhupendra Mishra, my internal project guide whose
valuable guidance & suggestions made this project possible. I am extremely
thankful to him/her for his/her support. He/She has encouraged me and
channelized my enthusiasm effectively.

I express my heart-felt gratitude towards my parents, siblings and all those

friends who have willingly and with utmost commitment helped me during the
course of my project work.

I also express my profound gratitude to Dr. Susy Kuriakose, Director of Indira

Institute of Business Management for giving me the opportunity to work on the
projects and broaden my knowledge and experience.

I would like to thank all the professors and the staff of Indira Institute of
Business Management especially the Library staff who were very helpful in
providing books and articles I needed for my project.

Last but not the least, I am thankful to all those who indirectly extended their
co-operation and invaluable support to me.

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 EXECUTIVE SUMMARY

The study tries to recognize that, how consumer measure channels for
their purchasing. Specifically, it progresses a conceptual model that
addresses consumer value perception for using the Online shopping
versus the Offline shopping. Earlier study showed that perceptions of
price, product quality, service quality and threat strongly impact
perceived value and purchase intents in the offline and online network.
Observations of online and offline buyers can be evaluated to see how
value is constructed in both channels. It is hitherto to recognize what
factors influence online and offline shopping choice progression. The
objective of this study is to provide an impression of online shopping
decision process by comparing the offline and online decision making
and identifying the factors that motivate customers to decide whether to
do online shopping or go for the offline shopping.

Consumer’s shop when and where they want, where they are
Comfortable with the products and the choice of shopping. Since last
two-three years as population are more aware of the technology the
online shopping increased immensely. The people from the age group 50
and above are less likely to do online shopping because they are less
aware of the technology. However, the respondent said that they will love
to purchase from online shopping if only the price of the product is less
than the market.

Indexed Terms- online shopping; consumer behaviour; offline

shopping

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

1 Introduction 9
1.1 Statement Of the Problem 13
1.2 Aim & Objectives of the study 14
1.3 Scope Of the Study 15

2. Review of Literature 16

3 Research Methodology 30
3.1 Methodology 31
3.1.1 Primary Data 32
3.1.2 Secondary Data 34
3.2 Methods of Data Collection/ Survey 35
Techniques
3.2.1 Methods of Primary Data Collection 36
3.3 Designing a Questionnaire 37
3.3.1 Types of a Questionnaire 38
3.4 Tools used for a Questionnaire Design 39
3.5 Statistical Tools Used 40

4 Data Analysis 41
4.1 Data Analysis Introduction 42
4.2 Questionnaire Collected Data 43

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5 Findings / Conclusion 57
5.1 Introduction: Findings/Conclusion 58
5.2 Future Scope 59

6 Bibliography 60

Questionnaire 64

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CHAPTER I
INTRODUCTION

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1.1 INTRODUCTION

The increase in technology provides good opportunities to the seller to reach the customer in
much faster, easier and in economic way. Online shopping is emerging very fast in recent
years. Now a days the internet holds the attention of retail market. Millions and millions of
people shop online. On the other hand, the purchasing of product from traditional market is
continuing since years. Many customers go for purchasing offline so as to examine the
product and hold the possession of the product just after the payment for the product. In this
contemporary world customer’s loyalty depends upon the consistent ability to deliver quality,
value and satisfaction. Some go for offline shopping, some for online and many go for both
kind of shopping. The focus of the study is on the consumer’s choice to shop on internet and
at the traditional stores at the information gaining period. However online shopping is easier
for the people and less price than the offline shopping. While making any purchase decision
consumer should know the medium to purchase whether online shopping or the offline
shopping. Consumer should decide the channel for them which can best suit to their need and
wants and which can satisfy them. In this competitive world, how consumer can decide the
particular medium for their purchase of goods is very important to understand in a managerial
point of view. (Laing and Lai, 2000) said that the internet shopping is the third best and most
popular activity over internet after online shopping next comes the e-mail using, instant
messaging and web browsing.

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The behavior of online shopping is also known as online buying behavior and internet
shopping. Buying behavior means the purchase of good over internet using web browser.
Online shopping also consist the same five steps which is related to traditional shopping
behavior. (Chiang and Dholakia, 2003; Lynch, Kent, and Srinivasan 2001) they said that in
the typical way of online shopping when the consumer’s need some product or service they
go through the internet and browse or search the things they need and their information. But
rather than searching actively, many a times potential consumers are attracted by the
information about the product they want. They see many products online and choose the best
one which suits him/her. Then they purchase that product and finally the transaction takes
place and post sales service provided by the online sites. Online shopping attitude and
behavior are related to the consumer. Previous studied have focused on why the products of
the online shopping is different from other products. Many studies have focused that the high
touch products that the consumer feels when they need to touch, smell or try the product. It
requires the offline shopping at the purchasing stage because it cannot be done in the online
shopping. Even with the increase in the online shopping and the recognition that online
shopping is more likely to impose the pressure on offline shopping or traditional shopping.
The customer of online shopping should have internet and valid method of payment in order
to purchase the products from the internet. Amazon, flipkart, Myntra are some of the
examples of successful online shopping sites that use less price of the items and large stocks
to attract the consumers.

21st century is an era of digitalization, where everything is available online from groceries to
gadgets. Consumers today are cognizing the benefits of digitization and asking for more
personalized dominion. While consumers in large metros are opting for online retail and e-
commerce for most of their purchases, the trend is slowly penetrating in non-metro cities as
well. Cities such as Bangalore, Mumbai, Delhi saw the highest preference for online
shopping in 2016.Seeing this noticeable change in consumer behavior e-commerce websites
are improving their policies and coming up with new ways such as attractive EMI options or
no cost EMI options which enhances affordability for the consumers.

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In today’s market, irrespective of preferences towards online and offline stores, it is
imperative to correspond attention across all channels. The Omni channel approach not only
gives the consumer an option to shop at the store but also gives him the convenience to shop
anytime anywhere. The gradual shift towards Omni channel strategy will not only assist
retailers to re-think their business strategy in order to tap the best of both worlds but also
maximize foot falls. The key to creating an effective Omni channel strategy understands how
your customers interact with your brand at each step of the customer journey.

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1.1 STATEMENT OF THE PROBLEM

21st century is the era of digitization, in this era of digitization people are technologically
very strong hence most of them use platforms like Flipkart, Myntra and Amazon to shop
online. But the people from rural places (i.e. from non-metro places) still shop offline
because of lack of technical knowledge, education, etc. This study will help people to
understand, how to shop online also get the best benefits out of it in terms of discounts, flash
sales and offers.

1.2 AIMS & OBJECTIVE OF THE STUDY

 To know buying persona of consumer among different age groups and gender
 To understand consumers preference
 To evaluate factors that attract customers to buy online
 To understand consumers overall experience with online shopping and offline
shopping.

1.3 SCOPE OF THE STUDY

 This study will help us to find the factors that affects the consumer persona to buy
online.
 The factors influencing the consumer to shop completely online and completely
offline.
 This study will help us to analyse consumer buying behaviour on the basis of
qualification, age, gender and income of the buyer while shopping online and offline.
 The study will help us to determine the developing personalised marketing strategies.
 This study will help to analyse the factors that drives consumers retention and
increase frequent buyers.
 The study will help us to determine the key parameters that helps customer to engage
more into the e-commerce website portal.

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 CHAPTER II
LITERATURE REVIEW

14
2.1 Review of literature

 Andrew and Currim (2000)

They focused on expected differences in choice, behavior of consumer for two products
categories, statistically significant difference are found between consumers attracted to
shopping online versus traditional super market with regards to parameters describing the
choice process. The study found that correlated to traditional supermarket consumers, online
shopping are less price sensitive, prefer larger size to smaller sizes, have stronger size
faithfulness. The consumer does more broadcasting choice set effects.

 Li and Zhang (2002)

They examined the representative existing literature on consumer online shopping attitudes
and behavior based on an analytical literature review. In doing so, this study attempts to
provide a comprehensive picture of the status of this subfield and point out limitations and
areas for future research. They decided to restrict their search of research articles to the
period of January 1998 to February 2002. The other two criteria for selection are the articles
are empirical in nature, and the articles measure at least one of the identified factors in our
taxonomy they searched three primary IS conference proceedings volumes: International
Conference on Information Systems (ICIS), Americas Conference on Information Systems
(AMCIS), and Hawaii International Conference on Systems Science (HICSS). They also
checked the reference sections of the selected articles to identify and include additional
prominent articles in this area. Three out of the five dependent variables (consumer attitudes
intentions, and purchasing behavior) and three out of the five independent variables (personal
characteristics, vendor/service/product characteristics, website quality) receive the most
attention. This seems to constitute the main stream of research in this area.

It is found that personal characteristics, vender/service/product characteristics and website

quality significantly affect online shopping attitudes, intention, and behavior. The direct
implication of these findings is that targeting more appropriate consumer groups, improving
product and/or service quality, and improving website quality can positively influence
consumer attitudes and behavior, possibly leading to increased 13 frequency of early

15
purchase and replication purchases on the part of customers. This methodological matter
wants to be addressed in upcoming research so that a validated instrument can be developed
for evaluating consumer online shopping approaches and behavior.

 Chaing and Roy (2003)

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

 Broekhuizen and Jager (2003)

They investigated to get a better understanding of channel choice by developing a theoretical

framework that shows the relationship between the antecedents and mediators of perceived
and purchase intention in both channels. The result indicates the main determinants of
channels choice and enables comparison between online and offline Shoppers’s perception.
The result determined the factors that encourage or prevent consumers to engage in online
shopping.

 Kim H R (2005)

He examined an empirical study in UK to develop an index of online customer satisfaction;

this study integrates and applies the concept of satisfaction from three field’s i.e. marketing,
management information system (MIS) and e-commerce. The main function of this paper is
an exploration of the factors affecting satisfaction. The results show that ten factors on index
are good exponent of satisfaction repurchase behavior and repurchase intention.

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  Lee and Littrell (2005)

They aimed to investigate consumers shopping values and web site beliefs that influence their
intention to shop for cultural products. They uses the theory of reasoned action (TRA) as a
framework to explain the structural interrelationships among interest shopping values, beliefs
about the web site, shopping attitude, shopping intention. A total of 203 persons responded to
an invitation to participate in a web survey for the purpose of data analysis. They found that
the consumer beliefs the web site, especially with regards to merchandising, both directly and
indirectly influenced the intention to shop for cultural products in the future. This finding
confirms TRA such as belief structure as determined of attitude and attitude as determined of
behavioural intention. The consumers who shop for cultural products on the internet have
both hedonic and utilitarian shopping values and both these values must be addressed by
internet retailers. Regular change in product and presentation are vital for maintaining repeat
patronage.

 Lee and Lin (2005)

They examined the relationship between internet service and the overall service quality of the
customer like their satisfaction level and their purchase intentions. The data was collected
from 297 consumers which is purchasing online. The positive and negative factors was
analysed to examine the reliability and the validity of the model which measures the factors.
The structural equation modelling technique is done to test the model of the research. The
results shows that the design of the web, their reliability, the responsiveness and the trust
affects the overall service quality and the satisfaction of the shoppers. These all are related to
the consumer purchase behavior and the intention. The dimension of the shopping is
significantly related to the e-service quality of the sites and the consumer satisfaction. The
study suggest to enhance the purchase intention of the consumer, the stores of online
shopping should make some strategies and give trust to the consumer about the products. The
online sites should give reliability and dependency of the web based services

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  Scarborough and Lindquist (2006)

They studied an empirical study on E-shopping in a multiple channel environment in which a

segmentation schema is suggested based on patterns of e-purchasing and e-browsing
including browsing on the internet with planned purchasing in an offline channel. They
examine self-report of browsing and purchasing using five specific non store channels like
internet, television, infomercial, advertising that accompanies regular television
programming, television shopping channels, and print catalogues. The finding of this study
shows that the buyer who browse or purchase online, different in their use of multichannel
options related to their perception of ease. Some buyers wants to purchase in store setting and
do not want multiple forms of non-store shopping. Other like to browse different non store
media, they extended their browsing to the internet, however keep their loyalty to purchase in
store.

 Devaraj et.al (2006)

He critically analysed an empirical study in USA regarding examination of online channel

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

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  Soopramanien and Robertson (2007)

They conducted a study in UK on acceptance and practice of online shopping. Their

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

 Suki and Suki (2007)

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

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  Jarvelainen (2007)

He analysed in her empirical study in Finland that there are many online information seekers
who choose to stop the shopping process just before the finishing point of the transaction.
The reason behind this is intensely rooted in the internet based trust outcomes. The study
focuses on e-commerce background. I-e. Security and confidentiality issue, that how
consumer select their purchasing channels. The finding of this study shows that constancy,
trust worthiness, and usefulness as well as ease of the use of the system are essential, while
the first imprint of online seller is significant, considering the behavioural intention.

 Koo et.al (2008)

They have conducted an empirical study, they examined the motivational effects of personal
values on benefits, attributes, and re-patronage intention in the perspective of shopping
online. The study conclude that personal values of social affiliation and self-actualization
serves as underlying beliefs in shaping, consumer’s online shopping motives. In addition,
online store attributes are positively related to pre-patronage intention.

 Harn and Adeline (2008)

They focused in Malaysia about Web navigation behavior of Malaysian in relation to online
purchasing. There finding shows that most of the shoppers were well educated with minimum
bachelor degree, their age varies between 19 to 34 and they all are unmarried. This study
proved successfully that the web navigation behavior is important factor to determine the
probability of online purchasing, and it does not have significant affect for online purchasing
decision. The most dissatisfying factor was slow downloading rate of web pages. The finding
provides some insight while designing website, taking into consideration that it should be
easy to use, attractive and user friendly with faster downloading time.

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  Jiang et, al (2008)

He shown in their empirical study about US customer worries on internet security, while
shopping over the internet can influence online buying behavior and these worries may lead
to identify theft. A good strategy to increase consumer trust while ordering online could be
third party certification programs. The result of this study was that displays of third party
logos have direct effect on consumer’s perception of logos, which influence the transfer of
trust towards e-retailer. This study concludes that the logos are ineffective when consumer is
unfamiliar with it or do not notice the logo display. In order to increase the customer trust e-
retailer can first target people who are experienced and knowledgeable about online shopping
and have attained a positive level of trust in e-tailer. Second participate in well-known and
trustworthy third party assurance programs and work to educate consume rs about the
significance of the third party logos when consumer have low current level of trust. The
media have extended the browsing to internet however keep their loyalty to purchase in store.

 Liu et.al (2008)

He addressed an empirical study on Chinese customers for shopping online. They proposed a
model of satisfaction process in the e-commerce environment. The research work was limited
to single country and may not be directly applicable to western countries. The outcome of this
study shows that customers services are strongly, predictive of online shopping customer
satisfaction. Further delivery and customer service is very important role in Chinese market.
The wide range of commodities and competitive price is important, because online customer
can compare the price in one click. Detailed and complete product information should be
given because buying decision is only made with the decision available online. The first
impression is the design of website, its content. This can improve customer satisfaction. Web
site transaction capability is necessary element to complete a transaction. Continence and
easy to use function can save time and improve satisfaction. Finally, security and privacy
becomes spotlight in their findings because ID authentication while making online
transaction and credit system is not available in China.

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  H and Hsu (2008)

They conducted a study in Taiwan. Online shopping conditions are different from regular
shopping in many ways. Shopping site look and fulfilment systems is like front employee,
second, every online deals involves number of third parties, such as credit card clearance
companies, and delivery firms. So, a new customer satisfaction index is required, to quantity
customer satisfaction in online atmosphere. The new model customer expectation is
substituted by trust and facilities quality is exchanged by e-SQ. One more supplementary
relationship introduced which is form trust to customer faithfulness. The outcome shows that
customer satisfaction is most important features that decide online customer loyalty. Online
Trust makes a positive impact on perceived value, customer satisfaction and customer
loyalty. This result suggests that e- SQ might be more significant than other factor. There are
some deficiency of study, i.e. it is based on one -site random sample scheme which limits the
generalizability.

 Hausman and Siekpe (2009)

They analysed a practical study in US regarding the effect of web interface features on
consumer online purchase intention. E-commerce system is different from traditional
information system. It has both features of information system and marketing channels. It
contains machine and human element. An empirical finding shows that to know the
motivation factors for online shopper, cognitive and psychological factors do have meanings.
The study finds both human and computer factors are necessary for antecedent for online
shopping.

 Jayawardhena and Wright (2009)

They focused the antecedent of online shopper’s excitement, its consequences for behavioural
intentions as expressed by intent to return, and positive word of mouth communication. A
conceptual model is developed based on the literature; instrument item scales to measures all
constructs in the model were as informed by the literature and adapted from prior studies.
They found that the convenience, involvement, attribute of the web site and merchandising
all collectively influence shoppers excitement. E-shopper excitement leads to positive word-

22
of-mouth (WOM) and increases the intent to return. The limitation of this study was that
there is no differentiation is made between the types of goods that e-commerce purchased
 Hansen and Jensen (2009)

They conducted a study in which they seek to examine shopping orientation and online
clothing purchase across four different gender related purchasing context. A conceptual
model for understanding the impact of shopping orientation on consumer online clothing
purchase is proposed and tested both in a general setting and across purchasing context.
Questionnaires were distributed to 1,150 Danish household addresses by use of the “drop of
call back” survey method. Most adults provided response with respect to purchasing clothing
for themselves and for their partner, making a total of 906 cases distributed across the four
purchasing contexts. T tests and linear structural equation modelling were utilized to
investigate expectations and hypotheses. They found that the expected difference s in men’s
and women’s shopping orientations willingness to purchase clothing online. On average,
consumer indicate the reduced difficulty in selecting items is sorely needed when purchasing
online clothing, but when evaluated among different purchasing situations, it is difficult to
perceived in selecting items only for women. Less fun, significantly affected online clothing
purchase for men purchasing for themselves, but not for women.

 Hahn and Kim (2009)

They examined the influence of consumer trust and perceived internet confidence on
consumer apparel shopping intention through internet or the online retailer operated by a
multi-channel retailer. A total of 261 students in a large US Midwestern University
participated in the paper based survey and provided usable responses. Structural equation
based modelling was used to test hypothesis. They found that the consumer trust in an online
retailer was a significant predictor of perceived internet confidence and search intention for
product information through internet retailer. Search intention for product information
through the online store and perceived internet confidence were significant and strong
predictors of consumer’s behavioural intention towards the online shopping. The findings of
this study suggest that retailer of offers an internet channels as part of multi channels retail
strategy and provide consistent service throughout their various channels.

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  Riley et.al (2009)

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

 Jimenez and Martin (2009)

They examined on the comparison of the difference that exist between the adoption of e-
commerce by potential purchase and the acceptance of the channels by experienced e-
customer .therefore this paper seeks to test the influence of online shopping experience on
electronic purchase intention. They use the conceptual model, an extended technology,
acceptance model (TAM), is tested using structural equation modelling technique. They
found that the influence of self-efficacy and usefulness increases as the consumer gains
online shopping experience. The motivations that lead a potential e-customer to make a
purchase are not the same as those that influence an experienced customer. This paper
demonstrated the evolution of customer behavior and the need to differentiate the perception
of consumers depending on their level of experience.

 Chiang and Dholakia (2014)

They carried out a study in which they examined the purpose the customer to purchase goods
online during their shopping. Mainly there are three variables in their study those affects the
consumer to purchase online or to go offline. Those are the accessibility features of the
shopping sites, the type of the products and their characteristic, and the actual price of the
product. The study revealed that the accessibility and the convenience of the shopping sites
create the intention in the customer to purchase or not. When there are difficulty faced by a

24
consumer to purchase online then the customer switch to the offline shopping for the
purchase behavior and the consumer face difficulty in offline purchasing then they go to the
online purchasing. After relating both the medium of shopping the consumer said that the
online shopping is more convenient for them and gives more satisfaction which inspires the
consumer to purchase online in the internet

 Iyer and Eastmen (2014)

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

 Ms. Sukhwinder Kaur and Dr. Vikramjit Kaur (1 Jan 2018)

For the purpose of research, questionnaire was used to interview the respondents. The
questionnaire was developed so as to obtain responses relevant to objects of the research.
While designing the questionnaires every attempt was made to make it precise so that the
purpose of filling up the responses does not consume time. To find the general attitude,
perception, beliefs and intention of people towards their perception, a questionnaire was
developed. The questionnaire, which was administrated to the respondents for the purpose of
collection primary data, was a structured one. He overall results prove that the respondents
have perceived online shopping in a positive manner. This clearly justifies the project growth
of online shopping in the country. However, the frequency of online shopping is relatively
less in the country. Online shopping organizations can use the relevant variables and factors,
identified from the study, to formulate their strategies and plans in the country. The
organizations can prioritize the consumer implicit and explicit requirements in online

25
shopping environment. The results can also be used by various organizations to identify their
target customer segments. The results of the study can be utilized by practitioners in
relooking or revamping their strategies for online shopping. Online websites should pay more
attention to the female segments as results prove that females shop more in online shopping
as compared to men.

 Bhavika A Nawa (2 April 2018)

The study in this research paper tries to recognise that, how consumer measure channels for
their purchasing. Specifically, it progresses a conceptual model that addresses consumer
value perception for using the internet shopping versus the offline shopping. Earlier study
showed that perceptions of price, product quality, service quality and threat strongly impact
perceived value and purchase intents in the offline and online network. Observations of
online and offline buyers can be evaluated to see how value is constructed in both channels.
The review of previous relevant literature has revealed that majority of the studies have been
conducted on outside the country. There has been no study in the context of Mumbai (India,
Before 2018). Most of the studies have focused on the switching behavior of the consumer
from one channel to another channel. The literatures reveal that those who are aware of
technology, knowledge, and high income level population, are specially engaged in the online
shopping.

26
  Muhammed Muntaqheem and Satish D. Raikar (OCT 2019)

The primary objective of this paper is to do comparative study of online shopping and
physical store shopping. For this Three methods are used Research Design, Sampling Design
and Sample Size. Research design followed is Descriptive Research Design, as it is a
conclusive and structured study to find out the characteristics of problem. Sampling Design
followed is Clustering Sampling, as they have done online survey and have covered
heterogeneous kinds of people. The study is descriptive in nature and uses primary data to
analyse and interpret the results. And they used 100 number of people to conduct their
research. After their study they have found that Male population tend to shop more online
shopping rather than physical shopping. For safety of payment more preference is gives to
shopping malls related to physical shopping. Flipkart is the best site used for online shopping
as it gives more discounts and offers.
People are slowly going for online shopping but the majority mentality of people goes to
physical shopping as it is having trust, feel and touch of the product. The choice of shopping
differs from person to person, so it is difficult to determine the preference of shopping with
absolute certainty. Online shopping has gained popularity recently as the people have been
using this mode for less than a year.

 Xue Yan (University of Washington. College of arts & science. Seattle.

USA. 98105, 2020)

The study In this research paper collects information on questions related to online and
offline shopping from 282 Chinese consumers of different ages, occupations and genders. In
this study,
300 respondents are randomly selected by a multi-stage method using a convenient sampling
technique. The convenience brought by Internet technology makes the cost of merchants
lower, so the discount of online shopping is also greater than that of offline shopping. The
advantages of convenience and low price brought to online merchants undoubtedly make
online shopping an inevitable trend. However, there is still a demand for offline shopping
among consumers aged 31-40 years old and whose shopping frequency remains once a
quarter. in the results, the advantage of offline shopping is that consumers can save the
waiting time by taking the products right after buying.

27
CHAPTER III
METHODOLOGY

28
3.1 Methodology

This part of study defines all the process of data collection. When it comes to data collection,
there are two methods in general used by researcher to collect data, primary and secondary
method. Primary method includes observation method, interview/questionnaire method, and
case study method. Secondary method is the method in which already collected data. The
present study is based on combination of both qualitative and quantitative data. The
qualitative data is collected through the sampling from the consumer. Random consumer is
selected for the sampling purpose. The sample individual is selected from different age
group, different sex and from different location of Rourkela. The different group of people
including student, employee and un-employed, etc. are considered as sample for the study.

29
3.1.1. Primary Data

Primary data is a type of data that is collected by researchers directly from main sources
through interviews, surveys, experiments, etc. Primary data are usually collected from the
source, where the data originally originates from and are regarded as the best kind of data in
research.

Primary data is the most valuable data. It usually comes from surveys or researches. It’s a
field of study that helps marketers identify customer’s needs and preferences, as well as tastes
and attitudes.

The sources of primary data are usually chosen and tailored specifically to meet the demands
or requirements of particular research. Also, before choosing a data collection source, things
like the aim of the research and target population need to be identified.

For our study, We have used Google Form for online survey. For this research 51 responds of
random people, sample size is taken for the questionnaire and these respondents answered the
questionnaire.

30
(a) Sampling: The target group is of different age, different age group people are considered
because to know whether which group of people are involved more in the online shopping
and which group of people is not confined to shop online. There are four division of age
group in the questionnaire to examine which group is going for more online shopping and
which group is going for more offline shopping.

For our research, we have used Non-random sampling because not every item from the
population had an equal chance of being selected, as the target was for selecting only the
people who use online shopping or offline shopping in their daily basis.

(b) Sample size: The sample size is the number of participants in the research project.
Determining the size of sample that is needed for a particular piece of research. For this
research 51 sample size is taken for the questionnaire. From this sample size the calculation
of simple percentages for each variable is done.

31
3.1.2. Secondary Data
Secondary data is the data that has already been collected through primary sources and made
readily available for researchers to use for their own research. It is a type of data that has
already been collected in the past.

A researcher may have collected the data for a particular project, then made it available to be
used by another researcher. The data may also have been collected for general use with no
specific research purpose like in the case of the national census.
Sources of secondary data include books, personal sources, journals, newspapers, websites,
government records etc. Secondary data are known to be readily available compared to that
of primary data. It requires very little research and needs for manpower to use these sources.

With the advent of electronic media and the internet, secondary data sources have become
more easily accessible.

For our study, We have used readily available data that was available to use. Secondary data
was collected through previous findings from researchers who researched on related subject
like Comparative Study of Online and Offline Shopping, Online Shopping Vs Offline
Shopping Customer Preference In Salem District, A comparative Study On Consumer
behavior towards Online and Offline Shopping, etc.

32
3.2 Methods of Data collection/ Survey Techniques:

Data collection is one of the most important stages in conducting a research. Data collection
is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes. The data collection component of research is common to
all fields of study including physical and social sciences, humanities, business, etc. While
methods vary by discipline, the emphasis on ensuring accurate and honest collection remains
the same. The goal for all data collection is to capture quality evidence that then translates to
rich data analysis and allows the building of a convincing and credible answer to questions
that have been posed. Regardless of the field of study or preference for defining data
(quantitative, qualitative), accurate data collection is essential to maintaining the integrity of
research. Both the selection of appropriate data collection instruments (existing, modified, or
newly developed) and clearly delineated instructions for their correct use reduce the
likelihood of errors occurring.

(a) Qualitative Data: Qualitative Data usually descriptive or nominal in nature. Qualitative
approaches aim to address the ‘how’ and ‘why’ of a program and tend to use unstructured
methods of data collection to fully explore the topic. Qualitative questions are open-ended.
Qualitative methods include focus groups, group discussions and interviews. They are usually
expensive and time consuming to implement.
(b) Quantitative Data: Quantitative data is numerical in nature and can be mathematically
computed. Quantitative approaches address the ‘what’ of the program. They use a systematic
standardized approach and employ methods such as surveys and ask questions. Quantitative
approaches have the advantage that they are cheaper to implement, are standardized so
comparisons can be easily made and the size of the effect can usually be measured.
Quantitative approaches however are limited in their capacity. The Quantitative data
collection method rely on random sampling.

33
3.2.1. Methods Of Primary Data Collection

In primary data collection, we collect the data using qualitative and quantitative methods.
There are many methods of collecting primary data that are as follows:.0.

The main methods include –

 Questionnaires: In this researcher asks question on the online platform that prompts
for the purpose of gathering information from respondents.
 Interviews: In this researcher asks questions to the respondent in-person or on
telephone or other electronic devices.
 Focus Group Interviews: In this researcher asks questions to the group of people having
6 to12 people in a group to discuss topics related research.
 Observation: In this researcher observes the fundamental way of finding out about the
world around us. It involves prolonged engagement in a setting or social situation.
 Survey: Survey research is often used to assess thoughts, opinions, and feelings.
Survey research can be specific and limited. Surveys are a good way of gathering a
large amount of data, providing a broad perspective. Surveys can be administered
electronically, by telephone, by mail or face to face.

For our research, to get the primary data we have used “Questionnaire” to get proper
answers/data from the respondents. For this we have mailed the questionnaire to the random
potential respondents. In his large amounts of information can be collected from a large
number of people in a short period of time and in a relatively cost effective way also the
results of the questionnaire can usually be quickly and easily quantified by a researcher.

34
3.3. Designing a Questionnaire:

Questionnaire is a specific tool or instrument for collecting the data. Questionnaire is a

designed with series of questions to gather data from the respondents. This data will tell us
about their attitudes, experiences, knowledge and opinions about the topic of the research.
The data collected from the questionnaire can be the information qualitative and/or
quantitative.

Designing questionnaire means creating valid and reliable questions that addresses our
research objectives, placing them in a useful order, and selecting an appropriate method for
administration.

Questionnaires are commonly used in market research as well as in the social and health
sciences. For example, for feedback about a recent customer service experience, or
psychology researchers may investigate health risk perceptions using questionnaires. A well
designed questionnaire will contain introduction to the topic, instructions on the questionnaire
usage and instructions for answering the questions.

For our research, we have introduced the topic at the top of the questionnaire, also provided
instructions to answer the question.

35
3.3.1 Types of a Questionnaire:

A survey is used to question a sample of people to collect information about what is believed
to be true for the entire population. Questionnaire can be mix of open ended questions and
close ended questions too.

Different questionnaires are used for different purpose. Based on these purposes there are
different types of questionnaires which can be classified as follows.

(a) Closed ended question: Close ended questionnaire gives limited access to the
respondents to respond. Closed ended questions gives a fixed set of choices to select from the
options given to the respondent. Closed-ended questions are best for collecting data on
categorical or quantitative variables. Close-ended questions are easy and quick to answer also
it is cheaper to collate and analyze the responses to close-ended questions.

(b) Open ended questions: Open ended questions end up with answers in some words there
are no restrictions on the choices of respondents. It is descriptive in nature. It provides deeper
knowledge to the researcher about the topic. It requires more time and effort from
respondents. Open-ended questions have an infinite possibility of responses which supports
variation in your research data.

For our research, both open ended and closed ended questions were used to collect data. The
closed-ended questions were mainly of yes or no or maybe type and there was an open-ended
question at the very bottom of the survey contributing to the end of questionnaire. Mostly we
have used closed ended with giving some limited options because they are easy to answer to
respondents.

36
3.4. Tools used for Questionnaire design:

There are different tools that can be used for designing a questionnaire that is Typeform,
Feedier, Hubspot, Survey Monkey, Get Feedback etc.One of them is Google Forms.

Like other tools, it gives you quick access to the information with comparatively less cheaper
way. Other tools require subscriptions but with google forms, it is free to access to all.

We have used Google Forms because it is a free online survey software and questionnaire
tool that allows the users to quickly and easily put together surveys via a drag & drop
interface. In terms of design, these surveys can be entirely customised. The tool provides you
with real-time response info and charts.

37
3.5. Statistical tools used:

To test the hypothesis, Excel was used to analyze the data and to generate required results. As
the number of observations in the group divided as per the linear scale was equal, T-test for
two samples assuming equal variance was used to generate results.

Statistical tools are involved in carrying out a study include planning, designing, collecting
data, analyzing, drawing meaningful interpretation and reporting of the research findings.

All the data from the survey results were inserted in excel and the unnecessary data were
filtered out from the data. Only the necessary data to prove the hypothesis were used and
analyzed in excel. The required findings from the data included mean, variance, etc.

38
CHAPTER IV
DATA ANALYSIS

39
4.1 Introduction
This chapter consist of the data that I obtained from the questionnaire.The questionnaire was
designed to collect primary data in order to find first-hand information on how the
respondents value the importance of price, trust, and convenience when making purchases
over the Internet. The questionnaire was designed to collect data that would be used to find
segments among the respondents, and second to collect data about the factors price, trust, and
convenience. The questions in the questionnaire were based on the findings from the
literature. Questions which were designed to collect data to find respondent segments were
derived from the findings within consumer behaviour. Questions about the factors price, trust,
and convenience were derived from the literature found about the factors when purchasing
online. I forwarded questioner link to all the respondents through various social media and
collected data. I collected data from 51 respondents and analysed it and based on every
question I am deducting the following analysis

40
4.2 QUESTIONNAIRE COLLETED DATA
4.2.1. Sex ratio of the respondent:

51 respondents were taken into consideration for the study. The graph representation shows
the percentage of male and female who are doing online and offline shopping. It shows 49%
of male go for the shopping while 51% female do the shopping. This means that more of the
female member involved on the shopping. This gives a general idea of the sex ratio who is
more involved in shopping.

41
4.2.2. Age ratio of respondent:

51 respondents were taken into consideration for the study. The graph representation shows
the percentage of age categories who are doing online and offline shopping.

1. The above graph shows age group of 19-30 are going mostly inclined towards shopping.
80.4% of respondents are of age group of 19-30. This is mostly seen among this group
because of the increasing technological revolution among the youth population and they are
able to use this technology for their well-being more than other age group category.

2. 9.8% of respondents are of 41 and above, who are going of shopping.

3. 5.9% of respondents are of age group of 31-40. The percentage of population low because
most of the 35 above group have lack of adequate knowledge of technology used.

4. 3.9% of respondents are of age group of 18 and below. For 18 below money constraint
comes into picture.

42
4.2.3. Location of the respondents:

We have gathered the information from different respondents who were from rural, urban and
metro locations. Out of this, we can visualize that the major engagements can been seen from
urban locations. While metro location shared about of the ¼ the total responses. While
awareness still needed to improve the responses from the rural locations.

1. 74.5% are from urban location.

2. 23.5% responds are of metro location.

3. 2% are from rural location.

43
4.2.4. Education level of the respondents:

We have seen the educational factors affecting shopping, the respondents were categorized in
three different categories as listed above. The figure represents 50% from the total
respondents were graduates. This shows us the craze amongst graduates and post graduates is
more. The figure represents that the educated buyers has shown more confidence in their
buying behavior.

1. The intermediate group which consist of 13.7% are undergraduates.

2. 37.3% respondent are post-graduates.

3. 49% respondent are graduates.

44
4.2.5. Employment Status:

The above pie chart represents the employment status of the respondents. The unemployed
and private employee, these two groups are more in number because of the increasing
technological revolution among the youth population and they are able to use this technology
for their well-being.

1. The maximum number of respondents are of unemployed. The unemployed are students,
graduates or post graduates who we are looking for job opportunity. 43.1% respondent is
unemployed.

2. 41.2% is of private employee. As they are financially independent, they are more in
number.

3. 3.9% is self-employed and 3.9% is of other that means they are business owners,
professionals and housewife comprising.

45
4.2.6. Preferred shopping platform:

As per the above pie chart, the most of the respondents prefer the online shopping. As the
56.9% are of respondents who prefer the online. Study shows that due to increasing need of
society and time constraint has led most of the population switch to online shopping. 43.1%
are of the respondents who prefer the offline shopping over online shopping.

46
4.2.7. Frequency of shopping:

The above pie chart represents that how often the respondent shop. Study shows that due to
increasing need of society and time constraint has led most of the population switch to online
shopping. It is seen that nearly half of the (43.1%) regular respondents do buy the product
monthly at a regular interval. While another major chunk shows quarterly buying frequency
i.e. 39.2% of population does online shopping every quarter which is because of the
availability of income and technology to do shopping. While we have seen that least
participant of the respondents who shop one a week or once a year. Moreover, 11.8% of
population does online shopping once a week. And 5.9% of respondents do online shopping
once in a year.

47
4.2.8. Expenses for the one-time shopping:

The above pie chart represents the one-time expenditure of the respondent for the shopping.

1. 74.5% of respondent prefer to shop in the range of Rs. 1000 to Rs. 5000.

2. 13.7% of respondent prefer to shop below Rs. 1000.

3. 9.8% of respondent shop in the range of Rs. 5000 to Rs. 10000.

4. 2% of the respondent shop in the range of Rs. 10000 to Rs. 30000.

48
4.2.9. Online Shopping Preferences:

As the most of the respondents are going for online shopping. The above graph represents the
shopping preference of the respondents.
1. 90.2% of the respondents buy clothes online.

2. 86.3% of the respondents buy electronic and other applications.

3. 51% of the respondents buy skin care and makeup.

4. 31.4% of the respondents buy other things like home decor, pet food, etc.

5. 19.6% of the respondents buy fresh food and vegetables.

6. 11.8% of the respondents buy jewelry (Gold) online.

7. 5.9% of the respondents buy alcohol and snacks online.

8. 2% of the respondents buy flowers and plants online

49
4.2.10. Off-line Shopping Preferences:

As the most of the respondents are also go for offline shopping. The above graph represents
the shopping preference of the respondents.

1. 86.3% of the respondents buy fresh food and vegetables offline.

2. 66.7% of the respondents buy clothes offline.

3. 64.7% of the respondents buy flowers and plants offline

4. 56.9% of the respondents buy jewelry (Gold) offline.

5. 39.2% of the respondents buy alcohol and snacks, electronic and other applications and
other things like home decor, pet food, etc.

6. 35.3% of the respondents buy skin care and makeup offline.

50
4.2.11. Motivation For Shopping Online:

The above graph represents the motive to shop online. The motive to shop online is that they
don’t want to go out. Online shopping is convenient for most of the respondent. Online
shopping provides variety of products and makes easier to compare before they shop the
product.
Online shopping gives lots of discounts. This is the main motive to shop online. Online
shopping is convenient for those people who don’t have any shops or shopping malls nearby
their residence. In other reasons, it is observed that people love online shopping because of
the return policies it has.

1. 72.5% of the respondents buy online because they has variety of products.

2. 64.7% of the respondents buy online because they give the attractive discounts.

3. 47.1% of the respondents buy online because online shopping is convenient.

51
4. 17.6% of the respondents buy online because they don’t have shopping malls nearby their
residence.
5. 11.8% of the respondents buy online because they don’t like to go out.

6. 7.8% of the respondents buy online because of the return policies it has or other reasons.

52
4.2.12. Motivation For Shopping Offline:

The above graph represents the motive to shop offline. The motive to shop offline is that the
respondents want to check the quality of the product in person. The shops provide discounts
or membership to their regular customers and therefore they become loyal customers. The
integrated shopping malls represent the products in such a way that customers are anyhow
convinced to buy those products. The respondents think that they get more variety in offline
stores rather than in online ones. The flea markets near home are the choices the respondents
think are better. The urgent need of any product is fulfilled by shopping in offline stores as it
is time convenient.
As in offline store people can try out things on time and at the place and it makes people to
decide faster to buy things.

1. 82.4% of the respondents buy offline because they can check the quality of product in
person.

2. 70.6% of the respondents buy offline because they are able to try out the product.

53
3. 58.8% of the respondents buy offline because they can consume the product instantly.

4. 35.3% of the respondents buy offline because they can buy product nearby their home.

5. 35.3% of the respondents buy offline because they are convinced by the shopkeepers.
6. 25.5% of the respondents buy offline because they get to see more variety of products.

7. 23.5% of the respondents buy offline because they get discounts or membership.

8. 11.8% of the respondents buy offline because of the integrated structure of the malls.

54
 CHAPTER 5
FINDINGS / CONCLUSION

55
5.1. INTRODUCTION
This chapter includes the findings deducted from the responses of the consumers from the
questionnaire. The study reveals that the numbers of female respondents are more than male.
The young generation (18-30) is more often purchasing from online sites because of the ease
in purchasing and benefits of online shopping among the young population and they are able
to use this technology for their well-being more than other age group category.
The majority of respondents are graduates. Majority of them are not only students but also on
service individuals. There are increasing demand of online shopping because variety of
options for the consumers to choose and that to at a reasonable price and sometime even less
price than the market. Skin care, clothing and electronics are the top three items demanded by
the consumers. For the day to day goods people are still using offline market like for fresh
veggies and groceries. For gold jewelry consumers still don’t trust online sites. Followings
are some main findings listed down from the questionnaire responses.

 The majority of the respondents are from 18 to 30 age group (80.4%).

 Females are more inclined towards online shopping than men.
 People located in urban area are more into online shopping
 People still go for offline shopping for heavy priced goods.
 Online sites still don’t have 100% trust of the consumer.
 There is still gap for fresh food and groceries market in online shopping.
 People who tend to buy quarterly are inclined towards online shopping for clothing.
 People who trust their instincts and love the joy of shopping still don’t go online.
 Though online sites have penetrated the market but according to the responses people are
with 1000 to 5000 budget are only into online shopping.
 Online shopping of clothing and electronics is suitable according to the responses
 Skin care, clothing and electronics are the top three items demanded by the consumers.

56
5.2. Future Scope
After having conducted our research and considering the limitations in time and resources, it
would be of interesting to examine research topic further as well as more profoundly. Below,
we have listed a few deductions for possible future research:
 It would be interesting to conduct a survey at another area. If this would be done and similar
results were discovered, we could more confidently talk about the findings of this topic.
 Conduct a survey on a larger sample, also including people that are not students and
segmenting according to that. This could find new segments, with new analytical
possibilities.
 This research was conducted from the consumers point of view, and if could also be
conducted with greater focus towards the online retailer.
 We found that Price, Trust and Convenience were factors that are important when a
consumer decides to purchase online, but it would be interesting to see whether the
concepts of these factors are perceived equally between all consumers or if there were any
discrepancies.
 Furthermore, it would be of interesting to see if the factors were the same for other good
that are traded online. In general, this research could be conducted with a greater range of
goods and with greater detail towards the specific factors

57
CHAPTER VI
BIBLIOGRAPHY

58
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QUESTIONNAIRE

Survey On Shopping Behaviour Of Consumers -

Online Vs Offline

Email ID *

Gender *
o Male
o Female

o Transgender

Age *

18 and Below

19-30

31-40

41 & Above

Please Select Where Are You Located? *

Rural
Urban
Metro

62
Your Education Level. *
o Undergraduate
o Graduate
o Post-graduate

Your Employment Status? *

o Unemployed
o Self Employed
o Government Servant
o Private Employee
o Other

Where Do You Prefer To Shop? *

o Online
o Offline

How Often Do You Shop? *

o Once a Week
o Once a Month
o Once in a Quarter
o Once a year

Your Expenses For One time Shopping In ₹? *

o Below 1000
o 1000-5000
o 5000-10000
o 10000-30000
o Above 30000

63
64
 Please Select What Do You Shop Online ? (You Can Choose Multiple Options) *

Clothing
Jwellery(Gold)
Skin Care And Makeup
Products Fresh Food /
Vegetables Alcohol / Snacks
Flowers And Plant's

Electronics And Appliances (Mobile And accesories)

Other's (Home Decor,Pet Essentials)

Please Select What Do You Shop Offline ? (You Can Choose Multiple Options) *

Clothing
Jwellery (Gold)
Skin Care And Makeup
Products Fresh Food /
Vegetables Alcohol / Snacks
Flowers And Plant's

Electronics And Appliances (Mobile And accesories)

Other's (Home Decor,Pet Essentials)

65
Your Motivation For Shopping Online?
(You Can Choose Multiple Options) *
Don't Like
To go Out
Convience
Variety Of
Products
Attractive
Discounts
No Shopping Malls
Nearby Other
Resons

Your Motivation For Shopping

Offline ? (You Can Choose Multiple
Options) *

Physical Quality
Check Discounts Or
Membership
Integrated Shopping
Mall More Variety
Near Home

Instant
Consumptio
n Able To
Try out
More Convincing

66
67