A PR

ROJECT REPORT
R
ON

A STUDY ON GROWING
G
G POPULA
ARITY OF ONLINE S
SHOPPING
G
WWW.SNAPDEA
AL.COM
A Report
R
sub
bmitted in partial
p
fulffillment of the
t requireements of M
MBA progrram

BY
D
DIVYA.N
REG NO: 35110
010191

UNDER THE
T
GUID
DANCE OF
F
Mrs. VASUMAT
V
THI HARIH
HARAN Assst Prof
MAY 2012
2

SRM
M SCHOO
OL OF MANAGEMENT,
SRM Naggar, Kattan
nkulathur,
Kanch
heepuram District,
D
Tamiil Nadu - 60
03203

SRM UNIVERSITY
(UNDER SECTION 3 OF UGC ACT 1956)

BONAFIDE CERTIFICATE

This is to certify that the project report entitled A Study on: A Study on growing popularity
of online shopping is the bonafide work done by Divya.N (3511010191), student of SRM
School of Management, SRM University, under my guidance for the partial fulfillment of the
course MBA.
To the best of my knowledge and belief the thesis embodies the work of the candidate
himself and has been duly completed. Simultaneously, the thesis fulfills the requirements of
the rules and regulations related to the institute and I am assured that the project is up-to the
standard both in respect to the contents and language for being referred to the examiner.

Dr. Jayshree Suresh

Mrs. Vasumathi Hariharan Asst Prof

(Dean)

(Project Guide)

External Examiner

DECLARATION

I hereby declare that the project report entitled A Study on growing popularity of online
shopping(www.snapdeal.com) is the produce of my sincere effort. This Summer Internship
Project Report is being submitted by me alone, at SRM School of Management, SRM
University, Chennai, for the partial fulfillment of the course MBA, and the report has not
been submitted to any other educational institutions for any other purpose.

Date:
Place: Chennai

(DIVYA.N)

ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of task would be
incomplete without the mention of the people who made it possible.
I would like to give special thanks to Dr. Jayshree Suresh, Dean, SRM School of
Management, who gave me the great opportunity to learn and enhance my skills in SRM
My sincere thanks to Mr.Manoj Kumar, HR, www.snapdeal.com, who was my project
guide in the organization. I thank him for allowing me to take up this project and helping me
throughout the project for his invaluable guidance, inspiration, support and uninterrupted
supervision and monitoring of my activities.
I would also like to thank Mr.Dennis Susairaj, Regional Manager, www.snapdeal.com,
for his support and invaluable time and providing me with deep insights and inputs in
enabling me with all the tools and techniques to help me in the project.
I will ever remain indebted towards my parents and thank them for giving the financial and
moral support throughout these days.
I thank Mrs.Vasumathi Hariharan, my project guide, for her proficient and wholehearted
support for guiding me to complete my thesis smoothly. Needless to add that without her
advice and support the thesis would never been completed.
I am also deeply indebted to my friends and other colleagues for their help in the completion
of work.

INTRODUCTION

INDUSTRYPROFILE

18

COMPANYPROFILE

24

OBJECTIVESOFTHESTUDY

26

SCOPEOFTHESTUDY

27

LIMITATIONSOFTHESTUDY

28

RESEARCHMETHODOLOGY

29

RESEARCHDESIGN

29

SAMPLEDESIGN

29

TOOLSFORDATACOLLECTION

29

DATAANALYSISANDINTERPRETATION

31

FINDINGS

52

10

SUGGESTIONS

53

11

CONCLUSIONS

55

12

BIBLIOGRAPHY

56

13

ANNEXURE

57

TABLEOFCONTENTS

CHAPTER1
INTRODUCTION
WHY ONLINE SHOPPING GROWING POPULARITY
Intheearlyyearsofecommerce,consumerswereskeptics.Internetprivacyandfraudwere
amongst the main concerns. Today, the world is moving faster than ever. The consumer has
transitioned from skeptic shopper, fearful of entering into any Internet transaction, to a confident
shopper.SometrulydedicatedInternetshopperswilltellyoutheydonotevergointoaretailstore.
Formany,theattractionistheconvenienceofshoppingfromyourlivingroom.Itisnotonlymore
comfortable,butwhendoingproductandpricecomparisonsitisoptimal.
Consumers have learned to keep up with technology and in turn technology helps them
keep up with their fast paced lifestyle. New software technology, advances in Internet security,
alongwiththecooperationoffinancialinstitutionsaresomeofthetopreasonswhyonlineshopping
isontherise.
The financial institutions have helped guarantee the satisfaction of online shopping with
their credit protection services. Customers are assured that the financial institution will help
interveneintheeventofanunsatisfactorytransaction.Institutionshavealsomadeaddedeffortsto
assuretheirclientssecuritywhenusingtheircreditcardsandinthepreventionofidentitytheft.
All of these things add to the consumer feeling more comfortable using credit cards for
payment. Credit card transactions are typically the preferred choice of payment for consumer
impulsepurchases.
Consumers have become aware of the many security programs they can install in their
systemstohelpprotecttheircomputers.Thisishelpingthemfeelmorecomfortableastheysurfthe
net. The rise of Secure Sockets Layer servers (SSL) provided added protection that also protected
shopper information and buying online began to seem less risky. As more buyers feel safe online
shoppingsalesrise.
Theretailersandwebmastersarepayingattentiontotheirnewlyconfidentwebsitevisitors.
AssuringcustomersInternetsafetywithtransactionsandconformingtosecurityonwebsites.Many
retailers have made option only information requirements for membership and order processing.
Theretaileristryingtolimittheamountofinformationtheyrequirethecustomertogive.

The customer is no longer obligated to sign up for newsletters and emails. Giving the
customertheoptiontoprovideyouwithcertaininformationallowsthemtofellmoreincontrolof
their transaction. Webmasters are constantly assessing and making changes to their websites
becausetheyhavelearnedtopayattentionandrespondtowhatthevisitorwantsandneeds.
More money than ever has been invested into ecommerce advertising dollars, which has
only helped make the world of ecommerce spin. Retailers, marketers, and the latest craze is the
television industries are all moving in fast on the internet. Advertising dollars are following close
behind.

Affiliate advertising, payperclicks, and residual benefits are all aiding in the business

ownerssales.Thiscanalsooffertheirvisitorsanenhancedexperiencedwithmoretoofferontheir
website. Webmasters have become pros at optimizing their company sales pages to direct the
customerseyesinalltherightdirections.
A successful website leads a visitors eye to key products. While a visitor is shopping,
additional products sold by the retailer or an affiliate are strategically placed for optimal viewing.
Many shoppers that purchase from one site will also purchase from a site directly linked to the
producttheyjustpurchased.Thishasthepossibilitytopromoteachainofshoppingevents.
Convenience,time,andmoneyaresomeofthetopreasonswhyonlineshoppingisonthe
rise.AmoreconfidentconsumerisusingtheInternetformoreandmoreoftheirdailyneeds.Thee
commerce community is responding quickly to their customers wants and needs. It is becoming
easier and more convenient to be an Internet user. There are many smaller but no less exciting
shoppingmallsandshoppingdistrictsscatteredaround

Marketing of online shopping in india

Online shopping concept emphasizes selling existing products. The philosophy here is
that if a product is not selling, more aggressive measures must be taken to sell it. cutting
price, advertising more, or hiring more aggressive sales-people. When the railroads started to
lose business due to the advent of more effective trucks that could deliver goods right to the
customers door.

Online shopping recognize that the customers ultimately wants .to deliver the quality
goods and services to exceed the expectations of customers. . The marketing concept, in
contrast, focuses on getting consumers what they seek of visiting for their desired benefit of
consumption in shopping.
The 4ps of marketing delivers the value for the customer in return to that add special
attributes to the customer in online shopping. In contrast, the firm is faced with uncertainty
from the environment
Marketing strategy is a set of specific ideas and actions that outline and guide
decisions on the best or chosen way to create, distribute, promote, and price a product
once a customer is made, resources must be invested to maintain an ongoing, healthy,
and profitable relationship with that customer.
Reaching and acquiring a new customer is one thing, keeping the relationship healthy
and strong over a long period of time is the mark of the true marketing professional
concerned with the long term health of the organization.
Obtaining new customers in the short-term is a challenge to be sure, but maintaining
relationships with those customers over time is even more challenging and is absolutely
crucial to the long term survival of your business.
Overthelifetimeofinvolvementwiththecustomer,valuemustbecreatedforbothpartiesin
orderfortherelationshiptoprosper.Inordertohelpcreatethatvalue,wemustrealizecustomers
areuniqueandmustbetreateddifferently.
The more value you can create for your customer, the more he or she will continue
conducting business with you. Some of the great thinkers in marketing today call this "customer
loyalty". Others call it "the propensity to repurchase". Whatever you call it, maintaining the
customerrelationshipwhilecontinuouslydeliveringvalueisessentialtoyourbusiness.

Introduction to online shopping

Internet is the rapidest growing media during the past decade. Especially, online
shopping is a rapidly growing e-commerce area. Forrester Research forecasts that online
retail trade will be about $217.8 billion by 2007 and account for 8% of total retail. ComScore
Networks reported that for the year 2001, domestic online sales totaled more than $53 billion.
This figure shows a growth rate of about 20% compared to the year 2000.
According to Arbitron/Edison Media Research (2002), the number of consumers who
purchase online is growing sharply. 40% of all Americans have ever purchased goods or
services on the Web. Average amount spent online in last one year was about $658 and 56%
of Internet users have made a purchase online.
According to annual Internet survey of which online, 15% of British Internet users
visit online shopping sites most frequently and 14% regularly use Internet for online
shopping.
Online shopping basically provides the way consumers go shopping and purchase
services and goods with reasonable price on the Internet. For some consumers, shopping and
purchasing online have become part of their daily lives, while others may not even care about
it. At this point, I wonder what factors influence online purchasing behavior and explain the
difference in online buying behavior among Internet users.
There are numerous benefits of online shopping. The foremost advantage of online
shopping is that it gives you an opportunity to shop 24 hours a day, seven days a week.
Online shopping has proved to be a boon for shoppers who are home bound or live in rural
areas.

Benefits of online shopping

Online shopping offers you a vast range of products to choose from like gifts, wine,
groceries, pharmaceuticals, clothing, luxury items, sporting goods, art, pet food, etc from the
comforts of your home. It also saves you from custom hassles in case you want to send any
gift to your relative living in another country. For instance, you stay in London and your

mother has gone out on holiday in New York you can still make her day special by sending
her a bouquet by booking it online.
The other benefit of online shopping is that it saves on your time. You can browse
through different products without actually going in the market. It also gives you the option
to compare the prices of products offered by online stores and make the best deal for yourself
and your loved ones.
Online shopping also provides you with advantage of paying through credit card
unlike some real stores that insist on payment in cash. However, you should be careful while
using the credit card for online transactions.
In last few years, online shopping has come up as one of the most popular online
stores in UK. Shopping specialize in electronic gadgets, mobile phones and accessories, CD's
and DVD's. It is the ideal destination for electronic products that are available at genuinely
discounted rates. You are requested to browse through our services and make your online
shopping experience a pleasurable one.
This collection of articles a celebration, and a call to arms. Independent, locally run
businesses the cafes, bars and shops run by locals who know what their neighbourhood
wants are as vital a part of the character of a city as the architecture that shapes it. However,
theres a recession on and all over Glasgow and Edinburgh, little local shops are shutting
down, losing out to the easy lure of the high street and to credit-crunched consumers cutting
costs.
Many Edinburgh retailers have been doubly hit, with the tram works blocking
consumer access and public transport. Despite the City Councils laudable Open For Business
campaign (check them out at www.edinburghshopper.co.uk), five shops have closed down on
Leith Walk alone since the developments began at the end of 2007.
We want to stop this happening, but we need your help. Sure, that high street coat
may be a bit cheaper than something hand-made by a young Scottish designer, but you know
deep down in your bargain-hunting heart that itll fall to pieces after a few wears. And while
your choice to buy CDs or books from independent stockists wont even be noticed at
Waterstons and HMV, it could make all the difference to an Avalanche or a Lost In Fiction.

We want you to use your imagination as well as your consumer power, and refuse to settle for
the same mass-manufactured products as everyone else.
Obviously, what follows is not completely comprehensive there are a vast amount of
local businesses out there, and we can only really scratch the surface. What weve tried to do
is pick up on areas in Edinburgh and Glasgow where indie businesses shape the community
around them in some way.
Accompanying all of this is our brand new online shopping guide, which we hope to
build into the definitive listing source for Edinburgh and Glasgows indie stores. . Were
going to be continually updating.

ONLINE SHOPPING IN URBAN AREAS

Township people mostly shop in the city at supermarkets or on their way home from
work. Unlike suburban people who are able to shop in bulk because most get paid monthly
and have their own transport, most township people commute by public transport, so they buy
only what they can carry. Prices are marked up in the townships and informal settlements
where people can buy in small quantities and consumers often pay greatly inflated.
TheresgrowinginterestintheInternetasaplacetoshop.Butthistypeofshoppinghasits
owndangers,andtherulesofsmartshoppingareasimportantintheelectronicmarketplaceasthey
areonyourdoorstep.
One problem is that consumers have little control over what happens to personal
information used when shopping online. Each transaction leaves an information trail that can be
usedbyhackersandotherunauthorizedindividualstoassemblefinancialandpersonalprofileson
you.Thisinformationcanbesoldorstolenandusedforcriminalpurposes.Youhaveeveryrightto
feel vulnerable when your credit card number and other financial information go sailing into
cyberspace
From the stage of getting information to the stage of getting free services and feerelated
services,wegetmanybenefitsfrominternet.Onlineshoppingisoneoftheseservices.Asfarason
line shopping is concerned, only a handful few operate successfully in India. Everywhere Infonaut
wantstomarketproductsandservicesthroughonlineshoppinginitiallyinThailandandlaterallover

India. Everywhere Infonaut starts functioning in Tamilnadu with a moderate set of products and
services.
Theuniquenessofthisschemeisintroductionofonlineshoppingcustomizedforconditions
typicaltoIndia.Those,whocanhandleEnglishlanguagetoalimitedextent,thosewhoarenotadept
in computer literacy, those internetusers who are unable to get broad band connectivity in so
many ways, we can classify internetusers and others.. Eshop ofEverywhere Internet has made
online shopping easier, more simplified and hasslefree for these entire group. So, the maximum
possibleminimumprice,thequalityoftheproduct,thespeedwithwhichtheproductsaredelivered
at the doorsteps of the customer, prompt aftersales service, hassle free and less expensive
payment procedures, the comfort of choosing the product sitting at home at your own favorable
time, in a leisurely mood without getting affected by the enticing vagaries of the marketing
environment,thechoiceofthearticlesintensionfreeambienceallthesefeaturespertainingonly
toonlineshoppingareensuredbyEshop.

Importanceofonlineshopping
Online shopping technology is a breakthrough that everybody can certainly benefit
from, should they choose to do so. But why wouldn't they? Lets face it, nothing is perfect
and when I last checked it probably never will be here at least. But it is a step forward toward
something that can be a great benefit to everyone in some way. Customers, vendors, factories,
even the economy in some ways can be strongly affected in a positive way.
Online shopping creates jobs. Jobs that create a great sense of security for the future
because you come to realize that you can earn extremely huge amounts of cash in a short
amount of time.
Owning your own home business in the online shopping industry or perhaps another
equally or better home business to get involved in verses working for someone else for an
hourly wage though it holds little promise for the long term future it can provide some
immediate financial relief but not without consequences of always needing more, living week
to week, social security is even questionable anymore.

Online shopping is taking a risk but seems to be a long term strategy of choice and
holds the same uncertainties that you don't even know is being entrusted with all that you
have to secure your future with. We were all created for greatness! We were created to
prosper and to excel! You are the driver and you control where you are going.
Online customers desirous to buy any items must posses the Credit Cards or ATM
Cards. After selecting the items he/she has to give the credit card numbers from which the
required money of the items will be deducted.

Advantages of online shopping:

Easy Access and convenient: This is perhaps the most important and crucial point of all
customers. One can have the unlimited freedom to choose by jumping on website with
infinite self space available. There is no pressure and impulse from the vendors to buy.

Timesaving: In this competitive environment time is obviously precious than gold for
everyone. So one can realize how advantageous it is for whom has no time to stand and wait.
The burden of going to the venders and shops is vanished by accessing the sites from home of
office, which is a matter of few minutes.
Scope to compare features and product prices: The latest features of the last minute
arrived items can be compared with the valuable in formations. Displayed along with the
prices and rebates. One is at his ease to go thorough from one to other.
Availability of genuine products:
Whatever the article and products are sold through the online shopping genuine with no
chance of falsification and fake.

Disadvantage of online shopping

No Scope of bargaining: This is the most disadvantage of online shopping. One has to buy
the items with prices and rebates carries by it. So the enjoyment of retail shopping with
friends or family members is lost.

Need of access to the Internet: It leaves no scope to say that one needs to have the system
and internet connections.
Limited Scope: It is one of the remarkable demerits of online shopping when one is to buy a
trifle items or rare used items..

ONLINE SHOPPING AT SHOPPING MALLS AND DEPARTMENTAL STORES.

Online shopping malls and department stores. Shoppers who like the variety of stores that
malls have to offer but can't stand fighting the crowds, the obvious alternative is right at their
fingertips.
Online shopping uses computer and a connection to the World Wide Web; consumers
can visit many major department stores to buy a broad range of products and not even have to
leave the comfort of their homes.
E-Commerce & Shopping
Many consumers avoid the hassles of instore shopping by doing the majority of their
shopping online. Articles, such as books, clothing and house wares, easily purchased through E
CommercewebsiteshavebecomeapopularandprofitablebusinesssincetheInternetwascreated.
Busylivesandtheneedfortwoparentincomeshavemadetheneedforonlineshoppinganecessity.
FindoutmoreaboutECommerceandonlineshoppingandhowtheybenefityourlife.

There is a simple solution to all those things that dampen your holiday spirit. What if
you were told there is a way where you can avoid parking unavailability, long check out
queues, the never ending hunt for the perfect gift and the fatigue that it brings. This is what
brings me to the brilliance that is the Internet.
ONLINE SHOPPING AT HOME
The Internet allows you to shop at home and to shop at your own convenience and pa
Why give up the thrill of going out and experiencing the exciting and crazy world that most
shoppers enjoy. Of shopping at malls.

Most departmental stores and apparel stores have their websites, which makes it
convenient for people to shop at home. All you need is a credit card and a personal computer
and you are ready to go.
The convenience of shopping at your own pace and at any time is what has made
home shopping so popular. Shoppers can enjoy some shopping time before bed, or when you
are not getting sleep. You can even shop before breakfast or even when you have some spare
time at work
Benefitsofhomeshopping

Convenience shoppers can shop at home at their own convenience. No more worrying
aboutreachingthemallbeforeitcloses.Youcanshopwheneveryouwant,inthemorning,
lateatnightorevenduringyourlunchhouratwork.

Varietyallthevarietyisatyourfingertips,literally!Nomoreshuttlingbetweenstoresand
travelingformilestillyoufindthatperfectgiftforyourfriends,familyorspecialsomeone.It
isallavailableontheInternet.Attheclickofabuttonyoucanaccessstoresacrosscountries
andcontinents.

Bargainsyouwill besurprisedwith theamount ofbargainsyouwillfindonline.Youcan

find everything from free gifts, huge discounts and free shipping online. Home shopping
neednotbedullorexpensive.Infactitischeaperandawholelotmoreexciting.

Qualityyoucanbeassuredofthequalityofthestuffyoubyonline.Youwillfindthatmost
onlinestoreshaveaspecialreviewscolumnwitheveryitem;thishelpsyouunderstandwhat
theothersbuyershavetosayabouttheitems.Andifyouarenotsatisfiedbytheproductor
qualityyoucanalwaysreturnitwithinthestipulatedtimeperiodandgetyourmoneyback.

Security do not be worried about using your credit card for home shopping. Home
shoppingisperfectlysafeandsecure.Allyourpersonalinformationthatisavailablethrough
yourcreditcardisencryptedandcompletelysecure.Leaveallyourwoesabouthackingand
identitytheftasideandenjoythethrillofshopping.

Home shopping is as simple as it gets. You need not worry about complicated
procedures and technical difficulties! Just connect to the website, browse items, add them to
your cart and pay using your credit card. All very simple and easy. Within 21 days your
item will be shipped to you. Shopping really cant get better than this.

Types of online shopping shops

Onlineactions

Online actions are popular places for trading goods. Individuals registered as users
can buy and sale almost anything online. Online actions companies are, for instances, eBay
and Yahoo. The price is normally cheaper than market price; with "past history" functions,
users can evaluate sales honesty and trustworthy before buying; more information is also
provided online, or could be answered in QnA section. However some vender refused to ship
overseas and risks are that venders are registered but are not official business, the credibility
is unknown

Portals

It is like a shopping center gathering a number of shopping destinations together in

one location, but online however. The benefit is the variety of shops, and the navigation
between shops is simplified.
E-commerce
Considering the newness of the internet and World Wide Web, it's safe to say that
nearly everyone who has purchased online gained their understanding of commerce offline.
"Dirt-side" commerce transactions have structural, schematic, and semantic orders that don't
fully map to the different medium of the web, and it's this gap in mapping that causes the
problems users experience trying to shop online, whether the problems stem directly from
usability flaws or unmet expectations.
My experience shopping online and working on a major online commerce site -Borders.com -- has shown me that most people involved in the design, creation, marketing,
implementation, hyping and analysis of ecommerce sites haven't thought about the basic
relationship that commerce is based of Trust & Trustworthiness.
Most people have an understanding of commerce based on their experience as shoppers and
buyers, and they bring this experience with them when they start shopping online. In order to
meet the user's needs, then, we must understand the typical user's experience of traditional
commerce.

Most problems with commerce sites are due to misunderstandings on the part of the site
creators about how users understand the structure and elements of typical commerce
transactions. Users have formed schemas to understand commerce, but commerce sites
routinely ignore these schemas.
Commerce is a communicative transaction between two parties playing very familiar
roles buyer and seller. Selling and buying, must share a basic understanding of how the
transaction is generally supposed to flow. Ecommerce web sites can't simply make products
available to be bought, these sites must hold up their part of role-playing the commerce
transaction.
Branding serves as a marker of corporate identity, and so has some value to the user,
but the hubbub over branding misses some very important concerns that users have.
Ecommerce web sites must pay attention to how they communicate to users.
Ecommerce sites play their role of seller by trying to broadcast two messages to potential
buyers: "buy from us" and "trust us". The impact of these explicit messages, though, is often
corrupted by contradictory or distracting messages implicit in the site's implementation of
navigation flow, page layout, visual continuity, and information space.
Ecommerce sites seem to shout the message that they are trustworthy, that users need
have no trepidation over purchasing from these sites, but trust derives not from assertions but
rather from experience and judgment. People interact, and they make judgments and form
expectations of others based on what they experience and what they surmise; it's a lot easier
to decide to trust a merchant when you can speak to them face-to-face and shake their hand.
Trusting a web site to deal with you fairly and deliver your merchandise, though, well, that's
harder to do when you realize that anyone can build a commerce site. Ecommerce sites must
work hard to build the impression of trustworthiness
Mall Networks maintains relationships with over 500 leading online merchants,
including world-class merchants such as eBay, Expedia, Best Buy, Staples, Macy's, and
Sears. Mall Networks has not only secured the top merchants, but also has integrated many
merchants that are rarely or never available elsewhere.

MallNetworksoffersbestinclassmerchantfundedcommissionratescombinedwitharich
variety of superior offers from merchants ranging from free shipping, percentages off, free items
overcertainpricelevels,andmanyothers.
Mall Networks is able to secure terrific commission rates and special offers due to (1)
superiorandgrowingpurchasingpower,nowrepresenting25millionconsumersacrossawiderange
of demographics and very different loyalty and affinity programs and (2) a dedicated merchant
managementteamwithlongstanding,strategicmerchantrelationships.TheteamatMallNetworks
pioneeredtheregularupdatingofvaluableoffersonthewebsiteandinapreviouscompanywasthe
firstmajorloyaltysitetoinstituteapolicyofrefreshingdealseverybusinessday.
Consumers are presented with the most relevant merchants and offers based on their
profileandtheirshoppinghistory.MallNetworksselflearning personalizationengineensuresthat
alloffersaretargetedandrelevantforeachuserbasedontheirprofile,theirshoppinghistory,and
based on their similarity to other shoppers. As consumers shop online, the recommendations
continuetoimprove.

.Consumer perception towards online shopping

The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different
alternatives(e.g.,brands,products);

Thepsychologyofhowtheconsumerisinfluencedbyhisorherenvironment(e.g.,culture,
family,signs,media);

Thebehaviorofconsumerswhileshoppingormakingothermarketingdecisions.

Limitations in consumer knowledge or information processing abilities influence decisions

andmarketingoutcome;

How consumer motivation and decision strategies differ between products that differ in
theirlevelofimportanceorinterestthattheyentailfortheconsumer;and

Howmarketerscanadaptandimprovetheirmarketingcampaignsandmarketingstrategies
tomoreeffectivelyreachtheconsumer.
One "official" definition of consumer behavior is "The study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of products, services,

experiences,orideastosatisfyneedsandtheimpactsthattheseprocesseshaveontheconsumer
and society." Although it is not necessary to memorize this definition, it brings up some useful
points:

Behavioroccurseitherfortheindividual,orinthecontextofagroup(e.g.,friendsinfluence
whatkindsofclothesapersonwears)oranorganization(peopleonthejobmakedecisions
astowhichproductsthefirmshoulduse).

Consumer behavior involves the use and disposal of products as well as the study of how
theyarepurchased.Productuseisoftenofgreatinteresttothemarketer,becausethismay
influence how a product is best positioned or how we can encourage increased
consumption.Sincemanyenvironmentalproblemsresultfromproductdisposal(e.g.,motor
oilbeingsentintosewagesystemstosavetherecyclingfee,orgarbagepilingupatlandfills)
thisisalsoanareaofinterest.

The impact of consumer behavior on society is also of relevance. For example, aggressive
marketing of high fat foods, or aggressive marketing of easy credit, may have serious
repercussionsforthenationalhealthandeconomy.

Themostobviousisformarketingstrategyi.e.,formakingbettermarketingcampaigns.,by
understandingthatconsumersaremorereceptivetofoodadvertisingwhentheyarehungry,
welearntoschedulesnackadvertisementslateintheafternoon.

By understanding that new products are usually initially adopted by a few consumers and
onlyspreadlater,andthenonlygradually,totherestofthepopulation.

Welearnthatcompaniesthatintroducenewproductsmustbewellfinancedsothatthey
can stay afloat until their products become a commercial success and it is important to
pleaseinitialcustomers,sincetheywillinturninfluencemanysubsequentcustomersbrand
choices.

Thefinalbenefit,studyingconsumerbehaviorshouldmakeusbetterconsumer

In practice, however, you often pay a size premium by buying the larger quantity In this
case, knowing this fact will sensitize you to the need to check the unit cost labels to
determineifyouarereallygettingabargain.

There are several units in the market that can be analyzed. Our main thrust in this
course is the consumer. However, we will also need to analyze our own firms strengths and
weaknesses and those of competing firms.

Suppose that we make a product aimed at older consumers, a growing segment. A

competing firm that targets babies, a shrinking market, is likely to consider repositioning
toward our market. To assess a competing firms potential threat, we need to examine its
assets) against pressures it faces from the market.
Finally, we need to assess conditions (the marketing environment). For example,
although we may have developed a product that offers great appeal for consumers, a
recession may cut demand dramatically.

CHAPTER2
INDUSTRYPROFILE
Electronic commerce, commonly known as ecommerce or ecomm, refers to the buying and
selling of products or services over electronic systems such as the Internet and other computer
networks. Electronic commerce draws on such technologies as electronic funds transfer, supply
chain management, Internet marketing, online transaction processing, electronic data interchange
(EDI), inventory management systems, and automated data collection systems. Modern electronic
commerce typically uses the World Wide Web at least at one point in the transaction's lifecycle,
although it may encompass a wider range of technologies such as email, mobile devices and
telephonesaswell.

Electronic commerce is generally considered to be the sales aspect of ebusiness. It also

consistsoftheexchangeofdatatofacilitatethefinancingandpaymentaspectsofbusiness
transactions.

Ecommercecanbedividedinto:

Etailingor"virtualstorefronts"onWebsiteswithonlinecatalogs,sometimesgatheredinto
a"virtualmall"

ThegatheringanduseofdemographicdatathroughWebcontacts

ElectronicDataInterchange(EDI),thebusinesstobusinessexchangeofdata

Emailandfaxandtheiruseasmediaforreachingprospectsandestablishedcustomers(for
example,withnewsletters)

Businesstobusinessbuyingandselling

Thesecurityofbusinesstransactions

Earlydevelopment
Originally,electroniccommercewasidentifiedasthefacilitationofcommercialtransactions
electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds
Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send
commercialdocumentslikepurchaseordersorinvoiceselectronically.Thegrowthandacceptanceof
creditcards,automatedtellermachines(ATM)andtelephonebankinginthe1980swerealsoforms

ofelectroniccommerce.Anotherformofecommercewastheairlinereservationsystemtypifiedby
SabreintheUSAandTravicomintheUK.
Beginning in the 1990s, electronic commerce would include enterprise resource planning systems
(ERP),datamininganddatawarehousing
In 1990, Tim BernersLee invented the World Wide Web browser and transformed an academic
telecommunication network into a worldwide everyman everyday communication system called
internet/www. Commercial enterprise on the Internet was strictly prohibited by NSF until 1995.[1]
Although the Internet became popular worldwide around 1994 with the adoption of Mosaic web
browser, it took about five years to introduce security protocols (i.e. SSL encryption enabled on
Netscape 1.0 Browser in late 1994) and DSL allowing continual connection to the Internet. By the
endof2000,manyEuropeanandAmericanbusinesscompaniesofferedtheirservicesthroughthe
World Wide Web. Since then people began to associate a word "ecommerce" with the ability of
purchasing various goods through the Internet using secure protocols and electronic payment
services.

Timeline
Thetimelineforecommerceprogressionisshownbelow.

1979:MichaelAldrichinventedonlineshopping.

1981:ThomsonHolidays,UKisfirstB2Bonlineshopping.

1982:MinitelwasintroducednationwideinFrancebyFranceTelecomandusedforonline
ordering.

1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first
onlinehomeshopper.

1984:InApril1984,CompuServelaunchestheElectronicMallintheUSAandCanada.Itis
thefirstcomprehensiveelectroniccommerceservice.

1985:NissanUKsellscarsandfinancewithcreditcheckingtocustomersonlinefromdealers'
lots.

1987:Swregbeginstoprovidesoftwareandsharewareauthorsmeanstoselltheirproducts
onlinethroughanelectronicMerchantaccount.

1990: Tim BernersLee writes the first web browser, World Wide Web, using a NeXT
computer.

1992: Terry Brownell launches first fully graphical, iconic navigated Bulletin board system
onlineshoppingusingRoboBOARD/FX.

1994: Netscape releases the Navigator browser in October under the code name Mozilla.
PizzaHutoffersonlineorderingonitsWebpage.Thefirstonlinebankopens.Attemptsto
offer flower delivery and magazine subscriptions online. Adult materials also become
commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL
encryptionthatmadetransactionssecure.

1995:Thursday27April1995,thepurchaseofabookbyPaulStanfield,ProductManagerfor
CompuServe UK, from W H Smiths shop within CompuServes UK Shopping Centre is the
UKsfirstnationalonlineshoppingservicesecuretransaction.Theshoppingserviceatlaunch
featuredWHSmith,Tesco,Virgin/OurPrice,GreatUniversalStores/GUS,Interflora,Dixons
Retail,PastTimes,PCWorld(retailer)andInnovations.

1995:JeffBezoslaunchesAmazon.comandthefirstcommercialfree24hour,internetonly
radio stations, Radio HK and Net Radio start broadcasting. Dell and Cisco begin to
aggressively use Internet for commercial transactions. eBay is founded by computer
programmerPierreOmidyarasAuctionWeb.

1998: Electronic postal stamps can be purchased and downloaded for printing from the
Web.

1998:AlibabaGroupisestablishedinChina.

1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997
for US $149,000. The peertopeer file sharing software Napster launches. ATG Stores
launchestoselldecorativeitemsforthehomeonline.

2000:Thedotcombust.

2001:Alibaba.comachievedprofitabilityinDecember2001.

2002:eBayacquiresPayPalfor$1.5billion.NicheretailcompaniesWayfairandNetShops
arefoundedwiththeconceptofsellingproductsthroughseveraltargeteddomains,rather
thanacentralportal.

2003:Amazon.compostsfirstyearlyprofit.

2004:DHgate.com,China'sfirstonlineb2btransactionplatformisestablished,forcingother
b2bsitestomoveawayfromthe"yellowpages"model.

2005:YuvalTalfoundsPioneerasecureonlinepaymentdistributionsolution

2007:Business.comacquiredbyR.H.Donnelleyfor$345million.

2009:Zappos.comacquiredbyAmazon.comfor$928million.RetailConvergence,operator
ofprivatesalewebsiteRueLaLa.com,acquiredbyGSICommercefor$180million,plusupto
$170millioninearnoutpaymentsbasedonperformancethrough2012.

2010:Grouponreportedlyrejectsa$6billionofferfromGoogle.Instead,thegroupbuying
websitesplanstogoaheadwithanIPOinmid2011.

2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500

million in cash plus $45 million in debt and other obligations. GSI Commerce, a company
specializing in creating, developing and running online shopping sites for brick and mortar
businesses,acquiredbyeBayfor$2.4billion.

2012:USecommerceandOnlineRetailsalesprojectedtoreach$226billion,anincreaseof
12percentover2011.

Forms:
Contemporary electronic commerce involves everything from ordering "digital"
content for immediate online consumption, to ordering conventional goods and services, to
"meta" services to facilitate other types of electronic commerce.
On the institutional level, big corporations and financial institutions use the internet to
exchange financial data to facilitate domestic and international business. Data integrity and
security are very hot and pressing issues for electronic commerce.
Global trends:
Business models across the world also continue to change drastically with the advent
of ecommerce and this change is not just restricted to USA. Other countries are also
contributing to the growth of ecommerce. For example, the United Kingdom has the biggest
e-commerce market in the world when measured by the amount spent per capita, even higher
than the USA. The internet economy in UK is likely to grow by 10% between 2010 to 2015.
This has led to changing dynamics for the advertising industry.
Amongst emerging economies, China's ecommerce presence continues to expand.
With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009
and one of the reasons behind the huge growth has been the improved trust level for
shoppers. The Chinese retailers have been able to help consumers feel more comfortable
shopping online. ecommerce is also expanding across the Middle East. Having recorded the

worlds fastest growth in internet usage between 2000 and 2009, the region is now home to
more than 60 million internet users. Retail, travel and gaming are the regions top
eCommerce segments, in spite of difficulties such as the lack of region-wide legal
frameworks and logistical problems in cross-border transportation. E-Commerce has become
an important tool for businesses worldwide not only to sell to customers but also to engage
them.
Impact on markets and retailers:
Economists have theorized that e-commerce ought to lead to intensified price
competition, as it increases consumers' ability to gather information about products and
prices. Research by four economists at the University of Chicago has found that the growth of
online shopping has also affected industry structure in two areas that have seen significant
growth in e-commerce, bookshops and travel agencies. Generally, larger firms have grown at
the expense of smaller ones, as they are able to use economies of scale and offer lower prices.
The lone exception to this pattern has been the very smallest category of bookseller, shops
with between one and four employees, which appear to have withstood the trend.
Distribution channels:
E-commerce has grown in importance as companies have adopted Pure-Click and Brick
and Click channel systems. We can distinguish between pure-click and brick and click
channel system adopted by companies.

PureClick companies are those that have launched a website without any previous
existence as a firm. It is imperative that such companies must set up and operate their e
commercewebsitesverycarefully.Customerserviceisofparamountimportance.

BrickandClickcompaniesarethoseexistingcompaniesthathaveaddedanonlinesitefore
commerce. Initially, Brick and Click companies were skeptical whether or not to add an
online ecommerce channel for fear that selling their products might produce channel
conflict with their offline retailers, agents, or their own stores. However, they eventually
addedinternettotheirdistributionchannelportfolioafterseeinghowmuchbusinesstheir
onlinecompetitorsweregenerating.

CHAPTER3

COMPANYPROFILE

Snapdeal is an e-commerce company based in India. It is a daily deals' website that

features discount offers across lifestyle segments such as dining, health & beauty,
entertainment and travel. It also offers discounts on products like electronics, perfumes,
watches, bags, sunglasses, apparels and mobile phones.
Headquartered in Delhi, Snapdeal.com was launched in February 2010. The company
was founded by Kunal Bahl, a Wharton graduate and Rohit Bansal, alumnus of IIT Delhi
who are friends since school. They had agreed that after finishing their studies and gaining
required work experience, they would start a project of their own.
BUSINESSMODEL:
Snapdeal.comservesasanadvertisingplatformformerchantsandadiscountplatformfor
customers.ForthemerchantswhopartnerwithSnapdeal,itisacosteffectivechannelforacquiring
new customers. It also works as a riskfree alternate marketing channel. From the merchants
standpoint,theyarepassingonthecustomeracquisitioncostintheformofadiscountoffer.
Thecompanyusestheterm'deals'todescribethediscountsitoffers.Onedealvariesfrom
anotherintermsofitspricingstructure.Whiletheentireofferamountiscollectedupfrontinsome
deals,otherdealsletcustomerspayacertainamountonthewebsiteandresttothemerchant.
UnlikecompanieslikeGrouponthathavegroupbuyingmodels,Snapdealdoesnothavea
thresholdnumberofdealsthatmustbeboughtbeforeadealcan'golive'.Evenifonedealsellsone
voucher,itcanberedeemed.

FUNDING:
In January 2011, Snap deal received a funding of $12 million from Nexus Venture
Partners and Indo US Venture Partners. Subsequently, in July 2011, the company raised a
further $40 million from Bessemer Venture Partners, along with existing investors Nexus
Venture Partners and Indo US Venture Partners, taking the total investment in the company
to $52 million.

ACQUISITIONS:
In June 2010, Snapdeal.com acquired Bangalore-based group buying site,
Grabbon.com for an undisclosed amount.
RECOGNITION:
Snap deal has been rated the #1 ecommerce site in India, in terms of traction by
Dataquest/SapientEcommerceSurvey2011
won the Silver award for the Best website service category at Indian Digital Media Awards
(IDMA)2011.
FeaturedinBusinessInsiderasamongthe10HotStartupstowatchforinIndia
AwardedthemostinnovativecompaniesacrossAsiaat2011RedHerringTop100Asia

CHAPTER4
OBJECTIVESOFTHESTUDY

PrimaryObjective:

1) TostudytheimportanceofOnlineshoppingwithreferencetoSquaresoftTechnologies

Secondaryobjectives:

1) To study the consumer decision process to be observed on deliver of the goods from the

onlineshopping.
2) Toanalyzetheconsumerperceptiontowardsonlineshopping.
3) Tostudythefactorswhichinfluencecustomerstogoforonlineshopping.
4) Toprovidesuitablesuggestionforenhancinginonlineshopping.

CHAPTER5
SCOPEOFTHESTUDY

Thescopeofthestudycoversfollowingaspects.
This study enables to understand customers perception towards online shopping and provides an
insightaboutconsumerpreferencetowardsonlineshopping.whyonlineshoppingisontherise.How
ecommerceisbecomingeasierandmoreconvenienttoanInternetuser.

4.1STATEMENTOFTHEPROBLEM

Online shopping has been facing a tough challenge with reference to marketing from the

beginning. Even then, they have been able to make sustainable sales to the customer. Squaresoft
hasbeendevelopingtheirownecommercewebsiteproductnamedebuyeasyfortheirclient.This
dissertation project aims at analyzing the customer perception about online shopping, and the
factorsinfluencingonlinepurchasedecision.

CHAPTER6
LIMITATIONSOFTHESTUDY
1.

Themarketsizeistoobigandsamplesurveyconductedtothisstudyislimitedto100
customers.

2.

Theresponsemaybebiased.

3.

Interviewswereheldonlywithrespondentswhowerereadytosparetimeforit.

4.

Timeismainlimitingfactor.

5.

Thestudyismadeonlywithtwotechniques.
-

Primarysources

Secondarysources.

CHAPTER7
RESEARCHMETHODOLOGY

7.1TITLEOFTHESTUDY

ASTUDYONGROWINGPOPULARITYOFONLINESHOPPING

7.2RESEARCHDESIGN

A survey of the online shopping using the data indicates that consumers are actively researching
brands and products across thousands of websites on a daily basis as they make their purchasing
decisions. A significant challenge that remains is to create an online experience that imitates the
recreational aspects of offline shopping. Integrating with popular content areas such as Net
Communities or building the brand on top publishing websites offers retailers the opportunity to
engagetheirconsumersmoreeffectively

7.3SAMPLINGPROCESS
a)Samplingunit:
SamplingunitforthestudyisonvariouspeopleusingtheonlineshoppinginChennai.

a) Sampling size:
The sample size consists of 100 respondents from various parts of Chennai cities.

7.4 SOURCES OF DATA:

Datawascollectedbasedontwosources
Primarydata
Secondarydata

Primarydata
9 PrimarydatawascollectedthroughInterviewingpeople.
9 AndthroughQuestionnaire.
Secondarydata
9 SecondarydatawasobtainedbybrowsingInternet
9 Referencefromlibraries

2)Toolsfordatacollection

Questionnaire is administered to know the customer perception towards online

shopping.

CHAPTER8
DATAANALYSIS&INTERPRETATION
DATAFORIDENTIFICATION

Table1:Showingthegenderandagegroupoftherespondents.

GenderGroup

Male

Female

Total

<20Yrs

12

15

2035Yrs

19

29

48

3650Yrs

11

16

27

>51Yrs

10

Total

39

59

100

Analysis: From the table it can be observed that respondents are scattered among various age
groups.Itisseenthat59%oftherespondentsarefemaleandwhenweconsiderbothAgegroup
andgenderthemaximumnumberi.e.,29%oftherespondentsarefemaleintheagegroup2035
Yrs.

Graph1

AGE OF RESPONDENTS

35
30
25

20

MALE
FEMALE

15
10

< 20 Yrs

20 35 Yrs

36 50 Yrs

> 51 Yrs

Interpretation: Maximum number of respondents is female they do most of the shopping for
theirfamily.Sofemalepopulationcanbeconsideredasthemajordecisionmakers.
Mostofthewomenintheagegroupof2035yrsprefertodotheirshoppingfromonlineasthey
feelitisconvenientforthemtoshoponlinefromhomeortheiroffice.

Table2:Showingthemonthlyincomeoftherespondents.

Income

<Rs10,000

Respondents

Rs10,000

Rs15,001

Above

15000

20,000

20,0001

24

28

44

Total

100

Analysis: Fromthetableonecanobservethatmaximumnumberofrespondentsi.e.,44%earna
monthly income above Rs 20,001 28% earn Rs 15,001 20000 5 , 2% earn above Rs 10,001
15,000&4%%earnlessthan10,000.

Graph2
INCOME / MONTH

NUMBER OF RESPONDENTS

50

44

45
40
35

< 10,000

28

30

24

25

10,001 -15000
15,001 - 20,000

20

Above 20,001

15
10
5

0
< 10,000

10,001 -15000

15,001 - 20,000

Above 20,001

Interpretation:
MaximumnumbersofrespondentsaresalariedwithamonthlyincomeofRs.20,001Pricebenefits
make this segment of customers more attracted. They prefer to shop online because of some
exclusivefacilitiesavailablelike

a) Theyarepriceconsciousandthoseproductsareavailableonline.
b) Status
c) Lifestyle

Table3:ShowingtheOccupationoftherespondents.

Occupation

Business

Respondents

Professional Salaried

18

52

Others

Total

26

100

Analysis:

Fromtheabovetableitcanbeobservedthatmaximumnumberofrespondentsi.e.,52%of

therespondentsaresalaried,26%arestudentsorhomemakers,18%areprofessionaland4%are
businessmen.

Graph3:
OCCUPATION OF RESPONDENTS

NUMBER OF RESPONDENTS

Professional
Salaried

60

52

Business

50

Others

40
26

30
20

18
4

10
0
Professional

Salaried

Business

Others

Interpretation:

Majorityofthecustomersaresalariedandtheydonothavemuchtimesotheavailabilityof

alltheproductsintheonlinewebsitesmakesthemattractedtowardstheonlineshopping.Discounts
offeredbymanyoftheonlinewebsitesalsoattractthecustomers.

DATAFORANALYSIS
Table4:showingConsumerawarenesstowardsonlineshopping

Consumersawarenesstowardsonline
shopping

Respondents

Yes

62

No

48

Total

100

Analysis:
Itisobservedfromthetablethatmajorityoftherespondentsi.e.,62%ofthem

arenotawareoftheonlineshoppingand48%oftherespondentsknowaboutthe

Onlineshopping.

Graph4
70

62

60
50

48

40
30
20
10
0
YES

NO
YES

NO

Interpretation:
Majorityoftherespondentsarenotawareoftheonlineshoppingwhichshowsthatthe

Consumersprefertoshoponthereownthanplacingtheordersonline.Onlineshopping

sitesshouldcomeoutwithmorepromotionalactivitiestocreatetheawarenessaboutthe
convenienceandbenefitsoftheonlineshopping.

Table5:showingfrequencyofvisittoonlinewebsites.

LargeRetailStores

Respondents

EBay

13

Amazonshopping

18

Timesshopping

26

Ebiz

Others

34

Total

100

Analysis:

Fromthetableitisclearthatmajorityoftherespondents,34%visitiedotheronlinewebsites

forshopping,26%visitedbid2win,18%,visitedAmazonshoppingandonly9%visitedebiz.

Graph5

13
34
18

e bay

26

amazon shopping

Times shopping

ebiz

others

Interpretation:
Fromtheaboveanalysiswecanconcludethatwhenitcomestoonlineshoppingconsumersdonot
haveanypreferencetowardsaparticularshoppingwebsiteastherearenumberofshoppingweb
sitesforeachcategoryoftheproducts.

Table6:Showinghowconsumersknowabouttheonlineshopping.
Typesofpromotionalactivities

Numberofrespondents

Printmedia

46

Electronicmedia

26

Sponsoredevents

Familyandfriends

20

Total

100

Analysis:
Itisobservedfromthetablethatmajorityoftherespondentsi.e.,46%oftherespondents

knowaboutonlineshoppingthroughPrintmedia,26%knowthroughelectronicmedia,

20%throughfamilyandfriendsandonly8%knowthroughsponsoredeventsi.e.

throughcompanyswebsitesandthroughothermediums

Graph6
50

46

45
40
35
30

26

25

20

20
15
8

10
5
0
Print Media
Print Media

Electronic media
Electronic media

Sponsored events
Sponsored events

Family and Friends

Family and Friends

Interpretation:
Majorityoftherespondentsknowabouttheonlineshoppingthroughtheprintmedia.
Onlineshoppingstorescanmakeuseoftheprintmediabyadvertisinginnewspapers
andweeklymagazineswhichhelpstheconsumerstoknowabouttheexistenceoftheweb
site,itsvariousproductsavailableanditsoffers.
Table7:Showingpurchasemadefromonlineshopping.

Purchasemadefromonlineshopping

Respondents

Apparels

16

Mobiles

50

Electronicgoods

18

Others

16

Total

100

Analysis:
Itisobservedthatmostoftherespondentsi.e.,50%buymobilesfromonline

shopping,18%,buyelectronicgoods,16%buyApparelsand16%buyothergoodsfrom
onlineshopping.Graph7

60
50
50
40
30
20

18

16

16

10
0
Appariels

Mobiles
Appariels

Mobiles

Electronic goods
Electronic goods

Others

Others

Interpretation:

FromtheaboveanalysisweconcludethatmajorityoftherespondentsbuyMobilefrom

fromtheonlineshoppingasthecompaniesofferattractiveschemesandpricediscountsin

thissegment,alsoconsumerscangetalltheinformationregardingthepriceandfeatures

ofthemobilesfromtheonlinewebsites.

Table8:Showingpurposeofvisitingonlinesites.

Purposeofvisitingonlinesites

Respondents

a Toknowaboutproducts

72

b Casualinnature

15

c Statussymbol

d Othersspecify

Total

100

Analysis:
Itisobservedfortheabovetablethat72%oftherespondentsvisittheonline

shoppingsitestoknowabouttheproducts,15%causallyvisitthesite,4%thinkitisa

statussymboltovisittheonlineshoppingsitesand9%visitfornospecificreason.

Graph8
80
70
60
50
40
30
20
10
0

72

15
4
To know
about
products

Casual in
nature

To know about products

9
S1

Status
symbol

Casual in nature

others

Status symbol

others

Interpretation:

Fromtheaboveanalysiswecancometotheconclusionthatmajorityoftherespondents

Visittheonlineshoppingsitestoknowabouttheproducts.Inordertoconvertthese

visitorsintocustomerstheonlineshoppingsitesshouldgivethoroughinformation

oftheproductswhichareavailableandshouldcomeoutwithattractivepricediscounts

whichmakesthemtobuyonlinefromthesewebsites.

Table9:Showingrangeofpurchasemadefromonlineshopping.

RangeofpurchasemadefromO.S[inRs.]

<1500

07

15003000

15

30005000

26

5000&above

52

Total

100

Respondents

Analysis:
Fromtheabovetablewecansaythatmajorityoftherespondentsi.e.52%spendRs

5,000&above,26%oftherespondentsspendbetweenRs3,0005000,15%spend

betweenRs15003000andonly7%oftherespondentsspendRs1500inonline

shopping

Graph9
60
52
50

40

30

26

20

10

15
7

0
<1500

1500 - 3000
<1500

Interpretation:

1500 - 3000

3000 - 5000
3000 - 5000

5000 & above

5000 & above

Nearly52%oftherespondentsspendRs5,000andabovefromthiswecansaythat

thereisgreatscopetosellhighendgoodsthroughonlineshoppingsites.

Table10:Showingfactorstobeconsideredwhilepurchasingproducts
Fromonlineshopping.

Factorsconsideredwhilepurchasing
productsfromO.S

Respondents

Cost

64

Status

Convenience

28

Others

NIL

Total

100

Analysis:
Fromtheabovetablewecansaythatmajorityoftherespondentsi.e.64%ofthe

respondentsconsidercostbenefitasthemainreasontomakeonlineshopping,

28%considerand8%asstatussymbol.

Graph10
70

64

60
50
40
28

30
20
8

10

0
0
Cost

Status
Cos t

Cnvience
Status

Cnvience

Others

Others

Interpretation:

Majorityoftherespondentsmakeonlineshoppingastheonlineshoppersfeelthatthey
cangetthebestbargainandpricesfromonlineshopping,alsotheycansavethetravel
costbyshoppingonline.

Table11:Showingopinionoftheconsumersaboutpromotionalactivities
ofonlineshoppingwebsites.

Opinionaboutpromotionalactivitiesof
O.S.W

Excellent

Good

12

Average

62

Poor

18

Total

100

Respondents

Analysis:
Fromtheabovetablewecansaythat62%oftherespondentsbelievethatthe

promotionalactivitiesoftheonlineshoppingwebsitesisAverage,18%believe

thatitisPoor,12%believeitisGoodandonlybelievethatitisExcellent.

Graph11
70

62

60
50
40
30
18

20

12
8

10
0

Excellent

Good
Excellent

Interpretation:

Average
Good

Average

Poor
Poor

Majorityofthecustomersbelievethat
thepromotionalactivitiesoftheonlineshoppingwebsitesisaveragethisshowsthat
onlineshoppingwebsiteshavetocomeoutwithnewandinnovativepromotional
activitiessoastoattractthetheattentionofthecustomerswhichmakesthemto
browsethesewebsiteforshopping.

Table12:Showingsatisfactiontowardsonlineshopping.

Opinionaboutpromotionalactivitiesof
O.S.W

Highlysatisfied

12

Satisfied

48

Moderatelysatisfied

21

Unsatisfied

19

Cantsay

Total

Respondents

Nil

100

Analysis: From the above table we can say that 48% of the respondents are satisfied with the
online shopping, 21% are moderately satisfied, 19% are Unsatisfied, 12% of the respondents are
Highlysatisfied.

Graph12

60
48

50
40
30

21

19

20
12
10

0
0
Highly
satisfied

Satisfied

Highly satisfied

Interpretation:

Satisfied

Moderately
satisfied

Unsatisfied

Moderately satisfied

Unsatisfied

Can't say

Can't say

Nearly48%oftheonlinecustomersaresatisfiedwiththeironlineshoppingexperience,
thisshowsthatthereisagreatscopefortheserviceprovidersoftheonlineshopping
toattractmorecustomersthroughpricediscountsandcreatingawarenessabout
thebenefitsofonlineshopping.

Table13:Showingmotivebehindbuyingdecisionofonlineshopping.

Motivebehindbuyingdecisionofonline
shopping

Discounts

41

Gifts

20

Coupons

06

Guarantee

33

Others

Total

Respondents

Nil

100

Analysis:
Fromthetableitisclearthatmajorityoftherespondentsi.e.41%ofthe
respondentsdoonlineshoppingbecauseofthediscountsofferedbytheseservice
providers,33%shopbecauseofguarantee,20%shopbecauseofgiftsandonly6%
Shopbecauseofthegiftcoupons.

Graph13

0
33
41

6
20

Discounts

Interpretation:

Gifts

Coupons

Gaurantee

Others

Majorityoftherespondentsdotheironlineshoppingduetothediscountoffersprovided
bytheonlineshoppingwebsites,thisshowsthattheconsumersarepriceconscious.
Thesesitesshouldcomeoutwithdiscountoffersatregularintervalstoattractthe
customersandalsotoincreasethesales.Theyalsohelpinretainingthecustomers.

Table14:Showingmodeofpaymentoftheonlineshoppers.

Modeofpaymentoftheonlineshoppers

Respondents

Cash

58

Creditcard

25

Debitcard

12

Others

Total

100

Analysis:
Fromtheabovetableitisclearthatmajorityoftherespondentsi.e.58%make

Paymentthroughcreditcardfortheironlineshopping,25%throughcash,12%

throughdebitcardandonly5%maketheirpaymentsthroughothermodesof
payment

Graph14
70
58

60
50
40
30

25

20
12
10

0
Cash

Credit card
Cash

Interpretation:

Credit card

Debit card
Debit card

others
others

Majorityoftherespondentsmakepaymentthroughcreditcardsasitisconvenientfor
themthanothermodesofpayment.

Table15:Showingconsumersbeliefindiscountoffersoftheonline
Shopping

Consumersbeliefindiscountoffersofonline
shopping

Respondents

Yes

72

No

28

Total

100

Analysis:
Fromtheabovetablewecanconcludethat72%oftherespondentsbelieveinthe
discountoffersprovidedbytheonlineshoppingsitesandonly28%dontbelievein
discountoffers.

Graph15
80

72

70
60
50
40
28

30
20
10
0
Yes

No
Yes

Interpretation:

No

Fromtheaboveanalysiswecansaythatconsumershaveagoodopinionaboutthe
discountoffersprovidedbytheonlineshoppingsitesastheybelievethattheyaregetting
benifitedfromthesediscountoffers.

Table16:Showingfeaturesofonlineshoppingsites
Featuresofonlineshoppingsites

Respondents

Descriptionoftheproducts

46

Searchboxoneverypage

22

Alistofmajorproductcategories

27

Cantsay

Total

100

Analyssis:
Mostoftherespond
dentsfeelthaatdescriptio
onoftheproductsi.e.46%
%makesonline
oneverypaggeand
shoppingeasytousee,27%majorproductcategory,22%searchboxo
onclusions.
5%canttdrawanyco

Graph16

Respond
dents
100
80
60
40
20
0

Respondents

Interpretation:

Fromtheaboveanalysiswecansaythattheefeaturewhiichismostim
mportantforrthe
hoppingweb
bsitesisdesccriptionofth
heproductsw
whichhelpscustomersin
n
onlinesh
knowinggtheinformaationaboutttheproductssavailablein
ntheonlinesshoppingsitee

Table17:Show
wingadvaantagesoffshoppinggonline.
Advantaagesofshop
ppingonline

Resp
pondents

Widech
hoice

14

Timesavving

23

Costsavving

42

Canshopatourconvenience

21

Total

10
00

Analysis:
Majorityoftherespondentsi.e.42%outof100saythatthemainadvantageofshopping
onlineisCostsaving,23%sayitistimesaving,21%sayitiscanshopattheir
convenience,14%saywidechoiceasthemainadvantageofshoppingonline.

Graph17
42

45
40
35
30
23

25
20
15

21

14

10
5
0
Wde choice

Tim e s aving

Wde choice

Interpretation:

Tim e s aving

Cos t s aving

Cost saving

Can shop at our

convenience

Can shop at our convenience

Fromtheaboveanalysiswecanconcludethatmajorityoftherespondentsshoponline
becausetheysavecostthanshoppingdirectlyfromthestoresalsootheradvantagesare
timesavingandconvenience.Wecansaythatonlineshoppinghasgoodscopeinthe
futureasmoreandmorepeopleareusingthewebeveryday.

Chisquare

H0: There is a significant relationship between the awareness towards online shopping and the
frequencyofvisittoonlineshopping
H1:Thereisnosignificantrelationshipbetweentheawarenesstowardsonlineshoppingandthe
frequencyofvisittoonlineshopping

CaseProcessingSummary
Cases

Valid
N

Consumerawareness
towardsonlineshopping
*Frequencyofvisitto
onlineshopping

Missing

Percent

100

98.0%

Total

Percent
2

2.0%

Percent

102

100.0%

Consumerawarenesstowardsonlineshopping*FrequencyofvisittoonlineshoppingCrosstabulation
Count
Frequencyofvisittoonlineshopping

AmazoNn
shopping

EBay

Times
shopping

Ebiz

Others

Total

Consumerawareness
Yes
towardsonlineshopping
No

13

18

26

62

34

38

Total

13

18

26

34

100

Inference:

There is a significant relationship between the awareness towards online shopping and the
frequencyofvisittoonlineshopping

OnawayAnova
H0:Thereisasignificantrelationshipbetweenthepreferenceofpurchasemadefromonline
shoppingandtheproductrange.

H1:Thereisnosignificantrelationshipbetweenthepreferenceofpurchasemadefromonline
shoppingandtheproductrange.

ANOVA
Purchasemadefromonlineshopping

Sumof
Squares

df

MeanSquare

BetweenGroups

48.917

16.306

WithinGroups

37.523

96

.391

Total

86.440

99

F
41.717

Sig.
.000

Inference:

Thereisnosignificantrelationshipbetweenthepreferenceofpurchasemadefromonlineshopping
andtheproductrange.

TTest
Therelativefactorsthatareconsiderwhilepurchasingproductfromonlineshopping

OneSampleStatistics

Purposeofvistingonline
sites

Mean

100

1.50

Std.Deviation
.937

Std.Error
Mean
.094

OneSampleTest
TestValue=0
95%ConfidenceIntervalofthe
Difference

t
Purposeofvistingonline
sites

16.001

df

Sig.(2tailed)
99

.000

Mean
Difference
1.500

Lower

Upper

1.31

Inference:

The relative factors that are consider while purchasing product from online shopping is high and
effective

1.69

CHAPTER9
FINDINGS

ThefollowingarethemajorfindingsfromtheresearchonONLINESHOPPING.

Eventhoughonlineshoppingisincreasingstillmanypeoplebelieveintraditionalmethodof
shopping.

Companies into ecommerce are mainly concentrating towards the salaried professionals
whichconstitutesthemaintargetsegment.

Peoplebelieveonlineshoppingisquiteexpensiveandtherearenowayforbargaining.

Manycustomersthoughmaybereadytoshoponlinebutarenotmuchawareofit.

Online shopping is newly emerged virtual market and hence measures must be taken to
increasemarketshare.

Manyarenotcomfortableshoppingonline.

People feel unsecured using online shopping, disclosure of their personal information
,payingonlineanddeliveryofproducts.

CHAPTER10
SUGGESTIONS
Themainobjectiveofthestudytoknowthecustomerperceptiontowardsonline
shoppinginChennai.Therespondentswerecarefullyselectedastoinclude
actualusersofonlineshopping.
Since most of the respondents still believe in traditional methods of shopping, so it is
necessary to conduct programs to create awareness about the benefits that they can get
fromonlineshopping.
Moreemphasisshouldbegiventotelevisionadvertising(media)andnewspaperadvertising,
thepromotionalactivitiesshouldalsoconcentrateonothersegmentofpeoplethoughthe
salaried professionals are given more importance which constitutes the main target
segment.
Price as expected has emerged as critical variable having important consideration in
purchase process. An aggressive Pricing policy can attract substantial no. of customers for
onlineshoppinginconjunctionwiththepullofBrandname.
Mainlyonlineshoppingistargetedtouppermiddleclasses.Butthehugemarketofmiddle
class is neglected; online shopping sites should come out with the schemes to attract this
sectionofpeople.
Moreawarenessandadvertisementsneedtobegivenabouttheonlineshoppinginorderto
increasethenumberofonlineshoppingusersandforshiftingfromotherformofshopping.
Moreoffersanddiscountsshouldbeusedasaweapontoattracttheconsumers.
The online websites should be designed such that it should attract the attention of the
shoppers,asmajorityoftheconsumersfeelthatDescriptionoftheproducts
makestheonlineshoppingeasytouse.
Onlineshoppingwebsitesshouldbedesignedsuchthatitisuserfriendly,eventhepersons
withlittleknowledgeofonlineshoppingshouldbeabletoshoponlineeasily.

 AsChennaiishavinglargesoftwareprofessionalsonlineshoppingwebsitesshouldconsider
themastargetcustomersandofferproductsonlinewhichsuitstotheirlifestyle.
Along with the defensive schemes, product updating is a necessary thing. New and
improved features have to introduced, which can attract the customers to the online
shopping.
Customers must be guaranteed a safe online shopping ,security of their personal
information,paymentsanddelivery.

CHAPTER11
CONCLUSION

Fromthestudymade,itisclearthat,theonlineshoppingishavingitsownmarketanda

majorshareofloyalcustomers.Theencouragementintheformofawarenessand

advertisementswillsurelyattractmorecustomers.Onlineshoppingsiteswithits

newadvertisementsandapenetratingpricingstrategycangrabthemarket.

Majorityofthesurveyedpopulationwasfoundtobesatisfiedwiththeservicerendered

bytheonlineshoppingwebsitesandthemajorityoftheconsumerscouldrecommend

otherstomakeshoppingthroughonline.

BIBLIOGRAPHY
a. GreensteinFirsman,ElectronicCommerce,,TataMcGrawHill,1999.
b. Kalakotaetal,FrontiersofElectronicCommerce,AddisonWesley,2001.
c. NibilAdam,ElectronicCommercetechnical,Businessandlegalissues,Prentice
Hall,1998
Websites:
1) www.amazon.com
2) www.bigcartel.com

ANNEXURE
Questionnaire

DATAFORIDENTIFICATION

i.NAME:
ii.OCCUPATION:
1)Professional2)Salaried

3)Business4)Others
iii.Age1)18to25

2)26to30

4)36andabove

3)31to35

iv.SEX

MALE

FEMALE

v.FamilyIncome/Month:

1)<10,0002)10,00115,000

3)15,00120,0004)Above20,001

DATAFORANALYSIS
1. Areyouawareofonlineshopping?
b. Yes

b.No

2. Which online web sites do you visit frequently?

a. e Bay
b. Amazon shopping
b. bid 2 win
c. e biz
d. Others specify ________

3. How did you know about online shopping?

a. ElectronicMedia
b. PrintMedia
c. Family/Friends
d. SponsoredEvents
e. Othersspecify ________

4. What do you purchase from online shopping?

a. Apparels
b. Mobiles
c. Electronic goods
d. others

5. For what purpose do you visit online sites?

a. Toknowaboutproducts
b. Casualinnature
c. Timesaving
d. Statussymbol
e. Othersspecify _____

6. What is the range of your purchase?

a. <1500
b. 15003000
c. 30005000
d. 5000&above

7.

What factors do you consider while purchasing product from online shopping?
a. Cost
b. Status
c. Convenience
d. Othersspecify ________

8. What is your opinion about the promotional activities of online shopping?

a. Excellent
b. Good
c. Average
d. poor

9. What is the level of satisfaction towards online shopping?

a. Highlysatisfied
b. Satisfied
c. Moderatelysatisfied
d. Unsatisfied
e.cantsay
10. What is the motive behind buying decision of online shopping?
a. Discounts
b. Gifts
c. Coupons
d. Guarantee
e. Othersspecify ________

11. What is the mode of payment?

a. Cash
b. Creditcard
c. Debitcards
d. Othersspecify ________

12. Do you believe in discount offers of the online shopping?

a. Yes

b.

No

13. What makes online shopping easy to use?

a. Description of the products
b. Search box on every page
c. A list of major product categories
d. Cant say
14. Advantages of online shopping
a. Wide choice
b. Time saving
c. Cost saving
d. can shop at our convenience

15. Rate the level of your satisfaction with regard to online shopping?
PARTICULARS

HS

CS

DS

HDS

PRICE

CONVENIENCE

STATUS

BRAND

COMFORT

a.HighlySatisfied
b.Satisfied
c.Cantsay
e. Dissatisfied
f.

HighlyDissatisfied

16.Anyothersuggestion
_____________________________________________________________________
___________________________________________________

Signature