A MAJOR RESEARCH PROJECT

ON

AN EMPIRICAL STUDY ON THE BUYING PREFERENCES OF MANAGEMENT

STUDENTS OF UDAIPUR FOR FMCG PRODUCTS WITH REFERENCE TO

ONLINE SHOPPING WEBSITES.

Submitted in partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

(2015-17)

UNDER THE GUIDANCE OF: SUBMITTED BY:

PROF. MEERA MATHUR ACHAL KOTHARI

FACULTY OF MANAGEMENT STUDIES MBA CMAT IV

AT
FACULTY OF MANAGEMENT STUDIES
MOHANLAL SUKHADIA UNIVERSITY, UDAIPUR
2017
 CERTIFICATE

This is to certify that Achal Kothari, student of MBA CMAT IV semester,

Faculty of Management Studies, MohanLal Sukhadia University, Udaipur has
completed her Major Research Project on the topic “An Empirical Study on the
Buying Preference of Management Students of Udaipur for FMCG products
with reference to online shopping websites.” as a part of curriculum for fourth
semester under my supervision and he has completed his work satisfactorily.

Prof. MEERA MATHUR Place: Udaipur

PROJECT GUIDE Date:
 DECLARATION

I hereby declare that the Major Research Project “An Empirical Study on the
Buying Preference of Management Students of Udaipur for FMCG products
with reference to online shopping websites.” is original and bonafide work done
by me.

The project is being submitted in partial fulfillment requirements for the award
degree of Master of Business Administration at Faculty of Management
Studies, Udaipur (Rajasthan).

The contents of this project are based on the analysis done by me during the
research period and not submitted for the award of any other
degree/diploma/fellowship or other similar titles or prizes to any other
Institution/School or University by any other person.
 ACKNOWLEDGEMENT

Every project big or small is successful largely due to effort of wonderful

number of people who have always given their valuable advice or lent a helping
hand. I sincerely appreciate the inspiration, support and guidance of all those
people who have been instrumental in making this research project a success.
This project has consumed huge amount of work, research & dedication. Still,
implementation would not have been possible if I did not have a support of
many individuals. Therefore, I would like to extend my sincere gratitude to all
of them.

I want to thank the most important persons of this project, i.e., the management
students of Udaipur who have spared time for giving their views for my
research project. Their sincere attitude towards me & my project has really
helped me to know the critical aspects of consumer behavior for FMCG
products. If they wouldn’t have shared this, such realistic touch would not be
possible.

I express my gratitude to Prof. Anil Kothari, Director (FMS College) for

arranging such a research project work where we could learn the fundamentals
of research work. It just opens up our vistas for research work through practical
work. I also like to extend my gratitude to my project guide Prof. Meera
Mathur and Ms. Shreya Singhvi (Research Scholar), who assisted in
completing the research project work.

I would also like to thank all the faculty members of F.M.S. College for their
critical advice and guidance without which this project have not been possible.

Last but not least I place a deep sense of gratitude to my family members and
my friends who have been constant source of inspiration during the preparation
of this research project work.
 PREFACE
The research has been done to study “The Buying Preference of
Management Students of Udaipur for FMCG products with reference to
online shopping websites.” The main objective of the research is to find out
the factors that affect the buying behavior of consumers while shopping
online for FMCG goods.

A survey has been conducted and data has been collected from various
Management Students in Udaipur city with the help of a questionnaire and
thus a report has been prepared. In the survey the management students were
interacted in order to find out their view points about the factors that
motivate them to shop online more often. The sample size taken was 70 in
order to ascertain fair result.

I take this opportunity to present the project report and sincerely hope that it
will enhance the knowledge of readers.
 EXECUTIVE SUMMARY
This project is expected to accomplish following task:

 Identify the impact of online websites on the buying behavior of

Management Students.
 Identify the factors that attract Management students to buy products
via online websites.
 Identify the relevant platform to sell FMCG products.(Online/ Offline)

This report is divided into five chapters:-

The first chapter consists of introduction about the consumer buying behavior
and online shopping.

The second chapter of the report includes review of literature which includes
text of research papers which takes account of knowledge, findings as well as
theoretical contributions to a particular topic.

The third chapter is on Research Methodology which includes objectives of

the research, research design, sampling design and analysis techniques. It
mainly focuses on how research has been carried out.

The fourth chapter consists of data analysis and interpretation. This analysis is
done on the basis of response generated by the respondents. For each question
the analysis is done and presented in brief through diagrammatic representations
& statistical analysis.

The fifth chapter summarizes the conclusions along with appropriate

suggestions followed by references, bibliography and annexure.
 CONTENTS
S.NO. PARTICULARS PG.NO.
CERTIFICATE I
STUDENT DECLARATION ii
ACKNOWLEDGEMENT iii
PREFACE iv
EXECUTIVE SUMMARY v
1. INTRODUCTION 1-9
1.1.Consumer 2
1.2.Consumer Behavior 2
1.3.Consumer Buying Behavior 3
1.3.1. Factors affecting Consumer Behavior 3
1.4.FMCG 4
1.5.Online Shopping 6
1.5.1. Reasons for shopping Online 7
2. REVIEW OF LITERATURE 9-14
3. RESEARCH METHDOLOGY 15-18
3.1. Research 16
3.2. Research Objectives 16
3.3. Research Design 16
3.4. Sample Design 17
3.5. Research Instrument 17
3.6. Data Collection 18
3.7. Hypothesis 18
4. ANALYSIS OF DATA AND INTERPRETATION 19-38
5. FINDINGS, CONCLUSIONS AND SUGGESTIONS 39-42
5.1. Findings 40
5.2. Reasons for not shopping online 41
5.3. Conclusion 42
6. BIBLIOGRAPHY 43-44
7. ANNEXURE 45-46
 CONTENTS (CHARTS)
S.NO. PARTICULARS PG. NO.
5
1. Revenue of the fast moving consumer goods
(FMCG) market in India from 2007 to 2020 (in
billion U.S. dollars)
2. Online retail sales in India from 2009 to 2016 (in 8
billion U.S. dollars)
3. Age of the Respondent? 20

4. Gender of Respondent 21
5. Income of the Respondent 22
6. Do you shop via Online Websites? 23
7. Do You Shop Online for FMCG goods 24
8. Do Marketing Campaigns affect your buying 25
behavior
9. Do You Shop Online Just Because it is 26
exclusively available on particular website?
10. Do you find shopping online more time saving? 27

11. Do you find shopping online more convenient? 28

12. Do you look for various schemes, offers & 29
discounts before shopping for FMCG goods
13. Do return policy of online websites affect your 30
purchase behavior?
14. Price 31
15. Trust 32
16. Accessibility 33
17. Design of Website 34
18. Easy Comparison 35
19. Wide Variety Availability 36
20. 24*7 Shopping Facility 37
21. Non-delivery Risk 38
 CHAPTER 1
INTRODUCTION
1. INTRODUCTION
In the modern era, shopping via Online Websites has seen a tremendous growth.
There are certain factors that attract people to buy various products online. Nowadays,
people prefer more of online buying rather buying offline.
Online purchasing is very trending these days, especially amongst the youth.
Management students are the youth that would become future managers. Their
perspective about online purchasing is quite important for the FMCG industry to
analyze the inclination of today’s youth towards online purchasing, and how much
they consider it relevant or irrelevant.

1.1.Consumer
A consumer is an individual who buys and consumes goods and services for
satisfying his/her needs and wants.
A consumer is an end user, and not necessarily a purchaser, in the distribution chain
of a good or service.
A consumer is the one who pays something to consume goods and services produced.
As such, consumers play a vital role in the economic system of a nation. Without
consumer demand, producers would lack one of the key motivations to produce: to
sell to consumers. The consumer also forms part of the chain of distribution.
A consumer is a one that consumes, especially one that acquires goods or services for
direct use or ownership rather than for resale or use in production and manufacturing.
A consumer is an end user of goods and services; a consumer may or may not be the
purchaser of the goods.

1.2.Consumer Behavior
“It is the sum total of a consumer's attitudes, preferences, intentions, and decisions
regarding the consumer's behavior in the marketplace when purchasing a product or
service. The study of consumer behavior draws upon social science disciplines of
anthropology, psychology, sociology, and economics.” (Grimsley)

Consumer behavior is the study of how people buy, what they buy, when
they buy and why they buy. (Kotler, 1994)

Consumer is the study “of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs
and desires” (Solomon et al., 1995)

“The behavior that consumers display in searching for, purchasing, using, evaluating,
and disposing of products and services that they expect will satisfy their needs”
(Schiff man ,2007)
 The study of consumer behavior explains as to:
 Why and why not a consumer buys a product?
 When a consumer buys a product?
 How a consumer buys a product?

In a layman’s language consumer behavior deals with the buying behavior of individuals.

1.3.Consumer Buying Behavior

Consumer buying behavior is considered to be an inseparable part of marketing and
Kotler and Keller (2011) state that consumer buying behavior is the study of the ways
of buying and disposing of goods, services, ideas or experiences by the individuals,
groups and organizations in order to satisfy their needs and wants.

Buyer behavior has been defined as “a process, which through inputs and their use
though process and actions leads to satisfaction of needs and wants” (Enis, 1974,
p.228). Consumer buying behavior has numerous factors as a part of it which are
believed to have some level of effect on the purchasing decisions of the customers.

Alternatively, consumer buying behavior “refers to the buying behavior of final

consumers, both individuals and households, who buy goods and services for personal
consumption” (Kumar, 2010, p.218). From marketers’ point of view issues specific
aspects of consumer behavior that need to be studied include the reasons behind
consumers making purchases, specific factors influencing the patterns of consumer
purchases, analysis of changing factors within the society and others.

1.3.1. Factors affecting consumer behavior:

 Purchasing Power: Purchasing power of a consumer plays an important
role in influencing the consumer behavior. The consumers generally
analyze their purchasing capacity before making a decision to buy and
products or services. The product may be excellent, but if it fails to meet
the buyers purchasing ability, it will have high impact on it its sales.
Segmenting consumers based on their buying capacity would help in
determining eligible consumers to achieve better results.
 Group Influence: Group influence is also seen to affect the decisions
made by a consumer. The primary influential group consisting of family
members, classmates, immediate relatives and the secondary influential
group consisting of neighbors and acquaintances are seen have greater
influence on the purchasing decisions of a consumer. Say for instance, the
mass liking for fast food over home cooked food or the craze for the
SUV’s against small utility vehicle are glaring examples of the same.
 Personal Preferences: At the personal level, consumer behavior is
influenced by various shades of likes, dislikes, priorities, morals and
values. In certain dynamic industries such as fashion, food and personal
 care, the personal view and opinion of the consumer pertaining to style and
fun can become the dominant influencing factor. Though advertisement
can help in influencing these factors to some extent, the personal consumer
likes and dislikes exert greater influence on the end purchase made by a
consumer.
 Economic Conditions: Consumer spending decisions are known to be
greatly influenced by the economic situation prevailing in the market. This
holds true especially for purchases made of vehicles, houses and other
household appliances. A positive economic environment is known to make
consumers more confident and willing to indulge in purchases irrespective
of their personal financial liabilities.
 Marketing Campaigns: Advertisement plays a greater role in influencing
the purchasing decisions made by consumers. They are even known to
bring about a great shift in market shares of competitive industries by
influencing the purchasing decisions of consumers. The Marketing
campaigns done on regular basis can influence the consumer purchasing
decision to such an extent that they may opt for one brand over another or
indulge in indulgent or frivolous shopping. Marketing campaigns if
undertaken at regular intervals even help to remind consumers to shop for
not so exciting products such as health products or insurance policies.

1.4.FMCG
Fast Moving Consumer Goods refer to items that are purchased and consumed
frequently by consumers. These are non durable items, which have relatively low
prices. The main product categories that fall under FMCG include:
 Personal and Household care: Personal care includes everyday use items
such as toothpaste, soap, shampoo , hair oil, deodorant, perfume, talcum
powder and creams and lotions used for skin care. Household care items
include items required for maintenance of household cleanliness such as floor
cleaners, dish and utensil cleaners, toilet cleaners, air fresheners, and mosquito
repellents etc. Washing related items such as detergent, washing powder are
also included in FMCG category.

 Food and Beverages: Easily perishable items such as fruits and vegetables
and meat as well as items with relatively longer shelf life such as
confectionery, chocolates, flour, sugar, cereals, baked items such as biscuits,
cakes and cookies , snacking items, ice creams fall under the food category.
Beverages category includes coffee, tea, fruit juices, health drinks and bottled
water are included.

The following are the main characteristics of FMCGs:

 From the consumer's perspective

o Frequent purchase
 o Low involvement (little or no effort to choose the item)
o Low price
o Short shelf life
o Rapid consumption
 From the marketer's perspective
o High volumes
o Low contribution margins
o Extensive distribution networks
o High stock turnover

The fast-moving consumer goods sector is an important contributor to India's GDP. India's
FMCG sector is the fourth largest sector in the economy and creates employment for more
than three million people. (statista.com)

Food products are the leading segment, accounting for 43 per cent of the overall market.
Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share.
(shine.com)

1.4.1. Revenue of the fast moving consumer goods (FMCG) market in India from 2007
to 2020 (in billion U.S. dollars)

120

100
Revenue in Billion US $

80

60

40

20

0
2007 2008 2009 2010 2011 2012 2013 2015 2016 2020

Chart 1
This statistic shows the revenue of the fast moving consumer goods market (FMCG) in India
from 2007 to 2020. In 2015, India's FMCG market generated revenue of about 47.3 billion
U.S. dollars, with revenue forecast to reach 103.7 billion U.S. dollars in 2020.

1.5.Online Shopping
Online shopping is a form of electronic commerce which allows consumers to directly
buy goods or services from a seller over the Internet using a web browser. Consumers
find a product of interest by visiting the website of the retailer directly or by searching
among alternative vendors using a shopping search engine, which displays the same
product's availability and pricing at different e-retailers. As of 2016, customers can
shop online using a range of different computers and devices, including desktop
computers, laptops, tablet computers and smart phones.”

“The act of purchasing products or services over the Internet.” Online shopping has
grown in popularity over the years, mainly because people find it convenient and easy
to bargain shop from the comfort of their home or office. One of the most enticing
factor about online shopping, particularly during a holiday season, is it alleviates the
need to wait in long lines or search from store to store for a particular item.

1.5.1. Advantages of Online Shopping

• Save Time – Do you have the specific list that you want to buy? With just a
couple of clicks of the mouse, you can purchase your shopping orders and
instantly move to other important things, which can save time.

• Save Fuel – The market of fuel industries battles from increasing and decreasing
its cost every now and again, but no matter how much the cost of fuel are it does
not affect your shopping errands. One of the advantages of shopping online is that
there is no need for vehicles, so no purchase of fuel necessary.

• Save Energy – Admit it, it is tiresome to shop from one location and transfer to
another location. What is worse is that there are no available stocks for the
merchandise you want to buy. In online shopping, you do not need to waste your
precious energy while buying.

• Comparison of Prices – The advanced innovation of search engine allows you

to easily check prices and compare with just a few clicks. It is very
straightforward to conduct price comparisons from one online shopping website to
another. This gives you the freedom to determine which online store offers the
most affordable item you are going to buy.

• 24/7 Availability – Online shopping stores are open round the clock of 24/7, 7
days a week and 365 days. It is very rare to find any conventional retail stores that
 are open 24/7. The availability of online stores give you the freedom to shop at
your own pace and convenience.

• Hate Waiting in Lines – When buying items online, there are no long lines you
have to endure, just to buy your merchandise. The idea of shopping online is
cutting down those bad habits of standing in a long line and just waiting. Every
online store is designed with unique individual ordering features to purchase the
item.

• Easy to Search Merchandise You Want to Buy – You are able to look for
specific merchandise that includes model number, style, size, and color that you
want to purchase. In addition, it is easy to determine whether the products are
available or out of stock.

Reasons for buying online:

 Convenience: Where else can you do shopping, even at midnight, wearing your
jammies? You don’t have to wait in a line or wait till the shop assistant helps you with
your purchases. You can do your shopping in minutes even if you are busy, apart
from saving time and avoiding crowds. Online shops give us the opportunity to shop
24 x 7 and also reward us with ‘no pollution’ shopping.
 Better Prices: I get cheap deals and better prices from online stores because products
come to you directly from the manufacturer or seller without middlemen involved.
Many online shops offer discount coupons and rebates.
 Variety: One can get several brands and products from different sellers at one place.
You can get in on the latest international trends without spending money on travel;
you can shop from retailers in other parts of the country or even the world without
being limited by geographic area... These stores offer a far greater selection of colors
and sizes than you will find locally. If you find that the product you need is out of
stock online, you can take your business to another online store where the product is
available.
 Fewer Expenses: Many times when we opt for conventional shopping we tend to
spend a lot more than the required shopping expenses, on things like eating out,
traveling, impulsive shopping etc.
 Comparison of Prices: Online shops make comparison and research of products and
prices possible. Online stores also give you the ability to share information and
reviews with other shoppers who have firsthand experience with a product or retailer.
 Crowds: If you are like me, you would like to avoid the crowds when you do the
shopping. Crowds force us to do a hurried shopping most of the time. Crowds also
create a problem when it comes to finding a parking place nearby where you want to
shop and going back to your vehicle later loaded with shopping bags.
  Compulsive Shopping: Many times when we go out shopping we end up buying
things which we do not require because of the shopkeepers’ upselling skills -- or we’ll
compromise on our choices because of the lack of choices in those shops.
 Discreet Purchases: Some things are better done in privacy. Online Shops enable me
to purchase things without the embarrassment that there are several people watching
me and my choices.

1.5.2. Online retail sales in India from 2009 to 2016 (in billion U.S. dollars)

Chart 2

40

35

30
Revenue in billion US $

25

20

15

10

0
2009 2011 2014 2015 2016

This timeline shows the online retail e-commerce sales figures in India from 2009 to 2015
and a forecast regarding 2016, in billion U.S. dollars. Online shopping sales in India totaled
23 billion US dollars in 2015 and are expected to surpass 38 billion U.S. dollars by 2016.

The number of consumers who purchase online is expected to cross 100 million by 2017 end
with e-retail market likely jumping 65% on year in 2018, an ASSOCHAM-Resurgent India
study

"The year 2017 will see large scale growth in the Indian e-commerce sector with increased
participation from people across the country. This industry will continue to drive more
employment opportunities and contribute towards creating more entrepreneurs through the e
commerce marketplace model," the report said.
(http://economictimes.indiatimes.com/articleshow/56417797.cms?utm_source=contentofinter
est&utm_medium=text&utm_campaign=cppst)
 CHAPTER 2
REVIEW OF LITERATURE
 (Singh, 2015), “We must spend time, money and our scientific manpower to isolate
and synthesize molecules present in our unique natural oils for making better
perfumes. This will enable us to offer new unique odors to global F&F industry. This
should be our priority for future cutting edge-technology. We have cutting edge
competition in perfume industry but innovative changes in perfume ranges can bring
drastic revolution in the Indian perfume market. The perfume companies must work
considerably on significant factors which influence the perfumes buying behavior of
consumers.”

 (Ahmed, 2014) E-commerce is an important determinant in increasing overall

business of firms subsequently contributing to the growth of an economy. It also
provides that there is relationship between Internet consumption & buying pattern, so
Marketers can alter their strategies between different types of customers.

 (Singh, 2014) The conclusion drawn is that better understanding the consumer buying
behavior through studying and identifying their needs leads to huge long term benefits to
the businesses. Despite the great efforts to learn and understand the buying behavior of
consumers, it is very difficult to identify the exact reasons why a consumer purchases and
prefers one product or service over another one. This is because consumers sometimes
make purchasing decisions based on their emotional beliefs which they even themselves
are not well aware of.

 (Kumar, 2012) The study suggests that attitudes in the direction of the risks and the
benefits of the use of online buying do warfare for some purchasers and that this has a
negative impact on their goal to use the net to do their shopping. Those purchasers
who are skeptical or non-enthusiastic about online purchasing are less likely to
understand that the internet has affected and could have an effect on their buying
conduct compared with those who are obsessed on the usage of the channel. Online
shopping experience plays an important role too and influences how consumers
perceive both the benefits and the risks of using online shopping. In particular, we
find that online shopping experience lessens consumers’ skepticism about using the
internet to buy products.

 (Mishra, 2012) Attitudes towards the risks and the benefits of using online shopping
do conflict for some consumers and that this has a negative impact on their intention
to use the Internet to do their shopping. Those consumers who are skeptical or non
enthusiastic about online shopping are less likely to perceive that the Internet has
affected and will affect their shopping behavior compared with those who are
enthusiastic about using the channel.

 (Moshrefjavadi, 2012) In this study we examined some elements affecting online

purchasing behavior of clients. A conceptual model turned into used on the way to
verify the outcomes of variables on each other by the use of regression evaluation.
Outcomes of hypotheses indicated that financial risk and non-delivery threat has
 negative impact on mindset closer to online shopping behavior. That is, e-outlets have
to make their internet site more secure and assure customers for transport in their
merchandise. It has tremendous impact mindset in the direction of on-line shopping
on online purchasing behavior of clients imply that considering mind-set variables
make a giant contribution in online purchasing. Also, subjective norms have
tremendous impact on shopping behavior. This means the more people suggest e-
buying to each other, the more this buying method will be popular among people.
This makes necessary the use of word of mouth marketing for retailers. Domain
specific innovativeness has positive effect on online shopping behavior. This means
that marketing specialists should target this society in their marketing strategy
formulation for better effectiveness of their marketing program.

 (Paul, 2012), “The main objective of this study was to understand the behavior of
ecological consumers and their intention to purchase organic food. The study aims to
determine the factors influencing consumer behavior towards organic food. It was
observed in the survey that preference for organic food could be affected with the
demographic profile of the consumers. People’s consciousness has increased over
recent decades to an extent that environmental conservation is now regarded as a
major issue. Among the consequences of this awareness is new legislation and greater
acceptance among consumers of their own responsibilities to engage in behaviors
which help safeguarding the planet.”

 (Ali, 2010) A strong economic growth has brought with it a new set of consumers
with sufficient disposable income, who are more conscious of the latest trends in
health and hygiene, particularly in the fast growing cities. High consumer ratings on
the product attribute of freshness/cleanliness along with price and quality suggests
that food retailing needs to be customized as per their requirements. It also suggest
that consumers prefer a convenient marketplace with additional service facilities.
Market attributes like entertainment for children, basic amenities and affordability of
the marketplace are also considered to be important by the consumers.

 (Delafrooz, 2009) Survey’s objective of online shopping is a twofold process. The

first section seeks to determine relationship between attitude towards online shopping
with shopping orientations and perceived benefits scales. The second section
investigates factors that influence peoples’ attitudes towards online shopping. It
demonstrated the determinants of consumers’ attitudes towards online shopping.
Additionally, utilitarian orientations, convenience, price, wider selection influenced
consumers’ attitudes towards online shopping.

 (Gupta, 2009), Cleanliness, freshness, free from pesticides, good for health, and clean
place of sale are five most important parameters that respondents rated very highly for
food purchasing decisions. Some other parameters that were rated highly by
respondents are Value for money, overall quality, taste, variety of products
 availability at same place, seasonality, flavor, good display of products, nearby
availability and good ambience. Some parameters which are not considered as very
important by respondents are promotional offer and products produced in other
country.

 (Ragavendran, 2009) emphasized in their research that the survey helped them in
know-how the consumer perception on logo recognition and position of product
within the marketplace. It discovered that purchaser’s expectations had been quality,
advantages offered and packaging. Based on the results obtained, integrated
marketing communication was suggested; as a result an improvement of 8% to 12.6%
was observed in target population.

 (Rahim, 2008) Online purchasing is fast emerging as an important media choice for
certain products/ services. The result also implies that the Internet is medium better
suited for high involvement products/ services especially in the informative category.
This also suggests that cyber advertising will be able to fulfill needs for consumer
information. While the percentage of online shoppers are still very low, however as
the growth rate of Internet users has increased and there is a possibility of the increase
in online purchasing. Coupling this with the improvement in the infrastructure,
certainly online consumers will surely show an increase in numbers.

 (Kohli, 2004); presented a set of constructs and a method for understanding and
supporting consumers' decision-making process. Taken together, constructs for the online
consumers' decision-making steps (i.e. intelligence, design, and choice), performance
variables (cost savings, time savings), and overall channel satisfaction provide the
conceptual basis for their model that they subsequently validate using data from online
consumers. Results indicated that support for the decision-making process was mediated
by the cost savings and time savings gained by the online consumers and led to their
greater channel satisfaction.

 (Speece, 2004) The literature on consumer behavior argues that the consumer
perceives a product as a bundle of attributes like convenience, variety and choice,
product price, non-seasonal availability, packaging, cleanliness and freshness. The
buying decision or choices between the products largely depend on a combination of
these attributes.

 (Dange, 2002), the study intended to identify factors affecting online consumer
buying behavior through analysis of the literature in the area of online consumer
behavior. The findings showed that the literature on online consumer behavior is
rather fragmented. Analysis identified several fruitful directions for future research.

 (Bhatnagar, 2000) measure how demographics, vender/service/ product

characteristics, and website quality influence the consumer’s attitude towards online
shopping and consequently their online buying behavior. They report that the
 convenience the Internet affords and the risk perceived by the consumers are related
to the two dependent variables (attitudes and behavior) positively and negatively,
respectively.

 (Bickmore, 2000) People purchase products and services are the most based on their
level of trust in this product or services, and sellers either in the physical store or online
shops. Online trust is the basic and essential element for building a relationship with
customers. A present research shows that online trust is lower level than the face-to-face
interactions in the physical store.

 (Hermes, 2000) Some customers use online channels just to escape from face-to-face
interaction with salesperson because they pressure or uncomfortable when dealing
with salespeople and do not want to be manipulated and controlled in the marketplace.
Consumers not only look for products, but also for online services. Some companies
have online customer services available 24 hours. Therefore, even after business
hours, customers can ask questions; get necessary support or assistance, which has
provided convenience to consumers.

 (Trifts, 2000), Potential consumers appear to use a two-stage process in reaching

purchase decisions. Initially, consumers typically screen a large set of products in
order to identify a subset of promising alternatives that appears to meet their needs.
They then evaluate the subset in greater depth, performing relative comparisons
across products based on some desirable attributes and make a purchase decision.
Using a controlled experiment, these authors discover that the .interactive tools
designed to assist consumers in the initial screening of available alternatives and to
facilitate in-depth comparisons among selected alternatives in an online shopping
environment may have strong favorable effects on both the quality and the efficiency
of purchase decisions.

 (Vitale, 2000) investigate how consumers perceive store size and reputation influence
their trust in the store, risk perception, attitudes, and willingness to buy at the specific
store. They discover that there is a positive relationship between consumer trust in
Internet stores and the stores perceived reputation and size. Higher consumer trust
also reduces perceived risks associated with Internet shopping and generates more
favorable attitudes towards shopping at a particular store, which in turn increases
willingness to purchase from that store.

 (Bellmen, 1999) stated that Sites should make it more convenient to buy standard or
repeat-purchase items; Customization should provide the information needed to make
a purchase decision; the checkout process should be easy for the consumer.
 (H Li, 1999) This study proposed and tested a model of consumer online buying
behavior. The model suggests that demographics, channel knowledge, perceived
channel utilities, and shopping orientations affect the consumer online buying
behavior. Findings of the study indicated that education, convenience orientation,
experience orientation, channel knowledge, perceived distribution utility, and
perceived accessibility are considered to be the robust predictors of online buying
status of Internet users. Findings of the affect of purchasing orientations on online
shopping for conduct have several implications. Non-Web buyers are indeed more
price-sensitive than frequent and occasional Web buyers. Online price comparison
may not be worth much given the small differences in price between different vendors
and is still somewhat time-consuming. On the other hand, smart online retailers will
attempt to differentiate their products or services, making direct price-comparisons
less meaningful.
 CHAPTER 3
RESEARCH METHODOLOGY
3.1. RESEARCH

Research is the process of systematic and in-depth study or search for any particular topic,
subject or area of investigation, backed by data collection. Complication, presentation and
interpretation of relevant details or data .It is a careful search or inquiry into any subject
matter, which is an endeavor to discover or find out valuable facts that would be useful for
further application or utilization.

Research methodology is the systematic problem analysis, model building and fact
finding for the purpose of improved decision making. It is the collection summary and
analysis of data regarding goods and services it helps in deciding the nature and tend demand.
Research may involve a scientific study or experimentation and result in discovery or
invention, which would aid either scientific development or decision making.

This chapter provides a discussion on the outline of the research methodology that was used
in this study. It focuses on the research objectives, research design, sampling design data
collection methods, research instruments that were used.

3.2. OBJECTIVES OF RESEARCH

 To gain the familiarity with the phenomenon or to achieve new insights.
 To portray accurately the characteristics of a particular individual, situation or a
group(studies with the object in view are known as descriptive studies)
 To determine the frequency with which something occurs or with which it is
associated with something else (studies with the object in view are termed as
exploratory research studies).
 To test hypothesis of causal relationship between variables (such studies are known
as hypothesis-testing research studies)

3.3. RESEARCH DESIGN

The research design refers to the overall strategy that you choose to integrate the
different components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement, and analysis of data.
For the purpose of conducting the study exploratory and descriptive research design is
adopted to make the study meaningful. Exploratory Research is research conducted to study
the problem more clearly, to establish priorities, develop operational definitions and improve
the final research design. Exploratory research helps determine the best research design, data-
collection method and selection of subjects. While descriptive research is used to describe
characteristics of a population being studied. A descriptive survey enabled to describe the
characteristics of the variables of interest.
Objectives:

 To identify the impact of online websites on the buying behavior of Management

Students.
 To identify the factors that attracts Management students to buy products via online
websites.
 To identify which is better platform to sell FMCG products.(Online/ Offline)

3.4. SAMPLE DESIGN

The sample size is 70 Management Students of Udaipur. The sample is collected by

convenience sampling.

 Convenience sampling: it is probably the most common of all sampling techniques.

With convenience sampling, the samples are selected because they are accessible to
the researcher. Subjects are chosen simply because they are easy to recruit. This
technique is considered easiest, cheapest and least time consuming.

3.5. RESEARCH INSTRUMENTS

Research Instruments are measurement tools (for example, questionnaires or scales) designed
to obtain data on a topic of interest from research subjects. ... They include the
purpose/variable measured, sample population, methodology, other instruments, items and
questions and the source for the instrument.
For the purpose of this research a questionnaire was developed to find respondents’ buying
preferences for FMCG goods.
A questionnaire is a form prepared and distributed to respondents secure responses to certain
questions. It is a device for securing answers questions by using a form which the respondent
fills by himself. It is a systematic compilation of questions that are submitted to a sample
drawn the population from which information is desired. It is an important instrument in
normative survey research, being used to gather information from widely scattered sources.
The questionnaire procedure normally comes into use where one cannot readily see
personally all of the people from whom he desires responses or where there is no particular
reason to see them personally.

The questionnaire was developed to fulfill the following purposes:

 Collect the appropriate data,
 Make data comparable and amenable to analysis,
 Minimize bias in formulating and asking question, and
 To make questions engaging and varied.
3.6. DATA COLLECTION
The data collection tools used for the study were both primary and secondary data.
 Primary Data: Data used in research originally obtained through the direct efforts
of the researcher through surveys, interviews and direct observation. Primary data
is more costly to obtain than secondary data, which is obtained through
published sources, but it is also more current and more relevant to the
research project.
The primary data was collected through questionnaire method

 Secondary Data: Secondary data is the data that have been already collected by
and readily available from other sources. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data
cannot be obtained at all.
The sources of secondary data are newspapers, journals, published articles, and
websites.

3.7. HYPOTHESES
A hypothesis is a specific, testable prediction. It describes in concrete terms what you expect
will happen in a certain circumstance. A hypothesis is used in an experiment to define the
relationship between two variables. The purpose of a hypothesis is to find the answer to a
question. The first variable is called the independent variable. This is the part of the
experiment that can be changed and tested. The independent variable happens first and can be
considered the cause of any changes in the outcome. The outcome is called the dependent
variable.

Hypothesis for the Research: There is no significant relationship between factors affecting
buying preferences of consumers and online websites.
 CHAPTER 4
ANALYSIS OF DATA
 a. Age of the Respondent?

Age
21-22 23-24 25-26

11%

33%

56%

Chart 3

In the survey conducted, there were total 70 respondents. Out of which majority, i.e., 56%
were from the age group 22-23, 33% were from the age group 21-22 and remaining 11 %
were from the age group 25-26.

The age of management students mostly range from 21 to 26 years, so it can be noticed in the
above pie chart that the respondents were covered from all age groups.
 b. Gender of Respondent?

Gender
Male Female

47%

53%

Chart 4

From the above survey it can be noticed that there were almost equal number of male and
female respondents; male respondents comprising 53% of the total population whereas
female respondents comprising of 47%.

Therefore there is no biasness associated with the gender within the survey.
 c. Income of the Respondent?

Income
Below 150000 150000-300000 300000-450000 Above 450000

76%

17%

4%

3%

Chart 5

As per the survey the income of

 53 respondents is below Rs. 150000,

 12 respondents range from Rs.150000-300000
 2 respondents range from Rs. 300000-450000
 3 respondents is above Rs. 450000

So it can be concluded that the income of the majority of the respondents is below Rs.
150000 and it comprises 76% of the total.
 1. Do you shop via Online Websites?

Yes No Maybe

4%

96%

Chart 6

From the above chart it can be noted that

 67 Management Students shop via online websites

 3 are neutral when it comes to online shopping
 None of them said no to online shopping

It can be concluded that majority 96% of the respondents shop online.

 2. Do You Shop Online for FMCG goods?

Yes No Maybe

23%

51%

26%

Chart 7

From the above chart, it can be noted that

 51% respondents shop for FMCG goods online

 26% respondents don’t shop online for FMCG goods
 23% may shop for FMCG goods online

It can be concluded that half of the population shop online for FMCG goods.
 3. Do Marketing Campaigns affect your buying behavior?

Yes No Maybe

69%

7%

24%

Chart 8

From the above figure it can be noted that out of total 70 respondents,

 48 respondent’s buying behavior is affected by marketing campaigns,

 5 respondent’s buying behavior is not affected by marketing campaigns,
 17 respondent’s buying behavior is neutral.

Therefore it can be concluded that majority of respondents were affected by marketing

campaigns.
 4. Do You Shop Online Just Because it is exclusively available on particular website?

Yes No Maybe

14%

34%

52%

Chart 9

From the above chart it can be noted that

 36 respondents don’t shop online just because it is exclusively available online

 24 respondents shop online just because of exclusive availability
 10 respondents are neutral

Therefore it can be concluded that majority of the respondents don’t shop online just because
it is exclusively available on particular website.
 5. Do you find shopping online more time saving?

Yes No Maybe

11%

9%

80%

Chart 10

Out of total 70 respondents

 56 of them find shopping online more time saving

 8 of them are neutral
 6 of them don’t find online shopping time saving

Hence it can be concluded that according to the majority of the population online shopping is
time saving.
 6. Do you find shopping online more convenient?

Yes No Maybe

87%

9% 4%

Chart 11

From the above figure it can be observed that

 87% of the total respondents find online shopping more convenient

 9% are neutral
 4% of them don’t find shopping online convenient

Hence it can be concluded that majority finds Online shopping convenient.

 7. Do you look for various schemes, offers & discounts before shopping for FMCG
goods?

Yes No Maybe

10%
7%

83%

Chart 12

From the above chart it can be noted that

 83% of the population look for various schemes, offers & discounts while shopping
for FMCG goods
 10% may or may not look for various schemes, offers & discounts
 7% of them don’t look for schemes, offers & discounts

The conclusion can be drawn that majority of them looks for schemes and discounts while
shopping for FMCG goods.
 8. Do return policy of online websites affect your purchase behavior?

Yes No Maybe

74%

12%

14%

Chart 13

From the above figure it can be noted that out of total 70 respondents

 Return policy affects the buying behavior of 52 of them

 Return policy may or may not affect the buying behavior of 10 of them
 Return policy doesn’t affect the buying behavior of 8 of them

So it can be concluded that majority gets affected by the return policy while shopping online.
 9. How much important do you consider price factor before buying FMCG products
online? (1-Least Important, 5-Most Important)

Price
Price

23

18

13

8 8

1 2 3 4 5

Chart 14

From the above figure it can be noted that

 23 respondents rated price 5 out of 5

 18 respondents rated 4 out of 5
 13 respondents rated 3 out of 5
 8 respondents rated 2 out of 5
 8 respondents rated 1 out of 5

It can be concluded that majority of the respondents consider price as an important factor
before shopping.
 10. How much important do you consider the trust factor before buying FMCG products
online? (1-Least Important, 5-Most Important)

Trust
Trust

27

17

11
9
6

1 2 3 4 5

Chart 15

From the above chart it can be noted that

 27 of the respondents rated trust factor 5 on scale of 1-5

 17 of the respondents rated 4
 11 of them rated 3
 6 of them rated 2
 And 9 of them rated 1

From the above information it can be concluded that for majority of the people trust is an
important factor for shopping.
 11. How much important do you consider the accessibility factor before buying FMCG
products online? (1-Least Important, 5-Most Important)

Accessibility
Accessibility

20
19
17

7 7

1 2 3 4 5

Chart 16

From the above chart it can be noted that out of 70 respondents

 20 rated accessibility 4 out of 5

 19 rated 5 out of 5
 17 rated 3 out of 5
 7 rated 2 out of 5
 7 rated 1 out of 5

It can be concluded that accessibility is also an important factor while shopping online for
FMCG goods.
 12. How much important do you consider the design of the website factor before buying
FMCG products online? (1-Least Important, 5-Most Important)

Design of Website
Design of Website

22
21

13

1 2 3 4 5

Chart 17

From the above graph it can be noted that out of 70 respondents

 22 of them are neutral when it comes to the design of the website

 21 of them rated design of website as 2 of 5
 13 of them rated 1 of 5
 9 of them rated 5 of 5
 5 of them rated 4 of 5

It can be concluded that according to the majority of the respondents design of the website is
not very important factor to be considered before shopping online.
 13. How much important do you consider the Comparison factor before buying FMCG
products online? (1-Least Important, 5-Most Important)

Easy Comparision
Easy Comparision

26

16
14

8
6

1 2 3 4 5

Chart 18

From the above graph it can be noted that

 26 of the total respondents rated comparison factor as 4/5

 16 of the total respondents rated 3/5
 14 of the total respondents rated 5/5
 8 of the total respondents rated 1/5
 6 of the total respondents rated 2/5

Therefore it can be said that comparison factor also affects the buying behavior.
 14. How much important do you consider the Wide Variety Availability factor before
buying FMCG products online? (1-Least Important, 5-Most Important)

Wide Variety Availability

Wide Variety Availability

28

20

10

6 6

1 2 3 4 5

Chart 19

From the above figure it can be noted that out of total 70 respondents

 28 rated wide variety availability as 5

 20 rated wide variety availability as 4
 10 rated wide variety availability as 3
 6 rated wide variety availability as2
 6 rated wide variety availability as 1

Hence it can be concluded that Wide variety availability is an important factor while
shopping online.
 15. How much important do you consider the 24*7 shopping facility factor before buying
FMCG products online? (1-Least Important, 5-Most Important)

24*7 Shopping Availability

24*7 Shopping Availability

32

14
11
7 6

1 2 3 4 5

Chart 20

From the above graph it can be noted that out of 70 respondents

 32 rated 24*7 shopping facility as 5

 14 rated 24*7 shopping facility as 4
 11 rated 24*7 shopping facility as 3
 7 rated 24*7 shopping facility as 1
 6 rated 24*7 shopping facility as 2

Therefore it can be concluded that 24*7 shopping facility is an important factor.

 16. How much important do you consider the Non-Delivery Risk factor before buying
FMCG products online? (1-Least Important, 5-Most Important)

Non-delivery Risk
Non-delivery Risk

22

14 14
12

1 2 3 4 5

Chart 21

As per the survey conducted

 22 out of 70 respondents rated non-delivery risk as 5

 14 out of 70 respondents rated non-delivery risk as 3
 14 out of 70 respondents rated non-delivery risk as 2
 12 out of 70 respondents rated non-delivery risk as 4
 8 out of 70 respondents rated non-delivery risk as 1

So it can be concluded that majority are in favor of considering non-delivery risk as an

important factor before shopping online.
 CHAPTER 5
FINDINGS & SUGGESTIONS
5.1. FINDINGS
 From the survey conducted, it was found that majority, i.e., 96% shop online which
shows that online shopping is getting more popular day by day.
 Out of total 70 respondents, 51% shop online for FMCG goods and remaining ones
don’t prefer shopping FMCG goods via online websites.
 The buying behavior of majority of the total respondents was affected by the
marketing campaigns.
 According to 52% of the respondents, they don’t shop online just because goods are
exclusively available on a particular website.
 The majority of the respondents consider shopping online as more time saving than
offline shopping.
 It was noticed that 87% of the total respondents find shopping online more convenient
than shopping offline.
 The majority of the population looks for various schemes, discounts and offers before
shopping for FMCG goods online.
 The buying behavior of 74% of the total respondents is affected by the return policy
of the online websites.
 The majority of the respondents rated price as 5 & 4 on scale of 1-5 which shows that
Price is considered as an important factor before shopping online.
 The majority of the respondents rated trust as 5 & 4 on scale of 1-5 which shows that
Trust is considered as an important factor before shopping online.
 According to the majority of the respondents accessibility also affects the buying
behavior of the respondents.
 The design of the website does not affect the buying behavior of the majority of the
respondents.
 The facility of easily comparing the goods with one another also results in increase in
online shopping.
 For the majority of the respondents’ wide variety availability while shopping online is
an important factor to be considered.
 The majority of the respondents shop online because of 24*7 shopping facility by the
online websites.
 The buying behavior of the respondents is affected by the non-delivery risk while
shopping online.
5.2. REASONS WHY RESPONDENTS DON’T PREFER BUYING FMCG
GOODS ONLINE
 Retail shopping is more comfortable for FMCG goods
 Most of FMCG product we purchase from local market or wholesale market.
 Easy access through offline market
 FMCG being available at walking distance
 Purchase from nearby store
 Nearly Available market
 It takes much time to deliver....
 Easily available in stores
 Because I can get them in the market easily whenever I want then why to wait for
the things which you need now.
 I can find better service with local retailers
 It can be easily available to nearby shops with Discount's
5.3. CONCLUSION
On the basis of the survey conducted and analysis of data, firstly it can be concluded the
number of people shopping online is increasing day by day. Although the number of people
shopping online for FMCG goods is half of the total but still there is good scope and probably
there will be increase in the number in future. Shopping online is more time saving and
convenient than shopping offline. The marketing campaigns also have an effect on the buying
behavior of the consumer.

It can be concluded that Price, Trust, Wide variety availability, 24*7 Shopping facility and
Non-delivery risk are the most important factors that are to be considered before shopping
online. Easy Comparison facility does not affect the buying behavior as much as the above
factors whereas design of the website has no effect on the buying behavior of the consumers.

Therefore, all the above factors have an impact on the buying behavior when it comes to
shopping online for FMCG goods.
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 ANNEXURE

1. QUESTIONAIRE

a. Name:
b. Age:
c. Gender:
d. Income:

1. Do you shop online for FMCG goods?

i. Yes
ii. No
iii. Maybe
2. Do Marketing Campaigns of online websites affect your buying behavior?
i. Yes
ii. No
iii. Maybe
3. Do you shop online just because it is exclusively available on a particular website?
i. Yes
ii. No
iii. Maybe
4. Do you find shopping online more time saving?
i. Yes
ii. No
iii. Maybe
5. Do you find shopping online more convenient?
i. Yes
ii. No
iii. Maybe
6. Do you look for various schemes, offers & discounts before shopping for FMCG goods?
i. Yes
ii. No
iii. Maybe
7. Do return policy of online websites affect your purchase behavior?
i. Yes
ii. No
iii. Maybe
8. How much important do you consider the following factors before buying FMCG products
online? (1-Least Important, 5-Most Important)

FACTORS 1 2 3 4 5
a. Price

b. Trust

c. Accessibility

d. Design of
Website
e. Easy
Comparision
f. Wide Variety
Availability
g. 24*7 Shopping
Facility
h. Non-Delivery
Risk