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Submitted to H.P. University for the partial fulfillment for degree in
Bachelor of Business Studies

Mr. Pankaj
Prof. BBA
Govt. Degree College

Ankush Kapoor
University Roll No.

School of Business Management

Govt. Post Graduate College, Dharamshala (H.P.) 176215




Page No

Executive Summary

Theoretical Background

Design of Study


Industry & Product Profile


Analysis and Interpretation of Data


Summary & Recommendations







Till recently man, machine, money and management were the most important factors of
production. No doubt, they are still important for success of any organization. Another
element has been added to the above and that is information. As we enter 21 st century,
managing information involves professional approach to deal with global dynamic interactive
environment. Information is considered as nervous system of any organization. Therefore,
one needs to have updated information all the time. This information may be about the
competitors, happenings in the market place and the lie. One should have constant access to
such information.
In order to access such information, there should be some network, which would provide the
information that is required. Internet provides this in todays age. The most important aspect
of information is that it should be available when it is needed. Internet service providers
provide this access. Continuous innovations in telecommunications have enabled information
to be shared across the globe.
With the demand growing for Internet access market, there seems to be a dearth of efficient
service providers. This has resulted in significant increase in the entrants in this industry.
These are various ways to access this information. It depends upon how the service provider
opts for providing this information.
This study would help the organization to skim the potential segments and establish itself in
the industry.

1.1 History of Internet:

Information has become an important resource of an organization. Gone are those days when land,
labor, capital and management were considered as factors of production. Today information plays a
vital role in deciding the fate of any organization.
Due to rapid advancement in communication technology the access to information from any part of
the world has become easy. This is all possible because of Internet. Internet is nothing but a network
of networks. In other words an Internet is formed by interconnection of computer networks and
individual computers all over the world via telephone lines, satellites and telecommunication systems.

Far from being a single technological phenomenon, the Internet was born of several technologies that
gestated over a long period. The Internet started a ARPANET in 1969. The seeds of Internet were
sown with the linking of four university super computers. The ARPARENT project names for and
sponsored by the defenses departments Advanced Research Project Agency, was an exercise in
sharing information among scientists. The project grew out of a DOD commissioned Rand institute
study proposing a command and control network that should be secure enough to withstand nuclear
attack. Rand proposed a system in which information would be digitized and dispersed through a
network of routers, each capable of rerouting traffic if a part of the network was damaged. This packet
switching system, revved up and improved by progressions of technological advances, is essentially
the underlying technology of todays Internet and its all possible permutation and combinations.
Internet grew steadily throughout 70s. As more and more users thought of this they would like to do
using the network, new languages and technical enhancements emerged.
UNIX was developed in 1972 and new branches of the Internet formed with names like Csnet and
Bitnet. With each advance such as the organization of messages by subject area and the ability to
transfer files more users were attracted to the net. The Internet became an inexpensive and attractive
way for computer users to search out others with information, views and ideas to share. By 1984,
various branches of the networks had merged. There were 500 host computers on the net, and some
people began calling it Internet.
In 1987, the National Science Foundation accepted the task of managing the backbone of the net, and
the network became know far and wide as Internet. Within years, as the technologies evolved and as
the personal computers spread to more offices and homes, the net became accessible, not just to
people who worked at computers all day, but to anyone with a computer, a modem and a desire to get
on board. The major milestones were the introduction of the World Wide Web in 1989 in which vast
amount of information could be linked, and then the development of tools to access the web. With the
advent of hypertext markup language, it became possible to switch relatively rapidly among all files
and directories of the Internet. In 1993, the University of Illinois wrote and released the first web
browser a program that allowed users to make links more quickly and easily.
The web was growing 340 percent annually. The number of host computers on the Internet rose from
80000 in 1989 to 1.3 million in 1993 and 2.2 million in 1994. With more new technologies in place,
the first cyber radio station went online; the first movie was broadcast over the net. In 1996, 36 years
after ARPANET was switched on the NSF backbone became commercially supported, and the
business took off.
Where will all this lead? Will the computer replace TV and the telephone? This is a difficult question
to answer. We will have to wait and see. Only time will let us know!

Online shopping is the process consumers go through to purchase products or services over
the Internet.

3.1 Shop Online Safely

The Internet is an exciting tool that puts vast information at your fingertips. With a click of a
mouse, it lets you buy an airline ticket, book a hotel, send flowers to a friend, or purchase
your favorite stock.
Good deals, convenience, and choice abound on the Internet. But before you use all the
Internet has to offer, be cyber smart to make the most of your online experience.

3.1.1 Security on the Internet

Shopping online offers lots of benefits that you wont find shopping in a store or by mail. The
Internet is always open seven days a week, 24 hours a day and bargains can be numerous
online. Shopping on the Internet is no less safe than shopping in a store or by mail.

3.1.2 Privacy on the Internet

Technology now provides companies with the ability to collect information about you and
potentially give or sell that information to others. While the Internet can serve as a
tremendous resource for information, products, and services, you should be sure to safeguard
your privacy online
Popular websites that allow online purchasing include Amazon, eBay, and Online
shopping is popular mainly because of its speed and ease of use., the online bookstore turned Internet department store, ranks as among the most
successful retailer in cyberspace.
A research company., found that Amazon not only raked in the biggest amount of online sales
last year, but it also ranked second in terms of browser satisfaction, which according to the
company predicts how likely a client will be to make a return visit and generally indicates
how satisfied ranked second on the satisfaction scoreboard

In terms of sales volume, computer-maker Dell ranked second, while office-supply store
Office Depot ranked third, even though their satisfaction score only reached 77 and 75,
Online shopping is "here to stay, no matter what sector," said Dan Freeman, an assistant
professor at the business department of the University of Delaware.
Freeman said there is no major consumer segment that does not use the Internet, even though
older consumers are likely to be more wary of giving out credit-card numbers online for
"There's really no particular product" that would not be a good item to buy online these days,
Freeman told United Press International, adding that Web site shopping was particularly
convenient for giving gifts or making purchases when stores are closed.
"People are having much better Web experiences than they did a couple of years ago," Larry
He said most of the growth in the retail industry has been in Internet shopping over the past
few years, rather than in the traditional stores. Also, Freed said, companies that have focused
solely on catering to their online clients, such as and,
tended to provide better Internet shopping experiences, with everyone in the company, from
the chief executive on down, focusing on Web sales.
Even traditional retail outlets, such as Westside, Lifestyle and Shoppers stop, cannot afford
not to offer online shopping, he said.
"The (shopping) Web site gives stores larger exposure," Freed said. "Without it, they're at a
He added that customers often conducted product research online, even if they did not buy
via the Internet, or they browsed in actual stores but made their final purchases on the
company's Web site.
"The Web by itself is not the answer to all things," Freed said, "but it's indispensable now for
every retailer."


2.1 Statement of the problem:
Due to huge growth in the Internet market, the company has planned to enter this market as
an Online shopping portal. Formalities to enter are under process. Hence the research was
initiated to find the attractiveness of the market with respect to size of potential market and
factors affecting the market potential.

2.2 Objectives of the research:

To understand the consumer for the Internet in terms of awareness, usage pattern and
source of information preferred by the consumer.
To understand the features desired by the users of internet
To understand the penetration of Online shopping portal in the city of Bangalore
To carry out SWOT analysis
To design an effective and appropriate marketing strategy for the service the company
is planning to provide.

2.3 Scope of the study:

The scope of the study is limited to Bangalore city. This study can be used by the
organization to understand the attractiveness of the market and with respect to size of
potential of the service.
The proposed marketing strategy would help the organization to penetrate, grow and sustain
in the market.

2.4 Research Methodology:

a) Type of research:
The study consisted of a survey through a structured questionnaire. Different questionnaires
were administered in the identified segments.
Date collected through primary source through structured questionnaire
Data collected through secondary sources

Through information available on the net

Through books, journals, etc.

b) Source of data
Primary Data: Collected through a questionnaire administered on 115 respondents.
Secondary Data: Collected from a variety of sources such as websites, academic books,
and from newspaper clippings.

c) Sampling Plan:
The sampling procedure was judgmental sampling. The sampling area was restricted to
Dharamshala city only. A fair representation of most of the areas of Bangalore was obtained.

Type of Sampling: Convenient judgmental sampling.

Sample Size: 115 respondents from a diversified geographic area who represent a cross
section of the socio economic groups and from differing age groups.

Research approach: Personal

Plan of Analysis: The mathematical tools used for this research were percentage and
judgmental for open ended questions. The data collected have been processed and analyzed
using simple statistical techniques and conclusions were tabulated.

1. Could you please tell us about your familiarity with Internet?
Never heard about it

Heard about it but never used it

Use it once a while (1-10 Hrs a month)

Use it frequently (11-30 Hrs a month)

Use it very frequently (>30 Hrs a month)

2 Do you use computer in your day to day operations of business?



3. Where do you access internet?

At home

At office

At a cyber centre


4. Do you own a personal computer?




If coded 1,
a. Do you have an Internet connection?

5. How many members in your house use the net?

6. What are different types of activities you do on the net?



Online Shopping

Information portals


7. Do you think online shopping is a good and safe mode of shopping?



8 What sources of information would you consider before making choice of Online shopping
Web site.

Print ads

Friends and relatives


Past experience



Any other (please specify)

9. Which are the online shopping portals that you prefer to shop on?

Yahoo Shopping

Indiatimes shopping

Any other (please specify)

10. Please tick the appropriate with reference to a online shopping.

I would try to prefer it

I would wait till feed back is available

I would wait till the product is established

I will prefer not to try

11. Could you please tell us about your opinion of online shopping?

a. Name of the respondent


b. Age group:
15-20 yrs

30-35 yrs

21-25 yrs

36-40 yrs

26-30 yrs

Above 40 yrs

c. Occupation:






Others (please specify)_________________