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ON LINE SHOPPING

Prepared by T.Y.B.B.A GLSIBA 2011-12

Research and survey On

Online shopping
Presented by: T.Y.B.B.A. Students of GLS-INSTITUTE OF UNDER GRADUATE BUSINESS ADMINISTRATION Submitted By: KOMAL DULAM

Affiliated to Gujarat University For the year 2011-12

Index
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Contents What is online shopping? The online shoppers checklist Executive Summary Why do people prefer online shopping? Statement of Objective Methodology Types of Data and Sources Data collection Method Sampling Decisions Questionnaire Data Analysis Findings Recommendation Limitation Conclusion Bibliography Page no. 6 9 12 13 15 16 18 20 22 23 32 44 46 47 48 49

ACKNOWLEDGEMENT
A project without proper guidance is like ship without a navigator. A successful story is incomplete without paying tribute to those who inspired it. We would like to express our gratitude towards all those people who guided is for preparing this project, which was a great learning process for us.

We are heartily indebted to Prof. Kavita shah and Prof. Minal Joshi who guided us throughout project and gave up valuable suggestion and encouragement.

We also express our sincere thanks to the Director Mr. V.B.Patel, who gave an opportunity to learn from the practical training.

Once again we would like to thank all those people who gave their valuable support by helping us in this project which is a great learning experience. Thank you

PREFACE
A childs very first breathe questions his ability to adapt from one environment to another that is dramatically changed. This element of change dominates the world and adds a flavor of dynamism to it. It is a constant process. In fact change is the only thing which remains unchanged in the world. A business doesnt live in vacuums. There are external and internal factors which comminutes business scenario and thus they causes a twister called change which affects the business environment.

WHAT IS ONLINE SHOPPING?


Online shopping is the process of buying goods and services from merchants who sell on the Internet. Since the emergence of the World Wide Web, merchants have sought to sell their products to people who surf the Internet. Shoppers can visit web stores from the comfort of their homes and shop as they sit in front of the computer

Consumers buy a variety of items from online stores. In fact, people can purchase just about anything from companies that provide their products online. Books, clothing, household appliances, toys, hardware, software, and health insurance are just some of the hundreds of products consumers can buy from an online store.

Many people choose to conduct shopping online because of the convenience. For example, when a person shops at a brick-and-mortar store, she has to drive to the store, find a parking place, and walk throughout the store until she locates the products she needs. After finding the items she wants to purchase, she may often need to stand in long lines at the cash register.

In

contrast, online shopping helps

consumers

avoid

these

disadvantages. With online shopping, a person logs onto the Internet, visits the store's website, and chooses the items she desires. The items are held in a virtual shopping cart until she is ready to make her purchase. The shopper can remain in her pyjamas as she does her shopping, and the process can be conducted in the wee hours of the morning or late into the night. Online stores never close they're open 24 hours a day.

Despite the convenience of online shopping, not everyone chooses to purchase items and services online. Some people like the idea of physically going to a store and experiencing the shopping process. They like to touch the merchandise, try on clothing, and be around other people. Online shopping doesn't permit shoppers to touch products or have any social interaction. It also doesn't allow them to take the merchandise home the same day they buy it.

Other people may worry about shopping online because they fear their credit card information will be compromised. Since it's necessary to provide credit card information when purchasing products online, people worry they may become the victims of identity theft. This discourages some consumers from participating in online shopping.

Another reason some consumers avoid shopping online is the fact that they worry that the products they purchase are not accurately portrayed in the website's picture. They worry that the picture of the item may appear one way, but the actual item may look completely different perhaps of lesser quality. It's also impossible to try on apparel when conducting online shopping.

A consumer has to rely on body measurements in order to make sure the clothing will fit properly. If the clothing arrives in the mail and it's too small, the consumer has to return the item. This is a potential inconvenience that some shoppers may not wish to face.

THE ONLINE SHOPPER'S CHECKLIST


There are lots of benefits to shopping onlineyou can save time, effort and sometimes even money. But online shopping is different to purchasing face-to-face. People can planned purchase against the following points to help ensure people have an easy and safe online purchase. The seller Before people buy anything online, get to know the seller people need to know their contact details in case something goes wrong a reputable business should make this information easy to find. A reputable business should also have good customer feedback - friends, family or other customers rate them highly. The product or service Read and look at the advertisement carefullymake sure that it is exactly what people want. Consider the features and specifications such as make, model, dimensions, condition, age, functions, customer service and support. If people are unsure about something, ask the seller for more detail before committing them self.

The terms and conditions Before buying, understand exactly what is involved in the purchase. The terms and conditions of people for purchase should be outlined by the sellerthey may be located on a separate web page to the advertisement. They should be clear and outline any extra warranties offered by the seller, or policies covering security, privacy and returns. The process People must be clear about the payment and delivery processes including method and important dates. The seller should have a complaints procedure in place for if things go wrong. They should provide customer support for any queries or problems. The total cost Make sure people know the total cost of people planned purchase. Like they should mention whether they include the advertised price include delivery, insurance and handling cost or there any taxes or duties.

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The payment Only go ahead with the purchase if people are comfortable with the payment method. If paying electronically, make sure that the seller uses a secure payment system that encrypts your financial details. Look out for a padlock symbol and the web address starting with https:// this indicates a secure payment process is being used. However, be aware that scammers may be able to reproduce symbols to give you the impression that a fake website is secure. If you have doubts, it is safer not to proceed. The paperwork The copy of any forms, emails, documents or WebPages have filled in, read or receivedthey are a record of the sale and will come in handy if something goes wrong. This includes the advertisement, pictures, any policies (privacy, security or refund), the terms and conditions, buyer questions, receipts and payment forms.

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EXECUTIVE SUMMARY
Now a day, online shopping has become popular among people, they have become techno savvy and feel very comfortable in using internet. So online shopping has becoming a trend that is why we thought to make a study on online shopping usage. In the course of study various interesting facts were arrived. A questionnaire was prepared having pointed an interesting information having options. Our group visited people of different age groups to get the questionnaire filed. We helped them understand some questions so they could give us correct information. The information gathered was compiled and analyzed to arrive at the very purpose of study. However we did not fine difficulty in getting the questionnaire filled by various segments as questions touched their heart. People were filling questionnaire very keenly. It is interesting to know that people in the age group of 15 to 30 years use online shopping more as compared to other age groups. Normally in this age group students and professional people fall. It came to know that people frequently visit the snap deal and flip kart for online shopping.

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WHY DO PEOPLE PREFER ONLINE SHOPPING

Some reasons given below why Online Shopping is liked by many: Convenience The convenience of this method of shopping is what like best about it. Where else can people do shopping even a midnight wearing your night suit? People do not have to wait in a line or wait till the shop assistant is ready to help people with the purchases. People can do shopping in minutes even if they are busy apart from saving time and avoiding crowds. Online shops give us the opportunity to shop 24 hours. Better Prices Another thing which fascinates people is the cheap deals and better prices they get from online stores because products come direct from the manufacturer or seller without middlemen involved. Many online shops offer discount coupons and rebates.

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Variety The choices people can get for products are amazing. One can get several brands and products from different sellers at one place. People can get in on the latest international trends without spending money on airfare. Send Gifts Online Shopping makes sending gifts to relatives and friends easy, no matter where ever they stay. Comparison of Prices Online shops make comparison and research of products and prices possible. Online stores also give people the ability to share information and reviews with other shoppers who have firsthand experience with a product or retailer.

Compulsive Shopping Many times when people go out on Shopping people end up buying things which we do not require because of the shop keepers up selling skills. Sometimes we even compromise on our choices because of the lack of choices in those shops.

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STATEMENT OF OBJECTIVE
There are multiple principle goals of online shopping which are determined by the end user. General Goal: Time and Energy saving It is time saving and energy saving. Person can easily login to online site while sitting at home. So by this we can say that it is time as energy saving. Availability People while sitting at one place, can reach to number of products with different varieties and can order them and would get them at their door step. Comparison of Products Online shopping gives the benefit of comparing the products on the various attributes like pricing, texture, substitution of products etc. Thus, our aim of our project is to have understanding about the online shopping behavior among different age-shoppers.

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METHODOLOGY
1. Deciding the subject of Research Initially we had a lot of ideas for survey-based project. Then it was mutually decided that the survey sample should be huge. So we decided to take a subject in which we can get wide range of sample size. In order to face 21st century internet prepares people of different age groups to adapt to social and technological changes that are taking place at an unprecedented rate. In this context internet especially is a resource for continued education for the acquisition of new knowledge and skills, for gaining information through media. Online shopping is an example of internet

2. Framing appropriate Questionnaires The initial steps of our project was to frame a less complicated questionnaire so that our sample have a clear idea what is being required from them and save their precious time . The questionnaire was constructed to mirror many of the queries that have been asked in previous studies of online shopping, internet usage (i.e. between 15-30 years, 30-45years, 45-60 years)

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Space boundaries Space boundary means the area that we have covered for the survey. In this research, the scope for the survey was Ahmadabad, Rajkot, and Gandhinagar. This aspect focuses on how the youth people have change their buying method and has become techno savvy.

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TYPES OF DATA SOURCES


Basically there are two types of data: 1) Primary data 2) Secondary data 1) Primary data: Primary data are those data which are collected for the first time, taking a sample, representing a population. It is not a published data, it is problem specific data collected by the researcher, and it becomes the secondary data for everybody, other than the researcher. It can be collected in five ways: 1. Observational research 2. Focus groups research 3. Survey research 4. Behavioral data 5. Experimental research

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For this project we used primary data only. We adopted the survey method to collect the primary data. Once the decision of collecting primary data is taken, one has to decide about mode of collection. We took the help of a structure questionnaire to collect the information from the readers.

2) Secondary data: Secondary data are those data, which are already published. It may be useful for many other persons than the researcher who published it. There are various sources of secondary data collection. They are: 1. Government sources 2. Commercial sources 3. Industry sources 4. Miscellaneous sources

As our subject is based on psychology of the people, we do not have any secondary data.

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DATA COLLECTION METHODS


A market researcher has a choice of three main research instruments in collecting data namely: 1. Questionnaires 2. Qualitative measures 3. Mechanical devices

-We have chosen questionnaires as the research instrument. -A questionnaire consists of a set of questions presented to respondents. -Because of its flexibility, the questionnaire is by far the most common instrument used to collect the primary data. -Questionnaires need to be carefully developed and tested before they are administrated on a large scale. -In preparing questionnaire, a researcher carefully chooses the questions, their formation and working sequence. The formation of questions can influence the response.

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-Market researcher distinguishes between close-end and open end questions. Close-end questions specify all the possible answers and provide answers that are easier to interpret. Whereas open-end questions allow respondents to answers in their own words and often reveal more about how people think. They are useful in exploratory research, where the researcher is looking into how people think rather than measuring how many people think in a certain way.

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SAMPLING DECISIONS
We have undertaken target -oriented method for sampling. Our target research included library, bookstores, households, schools and colleges and public places. Sample size: Our sample is 360. We surveyed 360 samples, which were bifurcated into 208 are male and 152 are female who use the internet for purchase. Sample space: The sample space of study consisted of 360 men, women, belonging to different occupations, reading habits, qualification and monetary status.

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Questionnaire
(We would like to know more about how you use online shopping. You can help us to learn more by filling out the questionnaire. We do not share your answers with anyone else so they remain confidential if you have any questions please ask your presenter.)

1. Name :________________________________________ 2. Address :________________________________________ ________________________________________ ________________________________________ 3. Contact No:_______________________________________ 4. E-mail Id:_________________________________________ 5. Gender : Male Female

6. Age-group: Below 15 15-30 30-45 45-60


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7. Place of residence Rajkot Ahmadabad Gandhinagar Other please specify_____________________________

8. Occupation: Student House-Wife Government Employer Business Others

9. Monthly Income Below10000 10000-25000 25000-35000 35000-45000 45000-above

10. Do you use internet? Yes No


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11. How long you have been using internet? Less than 1year 1-3 years 3-5years More than 5 years

12. On an average how much time you spend on surfing the web? 0-5hrs 6-10hrs 11-15hrs. 16-20hrs More than 20hrs

13. For what activities you use internet? Social networking Information gathering Entertainment Finance Shopping

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14. Where do you most often access the internet? Home Office/ college Cyber Caf Others please specify__________________________

15. Have you done online purchase? Yes, continue to buy, yes, but discontinued, Never

16. Which one is better for shopping as per your view? Online shopping Manual shopping

17. What would you purchase through online shopping? Clothes Electronics Jeweler Accessories Other please specify______________________

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18. What would be your main motivation for buying through online shopping? (Rank from1 to5, 1 is highest) saves time Easy of purchase through online Avoided hassles of shopping in store Price Superior selection/ Availability

19. Overall, were you satisfied with your experience of online shopping? Yes No Cant say

20. What according to you is most alarming barrier to purchase online? I am worried about giving my credit card no. I like to see the product in personal before buy it The process is expensive due to access Insecurity& Net connectivity trouble

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21. Do you think online shopping is expensive or not in comparison of manual shopping? Yes No

22. In online shopping delivery of goods is more time consuming or not? Yes No

23. Did you face any problem while making online purchase? Yes No

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24. If yes, what are the problem that you faced while making purchase transaction through online shopping?( more than one) Pages took too long to load that I gave up, Site was so confusing that I could not find the product Desired product was not available System logged off before compulsion Tried & failed to contact customer service Wrong/ Bad product arrived & could not return Others please specify _____________________________ _____________________________

25. What was the impact on your online shopping behavior in general? Stopped shopping online, Stopped shopping online but for only product or category of product, It had no impact what so ever, Others please specify _____________________________

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26. Which is your favorite site for online shopping? www.skyshop.com www.shapdeal.com www.flipkart.com www.yebhi.com other please specify_______________________________ ________________________________

27. What amount of your monthly salary do you spend on online shopping? 10%, 20%, 30%, 50%, more than 70%

28. If the product has the same price both in shops &on the internet, where do you prefer to buy it? Shops Internet

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29. Any suggestions ____________________________________________ ____________________________________________ ____________________________________________

THANK YOU

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DATA ANALYSIS

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Q. What Is Your Occupation? Occupation Student Housewife Government employer Business Other Total 43 27 208 4 9 152 47 36 360 Male 123 0 15 Female 109 24 6 Total 232 24 21

OTHER BUSINES GOVERNMENT EMPLOYER HOUSEWIFE STUDENT 0 0 4

27 43 15 24 109 50 100 FEMALE MALE

123 150

Conclusion: Majority of the population in the sample are students i.e approximately 45% of the sample size are students with business people being the 2nd major occupation.

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Q. How Long You Have Been Using Internet? Years


LESS THAN 1 YEAR 1-3 year 3-5 year MORE THAN 5 YEAR

Male 49 67 57 35 208

Female 53 44 28 27 152

Total 102 111 85 62 360

Total

Internet using
120 100 80 60 Internet using 40 20 0 less than 1 year 1-3 yr 3-5 yr more than 5 year less than 1 year, 102 1-3 yr, 111 3-5 yr, 85 more than 5 year, 62

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Conclusion: Male consumption of internet is on yearly basis is highest than that of females. Around 35 males out 360 are enjoying the benefit of internet since last 5years with 27 that of females. 67 males have been using the internet service from last 3 years with 44 of females on the next end but since last 1 year the usage of internet among females have increased in comparison to males.

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Q.Activities for Which Internet Is Using Activities Social networking Information gathering Entertainment Finance Shopping 91 34 58 50 10 34 141 44 92 Male 115 120 Female 103 98 Total 218 218

250 200 150 100 50 0 Social activities Information Entertainment gathering Finance shopping 115 120 91 10 34 34 58 Female Male 103 98

50

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Conclusion: The activity for which internet is used majority is for gathering information i.e. through various websites and the second major activity is social networking. Around 115 men and 103 females used internet for enhancing their knowledge. Internet services for dealing in shares, investments, stocks are least only 34 from males and hardily 10 females use internet for activities relating to finance.

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Q. Main Motivation for Buying Through Online Shopping. Rank Saves Easy of time purchase through online Avoided Price hassles of shopping in store 1 2 3 4 5 193 81 48 28 10 60 68 105 90 36 39 77 67 96 77 52 106 55 70 71 16 25 85 70 157 Superior selection/Availability

200 180 160 140 Easy of purchase through online 120 100 80 60 40 20 0 1 2 3 4 5 Superior selection Avoided hassles of shopping in store Price Saves time

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Conclusion: From the above we can say that majority of people think that online shopping helps in saving time of customers with easier purchasing being the next motivating factor.

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Q. What according to you is the most alarming barrier to purchase online? Barriers Male Female 44 Total 122

Worried about giving-out credit card no.+ 78 personal info. To see the product in personal, before buy 108 it. The process is expensive due to cost of access. Insecurity + Net connectivity trouble. 22 22

89

197

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21

43

40

200 180 160 140 120 100 80 60 40 20 0 Worried To see the The process is Insecurity + about givingproduct in expensive due Net out credit personal , to cost of connectivity card no.+ before buy it. access. trouble. personal info. 78 108 9 22 21 22 44 Female male 89

Conclusion: When analyzed the major barriers of online shopping majority of males and females i.e. 108 males and 89 females considered product visibility i.e. to see the product in personal information being the 2nd .

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Q. What is the problem that you faced while making purchase transaction through online shopping? Problems Pages took too long to load that I gave up. Site was so confusing that could not find the product. Desired product was not available. System logged off before compulsion. Tried & failed to contact customer service. Wrong/Bad product arrived & could not return. 18 8 14 17 26 10 18 23 44 8 32 40 Male 8 24 Female Total 17 28 25 52

Wrong/Bad product arrived & could not return. Tried & failed to contact customer service. System logged off before compulsion. Desired product was not available. Site was so confusing that could not find the product. Pages took too long to load that I gave up. 0 8 8

17 14 10 18

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Male 18 24 17 10 20 30 40 50 60 26 28 Female

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Conclusion: Around 20% of people feel that site is very confusing to find the right product. The other problems which are rated according to the people are that 10% feel that they do not get the desired product with wrong or bad product being the next problem.

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FINDINGS
After completing all data analysis, we decide to compute
2 X

test to

check whether the 2 attributes of our interest are independent or not. We test our null hypothesis at 5 % level of significance. Here in all chisquare procedure we considered as there is relation between two attributes of our interest.

Now if the P value is less than 0.05 the hypothesis will be rejected and there is a relation between two attributes and they are said to be dependent.

If P value is greater than 0.05 the hypothesis will be accepted and they are said to be independent.

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Q. Products and occupation.


Occupation/prod clothe electroni jewele accessori othe Tota uct Student House wife Government employer Business Other Total 14 9 116 32 25 175 3 3 34 9 4 74 8 3 50 66 44 449 s 77 9 7 c 96 10 12 r 21 7 0 es 45 8 8 r 39 0 0 l 278 34 27

Ho: Products and occupation in online shopping are independent. P value: 0.071298 So, P > 0.05 Therefore Ho is accepted. Conclusion: We may conclude that product and occupation in online shopping may be regarded independent.
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RECOMMENDATON
- They should provide complete information about their products and should make site simple so that common people can understand how to make purchase - As in online one purchase goods through credit cards but one can use the approach of cash payment during delivery - One can use more animation through which they can attract more customers One can use the approach of credit points i.e. if one purchase for the first time they get credit points due to which if they purchase for the second time they can get discount of that much points. Due to which one increase the repurchase.

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LIMITATION
In this project we have faced various difficulties, starting from setting the objective, collecting the survey sample, problem recognition, consulting target market and conducting the survey to complete the project. - One of the major problems faced by us was time. Some people were not readily available for the survey - Some responder were not able to share about their

information regarding their credit card and personal information as it can be leaked - Some people lack interest in giving feedback to our questionnaire Middle- age group and old age people prefer traditional method of buying - There is a fear among consumers that while buying online there can be risk of getting their ordered products or might they can lose their money.

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CONCLUSION
After having detail study on Online Shopping one can see a great change in the behavior of people in many manners like their attitude, buying pattern. In earlier times people use to do manual shopping but now as time changed people are becoming busy and due to which technology has brought a new revolution i.e. Online Shopping. As we started doing survey it came to in notice that young age group people i.e. 15-30 uses or prefer online shopping because it is time and energy saving. But middle-age group does not prefer much because they have wrong perception that by seeing the product one can get the goods of proper quality. And even some people does not prefer using plastic money i.e. credit cards. But online shopping has a great future but to be successful it is necessary to spread awareness about its benefit.

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BIBLIOGRAPHY

-Google -Philip Kotler

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