INTRODUCTION OF INDUSTRY

A process in which images or listings of goods and services are viewed

remotely via electronic m e a n s , e . g . v e n d o r s Web site, i t e m s
a r e s e l e c t e d f o r p u r c h a s e , a n d t h e t r a n s a c t i o n i s completed
electronically with a credit card or an established credit account. Various
encryption schemes may be, and usually are, used to reduce the
risks of sending information, such as credit-card numbers, over the Internet
or other telecommunications facility.
IN A wallet is a small software program used for online purchase
transactions. Many payment solution companies, such as Cyber Cash,
offer free Wallet software that allows several methods of payment to be
defined within the wallet (for example, several different credit cards). Here
s h o w i t w o r k s : W h e n y o u o r d e r s o m e t h i n g , t h e o r d e r i s
s e n t t o t h e m e r c h a n t . T h e m e r c h a n t (actually, the merchant's
server) sends back an invoice and asks the consumer to launch
the Wallet in his computer (or to download it quickly if the consumer doesn't
have it yet).When the consumer selects "Pay," the Cyber Cash software on
the merchant server sends a message back to the consumer's PC that
activates the "Wallet" software. The consumer selects one of the cards
defined in the Wallet and clicks. The transaction includes real-time
credit

card

authorization.

Cyber

Cash

incorporate an electronic "Cash" and

says"
"Coin"

Soon
system

we

will

to use

for transactions that are considered small for credit cards.

Online shopping is the process consumers go through to purchase products
or services over the Internet. An online shop, e-shopping, e-store, internet
shop, web shop, web, online store, or virtual store evokes the physical
analogy of buying products or services at a bricks-and-mortar retailer or
in a mall. The metaphor of an catalog is also used, by analogy with
mail catalogs. All types of stores have retail web sites, including those that do
and do not h a v e p h y s i c a l s t o r e f r o n t s a n d p a p e r c a t a l o g s .
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Online

shopping

is

for business-to-business

type

(B2B)

o f electronic commerce

used

and business-to-consumer (B2C)

transactions. The term" Web shop " also refers to a place of business
where web development, web hosting and other types of web
related activities take place (Web refers to the World Wide Web
and shop" has a colloquial meaning used to describe the place
where one's occupation is carried out).

HISTORY
History of online shopping starts not so long ago. Tim Berners-Lee created
The World wide Web Browser in 1990. In 1994 few other developments took
place. Online bank, the first of its kind opening this year. Another development
was opening of online pizza shop by Pizza hut.
In the same year Netscape introduced SSL encryption to enable encryption
over the data transferred online. This later became the necessity of online
shopping. In 1995, Amazon started operation, one of the largest online
shopping mall now. Then in 1996 eBay started its online shopping portal.
In 1998 witness use of electronic postage stamps, where people can
download and print postal stamps after paying nominal fee. In 1999 the first
online shop in UK launched

IN INDIA
India has more than 121 million internet users out of which one-half opt for
online purchases and the number is rising sharply every year. The growth in
the number of online shoppers is greater than the growth in Internet users,
indicating that more Internet users are becoming comfortable to shop online.
The capability of purchasing without leaving your place is of great interest to
many consumers. Not only does online shopping offer really good deals, but
also brings optimum convenience to the consumers. Moreover, the use of
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Internet tools for price searching and comparison provides an additional

advantage in consumers final decision, as they can purchase their desired
products in the lowest available price. This project focuses on the
understanding of perception of online purchase in India. For this purpose, the
data from 100 respondents was collected in the form of questionnaires. With
nearly half of the Indian population being young and net savvy, there has
been an extra ordinary rise in the numbers of online shoppers. The recent
growth in the mall culture in the country has in fact made consumers more
aware about different options and encouraged them to search and eventually
purchase online. India has more than 100 million internet users out of which
one-half opt for online purchases and the number is rising sharply every year.
The growth in the number of online shoppers is greater than the growth in
Internet users, indicating that more Internet users are becoming comfortable
to shop online. Until recently, the consumers generally visit online to reserve
hotel rooms and buy air, rail or movie tickets, books and gadgets and gizmos,
but now more and more offline product like clothes - saris, kurtis, T-shirts shoes, and designer lingerie, consumer durables are being purchased online.
At present, the market is estimated at Rs.46000 cr. and is growing at 100
percent per year. The two most commonly cited reasons for online shopping
have been convenience and priced. The capability of purchasing without
leaving your place is of great interest to many consumers. Not only does
online shopping offer really good deals, but also brings optimum convenience
to the consumers. Moreover, the use of Internet tools for price searching and
comparison provides an additional advantage in consumers final decision, as
they can purchase their desired products in the lowest available price .On the
contrary, privacy and security have been the great concerns, resulting many
people to browse the Internet for informational matters than for buying online.
It is a fact that a great online shopping revolution is expected in India in the
coming years. There is a huge purchasing power of a youth population aged
18-40 in the urban area.

Factors That Boost Online Shopping in India

Rapid growth of cybercafs across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing. There are

about 200 million of middle-class population good spending powers.
These people have very little time to spend for shopping. Many of them
have started to depend on internet to satisfy their shopping desires.

.
Few Facts about Online Shopping
The figures from IAMAI show that the internet users in India will grow to 200
million by 2010. Around 25% of regular shoppers in India are in the 18-25 age
groups, and 46% are in the 26-35 year range.

Indian online matrimonial sector is worth around $230 million.

Worldwide e-commerce is only growing at the rate of 28%, since India

being a younger market, the growth of e-commerce is expected at 51%
in the coming years.

In line with global trends finally India has also started shopping online
these days. As per the study by IAMAI online shopping in India has
rose from 11million in 1999-2000 to $522 million in 2007 and it is
expected to rise above $700 million by end March 2010.

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

booming young adult population in India with good levels of disposable
income.
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INDIA - Over $50 Billion and growing rapidly - Most popular online shopping
products include: books (45%), electronic gadgets (42%), railway tickets
(38%), accessories apparel (35%), apparel (35%), gifts (34%), computer and
peripherals (32%), airline tickets (28%), music downloads (21%), movie
downloads (21%), hotel rooms (22%), magazines (18%), tools (16%), home
appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), beauty
products

(12%),

health

and

fitness

products

(12%),

apparel

gift

certificates( 11%) and sporting goods (7%).

There are over 121 million people online in India and this is expected to grow
to 200 Million by the end of 2015

INTRODUCTION OF STUDY
2.1. LITERATURE REVIEW
Bellman et al (1999) investigated various predictors for whether an individual
will purchase online. These authors concluded that demographic variables,
such as income, education and age, have a modest impact on the decision of
whether to buy online, whereas the most important determinant of online
shopping was previous behavior, such as earlier online purchases.
Standing (1999) stated that traditionally retail travel agencies have acted as
intermediaries between airline companies and wholesale travel companies
and the consumer. The Internet and the World Wide Web provide a whole
new set of challenges and opportunities for this business sector. The major
threat stems from airlines and wholesale travel companies offering their
products and services directly to the customer without the assistance of travel
agencies. Large online agencies have gained significant attention in the travel
industry and provide some evidence of a restructuring of the travel industry
sector.
Leong (2001) examined the marketing strategies adopted by local hotel
establishments in the competitive hospitality industry. It also analyses the
adoption and role of information technology in strategic marketing. It was
found that most hotels seemed to have embraced the marketing concept,
given the existence of extensive marketing plans. Although most hotels
appeared to have successfully incorporated information technology into their
marketing campaigns, the level of commitment seemed to be insignificant.
Following a brief comparison with a similar US study, the paper concludes that
there are only minor differences between US and Singapore hotels in terms of
their marketing practices.
Parasuraman (2002) Stated that the motivations for this special issue and
propose a conceptual framework pertaining to the issues theme. Using this
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frameworks a backdrop, they then offer an overview of the remaining articles

by segmenting them into categories and discussing their relationship to the
framework. They conclude by highlighting research avenues for augmenting
our understanding of marketing to and serving customers through the Internet.
Sigala (2003) stated that despite the exponential growth of e-commerce on
the Internet, little is still known on how the new medium is transforming
marketing concepts/practices and their effectiveness. This empirical study
aims to fill in this gap. This article first analyzes the Internet's capabilities and
features as well as the new virtual market space that Internet advances have
fostered. After reviewing models and strategies for Internet marketing, an
Internet marketing mix is proposed based on the Internet strategies of hotels
in Greece that were investigated.
Know and Lee (2003) Explored consumers concerns about payment security
and its relationship to online shopping attitude and actual purchases. They
observed a negative relationship between attitude towards online shopping
and concerns about online payment security. Consumers with a positive
attitude seem to be less concerned about payment security.
Bechrer (2004) stated that Internet marketing is a field hat is continuing to
grow, and the online auction concept may be defining a totally new and
unique distribution alternative. Very few studies have examined auction sellers
and their internet marketing strategies. This research examines the internet
auction phenomenon as it relates to the marketing mix of online auction
sellers. The data in this study indicate that whilst there is great diversity
among businesses that utilize online auctions, distinct cost leadership and
differentiation marketing strategies are both evident. These two approaches
are further distinguished in terms of the internet usage strategies employed by
each group.
Ryan (2004) conducted a research on the mosaic of institutional issues
associated with gaining credibility for internet marketing standards. Strong
claims for a predominantly self-regulatory approach are reviewed in
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conjunction with other factors that inhibit credibility, namely: competing

internet worldviews, weak moral coherency and offline ambiguity about
respective institutional roles, especially as regards moral dimensions of
notions of regulation and self-regulation.
Wang (2006) conducted a research to examine the current use and predict
future Web-based marketing activities of U.S. convention and visitor bureaus.
A survey was sent to 600 randomly selected American convention and visitor
bureaus with a focus on assessing the applications included in the bureaus
Web sites, their Web site promotion techniques, and customer relationship
management programs in relation to these Web sites. The results indicate that
most bureaus Internet marketing activities are relatively limited, focusing on
providing travel information to prospective visitors.
Bengtsson (2007) stated that adopting the Internet for advanced marketing
operations opens up challenging opportunities for firms of all sizes. However,
such adoption might destroy investments in present market channels and thus
has the characteristics of radical innovation. The results of analysis show that
composition of factors on which firms base their decision to adopt advanced
Internet-based marketing operations varies significantly with firm size.
Chin ting (2010) stated that few school or educational studies have
simultaneously

explored

both

internet

marketing

and

organizational

commitment, and of those that have, only direct effects were examined. This
study clarifies the relationship between school organizations internet
marketing and teachers organizational commitment by examining the
mediating role of teachers job involvement and job satisfaction.

2.2. PROBLEM STATEMENT

A study on comparison of customer perception of online shopping with

respect to Ahmadabad and Anand city

2.3. OVERVIEW OF THE PROJECT

PRIMARY OBJECTIVE
To compared customer perception of online shopping with respect to
Ahmedabad and Anand city
SECONDARY OBJECTIVES

To know the difference between educated and none educated peoples

perception toward online shopping with respect of Ahmedabad and
Anand city.

To know the difference between self-employee and salaried peoples

perception toward online shopping with respect of Ahmedabad and
Anand city.

2.4. HYPOTHESIS

RESEARCH METHOLOGY
3.1. RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing
research project. it specifies the details of the procedures necessary for
obtaining the information needed to structure or solve marketing research
problem.
I used descriptive research to collect data. Descriptive research design
is used to know about market characteristics.

3.2. Source of Data

Primary Data
I had used questionnaire tool to collect the information in my marketing
research.
Secondary Information

Reference books.
Internet.

3.3. DATA COLLECTION TOOLS

Primary Data through
Questionnaire method
I had used questionnaire tool to collect the information in my marketing
research. I have framed the questionnaire on the basis of 400 Internet
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users.
3.4. POPULATION
The population consists of all internet user of Ahmadabad and Anand
city in Gujarat state.
3.5. SAMPLING METHOD
The sample is selected by using convenience sampling method.
3.6. SAMPLING UNIT
In this study the sampling unit is individual internet user.
3.7. SAMPLING SIZE
Sample size of 400 Internet user of Gujarat state.

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