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SHRI RAM PG COLLEGE OF

COMMERCE & EDUCATION


Paigambarpur, Panchkoshi, Varanasi
( Affiliated to MGKVP 221007 )

Survey Research Project Report on

“Online Marketing of Electronic Product & Its Impact on


Consumers ’’

Master of Commerce
(2023-2024 )

Submitted To Submitted By

………………….. Sapna Rai

M.com Sem-1
Roll No. : 14524685035

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DECLARATION

I, Sapna Rai, hereby declare that the bona-fide record of


“Online Marketing of Electronic Products and its Impact
on Customers” done in partial fulfillment of the M. Com
degree program of MAHATMA GANDHI KASHI
VIDYAPEETH under the guidance of …………………, SRI RAM
P.G. COLLEGE OF COMERCE AND EDUCATION,
PAIGAMBARPUR, PANCHKOSHI,
VARANASI.

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.

Place: VARANASI SAPNA RAI

Date:

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ACKNOWLEDGEMENT

I wish to express my profound gratitude and heart-felt thanks to


our principal ……………………… for his encouragement andfor
giving me permission for the study.

I am thankful to ……………………………, our HOD and my project


guide without whose guidance and encouragement, I could not
have completed my project work. His moral support besides the
scholarly guidance in research is the foundation of this project.
Thank you, for all the help and guidance. I’m also thankful to the
other faculties of the department for their valuable advices and
co-operation, rendered for the successful completion of my
project.

I’m also sincerely thankful to the other teachers who helped me in


getting data for analysis. Without their help it will be more difficult
for me to get my questionnaire filled.

I put forward my thankfulness to the Librarian and Non- teaching


staffs of college for their co-operation. I also take this opportunityto
thank my parents, friends and classmates who have been a source of
inspiration. Without their encouragement, it would not have been
possible for me to complete my project successfully.

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TABLE OF CONTENTS

SL. No. TITLE PAGE NO.

1. INTRODUCTION 7 - 15

2. 16 - 20
LITERATURE REVIEW

3. RESEARCH 21 - 24
METHODOLOGY

4. DATA ANALYSIS & 25 - 43


INTERPRETATION

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

The recent growth of e-commerce and the consumer’s increasing


interest in purchasing over the net have significantly changed the
landscape of Indian retail market. Today customers are inclined to
accept the changes and keep their eyes on the benefits they can
obtain from online retailers. The purpose of this study is to the
consumer behavior in online marketing of electronic goods
especially in Varanasi city of Uttar Pradesh. Primary data was
collected through the questionnaire survey. The findings of the
study indicate that customer online purchase intentions are
significantly related to their gender, education, age, security
concern, technological familiarity, and past online purchase
frequency. Consumer buying behavior is also affected by product
type, purchase frequency and expensiveness. Their purchase
decisions are also found to be related with the online retailer’s
services like return, refund and delivery services. The framework
of the research enhances understanding of the factors affecting
customer online shopping behavior, helps in profiling typical
Indian online shoppers and may help e-marketers developing
more specific marketing strategies to increase e-commerce sales.

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.

Chapter – 1

INTRODUCTION

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INTRODUCTION

Online marketing is something which changed the thought of consumers in


term of products. Online marketing is now a days become necessity as it is
the most convenient way to shop. Due to online marketing people are using
variety of products that to without going outside from there houses. The
best part of online marketing is now customer gets the quality products at
affordable price due to the immense competition in the market which was
not a case in traditional shopping method. Yes, it is true that the profit
margin of seller reduced but on the other hand their per day sale increases
from which at the end of the day they are making more profit. Online
marketing offers more visibility to the brand.

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.

WHAT IS ONLINE MARKETING?

Online marketing, also known as digital marketing, is the practice of


leveraging web-based channels to spread a message about a company’s
brand, products, or services to its potential customers. The methods and
techniques used for online marketing include email campaigns, social
media, advertising, Search Engine Optimization (SEO) and more. The
objective of marketing is to reach potential customers through the channels
where they already spend their time reading, searching, shopping.
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Before online marketing channels emerged, the cost to market products or
services was often prohibitively expensive, and difficult to measure. Think
of TV ad campaigns, which are measured through consumer focus groups
to determine levels of brand awareness. Today, anyone with a business
can participate in online marketing and build customer acquisition
campaigns at little to no cost. The best online marketing products and
services also have the ability to experiment and optimize your campaigns
to fine-tune their efficiency and increase return on investment (ROI).
Now-a-days in this digital world, there are large number of online shopping
applications and websites. Some of the popular websites are:

 AMAZON

Amazon Inc, is an American multinational technology company focusing on


e-commerce, cloud computing, online advertising, digital streaming, and
artificial intelligence. It has been often referred to as "one of the most
influential economic and cultural forces in the world", and is often regarded
as one of the world's most valuable brands. It is considered as one of the
Big Five
American technology companies, alongside Alphabet (parent company of
Google), Apple, Meta (formerly Facebook Inc.) and Microsoft. Amazon was
founded by Jeff Bezos from his garage in
Bellevue, Washington, on July 5, 1994. Initially an online marketplace for
books, it has expanded into a multitude of product categories, a strategy
that has earned it the moniker, The Everything Store. It has multiple
subsidiaries including Amazon Web Services (cloud computing), Zoox
(autonomous vehicles), Kuiper Systems (satellite Internet), and Amazon
Lab126 (computer hardware R&D). Its other subsidiaries include Ring,
Twitch, IMDb, and Whole Foods Market. Its acquisition of Whole Foods in
August 2017 for US$13.4 billion substantially increased its footprint as a
physical retailer. Amazon also distributes a variety of downloadable and
streaming content through its Amazon Prime Video, Amazon Music, Twitch,
and Audible units. It publishes books through its publishing arm, Amazon
Publishing, film and television content through Amazon Studios, and has
been the owner of film and television studio
Metro-Goldwyn-Mayer since March 2022. It also produces consumerelectronics—
most notably,
Kindle e-readers, Echo devices, Fire tablets, and Fire TVs.

 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.

In August 2018, American retail chain Walmart acquired a 77% controlling


stake in Flipkart for US$16 billion, valuing Flipkart at around US$20 billion.
Flipkart is valued at $37.6 billion as of
2022. It is planning to go public through a listing in the United States of
America in 2023.

 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.

ONLINE MARKETING BENEFITS

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:

 Cost-effective - Digital messaging can be cheaper and more


efficient to produce than print. It can duplicate faster, and it can be
highly targeted to reach only the most relevant audiences, which
means it usually offers a strong ROI.

 Fast - Your audience can act on your messaging right away, giving
you a quick turnaround on your investment.

 Trackable - It’s easy to know whether your audience is clicking,


opening emails, sharing, or making purchases. If you know what isn’t
working, you don’t need to waste time and resources on it. If you
know what is working, you can lean into it.

 Targeted - Online marketing allows companies to target specific


audiences and customize their messages.

 Personal - Digital methods can be automated and responsive to


online consumer behavior, which means that an unlimited number of
individual customers get timely, relevant, and personalized
information.

 Attractive - Many online marketing methods are inbound, which


means that by creating accessible and appealing content, you can
draw in the right customers rather than blasting and hoping it
reaches those who are looking for it.

CHALLENGES WHILE MARKETING ONLINE

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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.

 Extra Hidden Charges - When buying online, consumers often


encounter surcharges for things like payment processing, delivery
services, tax, shipping, and handling charges. Many sellers add extra
charges to the final price of the product. Extra charges can make the
difference between a winning deal and a losing one.

 Delayed Delivery - This is quite a common problem that many


people face while ordering online. Sometimes, the shipping company
takes a long time to deliver your order. In case, you pay for express
shipping, then the shipping companies often take longer than usual to
deliver the goods.

 Lack of Payment Option - Lack of payment options is another issue


faced by customers while purchasing online. There are times when
options like cash on delivery are unavailable, or they even get
confused on how to make the purchase if the debit card they use is
not available as a payment option. Due to many fraud cases, people
nowadays prefer cash-on-delivery options.

 Security - Security is always a concern when it comes to running a


business online. While shopping online, customers often wonder
whether personal information would be safe enough while being sent
over the Internet. What if a hacker steals credit card numbers or bank
details? Are they really protected from malicious apps and websites?

PLACE OF ELECTRONIC MARKET IN ONLINE


MARKETING

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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.

With the improvement in technology and the advent of e-commerce trends,


the consumer electronic market witnessed a surge of about 40% growth in
the year 2020 alone. In today’s world, there is no powerful platform like the
internet, where having a web presence is both mandatory and beneficial,
both for the buyers and the sellers.

Having an e-commerce website for your electronic products provides you


with an opportunity to have a larger reach, provisions to employ a variety of
techniques and tools to attract customers, and provides customers ample
time to stay on your website to study, research, and compare the products
before making the final purchase.

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.

CONSUMERS’ BEHAVIOUR IN ONLINE MARKETING

The use of Internet in India offers a growing prospect for e- shopping. If E-


customers know the factors that affect online behavior, and the
relationships between these factors, further they can build their new
marketing strategies to transform probable customers into lively customers,
Consumer behavior is treated as an applied discipline because some
decisions significantly affects customers’ behavior and expected actions.
The two main views that seek solicitation of its awareness are societal and
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micro. Internet has changed the way of consumer’s store, and has rapidly
developed into a global perspective.

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.

FACTORS INFLUENCING ONLINE MARKETING


BEHAVIOUR OF CUSTOMERS
 Quality of Product Description - The impact of a well-written
product description plays a vital role in influencing online shopping
behavior. At the very least, the description should address all the
possible questions that target market might be curious about at a
glance. Inaccurate details, missing information, and false promises
can significantly have bad impact on potential customer’s impression
of product or service and brand in general.

 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.

 Return Policy - Easy returns make the backbone of an online


shopping business. In fact, a number of customers prefer buying stuff
online considering the easy returns. Amazon, for instance, has
managed to size up its sales by running a fantastic return policy. It
asks the customers no questions, allows 30 good days to decide
about returns.

 Convenience in Searching Products - App's user interface plays a


crucial role in influencing the buying prospects of customers. A

 customer will likely leave the page or app if he is unable to find the
relevant product within two search attempts.

 Complexity Levels in Checkout Process - If checkout process is


too cumbersome asking for too many efforts and involving several
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page re-directions, customer is likely to abandon the platform.
Customers are accustomed to faster services.

 Customer Reviews - This is a really important factor affect


customers' buying decisions. Given the fact that customer reviews
are genuine, new customers are much likely to consider this peer to
peer feedback.

E-GADGETS USAGE IN INDIA

A present survey indicates that 60% of Bengaluru's youth between ages 12


and 18 shop for electronic gadgets online. Next up in the preference list for
these multi-channel shoppers is books at 56%, movie tickets at 48%, and
travel at 41% and clothes at 45%. The Youth Survey, conducted by Tata
Consultancy Services (TCS) for the year 2015- 16, aims to track the
changing technological behaviour of the youth. About 83% of children
studying between Class VIII and Class XII are smartphone users. Desktop
PCs remain the most popular mode of accessing the internet. 86% of Gen
Y has a mobile; 77% has a PC; 55% own a laptop; 48% use a MP3 player;
35% has a gaming console and the fastest growth is in tablets as 32% own
at least one. Interestingly, out of these gadgets, mobile phones are the one
which are the most favourite for Gen Y.

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Chapter – 2

LITERATURE REVIEW

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REVIEW OF LITERATURE

The current research focuses on the purchasing habits of people in


Varanasi, Uttar Pradesh. The research would concentrate on consumer
behaviour when it comes to electronic devices such as cell phones,
tablets, and accessories. In this study, factors affecting purchasing
behaviour in choosing a specific brand, such as advertising tactics,
marketing, and key decision makers, will be investigated. People's buying
behaviour has been studied extensively, and extensive attempts have
been made to locate specific research. Studies from India and other
countries will be checked for the study. Consumer behaviour and
marketing tactics studies were also considered for the study.The following
is a list of the literature examined in chronological order.
Needs, attitudes, beliefs, personality traits, personal motives, socio-
economic and cultural context, age, sex, professional status and social
pressures of various kinds exerted by family, friends, and colleagues are
just a few of the factors that influence consumer purchasing behaviour.

NATIONAL REVIEW

According to Sharma and Mittal (2009) in their study "Prospects of e-


commerce in India", mentions that India is showing marvelous growth in the
Ecommerce. Undoubtedly, with the population of millions of people, online
shopping shows unlimited potential in India. Today
Ecommerce is a common word in Indian society and it has become an
essential part of our daily life. There are websites providing a number of
goods and services. Then there are those, which provide a specific product
along with its allied services multi-product E-commerce. These Indian E-
commerce portals provide goods and services in a variety of categories. To
name a few - Apparel and accessories for men and women, Health and
beauty products, Books and magazines, Computers and peripherals,
Vehicles, Software, Consumer electronics, Household appliances,
jewellery, Audio/video, entertainment, goods, Gift articles, Real estate and
services.

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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.

 Niranjanmurthy M et.al, (2013)Analyzed e-commerce and m-


commerce and expressed that, Ecommerce is widely considered the
buying and selling of products over the internet, but any transaction
that is completed solely through electronic measures can be
considered e-commerce. These days, m-commerce is playing a
major role in online retail marketing and people are using this
technology increasing all over the world. Mobile commerce involves
all kind of electronic transactions by the use of mobile phone. They
mentioned various advantages, limitations and growth drivers of m-
commerce.

 Manish Kumar (2016) in his study provides some useful insights on


consumers’ purchasing intention and behavior. It has been revealed
that the three key factors, i.e., price, ratings, and reviews affect the
consumers’ intention for online shopping. Surendra Malviya and
Manminder Singh Saluja, (2013), studied the factors influencing
consumer’s purchase decision towards smartphones in Indore. This
research provides new marketing dynamics to the leading mobile
companies for market. The main objective of this research is to
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identify the key factors which have a dominating effect on the
consumers’ minds while making a purchase of smartphone.

 Venkatesh (2000) reported that perceived convenience offered by


Internet Vendors has a positive impact on consumers' attitude
towards online shopping, as they remark Internet as a medium that
enhances the outcome of their shopping experience in an easy way.
Online shopping holds a great budding for youth marketers.

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.

 Marzieh Zendehdel et al. (2016) in their collective study concluded


that significant moderation effects with regards to the association of
subjective norm and attitude, perceived risk and other factor were
significantly correlated with the attitude towards online shopping while
perceived risk was observed to be negatively significant on attitude.

 Herman FassouHaba et al. (2017) in their study concluded that


social value and perceived ease of use do not have a direct or
indirect effect on smartphone purchase intention among Malaysian
working professionals. Factors like economic value, perceived
usefulness and brand image have an indirect effect on smartphone
purchase intention.

 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.

 Chen (2009) in his study extends theory of planned behavior by


including 10 important antecedents as external beliefs to online
consumer behavior. The study shows that trust and perceived ease of
use are essential in determining online consumer behavior.

 Ying (2006) in his study titled “Essay on modeling consumer behavior


in online shopping environments” investigated that online purchase
behavior across multiple shopping sessions. According to him,
shopping cart abandonment is the problem of many e- commerce
websites. Specifically, he developed joint model for the cart, order,
and purchase quantity decisions. Customers routinely pick up
abandoned carts and complete the final orders. He investigated
abandoned shopping carts in an online grocery shopping setting.

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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

 To identify the factors that influence consumers to shop online.


 To determine awareness of people when it comes to online
marketing.
 To determine popular shopping websites and electronic gadgets
brand.
 To identify challenges faced by consumer while shopping online.

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

According to WaiChingleung, questionnaire should fulfill two main


objectives: to maximize the response rate and to obtain accurate relevant
information for our research (Leung, 2001). Personalized cover letter was
included in which it was explained why are asking these questions and the
importance of the respondents' participation, who is responsible for the
survey and was guaranteed of confidentiality. Questionnaire was designed
in such a way that all questionsare arranged in general to particular, easy to
difficult, start with closed format questions, only relevant question are asked
to maximize the response rate. In order to create questionnaire, the basis
were built by deciding on themain variables that needed to be investigated.
These were:

General Variable:

 Demographics
 Personal information
 Attitude towards online shopping for electronic goods

Identified Variables:

 Medium that influence people to shop online.


 Popular Online Marketing Websites/Applications.
 Most bought electronic products.
 Most used payment mode.
 Platforms that provide more offers/discounts on electronic products.

Post Purchase Behaviour & Experiences:

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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

To make more ease to our respondent, closed format style questionnaire


include checklist questions which included maximum extend asking
respondents to tick one or multiple choice depending on the type of
question. Ambiguous question are tried to be avoided as much as
possible such as many, few, good, bad, frequently etc. These kinds of
answer make two problems; introduce response bias and make the
statistical analysis of the data difficult. The following will represent and
discuss the results of the survey based on the 240 active internet users
who actually participated and filled the questionnaire. This research was
conducted using a particular questionnaire format which is shown in
Appendix 1.

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.

24
Chapter – 4

DATA ANALYSIS & INTERPRETATION

25
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

Classification of respondents on the basis of gender:

GENDER No. Of Respondents Percentage


MALE 95 67.85%
FEMALE 45 32.15%
GRAND TOTAL 140 100%
(Source: Primary Data)
FIGURE 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.

26
TABLE 4.2

Classification of respondents on the basis of age:

Age No. of Respondents


18 - 25 75
25 – 35 35
35 – 50 20
Above 50 10

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.

27
TABLE 4.3

Classification on the basis of educational qualifications:

Educational Qualifications No. of Respondents


Higher Secondary 34
Under Graduate 26
Graduate 62
Post Graduate 18

FIGURE 4.3

No. of Respondents

18, 13%
34, 24%

Higher Secondary
Under Graduate
26, 19%
62, 44% Graduate
Post Graduate

 The highest frequency almost 44% among the respondents is graduated


followed by the 24% respondents which are at higher secondary level. 19%
respondents are under graduation while a very nominal percentage of almost
13% categorized in the post graduation level of studies.

28
TABLE 4.4

Classification on the basis of Income per Annum:

Income Per Annum No. of Respondents


1.2 lakhs – 2.4 lakhs 19
2.4 lakhs – 4.8 lakhs 38
4.8 lakhs – 9.6 lakhs 42
Above 9.6 lakhs 41

FIGURE 4.4

No. of Respondents

19, 14%
41, 29%

1.2 lakhs - 2.4 lakhs


38, 27%
2.4 lakhs - 4.8 lakhs
4.8 lakhs - 9.6 lakhs
42, 30% Above 9.6 lakhs

 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.

29
TABLE 4.5

Classification on the basis of medium respondents came to know


about online marketing:
Mediums No. of Respondents
Newspaper Advertisements 49
Social Media 51
Friends or Relatives 18
Other Online Sources 22

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.

30
TABLE 4.6

Classification on the basis of period of time the respondents have


been shopping online:

Period of Time No. of Respondents


Less than 1 year 38
From 1 to 5 years 72
More than 5 years 30

FIGURE 4.6

No. of Respondents
0, 0%

30, 21% 38, 27%

Less than 1 year


From 1 to 5 years
More than 5 years
72, 52%

 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.

31
TABLE 4.7

Whether respondents go to a retail store first before making your


final purchase online:

Visit offline market before final No. of Respondents


purchase
Yes 52
No 88

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.

32
TABLE 4.8

The crucial factors which affect respondent’s decision making in the


final selection of the product(they can select more than one factor):

Factors No. of Respondents


The Best Price 102
Convenience & Time Saving 120
Not available in local stores 110
Price comparison available 138
Product reviews available 125

FIGURE 4.8

No. of Respondents

138 102
The Best Price

120 Convenience & Time Saving


Not available in local stores
125
Product reviews available
110
Price comparison available

 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.

33
TABLE 4.9

Classification on the basis of shopping portal preferred:

Online Shopping Portals No. of Respondents


Amazon 78
Flipkart 42
eBay 18
Others 2

FIGURE 4.9

No. of Respondents
2, 1%

18, 13%

Amazon
42, 30% 78, 56% Flipkart
eBay
Others

 Based on responses to this question, Amazon seems to be the most preferred


online shopping platform in my locality with 56% of customers. Flipkart was
second most preferred platform as 30% respondents use it, eBay with 13%
customers and a very few about 1% respondents use other online shopping
platform.
34
TABLE 4.10

How often do respondents purchase electronic products online?

Period of Time No. of Respondents


Once in a month 46
Once in a year 66
More than once in a year 28

FIGURE 4.10

No. of Respondents

28, 20%
46, 33%

Once in a month
Once in a year

66, 47% More than 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.

35
TABLE 4.11

Classification on the basis of type of electronic products purchased


online:
Electronic Products No. of Respondents
Smartphones 67
PCs / Laptops 35
Televisions 11
Other Electronic Gadgets 27

FIGURE 4.11

No. of Respondents

27, 19%

11, 8% 67, 48%


Smartphones
PCs / Laptops
Televisions
35, 25%
Other Electronic Gadgets

 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.

36
TABLE 4.12

Classifications on the basis of primary concerns of consumers when


it comes to buy electronic products online:

Primary Concerns No. of Respondents


Brand 45
Price 35
Offers / Discounts 37
Reviews 23
FIGURE 4.12

No. of Respondents

23, 16%
45, 32%

Brands
37, 27% Price
Offers/Discounts

35, 25% Reviews

 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.

37
TABLE 4.13

Classification on the basis of payment modes used by consumers


while purchasing electronic products online:

Payment Modes No. of Respondents


Credit or Debit Cards 48
Internet Banking 42
Cash on Delivery 37
EMIs 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.

38
TABLE 4.14

Classification on the basis of consumers’ experience towards quality


of electronic products purchased online:
Consumers’ Experience No. of Respondents
Satisfied 71
Average 48
Poor 21

FIGURE 4.14

No. of Respondents

21, 15%

71, 51% Satisfied


Average
48, 34%
Poor

 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.

39
TABLE 4.15

Classification on the basis of problems faced by consumers while


shopping online:

Problems No. of Respondents


Delivery Issues 57
Packaging Issues 26
Quality of Products 23
Return / Replacement 34

FIGURE 4.15

No. of Respondents

34, 24%
57, 41%
Delivery Issues
Packaging Issues
23, 16%
Quality of Products
Return / Replacement
26, 19%

 From the responses to this question, it is clear that majority of respondent,


about 41%, face delivery issues while making purchase of electronic products
online. 34% face return or replacement issues while consumers who suffer from
packaging and quality issue are 19% and 16% respectively.

40
TABLE 4.16

Classification of the basis of online shopping platform which


consumers find easy & convenient to use:

Online Shopping Platforms No. of Respondents


Amazon 42
Flipkart 67
eBay 21
Others 10

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.

41
TABLE 4.17

Which online platform, according to consumers, provides more


offers/discounts on electronic products?

Online Shopping Platforms No. of Respondents


Amazon 49
Flipkart 61
eBay 18
Others 12

FIGURE 4.17

No. of Respondents

12, 9%
18, 13% 49, 35%

Amazon
Flipkart
eBay

61, 43% Others

 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.

42
TABLE 4.18

Based on overall experience, market which consumers’ suggest to


purchase electronic products:

Markets No. of Respondents


Online 88
Offline 52

FIGURE 4.18

No. of Respondents

52, 37%

Online
Offline
88, 63%

 From the total of 140 responses, maximum number of respondent(88)


with a frequency of 63% suggest online market to buy Electronic
Products while remaining 37% of respondents suggest that electronic
products should be purchased offline.

43
FINDINGS &
CONCLUSION

44
FINDINGS

This study was accomplished to determine the consumer behavior in


Varanasi, Uttar Pradesh, towards online shopping for electronic products.
Online shopping is increasing in Varanasi but acceleration of online
shopping is not as rapid as compared to other developed countries like
USA and UK. In research, online consumer behavior theories applied
named as goal oriented online buyer and experimental motives of online
shopping and highlighted into consumer characteristics, online consumer
behavior, factor predicting online shopping and consumer mindset in online
shopping.

TAM (Technology Acceptance Model) and TRM (Theory of Reasoned


Action) identifies factors such as internal beliefs, attitudes, and intention for
online shopping; study revealed that online shopping is mostly influenced
by social network/circles and personal experience. Consumers are doing
online shopping because of convenience and time saving. “Search as
recreation” mind set in is studied under experimental online shopping
behavior. The survey questionnaire was prepared and distributed among
random person (to those who uses internet) and received 140 responses.
The questionnaire formats have three main segments such as general,
identified variables then in last customer concern in online shopping.

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.

The online shopping is getting popular among the young generation as


they feel it more comfortable, time saving and convenient. It is analyzed
from the survey that when a consumer makes a mind to purchase online
electronic goods, he or she is affected by multiple factors. The main
crucial identified factors are time saving, the best price and convenience.
The bestprice factor is popular among people because generally in online
markets prices are lower as against the physical markets. People
compare prices in online stores and then review all feedbacks and rating
about product beforemaking the final selection of product and decision. To
purchase online things the electronic goods are in demand because of the
best price, convenience and time saving. The main barrier in the process
45
of online shopping is the safety issue. People are afraid to share their
personal information and financial information on internet. Credit cards are
also not consumers are reluctant to make online purchasing, then second
the mostfamiliar barrier is the low level of trust on online stores.

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

46
SUGGESTIONS

47
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.

 Find out the price of the product in physical market before


searching it online.

 Know the manufacturing date or year of product you are


purchasing and always look for latest manufactured product
because sometimes seller delivers the same product you ordered
but from the stock that was available in their store from long
time.

 Check brand as well as seller reviews before confirming your


order.

 Electronic products section provides you more offers and


discounts as compared to other shopping categories, so
whenever you to buy something digital, try to look for upcoming
or ongoing sales on trusted online shopping portals.

 Before confirming your order, make sure that return or exchange


options are available on that product, so that in case if product
received is damaged or not upto the mark then you can return or
replace it easily.

 Select your payment mode wisely. Sometimes, the offers on


products are available only on selected modes of payment. In
such case, if the platform and brand of product which you are
48
purchasing is trusted then go for it, but if you any uncertainty
regarding the purchase use Cash on Delivery mode.

Few suggestions for online sellers and websites based on the research
and study made before:

 Earn your customers. If you provide better service than other


sellers to a customer, not only him / her will be regular customer
but also he or she will recommend you to other customers too.

 Avoid complexity. Keep your website interface as simple as


possible. Now-a-days no one have that much patience go through
your website thoroughly, looking for their products. If the
customer didn't get it within two to three clicks, he will just jump
to other website.

 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.

 Provide your customers with multiple payment options. This will


help you cover wider range of customers.

 Provide your customers with easy and responsive customer care


support services. If they have any queries or problems regarding
any purchase, your support team should be available for them
24×7.

49
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50
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55
APPENDIX

56
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.3.) Educational Qualifications:


o Higher Secondary
o Under Graduate
o Graduate
o Post Graduate

Q.4.) Income Per Annum:


o 1.2 lakhs - 2.4 lakhs
o 2.4 lakhs - 4.8 lakhs
o 4.8 lakhs - 9.6 lakhs
o Above 9.6 lakhs

Q.5.) By what medium you came to know about online shopping?


o Newspaper Advertisement
57
o Social Media
o Friends or Relatives
o Other Online Sources

Q.6.) For how long have you been shopping online?


o Less than a year
o From 1 to 5 years
o More than 5 years

Q 7.) Do you go to a retail store first before making your final


purchaseonline?
o Yes
o No

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

Q.9.) Which Online Shopping portal you prefer the most?


o Amazon
o Flipkart
o eBay
o Others

Q.10.) How often you purchase electronic products online?


o Once in a month
o Once in a year
o More than once in a year

58
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.13.) What payment mode you prefer to in Online Shopping of


Electronic Products?
o Credit or Debit Cards
o Internet Banking
o Cash on Delivery
o EMIs

Q.14.) What are your experience towards quality of Electronic


Productsyou purchased online?
o Satisfied
o Average
o Poor

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

59
Q.16.) Which online shopping portal is more easy and convenient
touse?
o Amazon
o Flipkart
o eBay
o Others

Q.17.) Which online shopping portal provides most offers /


discountswhen it comes to Electronic Products?
o Amazon
o Flipkart
o eBay
o Others

Q.18.) Based on your overall experience, which platform do you


suggestothers to purchase Electronic Products?
o Online Markets
o Offline Markets

60

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