Synopsis on

Impact of consumer involvement on

online purchase intension

SUBMITTED TO:

Mrs. Nupur

SUBMITTED BY:

Thiksha Yadav
Roll No.- 70

INTRODUCTION
Internet is changing the way consumers shop and buys 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, communicate 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 they will receive if they purchase the product from a
particular store. 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. Although most of the revenue of online
transactions comes from business-to-business commerce, the practitioners of
business-to-consumer commerce should not lose confidence. 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. Many of their studies have posited new emergent factors
or assumptions that are based on the traditional models of consumer behavior,
and then examine their validity in the Internet context.

ONLINE SHOPPING IN INDIA

The birth and growth of Internet has been the biggest event of the century. Ecommerce in India has come a long way from a timid beginning in the 19992000 to a period where one can sell and find all sorts of stuff from a high end
product to a meager peanut online. Most corporations are using Internet to
represent their product range and services so that it is accessible to the global
market and to reach out to a larger range of their audience. Computers and the
Internet have completely changed the way one handles day-to-day transactions;
online shopping is one of them. The Internet has brought about sweeping
changes in the purchasing habits of the people. In the comfort of one's home,
office or cyber cafe or anywhere across the globe, one can log on and buy just
about anything from apparel, books, music and diamond jewellery to digital
cameras, mobile phones, MP3 players, video. E-commerce revenues in the
country are projected to reach Rs 2,300 crore in the year 2006-07, growing at 95
per cent over 2004-05(Source: Internet and Mobile Association of India,
IAMAI). This pertains to the business-to-consumer (B2C) segment. It may be
too early to do a comparison with the e-commerce scenes in countries such as
the US where billions of dollars are spent online but the business in India is
growing exponentially every year, albeit from a smaller base, the total revenues
have reached a respectful size.

LITERATURE REVIEW
The current literature on consumer online purchasing decisions has mainly
concentrated on identifying the factors which affect the willingness of
consumers to engage in Internet shopping. In the domain of consumer behavior
research, there are general models of buying behavior that depict the process
which consumers use in making a purchase decision. These models are very
important to marketers as they have the ability to explain and predict

consumers purchase behavior. E-Business probably began with electronic data

interchange in the 1960s (Zwass, 1996). However, (Melao, 2008) suggests that
it was only in the 1990s, primarily via the Internet, that e-Business has emerged
as a core feature of many organizations. In his opinion, the hope was that eBusiness would revolutionize the ways in which organizations interact with
customers, employees, suppliers and partners. Some saw e- Business as part of a
recipe to stay competitive in the global economy.
Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan, Moez
Limayem,(2002) The topic of online consumer behavior has been examined
under various contexts over the years. Although researchers from a variety of
business disciplines have made significant progress over the past few years, the
scope of these studies is rather broad, the studies appear relatively fragmented
and no unifying theoretical model is found in this research area. In view of this,
provide an exhaustive review of the literature and propose a research framework
with three key building blocks (intention, adoption, and continuance) 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.
Burke, R.R. (2002), Trust is a key factor that determines the success of
Business to Consumer (B2C) e-commerce transactions. Previous researchers
have identified several critical factors that influence trust in the context of
online shopping. This research focuses on available security measures which
assure online shoppers safety and great sales promotions and online deals which
stimulate customers to shop online.
Abel Stephen (2003) in his paper represents the findings of research studies
that address e-commerce design and associated consumer behavior. The
innovation of e-commerce has affected not only the marketplace through the
facilitation of the exchange of goods and services, but also human behavior in

response to the mechanisms of online services. Researchers have identified and

hypothesized on relevant subject matters ranging from Web usability, marketing
channels and other factors influencing online buying behavior. Though
researchers have focused on what appear different aspects of online buying
behavior, their studies may be shown to be interrelated and interdependent, even
to the extent of revealing constructs upon which e-commerce, in terms of future
design and research, could be built.
Balasubramanian, S., Konana, P. and Menon, N.M. (2003), In this
environment, some traditional service quality dimensions that determine
customer satisfaction, such as the physical appearance of facilities, employees,
and equipment, and employees_ responsiveness and empathy are unobservable.
In contrast, trust may play a central role here in enhancing customer
satisfaction. Model trust as an endogenously formed entity that ultimately
impacts customer satisfaction and we elucidate the linkages between trust and
other factors related to the performance of the online service provider and to the
service environment.
Rajeev Kamineni (2004) in his study finds that World Wide Web can change
human behavior and human interactions to a very large extent. Web based
shopping behavior is one major example to point out the trends in this direction.
This study is of a very exploratory nature and it intends to establish the
differences between several web-based shoppers from different parts of the
world. Several critical factors associated with online shopping behaviour have
been explored. A cross cultural data set has been collected and an illustrative
description of the shoppers has been provided. As a final step the cross cultural
differences between several shoppers explored.
Archana Shrivastava, Ujwal Lanjewar, (2011) in online buying, the rate of
diffusion and adoption of the online buying amongst consumers is still relatively
low in India. In view of above problem an empirical study of online buying
behavior was undertaken. Based on literature review, four predominant

psychographic parameters namely attitude, motivation, personality and trust

were studied with respect to online buying. The online buying decision process
models based on all the four parameters were designed after statistical analysis.
These models were integrated with business intelligence, knowledge
management and data mining to design Behavioral Business Intelligence
framework with a cohesive view of online buyer behavior.

OBJECTIVES
Objective of the Study
The objective of this research study is to investigate online consumer behavior,
which in turn provides E-marketers with a constructional framework for finetuning their E-businesses strategies. The specific objectives of this research are:
1

To know the consumers awareness and perception about the products and

services provided on internet.

2 To know how it provides products and services and satisfies their customers.
3 To know how it reduces the uncertainty in purchase decision process.
Scope of the Study
1 The Study was conducted among the Internet users.
2 The Geographical area covered was college of vocational studies college
students.
3 The Study was based on a Schedule of Questions.
4 The scope of internet shopping
It was a time of past to spared your business in market by conventional
methods. Old market is today converted in high tech markets. Today if you want
to purchase any item from abroad you need not to go or you need not to call
them for a sample. You can find their products and see the catalogue on internet.

Internet enables you to shop throughout world from the comfort of your home.
Internet has some special characteristics which no other medium have. Only
internet can provide you such special information even no salesman can help
you as internet helps. Countless people can see products at a single movement,
as well as they can purchase the product same time. You can compare various
product and choose which is more useful for you, You have the facility to visit
websites as much as you like no restriction on you here you

will

find

approximately all world class brands and their products you have the facility to
compare them, arrange according to many types like by price, by size, by
category, by most salable item and many more. This facility enables you to
choose. This way of shopping provides a new way of shopping. You get to
identify the products, compare the prices and quality and view the products
from different angles. Testimonials and reviews are the unique feature of
shopping where you can share your experiences with other users/consumers.
The most exciting aspect of internet shopping is that it is a 24x7 affair! And you
are free to shop on your leisure hours and even holiday are useful for shopping
for you. Your time is best valued here. You need not to go market so no tension
of conveyance, pollution, traffic etc.
The other dimension is that you directly purchase the items from original
merchant in online shopping no mediator comes between you and merchant so it
becomes cheaper to purchase item. Fewer mediators less price. Merchant will
also save his money by selling of goods on internet. merchant need not to spent
for staff, showroom, other shop expenses. He can sale by less resources and less
expenses, some online store do not have their physical showroom they display
their product and services online and deliver goods on customer 's door such
merchant save a lot of expenses and they work in less capital thats why they are
able to sale goods on low prices.

Rationale of Study

Selling on internet has a large potential due to the very high targeting
possibilities As a result of this exceptional development, the online selling
industry is becoming interested in the use of internet to reach their customers.
Hence a better understanding of online shopping is critical to the effective use
of this channel of approach to the consumer. It is especially important to know
what is the consumers perception towards online shopping, benefits perceived
by them and what factors attract them towards online shopping.
Internet has a very bright future. If you want to increase your business and cross
the boundaries of region you need to take help of internet. Without going online
you cant think about your progress worldwide. In this regard you can see all
large scale business. Big brand, big shopping store are online. Online shopping
is the demand of todays modern time. Time and quality is the main subject of
online shopping.
RESEARCH METHODOLOGY
Research Objective
To know and understand the consumers perception and awareness about
internet marketing/ shopping. This will help to know the attitude and perception
of consumers towards online shopping and what are the factors which shape the
consumers perception towards online shopping. Also what are key concerns
from the point of view of consumer while online shopping.
Determination of information needs and sources
The following was the information required:

What is consumers attitude towards online shopping?

What are the key concern areas for consumers while online shopping?
Which factors shape the consumers attitude towards online shopping?
How has been recent shift taking place in online shopping?

Data Collection MethodPrimary Data

It is original primary data, for specific purpose of research project. For this
project, I have to use following common research instrument or toolQuestionnaireQuestionnaire development is the critical part of primary data collection
method. For this I will prepare a questionnaire in such a way that it will be
able to collect all relevant information regarding the project. The
questionnaire was designed using various scaling techniques. The
questionnaire was used mainly to test the model proposed for consumer
perception towards online shopping. Likert five point scales ranging from
Strongly Agree to strongly disagree was used as a basis of Questions. The
data collection was done over a period of 8 weeks
This was done by going directly to the respondents or through mails.
Secondary Data
It will be collected to add the value to the primary data. This may be used to
collect necessary data and records by different websites, magazines, annual
reports, journals, reference books, and newspapers, etc.

BIBILIOGRAPHY
http://en.wikipedia.org/wiki/online_shopping
http://ejournal.narotama.ac.id/files/9.pdf

www.ejbrm.com/issue/download.html?idArticle=100
shodh.inflibnet.ac.in/bitstream/123456789/300/6/06_references.pdf
dx.doi.org/10.4301/S1807-1775201300020000
shodh.inflibnet.ac.in/bitstream/123456789/300/6/06_references.pdf
http://www.ijsrp.org/research_paper_may2012/ijsrp-may-2012106.pdf