Sapna Projectok
Sapna Projectok
Sapna Projectok
Master of Commerce
(2023-2024 )
Submitted To Submitted By
M.com Sem-1
Roll No. : 14524685035
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DECLARATION
I also declare that the project has not formed the basis of
reward of any degree or any other similar title to any other
University.
Date:
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ACKNOWLEDGEMENT
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TABLE OF CONTENTS
1. INTRODUCTION 7 - 15
2. 16 - 20
LITERATURE REVIEW
3. RESEARCH 21 - 24
METHODOLOGY
5. FINDINGS & 44 – 46
CONCLUSION
6. SUGGESTIONS 47 – 49
7. REFERENCES 50 – 55
8. APPENDIX 56 - 60
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EXECUTIVE SUMMARY
The growing use of Internet in India provides a developing prospect for online shopping. If E-marketers know the
factors affecting onlineIndianbehavior,andthe relationshipsbetweenthesefactors andthe type of onlinebuyers,
then they can further develop their marketing strategies to convert potential customers into active ones, while
retainingexisting online customers.Thisproject isapartofstudy,and focuses on factors whichonlineIndianbuyers
keep in mind while shopping online. This research found that information, perceived usefulness, ease of use;
perceived enjoyment and security/privacyarethefivedominantfactors which influence consumerperceptionsof
Online purchasing..Consumerbehaviorissaidtobeanapplieddisciplineassomedecisionsaresignificantlyaffected
bytheirbehaviororexpectedactions.Thetwo perspectives that seek application of its knowledge
are micro and social perspectives.The online purchasing behavior of online shoppers and factor
influencingonlineshoppingbehavioranditsfutureperspective. Internet is changing thewayconsumersshopand
buygoods and services,and has rapidly evolvedinto a global phenomenon.Manycompanieshavestartedusing
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 sel the product, to take feedback and also to conduct satisfaction surveys with
customers. Customers use the Internet not only to buy the product online, but also to compare
prices, product features and after sale service facilities they wil receive if they purchase the product
fromaparticularstore.Many experts are optimistic about the prospectofonlinebusiness..In addition to the
tremendous potential of the E-commerce market, the Internetprovidesauniqueopportunityfor
companies to more efficiently reach existing and potential customers. Although most of the revenue of online
transactions comes from business-to-business commerce, the practitioners of business-
to-consumercommerce shouldnotloseconfidence.Ithas beenmorethan a decade since business-to-
consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly
strive to gain an improved insight into consumer behavior in cyberspace. Along with the
development of E-retailing, researchers continue to explain E-Consumers behavior
from different perspectives. Many of their studies have factors or assumptions which are based on
thetraditionalmodelsofconsumerbehavior,andthenexaminetheirvalidityintheInternetcontext.
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ABSTRACT
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.
Chapter – 1
INTRODUCTION
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INTRODUCTION
Customers are getting products and services at less prices and seller are
making more profit that too with less expenses and this is the power of
online shopping however unfortunately everything is having two sides!
There are some disadvantages too of online shopping like lack of physical
touch or feel of product. Customer can only see the images which look
really good on the websites but what is the actual product? What if you get
something on urgent basis and you received defective products? What if
you order for genuine branded product and the product delivered to you is
a first copy? What if seller sent the product and customer refused to
accept? What if customer sent a wrong product to seller? These are few
things which are still challenge on different market places and which is why
there is a need of a study which can tell us the ground reality that what are
the opinion of people about online marketing in our area and what are the
factors that are affecting it. Our motive here is to know impact on
customers while purchasing electronic products online so first of all, let's
understand all the aspects related to our survey.
AMAZON
FLIPKART
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Flipkart Private Limited is an Indian e-commerce company, headquartered
in Bengaluru, and incorporated in Singapore as a private limited company.
The company initially focused on online book sales before expanding into
other product categories such as consumer electronics, fashion, home
essentials, groceries, and lifestyle products. The service competes
primarily with Amazon India and domestic rival Snapdeal. As of March
2017, Flipkart held a 39.5% market share in the Indian e-commerce
industry. Flipkart has a dominant position in the apparel segment, bolstered
by its acquisition of Myntra, and was described as being "neck and neck"
with Amazon in the sale of electronics and mobile phones.
eBay
eBay Inc. is an American multinational e-commerce company based in San
Jose, California, that facilitates consumer-to-consumer and business-to-
consumer sales through its website. eBay was founded by Pierre Omidyar
in 1995 and became a notable success story of the dot-com bubble. eBay
is a multibillion-dollar business with operations in about 32 countries, as of
2019. The company manages the eBay website, an online auction and
shopping website in which people and businesses buy and sell a wide
variety of goods and services worldwide. The website is free to use for
buyers, but sellers are charged fees for listing items after a limited number
of free listings, and an additional or separate fee when those items are
sold.
In addition to eBay's original auction-style sales, the website has evolved
and expanded to include: instant "Buy It Now" shopping; shopping by
Universal Product Code, ISBN, or other kind of SKU number (via Half.com,
which was shut down in 2017); and other services. eBay previously offered
online money transfers as part of its services (via PayPal, which was a
wholly owned subsidiary of eBay from 2002 to 2015); online classified
advertisements (via Kijiji, or eBay Classifieds Group); and online event
ticket trading (via StubHub). On July 25, 2018, eBay announced a new
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partnership with PayPal's rivals Apple and Square in place of its longtime
payment partner PayPal.
In the same way that the internet has changed how we live, think, and
communicate, it has opened up new possibilities and new benefits to
marketers. In addition to offering a wider reach, online marketing is:
Fast - Your audience can act on your messaging right away, giving
you a quick turnaround on your investment.
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Product Quality Issues - The quality of the product is one of the
most common problems faced by customers while shopping online.
When purchasing products online, you often do not know what you
are getting in terms of quality. Reviews are not necessarily reliable,
and research can’t give you 100%assurance of a good product’s
quality. Often, fraudulent sellers who purposefully mislead customers
in order to boost sales are the primary reason behind faulty products
being sold online.
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The consumer electronic market is the fastest growing and evolving market
where every brand is striving hard to bring in the latest technology, best
possibly available and user-friendly products to the customers, and all
these, on a daily basis.
The last decade has brought about a positive change in the buying patterns
and preferences of the buyers and there has been an increase in demand
for consumer electronic products online.
Buyers prefer searching for products, comparing brands, and models, and
making the purchase at the best available prices. This has helped sellers to
improve their sales numbers.
Brands offer round the clock customer support to their customers through
their websites and this helps the buyers feel safe and secured in knowing
that the brand they are purchasing from cares for them.
Online shopping for electronic products has surged and all this has been
possible only and only due to easy selling and purchasing processes that
the e-commerce sector has provided to both the buyers and the sellers.
Customer uses the Internet in so many ways not only for buying the
products, but also to compare product structures, prices, warrantees and
delivery services.
Shipping Costs - It may often turn out that a customer would decide
not to buy product after seeing the final payable amount. The
customer has nothing to do with the shipping that company bear with.
So, its better they see the minimum shipping costs or rather free
shipping.
customer will likely leave the page or app if he is unable to find the
relevant product within two search attempts.
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Chapter – 2
LITERATURE REVIEW
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REVIEW OF LITERATURE
NATIONAL REVIEW
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Bhattacherjee (2001) stated that satisfied users are more likely to
present people do not feel comfortable doing the shopping
online.They feel that there are high risks of fraud and hoax in
online business.
Sanjeev Prashar, T. Sai Vijay (et al.t) (2017) in their study titled
“Effects of Online Shopping Values and Website Cues on Purchase
Behaviour: A Study Using S–O–R Framework” advocated that E-
retailers use web atmospherics to differentiate themselves from their
competitors.
Dr. Sanjay Hooda, Mr. Sandeep Aggarwal (2012) in their study the
authors found that there is no significant difference between internet
surfing & gender of the respondents. A positive relation exists
between monthly income, occupation and purchase decision of the
respondents. Individual with higher income group usually have little
time to go and purchase products/services from tradition shops
because of their busy schedule. Hence in order to save time they
trade online.
INTERNATONL REVIEW
Mesay Sata, (2013) investigated in his study the factors affecting the
decision of buying mobile phone devices in Hawassa town and
concluded that consumer’s value price followed by mobile phone
attributes as the most important variable amongst all. This factor, also
acted as a motivational force that influences them to go for a mobile
phone purchase decision.
Vijayasarathy & Jones, (2000), Park, (2002), Brown, et. al., (2001)
revealed in their study that online retailers must understand
customers shopping orientations in order to maximize customers’
online purchase intention. Many researchers have investigated that
shopping orientations have significant impact on customer online
purchase intention.
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Shwu-Ing Wu, (2015) in his study developed the relationship
between consumer characteristics and attitude towards online
shopping. He examined the internet user concerns and perceptions of
online shopping, used the Fishbein model to measure consumer
attitudes and the important consumer characteristics that influence
online shopping attitude and decisions.
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Chapter – 3
RESEARCH METHODOLOGY
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This chapter deals with the methods conducted during the research to
collect the primary data and reach to the conclusion of the research. The
research is of deductive in nature and primary motive is to collect data and
analyze it. By doing it, factors which influence online consumer behavior
such as website quality, consumer concern in online shopping (Privacy,
trust factor, delivery and return quality of goods and services) and
consumer characteristics (demographics, race, culture, technology
awareness) will be derived. Then, the primary data is collected with the
help of survey. The main purpose of the survey was to collect data about
online purchasing of electronic goods in locality and find the reasons
behind the outcomes.
RESEARCH OBJECTIVES
METHODOLOGY
This research is completely based on Primary data which was collected from
the local people of Varanasi. A questionnaire was used to collect the data
required to fulfill the research objectives.
Basic qualification for respondents to participate in this survey was that they
must be regular user of Internet and must have bought any electronic product
online at least once. The main purpose of study was to study the consumers’
behavior on purchasing electronic goods online in Varanasi by interacting them
and questioning them.
Online consumer behavior is influenced by many factors when making online
purchase. In order to provide good piece of work and build understanding in
this subject we conducted initial research in literature on consumer behavior
and e-commerce. We have reviewed those theories and related studies that
had similar areas to focus and give particular attention to their consequences.
For this research it is decided to use questionnaire approach that would be
filled by people in Varanasi especially those people who are in my circle and
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encourage them to respond on this questionnaire in order to increase the
response rate. The conclusion of this research is based on a total of 140
responses.
This study is based on exploratory study and that’s why research starts out with
gaining knowledge regarding consumer behavior and then move towards online
consumer behavior. With the help of this responses and theories those factors
will be identified that are of important when online consumer is making
purchasing especially in Varanasi
QUESTIONNAIRE OBJECTIVE
General Variable:
Demographics
Personal information
Attitude towards online shopping for electronic goods
Identified Variables:
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Quality of electronic products bought online.
Problems faced while purchasing electronic goods online.
Spot difference between online & offline marketing of electronic
products.
QUESTIONNAIRE FORMAT
LIMITATIONS
Almost every analysis, including ours, has some limitations. The time
constraint is one of the study's limitations. At the same time, one of our
study's limitations is the availability of vivid data because research was
made in local areas. Another issue is that the sample size is very limited.
A greater sample size is preferred to reliably assess consumers' attitudes
toward online shopping. The inability to choose a completely random
sample is a study constraint, and there are other variables that may have
influenced the results. However, they did not have an effect on the
consumer's attitude toward online shopping. Another drawback is that the
researcher primarily concentrated on electronic items.
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Chapter – 4
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DATA ANALYSIS AND INTERPRETATION
The collected data was processed and analyzed within the time bounded of the
research plan. The data collected from 140 samples are analyzed carefully and
interpretations are made accordingly. Diagrams such as pie chart and bar chartare
used for this purpose.
TABLE 4.1
GENDER
45, 32%
MALE
95, 68%
FEMALE
From the above table and figure, we can easily analyze that majority of the
males are respondents of the survey as compared to females, we have 68% of
males and 32% percentage of females participated in this survey.
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TABLE 4.2
FIGURE 4.2
No. of Respondents
1.2, 1%
20, 15%
18 - 25
35, 27% 75, 57% 25 - 35
25 - 50
Above 50
From the above table and figure which shows age wise classification of
respondents, it is clear that in this survey we have 75 respondents in the age of
18-25 with 57% which is the highest percentage among other age distribution.
In age distribution of 25-35 we have 27% and 15% fall in 35-50 age and rest 1%
fall in more than 50 years old respondents. These responses clearly show that
the young generation is actively part of the research.
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TABLE 4.3
FIGURE 4.3
No. of Respondents
18, 13%
34, 24%
Higher Secondary
Under Graduate
26, 19%
62, 44% Graduate
Post Graduate
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TABLE 4.4
FIGURE 4.4
No. of Respondents
19, 14%
41, 29%
From the responses to this question, it was analyzed that the highest frequency
in income distribution, about 30%, falls under respondents earning 4.8 to 9.6
lakhs per annum which is followed by those who earn above 9.6 lakhs per
annum, about 29%, which shows that upper middle class people have actively
participated in this research. Then we have 27% of respondents who have
annual income of 2.4-4.8 lakhs and least no. of respondents, about 14% are
those earning 1.2-2.4 lakhs per annum.
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TABLE 4.5
FIGURE 4.5
No. of Respondents
1.2, 1%
18, 15%
49, 41%
Newspaper Advertisements
Social Media
51, 43% Friends or Relatives
Other Online Sources
On the basis of responses to this question we can conclude that social media
and newspaper advertisements play a vital role in influencing people for online
shopping as about 36% and 35% respectively of respondents get to know about
online marketing from these sources. Then we have few respondents about 16%
who are influenced by other online sources and even fewer, 13% respondents
who get to know about online marketing from their friends and relatives.
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TABLE 4.6
FIGURE 4.6
No. of Respondents
0, 0%
From the above question, it is clear that 27% of respondents have been doing
online shopping for less than a year. Maximum respondents 72% respondents
have been doing online shopping since 1 to 5 years which shows that COVID
pandemic has increased the no. online buyers rapidly and 21% have been doing
online shopping more than 5 years.
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TABLE 4.7
FIGURE 4.7
No. of Respondents
52, 37%
Yes
88, 63% No
Responses to this question led us to the fact that maximum respondents about
63% do not visit to the offline store before making their final purchase online
and that is strange because one should check whether the product they are
looking for is available to their nearest store at lower price or not.
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TABLE 4.8
FIGURE 4.8
No. of Respondents
138 102
The Best Price
In this question in which respondent can select more than one option, no. of respondents
of every option is very close to each other. But most selected factor that effect decision
making in the final selection of product is the price comparison availability. It was
followed by the reviews of product by previous customers which also affect the final
decision of current customers. Responses also show that people choose online shopping
because they are time saving and are available at best price.
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TABLE 4.9
FIGURE 4.9
No. of Respondents
2, 1%
18, 13%
Amazon
42, 30% 78, 56% Flipkart
eBay
Others
FIGURE 4.10
No. of Respondents
28, 20%
46, 33%
Once in a month
Once in a year
It was asked in survey questionnaire that how many times they bought
electronic products over the internet during last year. As per response, 33%
people say that they bought electronics products at least once in a month and
47% of respondents say once in a month while 20% respondents shop electronic
products more than once in a year online. It can be easily analyzed from sample
of data that majority of the people bought goods once a year means they are
not addicted to online shopping.
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TABLE 4.11
FIGURE 4.11
No. of Respondents
27, 19%
From the above chart, total 140 respondents who had made online purchasing
of electronic products out of which 67 respondents bought smartphones. It is
the highest frequency of 48%followed by PCs & Laptops of 12%. Televisions are
bought only by 8% of consumers and 19% of respondents purchase other
electronic gadgets.
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TABLE 4.12
No. of Respondents
23, 16%
45, 32%
Brands
37, 27% Price
Offers/Discounts
As per responses to this question we can say that consumers’ primary concern
while purchasing electronic products online is brand of the product as it has
highest frequency of 32%. Next major concern of respondents is discount offer
on electronic products, about 27%. 25% of respondents are concerned about
price of electronic products while rest of 16% concerned about reviews on the
products.
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TABLE 4.13
FIGURE 4.13
No. of Respondents
13, 9%
48, 34%
37, 27%
Credit or Debit Cards
Internet Banking
Cash on Delivery
EMIs
42, 30%
From the responses to this question, it was analyzed that highest frequency of
respondents - 34% use Credit or Debit Cards as mode of payment. Other
popular mode of payment is through Internet Banking as 30% consumers prefer
it. 27% respondents use Cash on Delivery as their mode of payment while
remaining 9% of customers go for EMIs payments mode.
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TABLE 4.14
FIGURE 4.14
No. of Respondents
21, 15%
From the data on chart shown above, we can say that nearly half of
respondents, 51%, are completely satisfied with the quality of electronic
products purchased online. 34% consumers say that quality was average while
remaining 15% of consumers say that they received poor quality of electronic
products.
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TABLE 4.15
FIGURE 4.15
No. of Respondents
34, 24%
57, 41%
Delivery Issues
Packaging Issues
23, 16%
Quality of Products
Return / Replacement
26, 19%
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TABLE 4.16
FIGURE 4.16
No. of Respondents
10, 7%
21, 15% 42, 30%
Amazon
Flipkart
eBay
Others
67, 48%
It is clear from the data above that majority of respondents, nearly 48%, find
Flipkart more easy and convenient to use. It is followed by Amazon which is
preferred by 30% of respondents. 15% of them find eBay convenient while 7%
prefer other than these online shopping platforms.
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TABLE 4.17
FIGURE 4.17
No. of Respondents
12, 9%
18, 13% 49, 35%
Amazon
Flipkart
eBay
From the responses to this question we can conclude that Flipkart provides
more offers and discounts on electronic products than any other platform
because maximum respondents, about 43%, selected it. According to 35%
responses, Amazon is good offer provider. eBay is selected by 13% of consumers
while rest of 9% go with other online shopping platforms.
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TABLE 4.18
FIGURE 4.18
No. of Respondents
52, 37%
Online
Offline
88, 63%
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FINDINGS &
CONCLUSION
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FINDINGS
From the survey it is accessed that online shopping is more popular among
the males as in Varanasi, most online shopping was made by males
(67.85%). Majority ofthe respondents were youth; aged between 18 – 25
years old with 57% weightage while majority of the respondent are
educated and have done graduation.
CONCLUSION
Online shopping has become extremely popular over the last decade.
Utilized mostly by the "Net-Generation", this service is extremely convenient.
Although online shopping can be very convenient and beneficial there are
also some potential problems that can arise. Consumers have been seen to
reveal different buying behaviours when shopping online than, when they are
shopping in a physical retail stores. This makes it very important that retailers
have to study the consumer behaviour and make changes in orderto remain
profitable and flourishing. The overall results prove that the respondents have
perceived online shopping in positive manner.
This clearly justifies the project growth of online shopping. The results can
also be used by various organizations to identify their target customer
segments. India has a great future in online shopping.
available to all in general as majority of the consumers are young
generation and to avail credit cards in not a simple process. Due to which
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SUGGESTIONS
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Based on the survey and the study made on secondary data, here are a
few suggestions that customers should keep in mind whenever they are
looking for any electronic products online:
Know every detail about the product you are looking for and
make sure that they are clearly mentioned in the product details
on website.
Few suggestions for online sellers and websites based on the research
and study made before:
Never ask too much personal details from your customers and let
your application ask limited permission from customers' device or
else they will get furious and stop using it.
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REFERENCES
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Fishbein Martin, Icek Ajzen. Belief, attitude, intention, and
behavior: An introduction to theory and research. Addison-
Wesley, Boston, Massachusetts,1977.
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Ghoshi, Learning Private Limited, M-97.
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APPENDIX
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Hello, My name is Sapna Rai and I am a Commerce Student and
Postgraduate researcher at the SRI RAM P.G. COLLEGE OF
COMERCE AND EDUCATION, PAIGAMBARPUR, PANCHKOSHI,
VARANASI. I am conducting a study on "Online Marketing of
Electronic Products and its Impact on Customers" and I would
like to know your experiences while you purchase any electronic
products online. Please complete this short survey. Your responses
are anonymous and you can skip any questions you are not
comfortable with. Thank you for your participation.
Q.1.) Gender:
o Male
o Female
Q.2.) Age:
o 18-25
o 25-35
o 35-50
o Above 50
Q.8.).What are the crucial factors which affect your decision making
inthe final selection of the product ( Select all which apply)
o The Best prices
o Convenience & Time saving
o Not available in local stores
o Price comparison available
o Product reviews available
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Q.11.) Which electronic product do you often purchase online?
o Smartphones
o PCs / Laptops
o Televisions
o Other Electronic Gadgets
Q.12.) What are your primary concerns when it comes to buy electronic
products online?
o Brand
o Price
o Offers / Discounts
o Reviews
Q.15.) What problems (if any) do you face when you shop online?
o Delivery Issues
o Packaging Issues
o Quality of Product
o Return / Replacement
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Q.16.) Which online shopping portal is more easy and convenient
touse?
o Amazon
o Flipkart
o eBay
o Others
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