SYNOPSIS

RESEARCH TOPIC-

COMPARATIVE ANALYSIS OF CONSUMER PREFRENCES

REGARDING ONLINE SHOPPING TO PHYSICAL STORE

SUBMITTED TO-

SUBMITTED BY

Dr. Pradeep Bawa

Mohd Najeebullah.
Gulshan Kanojia
Sandeep.

TABLE OF CONTENT

S.N

PARTICULARS

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Introduction
Review of literature
Need of study, objective of study
Research methodology
Sample design
Refrences

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INRTODUCTION:Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using 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
communicates and disseminate information, to sell 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 the
will receive if they purchase the product from a physical store.
Sometimes the customers due to certain reasons always prefer to go and buy physically in store,
so that they can feel the product before they can make decision to buy, customers in order to be
fully satisfied always prefer to go to a shop instead of purchasing the product online .Earlier
when E-commerce was not so popular people use to go to kirana shops and mom and pop stores
and other apparel vendors to buy various products.
Many experts are optimistic about the prospect of online business. In addition to the tremendous
potential of the E-commerce market, the Internet provides a unique opportunity for companies to
more efficiently reach existing and potential customers
.It has been more than 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. Their have been many
researches on the consumer behavior regarding online shopping but this research paper focuses
on the behavior of customers buying online or they go for physical stores.

REVIEW OF LITERATURE
1.1 Online Shopping: Advantages over the Offline Alternative
By Dr Joshua Chang
In this article the author high lightened the paradigm shift from physical stores to online
shopping. This all is happening because of following reasons
1. Convenience and time-saving
2 .Powerful research instrument
3. Lower search cost and better product selection
4. Better price information and lower prices
On line shopping has become more convenient to many people who are strapped off time,
because of busy schedule they hardly find any time to visit physical stores. Online shopping
provides a lot of information and provides a base to search for different products of necessity. In
addition to this it provides immense information regarding prices, quality, and different offers
available along with them. Searching for a product online is very cost effective, with less time
and money, they can find what they want exactly in no time. They not only book their order in
their city but also go outside to book the same, this facility does not come with physical stores.
Moreover people would like to bargain on online shopping but speedy delivery and wide
selection are important factors which derives customer to focus more on facilities provided by
online shopping.
Importance to our research- The very article focused on the behavior of consumer towards
online shopping benefits. What are the important factors which are pushing them more towards
online shopping.

1.2 2009 Survey of Online Consumer Behavior

Harris Interactive (2009)in his

study of online customer experience, found that online

customer experience reached an inflection point in 2009. The percentage of consumers who have
experienced problems when conducting transactions decreased from approximately 87% in all
previous surveys to 80% in 2009. While the percent of consumers experiencing online
transaction problems, at 80%, remains high this improvement points to a growing business focus
on delivering better customer experiences. The survey sheds light on forces driving this
accelerated online customer experience focus, including the down economy and increased
consumer power due to experience-sharing via social media. It also examines consumer behavior
when transacting online, call center behavior related to online issues and mobile commerce.
Verticals represented in the findings include retail, insurance, travel and financial services.
Importance to our research-This study will help in knowing the various forces and factors
which have made customers focused towards online shopping and why the percentage of people
is moving towards E-buying.

1.3 Understanding online purchase intentions: contributions from technology

and trust perspectives
By- Hans van der Heijden , Tibert Verhagen1 and Marcel Creemers

Here in this article the two main area of consideration which affect the online shopping behavior
are: ease-to-purchase trust on existing reputed websites which provide quality and hassle free
services to their customer. People would like to shop more on which they are having trust. In a
study it has been found that the design of the website, its content and type of services provided
triggers the very trust on the site and promotes the consumer to go for online shopping. There
was a mention of a model of TAM( technology acceptance model). In this model with the advent
of internet age people are getting more inclined towards it, and with the introduction of online
payment mode has also facilitated the consumer to access the market at there keyboard (hans van

der Heijdenl, 2003)impression . Consumer find it more convenient to shop online instead of
having shop from physical stores. These very factors are promoting more online shopping
behavior rather than physical one.
Importance to our research- In above mentioned summary of the article, the online shopping
behavior of the consumer was high lightened and showed additional information ( technology
acceptance and ease-to-purchase)

1.4 E-Commerce & Security & Consumer Behavior

By - Kamali and Loker (2002)
In this research study Internet retail sales represent a new and increasingly vital commercial
surroundings. E-commerce or electronic commerce saw sales revenues grow 12.1 percent in
2001 to $31.4 billion a figure expected to reach $81.1 billion by 2006 (as per the study). While it
is clear that many more consumers are now electing to shop online rather than going to a shop a
shift in behavior that may be due to the sense that online shopping is safer and more secure than
it was initially.
Importance to our research This study will help in knowing that whether safety, product
quality, and reliability are the reasons due to which the customers are now buying online.

1.5 Identifying purchase perceptions that promote frequent E-commerce

buying
By- Thomas W. Dillon, Harry L. Reif
This research paper identifies the factors that influence the e-commerce buying patterns of
consumers.

Sample size of 190 adults was taken to examine consumers' demographic

characteristics and purchase perceptions as they are applied to the frequency of e-commerce
buying. The Results showed that younger and better educated customers those have computer
and internet experience are more prone to buy online than the other customers going to store . An
elevate number of children in the household were also found to increase shoppers' propensity to

make e-commerce purchases. Additionally, the four purchase perceptions of customer service,
shopping experience, consumer risk and product perception were all found to influence buying
patterns. Shopping experience, which includes a mixture of effort, lifestyle compatibility, and
enjoyment, was found to be most prominent.
Importance to our research-This research study done earlier tells us the the influence buying
pattern ,whtat do the customers think and will help us to know the perception of customer buying
frequently online .

1.6 ANALYSIS OF CONSUMER BEHAVIOR ONLINE

Author:DejanPetrovic
Published: 2007
This article also deals with the online shopping behavior of the customer. In this article their has
been a mention of a research by Shun & Yunjie (2006) showed that there are product types,
which are more likely to be sold online such as software, books, electronics and music. Reason
for this is that when purchasing these types of products, one does not require personal inspection
and most, if not all features, can be outlined in the product description and images. Most
products in the mobile phone family belong to this category. Before going for an online shopping
they preferably search for its features and make it sure that when they made an order the received
one matches with it. Consumers are also not likely to buy anything online unless complete
product information is available. One of the additional finding in this article was that online
pricing strategy may strongly affect consumers in a number of ways. Part of the research paper
on consumption decisions and personal rules (Amir, Lobel & Ariely, 2005) focuses on pricing
consistency impact in online environment. Online shopping person also consider human reviews
more than automated recommendations
Importance to our research- The main factors responsible for online shopping according to this
article are

Information availability

Display of pricing of products

Consumers value human reviews more than automated recommendations

This article also pin point the factors which derives the consumer for online shopping.

Shopping1.7 Shopping Mode Choice: Physical Store Shopping Versus EAuthors: Hsiao, Ming-Hsiung, Sue-Te University

This study had been done to know how consumers evaluate these time attributes; when they are
making a shopping mode choice between physical store shopping and online-shopping. For this
purpose, it conducts an experiment to collect data on consumer preference choices between
physical bookstore shopping and online bookstore shopping. It is finally found that the value of
delivery time for a purchased book from an online bookstore to a consumer is approximately
$0.53 per day, which means an online bookstore will have to lower a book's price by $0.53 to
attract a physical bookstore shopper if the delivery is delayed for one day. It is also found that in
terms of monetary values, avoiding a shopping trip produces far more benefits than bearing
waiting for the delivery of books for an online purchase.it canhelp me in finding the factors that
effects the consumer choise while buying either online or a physical store..

1.8 The impacts of E-retail on the choice of shopping trips and

delivery: Some preliminary findings
By- Orit Rotem-Mindali, Ilan Salomon
Transportation Research Part A: Policy and Practice (2007)
in this article the auther has compared the two store one is traditional and second one the online
shoping and the problems faced by them during the physical shoping. Traditional shopping
activities typically consist of a visit to a store in which product information is sought, and a
decision on purchase is made. Pending that decision, the product is obtained and most often selfdelivered by the consumer. Certain types of products are store-delivered to the consumer

premises. In the face of E-retail, consumers can acquire information, make a purchase transaction
and choose a delivery arrangement from a remote location. These options may result in a
reduction of transport activity, as a delivery by the supplier is potentially more efficient than the
traditional process. The current study presents a conceptual model of the (Rotem-Mindali,
2007)decisions households make with regard to information gathering, purchase transactions and
delivery mode. Data on revealed behavior and

economic characteristics of shoppers was

collected and analysed .by this article we find that what are the problems and what are the
benefits of online shopping in the mind of consumer and how it effects

1.9 Online versus conventional shopping: consumers' risk

perception and regulatory focus.
by Guda Van Noort, Peter Kerkhof, Bob M Fennis
Cyberpsychology and Behavior (2007)

In this author had conducted two experiments and found , the impact of shopping context on
consumers' risk perceptions and regulatory focus. We predicted that individuals perceive an
online (vs. conventional) shopping environment as more risky and that an online shopping
environment, by its risky nature, primes a prevention focus. The findings in Study 1 demonstrate
these effects by using self-report measures for risk perception and prevention focus.
In Study to, we replicated these findings and demonstrated that the effect of an online shopping
environment carries over to behavior in a domain unrelated to shopping.

1.10 Testing Behavioral Hypotheses Using an Integrated Model of

Grocery Store Shopping Path and Purchase Behavior

By- Sam K Hui, Eric T Bradlow, Peter S Fader

Journal of Consumer Research (2009)
Here in this research journal 100 respondents were taken into consideration for his study. As our
topic is regarding the consumer behavior we find that they had examine three sets of established
behavioral hypotheses about consumers' in-store behavior on grocery store shopping paths and
purchases.the results provide field evidence for the following l regularities. First, as consumers
spend more time in the store, they become more purposeful-they are less likely to spend time on
exploration and more likely to shop/buy. Second, consistent with "licensing" behavior, after
purchasing virtue categories, consumers are more likely to shop at locations that carry vice
categories. Third, the presence of other shoppers attracts consumers toward a store zone but
reduces consumers' tendency to shop there.here they has given the reasons for the shoping it will
definitely help in our topic

1.11 Impact of demographic on online buying behaviour towards different

products
By- A.M. Sakkthivel
This article identify the impact of demographics on consumer buying behaviour towards online
purchase of different products based on the involvement and investment It attempts to bring into
light the impact of the demographics on online purchase which is at present is very high in big
cities . It would help the marketers to identify the demographic profile of consumers which is not
known to the marketer due to the nature of internet .A sample of 120 respondents were taken by
the researcher to do his analysis . The findings would help the person and the company to design
their offerings based on the demographic profile of online consumers and would help the online
marketers to identify and segment the online consumers which will enhance their focus and
eventually leads to financial growth.

1.12 Consumer Online Shopping and Payment Experience Shape In-store

Expectations Cisco Internet Business Solutions (IBSG) Primary Research
With the advent of new technology ,the payment of bills have become more easier whether it be
mobile payment or online payment, consumer always want hassle free transaction or bill
payment. The problem which are faced while shopping in physical stores are50 percent say the checkout process takes too long
48 percent say items were not in stock
(consumer online shopping and payment experience shape in store expectations) 46 percent say
they were unable to find the items they wanted
22 percent say they did not always have applicable coupons or offers with me
20 percent say it was hard or time-consuming to keep track of receipts
These problems are not generally faced when opted for online shopping.
In a survey in this article, 50 percent of respondents indicate checkout process takes too long
as one of their biggest inconveniences when paying for goods. 20% cited security concerns at
checkout. In our research, only cash scored low on security concerns. Nearly 60 percent of
respondents who have set up one-click online showed strong interest in one-click checkout
via a terminal in physical stores.
Importance to our researchThis article focused mainly on the payment habits of the consumers, as the find it difficult to pay
and wait in queues to pay which is totally absent in online shopping. This very behavior is also
important for while considering the shopping behavior.

1.13 How do consumers perceive the reliability of online shops

Tomomi Hanai, Takashi Oguchi
Nikkei Media Marketing, INC., Japan
The purpose of this study was to investigate what kind of information contributes to trust
formation in online shopping. Twenty-seven female undergraduate students were recruited and

asked to evaluate the trustworthiness of 20 online shopping websites. All the online shopping
websites dealt with branded products where there is greater emphasis on the trustworthiness of
online shops or products. The results show that information described on the websites was
classified into two categories, firstly, information about the shop and its procedures and services.
Secondly, the concrete information necessary for the consumption process, such as payment
information and return information, which heightens the reliability of these shop (Hanail)s.
The results of the study reveal that the information about the procedures and services of online
shops, which includes the concrete information necessary for the consumption process, such as
payment information and return information, heightens the reliability of these shops. As the
transactions of online shops are different from that of real shops, online shopping requires time
and spatial intervals for transactions between consumers and shops. In the transactions of real
shops, consumers and shops exist and transact with each other in the same place at the same
time. This enables consumers to inquire about any problems or worries they have on the spot.

Importance of research-this article will help us to know that why do the customer think that the
online shopping is safe and online shopping is more reliable which will help us in identyfing the
factors responsible for reliability of online stores.

1.14 Information integration across online and offline shopping environments

and its effect on consumers purchase decisions (Cabe)
By Deborah Brown McCabe, Ph.D.
University of Arizona
and Stephen M. Nowlis, Ph.D.
Arizona State University
This paper focuses on how consumers use information from both online and offline sources to
arrive at purchase decisions. Sometimes a consumer starts to gather information about a product
from the Internet and then searches for the same product in a brick-and-mortar store. At other
times, a consumer starts shopping for a product in a brick-and-mortar store and then searches on

the Internet. In this paper, there is a look at the effect on consumer preferences of differences in
online and offline information and how this information is integrated.
The experimental study finds different results for products with material features and products
with geometric features It was found that the consumers prefer material products more when they
first examine a product online and then see it offline than when they examine a product offline
first and then online. In contrast, it was also found that consumers equally prefer geometric
products online to offline or offline to online. It also examines the effect of discrepant
information across online and offline environments. When consumers are exposed to discrepant
material information, they prefer material products more when examining products online first
and then offline than in the offline to online order. However, when consumers are exposed to
discrepant geometric information, they equally prefer geometric products in online to offline and
offline to online orders.
Importance To Our ResearchIt helped us in knowing that the consumers prefer material products more when they first
examine a product online and then see it offline than when they examine a product offline first
and then online.

1.15 Consumers Behavioral Intensions Regarding Online Shopping

By- Shefali kumar

The article investigates the consumers intensions towards internet shopping and provides a deep
exhaustive review of the literature and also proposes a research framework with three key
building blocks so as to analyze the online consumer behavior in a systematic way. This
proposed framework not only provides us with a cohesive view of online consumer behavior, but
also serves as a salient guideline for researchers in this area. The behavioral intension is
predicted by using the theory of planned behavior which is a function of attitude, subjective
norm, and perceived behavioral control, demographic and personal characteristics.

Importance to our research- This article helped in knowing about the consumer behavioral
intensions about the online shopping by using the theory of planned behavior.

1.16 Differential Effects Of Product Category On Shoppers Selection Of WebBased Stores:

By- Oded Lowengart
Department of Business Administration
School of Management
This study analyzes the probability of buying products from a particular online store given a set
of alternative vendors. It use a multinomial logic choice model to analyze experimental data of
consumer choice in two product categories - books and computers, each of which represents
goods that differ along the risk dimension. Books represent search-quality, cheaper products,
while computers represent experience-quality, more expensive products. Our modeling approach
enabled us to capture the competitive environment of Internet shopping and at the same time
obtain diagnostic information about the salient factors in the choice process. The results indicate
the existence of differences in terms of the dimensions considered by consumers when buying
high- vs. low-risk goods. It is also found that when purchasing computers online, aspects of
uncertainty and risk were more salient than when purchasing books online.
Importance to our research- This article tells us about the various probability of the buying
behavior of the customers from a particular store and its comparison with the alternative vendors.

1.17 Creating Value For Onlinf, Shoppers: Iimiplicat'ions Forsatisfaction And

Loyalty
By- Ean-Ju Lee, Chung-Ang Uniremidy
Jeffrey W. Overby, Florida State University

The article considers the customer value to be the foremost driver of competitive advantage in
the shopping environment. This study identifies two types of online shopping values- utilitarian
value including price savings, service excellence, time saving, and selection dimensions and
experiential value including entertainment, visual, escape, and interaction dimension. The impact
of these online shopping values upon consumers satisfaction and loyalty is examined by using
the structural equation modeling and the result indicates that the internet shopping does invoke
various types of shopping values and that both the utilitarian and experimental values positively
affected customer satisfaction, leading to heightened loyalty.
Importance to our research- This paper have helped us to know the satisfaction level that is
created in the customers after doing the online shopping and the loyalty of the customer by using
the structural modeling equation.

1.18 A Survey Of The Effect Of Consumers Perceived Risk On Purchase

Intention In E-Shopping
By-Mansour Samadi
This research paper aims to compare the perceived risk level between Internet and store
shopping, and revisit the relationships among past positive experience, perceived risk level, and
future purchase intention within the Internet shopping environment. To achieve the research
objectives and test hypotheses, paired sample t-test is used to analyze the mean differences of the
individual and overall perceived risk levels in two buying situations. In addition, to analyze the
relationships among shopping experiences, perceived risk, and purchase intention variables,
Pearson correlation analysis and linear regression are used. The research revealed that consumers
perceived more purchasing risk from the Internet than from the store. A more positive online
shopping experience led to consumers less perceived purchasing risk level in the Internet. And a
higher perceived risk led to less future purchasing intention from the Internet. This research
provides marketers with the importance of the consumers risk perception and associated riskreduction strategies in the Internet shopping environment. For marketers, awareness of the
attributes of risk perception is important because consumers perceived risk level becomes a
crucial factor in Internet purchasing.

IMPORTANCE OF OUR RESEARCH-This paper tells us about the various risks that the
customer faces while doing the online shopping and the difference that they face while going to
the store and shopping and while shopping online.

2 .Need of the studyThe area of the concern in this research is to find out the behavioral pattern of consumer to
decipher their online and offline (physical stores) shopping. Which way they find it more
convenient to shop online or offline and the factors which are responsible for this behavior.

3. Objective of the study

To compare the shopping behavior of consumer for online and offline

To know whether there is a shift from physical shopping to online shopping attitude.

4. Scope of the study and methodology

Scope of the studyWith the onset of internet age, whole world is getting connected through it. It provides not only a
link between the people but also a platform to conduct business. Due to the rapid development
of the technologies surrounding the Internet, a company that is interested in selling products
from its web site will constantly has to search for an edge in the fierce competition, it has to find
additional consumer to increase profits. If these company would come to know about the
behavioral pattern of the consumer, regarding online and offline(physical stores) , it will be of
immense help for them to advertise their products online. By doing so they will cut on their cost on
advertisement and target the right consumer for right product. It will also help to find out that what
products they would like to shop online and what products offline. Analyzing the behavior of the
consumer is very beneficial to the company to devise the marketing strategy according to the bent
of mind. Since online retailing is a new retailing medium and online consumer behavior is diverse
from traditional consumer behavior, one must identify what influences the online
consumer.

Research Methodology
Nature of research- The research was descriptive in nature, as we were having the pre defined
problem, that we were to do a comparative study in the behavior of consumer for online shopping
and off-line shopping.
Research Tools- The tool used for research was a structured questionnaire as on the basis of
secondary data analysis we csme to know about the problem of study and variable so found in the
research and article in literature review, we prepared the questionnaire and recorded the response of
respondents.
Sample size- Sample size taken for study was 100-150 on the basis of researches done earlier.
According to an article Impact of demographic on online buying behavior towards different
products by A.M.Sakkthivel he took 120 sample for study.Similarly a research published in journal
by Sam K.Hui, Eric T Brandlow and Peter S Fader, it also mentioned a sample size of 100
respondents for their analysis.
Sampling method- Sampling was done on the basis of convenience basis. The students of Lovely
Professional University was taken into count, due to time constraint.
Source of data Source of data collection includes both primary as well as secondary. Primary
data collection includes reviewing of previous research papers and articles to decipher the variables
and secondary data collection includes questionnaire designed on those variables to collect data
from respondents.
Method of data analysisThe test which we implied to know the results, was factor analysis as we were analyzing the
factors which were responsible for behavioral difference in the shopping preferences for online and
off line(physical stores).

REFRENCES
1.Sakkthivel, A. (n.d.). Impact of demographic on online buying behaviour towards different products.
2. Cabe, D. B. Information integration across online and offline shopping environments and its effect on
consumer purchase decision. Arizona: University of Arizona.
3.chang, D. j. (2009). online shopping advantage over the offline alternative. 23-34.
4.consumer online shopping and payment experience shape in store expectations. Cisco Internet business
Solutions.
5.Hanail, T. How do consumer preceive the realibility of online shops . Japan: Nikkei Media Marketing
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technology and trust perspectives. Europian journal , 44-48.
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12.Rotem-Mindali, O. (2007). The impacts of E-retail on the choice of shopping trips and delivery :some
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14. Thomas W.Dillon, H. L. (2001). Identifying purchase perceptions that promote frequent E -commerce
buying. newyork.