DEPARTMENT OF MANAGEMENT STUDIES BHIMTAL (NAINITAL)

PROJECT REPORT

ON

“CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING”

Submitted in partial fulfillment of the

Requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
ACADEMIC SESSION (2016-2018)

SUBMITTED TO: - SUBMITTED BY:-

Mr. Mayank Pant Deepak Singh Jantwal

Assistant Professor Roll No:1664610004

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 DECLARATION

I, Deepak Singh Jantwal, hereby declare that the Project Report, entitled CONSUMER
BEHAVIOURTOWARDS ONLINE SHOPPING submitted to the Department Of
Management Studies in partial fulfillment of the requirements for the award of the Degree of
Master of Business under the supervision and guidance of Mr mayank Pant, Department of
Management Studies, Bhimtal Campus and it has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any University.
I hereby further declare that this project report is authentic to the best of my knowledge.

Place: Bhimtal Signature of the Student

Date:

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 ACKNOWLEDGEMENT

I would like to express my deepest appreciation to all those who provided me the possibility
to complete this report. A special gratitude I give to our final year Dissertation report mentor
Mr. Mayank Pant whose contribution in stimulating suggestions and encouragement helped
me to coordinate my dissertation report.

Furthermore I would also like to acknowledge with much appreciation the crucial role of the
staff of Department of Management Studies who gave the permission to use all required
equipment and the necessary materials to complete the report. Special thanks go to my class
mate, who help me to assemble the parts and gave suggestion about the task.. I have to
appreciate the guidance given by other faculty members thanks to their support & advices.

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 TABLE OF CONTENTS

TITLE PAGE NO.

Chapter: 1 Introduction 1

Chapter: 2 Literature Review 10

Chapter: 3 Research Methodology 18

Chapter: 4 Data Analysis & Interpretation 25

Chapter: 5 Outcome and learning from project 42

BIBLIOGRAPHY 45

Annexure 47

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 CHAPTER – 1

INTRODUCTION

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 INTRODUCTION

E-commerce has made life simple and innovative of individuals and groups;
consumer Behavior in online shopping is different from the physical market where he has
access to see the product.
The purpose of the research was to study the consumer behavior in online shopping of
smart phones especially in Malegaon. The main research question in thesis is how consumers
behave while shopping online. Primary data was collected through the questionnaire survey
in Nainital region.
Price, time saving and convenience were identified as important factors which lead to
certain buying behavior in online shopping. The www is rebuild around people where social
circles influence and lead to online buying.
Online shopping and online consumer behavior depend on these factors such as
Website visibility, online shops credibility, information comparison, payment security,
privacy, website interface, convenient time, education level and experience of network.
Culture, social, personal, psychological behavior also affects the consumer behavior in online
shopping. Online shopping is based on individual to individual perceptions.

STATEMENTOFTHEPROBLEM
There are billions of people online and each of them is potential online consumer for a
company which providing online services and goods. Now a day, there are rapid and fast
developments in information technologies industry. According to Keynote, “Online retail
competition is heating up as consumer’s behavior savvier on the Web”. Competition
increases day by day due to increase attention of consumers towards online shopping. The
best retailer is based on their experiences on web. Online consumers also increase their
expectations and they are set by their experience with online retailers across the Web. Brown
says in his interview, “It is becoming increasingly imperative for retailers to provide a
strongly positive online shopping experience”. It is very important to know that what kind of
things and strategies help to increase sales in this fierce competition in market with high
expectation of online consumers. “Our research shows that the sites that perform best in
customer experience have a significant advantage in driving online sales.”

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 To enhance and attract online customer it is very important to know about their
behavior and understand what they require and need. Since online shopping is the new
medium of shopping with new demands of consumers. All customers have their own desires
and demands for products so that it is very crucial for all online retailers to identify and know
about their online consumers.

ONLINE SHOPPING IN INDIA

The birth and growth of Internet has been the biggest event of the century. E-commerce in
India has come a long way from a timid beginning in the 1999-2000 to a period where one
can sell and find all sorts of stuff from a high end product to a meager peanut online. Most
corporations are using Internet to represent their product range and services so that it is
accessible to the global market and to reach out to a larger range of their audience.

Computers and the Internet have completely changed the way one handles day-to-day
transactions; online shopping is one of them. The Internet has brought about sweeping
changes in the purchasing habits of the people. In the comfort of one's home, office or cyber
cafe or anywhere across the globe, one can log on and buy just about anything from apparel,
books, music and diamond jewellery to digital cameras, mobile phones, MP3 players, video
games, movie tickets, rail and air tickets. Ease, simplicity, convenience and security are the
key factors turning the users to buy online.

E-commerce revenues in the country are projected to reach Rs 2,300 crore in the year 2006-
07, growing at 95 per cent over 2004-05(Source: Internet and Mobile Association of India,
IAMAI). This pertains to the business-to-consumer (B2C) segment. It may be too early to do
a comparison with the e-commerce scenes in countries such as the US where billions of
dollars are spent online but the business in India is growing exponentially every year, albeit
from a smaller base, the total revenues have reached a respectful size.

3.2 Recent Developments

The number of users logging on to the Internet is growing by leaps and bounds. The number
of Indians who are online is expected to touch to 100 million by 2007-08, from the present
38.5 million according to the research conducted by IAMAI. The numbers indicate a growing
sense of comfort with the use of Internet for shopping. Accompanying this growth, there is an
increasing maturity in the way people use the Internet. It's a classical curve. Online users

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typically start by using e-mail, gradually move on to browsing for news, information and
entertainment, and finally graduate to shopping and conducting business online. Online sales
have registered a huge jump and what was a concept five years ago is now beginning to hit
the mainstream levels. Roughly 10 percent of the world's population more than 627 million
people have shopped online at least once, in India it is just sprouted and beginning to perish.
Internet is now going beyond the simple exchange of information to a shopping paradise.
This medium is far bigger than expected, but many retailers and marketers are not using it to
its full potential.

Indian customers are increasingly getting comfortable with online shopping, and there is a
higher acceptability for the concept. India has 25 million Internet users and more is now
turning to online shopping. There has been an influx of online shopping sites in India with
many companies hitching onto the Internet bandwagon. The revenues from online shopping
are expected to more than double by 2006-07. According to IAMAI, the average number of
transactions per month in India has gone up from 2 lakh in 2003-04 to 4.4 lakh in 2004-05
and has doubled to 7.95 lakh transactions per month in the year 2005-06. The online sales
during the festival season had increased rapidly especially during Diwali and Ramzan which
recorded a sales of Rs115 crore, a 117 per cent increase from the Rs53 crore in the year 2004-
05(source IAMAI). These figures clearly show that online shopping has truly come of age
and consumers are keen to shop on the net. Effective customer communication on products
plus reduced shipping costs and timely delivery has helped online marketers to seize a slice
of the Rs 115 crore sales.

Online shopping has become the latest trend among shoppers. Indians are becoming more
comfortable with e-commerce. The consumer’s attitude has been evolving towards online
purchases. It has become increasingly positive over the years. The attitudes that drive people
to shop online, such asconvenience, price comparison and choice are improving
tremendously in India.

Though a miniscule amount in the global context, the Indian online shoppers’ population
would make its presence felt quite remarkably. The potential of the Indian e-market can be
gauged from the fact that 16 percent of Indian consumers want to buy online in the next six
months, making it the third most online-potential country after Korea (28 percent) and
Australia (26 percent) (Source:IMRB). This is an indication of a growing breed of Indian
consumers who are not only better equipped but also more confident of the online
transactions. Indian businesses have also grown mature enough to move up the IT curve and
they are considering Business to consumer (B2C) e-commerce a viable revenue model. Some

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of the companies that have benefited are baazee.com, indiatimes.com, rediff.com,
indiamart.com, fabmart.com, traveljini.com and sifymall.com.

Indiamart.com has witnessed a growth of more than ten times in just two years in its online
gifts domain. In the online travel domain, the company was able to generate an average
$8,000 worth of room bookings/month for its premium client. It is expected to touch $15-
20,000/month/client by the year-end, which is over 100 percent growth (Source:Indiamart).
Brick-and-mortar businesses are also building up e-commerce revenues. In the year 2005-06.

Introduction of theories related to online consumer behavior

We have so many theories on online consumer behavior such as Expectation
confirmation theory, Innovative diffusion theory, Technology acceptance model, theory of
planned behavior, theory of reasoned action (Christy M. K. Cheung, 2003, p. 198).
Consumer behavior responds differently with offline and online elements. According
to SubhasishDasgupta, based on their personality online consumers have two characteristics
a) manifestation of offline consumer behavior b) unique behavioral mode. Virtual
communities also play an important role on online consumer behavioral. Virtual communities
are also known as “Venuses for consumptions” (Dasgupta, 2006, p. 340).
From the research, it is analyzed that with the passage of time online shopping of
smart phones increases day by day because retailers make new strategies and new design to
facilitate online shopping and make ease to online consumer to do shopping at their home
with hassles of physical appearance to huge malls and market in the busy life. With new era,
the business environment has undergone a rapid innovation and inventions with the internet.
Now consumer can easily access many shopping websites and purchase goods according to
selection with huge amount of alternatives without limitations (Yuan Gao, 2005, p. 10). Yuan
gao explained a casual model of information research on the internet. He defines four types
of antecedents including personal factors, product factors, media factors and situational
factors.

Online buying behavior

Online shopping consumer behavior is also called online buying behavior and internet
shopping/ buying behavior. Online shopping behavior has direct relationship with these five
elements such as e-stores, logistics support, product characteristics, websites’ technological
characteristics, information characteristic and home page presentation. According to studies,

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those people who have wired lifestyles and who have time constrained, they spend less time
to buy things online (Johnson, 1999, p. 4).
Different authors define consumer behavior characteristics differently. Researches on
online consumer behavior and characteristics have been done by so many market researchers
and authors. The research on online consumer behavior is important because it helps to
understand when and how online consumer prepares themselves for purchasing. Turban has
defined a model on consumer behavior online. In this model, electronic environment consist
of three variables such as independent variable (which is also called personal characteristics
and environment characteristics), intervening or moderating Variables ( it is under vendor’s
control) and the decision making process (effected by independent and intervening variables)
(Turban, 2010, p. 183).

Consumer mind set model in online shopping

The concept of consumer mind set is introduced by Wurtzberg motivational
psychologist. A mind set refers to a “specific cognitive orientation”. According to this theory,
every consumer mind set is composed of different thought, modes of emotions and different
information processing (Yoram Wind, Digital marketing: global strategies from the world's
leading experts, 2001, p. 171).
Propensity to shopping is affected by consumer mind set. Online consumers are goal
oriented rather than experimental if they chose online shopping. Consumer mind set two
types of determinants one is goal oriented and second one is experimental (Robert W.
Proctor, 2005, p. 597). According to Association of motivations with shopping outlet, Toy
retailer found that experimental mind set consumer buy toys more as compare to goal
oriented mind set consumer as they prefer buy through online channels (Bidgoli, 2004, p.
272). Dholakia and Bagozzi also contributed their efforts in mind set formation and influence
(MSFI) model. They introduce most relevant factors contributing mind set on consumer.
According to this MSFI model, consumer search behavior depends on website selection,
length of website visit and information obtained has influence on one’s minds (Daniel R.
Fesenmaier, 2006, p. 12). Mindset has a string influence on key cognitive, effective and
behavioral aspects of consumer’s activities in online shopping. Mind set gives concepts to
reach cognitive orientation through experimental and goal oriented. Mindset has ability to
overcome external environment. This is the strong point of mind set to help managerial point
of view since it provides actionable insight. Through mind set research in the consumer
behaviors helps to increase more opportunity in market (Yoram Wind, Digital marketing,

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2001, p. 171). Below are discussed about mind set categories such as goal oriented mind set
and experimental mind set.

Fig .1. Mindset consumer behavior model based on (Yoram Wind, Digital marketing,
2001, p. 171)

Goal oriented online shopping behavior

Goal oriented consumer behavior is known as utilitarian shopping behavior. It is
deliberatively, efficiently and preplanned with decision making purpose (Bidgoli, 2004, p.
272). Goal oriented online consumer are task oriented, specific directed, rational and efficient
in decision making. They are always seeking to complete their task quickly without delay
because they are focused and determinant about their purpose of shopping. As aspect to
online consumer, they always are goal oriented. The reason behind is that easiness attract
them to buy smart phones online. It is shown by research that goal oriented online shoppers
prefer online shopping because it is convenient. Goal oriented online consumers have
characteristic that they have value convenience and they are likely to buy smart phones over
the internet (Yuan Gao, 2005, p. 56) .

Experimental online shopping behavior

Experimental is the hedonic mindset where consumer reacts more on the basis of
experiments rather than cognitions or sensory attraction, consumer deemphasize on external
elements and more respond to their past experience (Robert W. Proctor, 2005, p. 597).
Experiential consumer behavior is characterized by non-direct search because they directly
search online shopping particulars on their experience basis along with hedonic benefits
(Pedersen, 2002, p. 3). This behavior is more focused on pleasure and by seeking information
on the basis of consumer’s experience with sensory elements, this mind set is refer as “search
as recreation”, it is by nature has experimental influence and consumer wants to have

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experience new things which pursue him to be as motivator (Saaksjarvi, 2007, p. 29) . This
situation would be explained in e-Shopping context as a consumer is visiting website in order
to buy a particular item because he had already purchased that item from this website. He
would have all necessary things to start transaction, all steps he would do easily because he
would had experience.

Factors influence online consumer behavior

There are so many factors involve that have influence on online consumer behavior
while he would do online shopping, in simple word, it is a complex mixtures of so many
factors such as social, culture, education, race, personality, environment and resources
availability. It involve many variables some are controllable and some are uncontrollable
such as environment and consumer personality are uncontrollable variable which always
prevail in every online transaction but some are in our span of control such as medium of
exchange, medium of goods information, products or services characteristics, merchant or
inventory characteristics. There are other factors as well like building trust factor, confidence,
appealing website, proper and full information about goods and services by this purchasing
decision would be more encouraged.

Fig.2. Factors influencing Consumer Behavior

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Online purchase intention

Online shopping reveals three main dimensions or studies in the process of online
purchasing, those three studies are Human Computer Interactions (HCI), behavioral and
consumerist orientations (Wan, 2009, p. 219).

Human Computer Interaction (HCI)

HCI is mainly concerned with website design, interaction, display, user’s easiness to
learn, efficient and pleasant that substantially effect consumer behavior. This investigated the
website related characteristics such as information available on website, visual effects and
attractiveness, quality of content, ease of navigation, less time consuming, not long and
difficult form to fill to process transaction and overall presence of website with security
assurance (Wan, 2009, p. 219)

Customer concerns in online shopping (CCOS)

The second group of study is Customer concern in online shopping (CCOS), which
investigate the human behavior and its attributes that influencing online shopping decision.
The primary factor in online shopping is trust factor between consumer and online seller, it is
the most important factor which motivate consumer to process the transaction for online
shopping. To increase trust factor three elements includes Safety and privacy of information,
security and delivery and return on time (Wan, 2009, p. 220)

Issues from the theories influencing online consumer behavior

By first analysis online consumer behavior theories name as dependent, independent
variable, online shopping decision making process, Technology acceptance model (TAM),
Theory of reasoned action model (TRM), Path analysis, Goal and Experimental consumer
mindset theories, Human computer interaction (HCI), Customer concern in online shopping
theory and in last consumer characteristics.

These studies have been applied to gain understanding of the online consumer
behavior especially in purchasing of smart phones in Malegaon. In empirical study the
theoretical background is mostly provided through: TRM, TAM, goal and experimental
consumer

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 CHAPTER – 2

LITERATURE

REVIEW

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 LITERATURE REVIEW

A literature review is a select analysis of existing research which is relevant to your topic,
showing how it relates to your investigation. It explains and justifies how your investigation
may help answer some of the questions or gaps in this area of research.

A literature review is not a straightforward summary of everything you have read on the topic
and it is not a chronological description of what was discovered in your field.

2.1 NATIONAL REVIEW OF LITREATURE

Rajeev Kamineni (2004) in his study finds that World Wide Web can
changehumanbehaviour and human interactions to a very large extent. Web based shopping
behaviour is one major example to point out the trends in this direction. This study is of a
very exploratory nature and it intends to establish the differences between several web-based
shoppers from different parts of the world. Several critical factors associated with online
shopping behaviour have been explored. A cross cultural data set has been collected and an
illustrative description of the shoppers has been provided. As a final step the cross cultural
differences between several shoppers explored.

J.SINHA 2010The number of people engaged in various online activities is increasingevery

day. While the number of online shoppers is increasing, it is not proportional to that of brick-
and-mortar shoppers. Research has tried to explain the dismal performance of online
shopping as compared to the physical shopping format. Reasons for the lower level of
Internet sales have been cited as being perceived risk in carrying out an online transaction,
socio-psychological factors (Like - influence of friends and relatives) and infrastructural
limitations (Availability of Internet, computers, credit-cards, cyber laws etc.). Under the
purview of aforementioned factors this study tried understanding the online shopping
behavior of Indian consumers. Socio-psychological factors and infrastructure have been
found influential factors while the perceived risk surprisingly is not significant as a whole but
at gender level there was significant difference between the online behavior of male and
female due to risk perception.

ArchanaShrivastava, UjwalLanjewar, (2011) in online buying, the rate of

diffusionandadoption of the online buying amongst consumers is still relatively low in India.

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In view of above problem an empirical study of online buying behavior was undertaken.
Based on literature review, four predominant psychographic parameters namely attitude,
motivation, personality and trust were studied with respect to online buying. The online
buying decision process models based on all the four parameters were designed after
statistical analysis. These models were integrated with business intelligence, knowledge
management and data mining to design Behavioral Business Intelligence framework with a
cohesive view of online buyer behavior.

For better understanding the factors of internet and consumer shopping behaviours towards
internet shopping, this chapter would provide academic research reviews andrelative ideas
expressed in the literature that associated with this subject. Furthermore, a number of
hypotheses will be tested to answer the research questions that mentioned already in the
introduction. Due to the recent research shows that internet shopping becomes a full and
effective business model (Black, 2005), therefore there are several studies that already
investigated more or less related on internet shopping and consumer behaviour. In the
following chapter, some point of view will be taken from literatures, and needs careful review
to achieve them as the basis of the subsequent research investigation.

Lalstudied the determinants of adoption of Information Technology (IT) in India. The study
was based on 59 electrical and electronic goods manufacturing firmssituated in NOIDA.
Semi-structured questionnaire were used to collect the data. The study examined the factors
influencing the degree of IT adoption by firms. The factors included are entrepreneur
characteristics measured by entrepreneur’s qualification, importance given to market share,
R&D and quality consciousness, firm’s international orientation factors measured by import
and export intensity, work force skill and firm size. The sample firms were divided into four
categories depending on their intensity of IT.

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2 INTERNATIONAL REVIEW OF LITREATURE

E-Business probably began with electronic data interchange in the 1960s (Zwass, 1996).
However, (Melao, 2008) suggests that it was only in the 1990s, primarily via the Internet, that
e-Business has emerged as a core feature of many organizations. In his opinion, the hope was
that e-Business would revolutionize the ways in which organizations interact with customers,
employees, suppliers and partners. Some saw e- Business as part of a recipe to stay
competitive in the global economy.

Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W.

Chan, MoezLimayem,(2002) The topic of online consumer behavior has been
examined undervarious contexts over the years. Although researchers from a variety of
business disciplines have made significant progress over the past few years, the scope of
these studies is rather broad, the studies appear relatively fragmented and no unifying
theoretical model is found in this research area. In view of this, provide an exhaustive review
of the literature and propose a research framework with three key building blocks (intention,
adoption, and continuance) so as to analyze the online consumer behavior in a systematic
way. This proposed framework not only provides us with a cohesive view of online consumer
behavior, but also serves as a salient guideline for researchers in this area.

Burke, R.R. (2002), Trust is a key factor that determines the success of Business
toConsumer(B2C) e-commerce transactions. Previous researchers have identified several
critical factors that influence trust in the context of online shopping. This research focuses on
available security measures which assure online shoppers safety and great sales promotions
and online deals which stimulate customers to shop online.

Abel Stephen (2003) in his paper represents the findings of research studies that address e-
commercedesign and associated consumer behavior. The innovation of e-commerce has
affected not only the marketplace through the facilitation of the exchange of goods and
services, but also human behavior in response to the mechanisms of online services.
Researchers have identified and hypothesized on relevant subject matters ranging from Web
usability, marketing channels and other factors influencing online buying behavior. Though
researchers have focused on what appear different aspects of online buying behavior, their
studies may be shown to be interrelated and interdependent, even to the extent of revealing
constructs upon which e-commerce, in terms of future design and research, could be built.

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Balasubramanian, S., Konana, P. and Menon, N.M. (2003),

In this environment, Some traditional service quality dimensions that determine customer
satisfaction, such as the physical appearance of facilities, employees, and equipment, and
employeesresponsiveness and empathy are unobservable. In contrast, trust may play a central
role here in enhancing customer satisfaction. Model trust as an endogenously formed entity
that ultimately impacts customer satisfaction, and we elucidate the linkages between trust and
other factors related to the performance of the online service provider and to the service
environment.

The classic consumer purchasing decision-making theory can be characterized as a

continuum extending from routine problem-solving behaviors, through to limited problem-
solving behaviors and then towards extensive problem-solving behaviors [Schiff man et al., ].

The traditional framework for analysis of the buyer decision process is a five-step model.
Given the model, the consumer progresses firstly from a state of felt deprivation (problem
recognition), to the search for information on problem solutions. The information gathered
provides the basis for the evaluation of alternatives. Finally, post-purchase behavior is critical
in the marketing perspective, as it eventually affects consumers’ perception of
satisfaction/dissatisfaction with the product/service.

This classic five stage model comprises the essence of consumer behavior under most
contexts. Nevertheless, the management of marketing issues at each stage in the virtual
environment has to be resolved by individual E-marketers. Peterson et al. [1997] commented
that it is an early stage in Internet development in terms of building an appropriate dedicated
model of consumer buying behavior. Decision sequences will be influenced by the starting
point of the consumer, the relevant market structures and the characteristics of the product in
question. Consumers' attitude towards online shopping is a prominent factor affecting actual
buying behavior. (Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and
NO.2, 2005)

Todd proposed a model of attitudes and shopping intention towards Internet shopping in
general. The model included several indicators, belonging to four major categories; the value
of the product, the shopping experience, the quality of service offered by the website and the
risk perceptions of Internet retail shopping. In the research conducted by Vellido et al.
[2000], nine factors associated with users' perception of online shopping were extracted.
Among those factors the risk perception of users was demonstrated to be the main
discriminator between people buying online and people not buying online.

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The classic consumer purchasing decision-making theory can be characterized as a
continuum extending from routine problem-solving behaviors, through to limited problem-
solving behaviors and then towards extensive problem-solving behaviors [Schiff man et al., ].

The traditional framework for analysis of the buyer decision process is a five-step model.
Given the model, the consumer progresses firstly from a state of felt deprivation (problem
recognition), to the search for information on problem solutions. The information gathered
provides the basis for the evaluation of alternatives. Finally, post-purchase behavior is critical
in the marketing perspective, as it eventually affects consumers’ perception of
satisfaction/dissatisfaction with the product/service.

This classic five stage model comprises the essence of consumer behavior under most
contexts. Nevertheless, the management of marketing issues at each stage in the virtual
environment has to be resolved by individual E-marketers. Peterson et al. [1997] commented
that it is an early stage in Internet development in terms of building an appropriate dedicated
model of consumer buying behavior. Decision sequences will be influenced by the starting
point of the consumer, the relevant market structures and the characteristics of the product in
question. Consumers' attitude towards online shopping is a prominent factor affecting actual
buying behavior. (Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and
NO.2, 2005)

Consumer Behavior
“Consumer behavior is the study of individuals, groups, or organizations and the
processes they use to select, secure, and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the consumer and society. “
(Kuester, 2012)
With the reference of above cite; Consumer behavior of every individual is different
from other depending on buying choices which is influenced by buying habits and choices
2that are turn tampered by psychological and social drivers that affect purchase decision
process. (Brassington, F. and Pettitt, S., 2000)
“We’re not aware of changing our minds even when we do change our minds. And
most people, after they change their minds, reconstruct their past opinion — they believe they
always thought that.” (KEYS, 2011)
As quoted above, consumer behavior about decision making is difficult to define and
is a system of short cuts and rule of thumb which is unpredictable. The short cuts in decision
making vary from person to person and focusing on the past experience of consumers; we can
predict the future trends by bringing profitable products and services into the market. In this

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modern world, the popularity of interactive media like the World Wide Web is increasing day
by day with rapid pace. With reference to marketing it is continuously realized that the main
two factors observed due to WWW are:
1) Most of the companies are doing their business online and make their website as
showroom of their product and services.
2) Fast increment of consumer segments due to increase needs and demand including online
shopping as well. (Ha¨ubl, 2000, p. 5).

E-Commerce / online shopping

Internet makes life simple and innovative. People are doing business online and trade
has become more easy and fast due to this. Internet provides new ways to promote business.
Website becomes the essence of online business as to show their services and products.
Internet gathers all competitors and consumers in one place. It brings new lane to promote,
advertise products and services in market (Barry Silverstein, 2002, p. 3).
Total global E-commerce sale in 2011 have grown to Euro 690 billion (USD 961
billion) and recorded an increase of 20 % with an estimation of increase in the coming years
and to cross the 1 trillion Euro mark in 2013. Asia pacific region is leading in terms of
growth as compared to mature markets like US, UK, Japan and European countries. Asia
Pacific recorded 130 % growth specially China in 2011. The online retailing is becoming an
integral part of an economy and country and worldwide increasingly seeing trust and
confidence in purchasing online. (AadWeening, 2012)
Online consumers are always seeking new products, new attractiveness and the most
important thing being price compatibility with their budget. The internet is the best way to
save time and money through purchasing online within their range of budget at home or in
anywhere. Online consumers don’t have limits to online shopping. They also use internet for
comparison of prices of goods and services, news, visit social networks and search
information and so on. The recession has so much impact on online consumer behavior
(Rodriguez, 2009, p. 3). Online shopping behavior depends on 4 factors such as shopping
motives, personality variables, internet knowledge and experience and last factor is shopping
incentives. These are key determinants to influence the behavior of online consumers. Online
seekers are the main sources of online shopping. Online shoppers always want to seek
information within few clicks and reach to the most relevant information according to their
requirements such as competitive brands, best price offers, product specification and
consumer word-of-mouth (Yuan Gao, 2005, p. 32).

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Consumer characteristics
To create effective interactions between websites and the consumers is the main
concern of every e-commerce company to ensure online success. In order to create effective
interactions, understanding consumers’ needs and the factors influencing their behaviors
when shopping online should be the most important objectives. Consumers’ characteristics
are one of the main factors affecting consumers’ behaviors. Consumers may interact with
websites in different ways and may get different perceptions because of their distinct
characteristics, which were found to be affecting their purchasing intentions (Cheung et al.,
2003). Therefore, consumers’ characteristics are important and need to be discussed.
Consumers’ characteristics including their personalities, past online experiences, and how
innovative they are when they shop online (Cheung et al., 2003)

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 CHAPTER – 4

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Introduction

Research
methodologyisawaytosystematicallysolvetheresearchproblem,astohowresearchisdonescientific
ally.Itconsistofthedifferent methodsthatgenerallyadoptedbyresearcher
tostudyhisresearchproblemalongwithlogicbehindthem.Itisnecessaryfortheresearcher to develop
certaintests.

Marketing research specifies the information required to address these issues; designs
the method for collection information manages and implements the data collection process;
analysis the results and communication the findings and their implication.

Research definition:

“Research is careful inquiry or examination to discover new information and

relationship and to expand and to verify exiting knowledge,”

Research always starts with questions or a problem. Its purpose is to find answer to
questions through the application of the scientific method. It is a systematic and intensive
study directed towards a more complete knowledge of the subject studies.

Thefollowingarethemethodsadoptedfortheprojects:

1. The Research Design ismade as per the requirements of theproject.

2. Forthesecondarydatacollection,internet is used.
3. Fortheprimarydatacollection,theresearcherhaspreferredthesurveymethodtothe othermethods.
4. Inthesurveymethod,theresearcherchosetoundertakenfieldwork.Thisisbecause
thereisperceptionthatinthegeographicalareainwhichhewastoconductthesurvey, better and
quicker data was possible to be collected only through direct fieldwork.
5. Inthefieldwork,insteadofchoosinganyinterviewsorrecordedobservation,the researcher chose
to incorporate all the questions in fromof a questionnaire.

23 | P a g e
RESEARCH DESIGN

“Research design is the plan, structure and strategy of investigation conceived so as to

obtain answer to research question and to control variance.” - BY KERLINGER

The
researcherafterchoosingthesubject,companyandtheareatoconducthisresearch,decided to
establish the theme or the important factor upon which the entire project is tobase.

Attheoutset,theobjectivesoftheresearchwereidentified.Thereupon,theconclusiveresearch
wasundertakenuponconsideration,theresearcherchosethestatisticaldesignasitsuitedthe
researchrequirements.Thismethodwaswarrantedashehaddecidedtoembarkuponasurvey
andtheanalysisandinterpretationofthefindingsofthesurveyscanonlybedoneproperlyonly if he
chose the statistical design.

At the outset may be noted that there are several ways of studying and tackling a problem.
There is no signal perfect design. The research design can be classified in to true broad
categories:

 Exploratory
 Descriptive
 Casual

 Exploratory research is focus on the discovery of ideas. Exploratory research is carried

out to define problems and developed hypothesis to test later. An exploratory study is
generally based on the secondary data that are reading available. It does not have to change
his focus of direction, depending on the availability of new ideas and relationship among
variables.
 Descriptive studies are undertaken in many circumstances. Descriptive studies can be
complex, determining a high degree of scientific skill on the part of the researcher.
 Casual research helps in determined cause and effect relationship. Between two or
more variables.

The present study seeks to find out Consumer Behavior towards online shopping of Smart
Phones in Nainital City. The study also aims at findings out the drawbacks of the marketing
set up of Online Retailers of Smart Phones. So, this makes the study a descriptive one.

24 | P a g e
 SOURCE OF DATA

The sources of data collection methods are as follows:-

a) Primary data:-
The primary data is that which details we collect first time from the market and also
used first time in the research. We also say that the information is first time in the research
decision. To collect the primary data questionnaire is prepared structure non-disguise
questionnaire is prepared.

 Primary data:- Questionnaire

b) Secondary data:-
Secondary data are those data which are already collected by someone for some
purpose and are available for the present study; secondary data are already collected by the
internet, journals, research papers and library’s books. When the secondary data are
sufficient, the researcher has to be satisfied with the primary sources of data. Secondary
data can be used as bases for comparison with primary data have been collected by
questionnaire.

 Secondarydata: Websites, Books, E-Journals.

Primary data i.e. collected for the first time. It is fresh and originally collected by the survey.
I have used only primary data in calculating the study and collect the data.

DATA COLLECTION METHOD

Sampling plan

Sampling is a process of obtaining. The information about the entire population by

examine a part of it .The effectiveness of the research depends on the sample size selected for
the survey purpose.

(A)Sampling Unit:-

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 It means “Who is to be surveyed”. Here target population is decided and it is who are
active internet users interested to purchase “Smart Phones” while shopping Online and
sampling frame is developed so that everyone in the target population has known chance of
being sampled. So the survey is conducted particularly in NAINITAL region.

(B)Sample size:-

For the purpose of proper survey, there is need of perfect research instruments to find
out sample size for more accurate result about consumer behavior towards online shopping of
smart phones in Nainital city. There were 100 respondents.

(C) Sampling Method:-

“Convenience sampling is the non-probability sampling techniques where subjects are

selected because of their convenient accessibility and proximity to the research”. It is the
easiest way to analyze the data.

Data is collected from as many respondents as possible but since the study is about
people of Nainital so it is assumed that there will be little variation in population making it
more approved generalized to the response rate. The sampling method for people of Nainital
took also place on a convenience basis since the people that agree to answer the questionnaire
are those that were chosen.

DATA COLLECTION INSTRUMENT

RESEARCH INSTRUMENT:-

Researcher instruments is the tool by which the researcher can do research on specific
problems or objective. The most popular researcher instrument for collection data is
“Questionnaire” for a particular investigation. It is simple for a moiled set of questions
presented to respondents for their answers. Due to this flexibility, it is most common
instrument used to collect the primary data. During the pre- testing of questionnaire, I seen the
reaction of respondents and suggestions required to make change in research instrument.

Data Collection:-
The data will be collected from the respondents using questionnaire by personal interview.

THEQUESTIONNAIREDESIGN:
The questionnaire has been prepared on the following lines:

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  Thequestionnaireincludesthe entirerelevantquestionsoastoprovokeandelicitthe data
fromthe respondents in a briefmanner.
 There are some closed ended questionswhich are incorporated inthe questionnaire.
 The questionswere able to fully cover the themes concerned.
SCOPE OF THE STUDY
The theoretical scope of the study includes the popularity of online shopping, the need
of virtual markets, their role in influencing the consumption pattern and habits, merits
and demerits of e-markets, major players in online retailing etc.

We can listed the scope as below :

1. The Study was conducted mostly among the Internet users.

2. The Geographical area covered was Nainital region.

3. The Study was based on a Schedule of Questions.

RESEARCH OBJECTIVE
The objective of this research study is to investigate online consumer behavior, which

in turn provides E-marketers with a constructional framework for fine-tuning their E-

businesses’ strategies. The specific objectives of this research are:

1. To analysis the consumer interest on online shopping.in Nainital Region

2. To study the impact of traditional retailer over the online retailer.
3. To gather information &understand the barriers of online shopping of
smartphones.
4. To know the consumers awareness and perception about the products and services
provided on internet.

LIMITATIONS OF THE STUDY

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Utmost care has been taken with regard to the collection, classification and analysis of
data. However, the study is subjected to the following limitations:

There were hardly any previous studies on the topic and it was a great challenge to
deal with a fresh topic.

1. Lack of environmental support for the study on the topic.

2. Less sample size, as it is just survey with 100 respondent

3. Basically based on primary data, hence we cannot argue that the research is
applicable in each condition, time& place.

4. Short time duration, with in such short span of time it is too much difficult to
analyse the topic.

5. Lack of customer support, while asking the consumer they were behaving
rudely and not responding to the questions.

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 CHAPTER 5
DATA ANALYSIS

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Data Analysis

In this chapter the results from the questionnaire and the distribution of collected data
among the respondents has been discussed and presented.
The questionnaire was designed to collect the primary data and further on to analyze
the data and how consumers behave against the importance of price, convenience, trust,
loyalty when they purchase online. The questionnaire was divided to, first, the demographics
segmentation among the respondents and second to, collect the data about the factors like
price, convenience, brand consciousness, safety, trust which effect directly or indirectly to the
decision making process and ultimately highlight the typical behavior of consumer while
shopping online.
The questionnaire as you know divided into four main segments such as general,
Consumer Behavior in Buying Process, Customer concern in online shopping and Post
Purchase Behavior and Experience. In general segmentation we have received following
responses such as;

Table No.1 Gender Analysis

Gender Frequency

Female 58

Male 42

Grand Total 100

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 Gender

Male
42

Female
58

Fig. 4 Gender Analysis

From the above table and figure, we can easily analyze that majority of the males are
respondents of the survey as compared to females, we have 58% of males and 42%
percentage of females have participated in this survey. The survey was conducted in the
different areas of Nainital City.

Table No.2 Age Analysis

Age Distribution Frequency
Below 25 29
26-30 31
31-35 22
36 or more 17
Grand Total 100

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 Age Analysis

17
29
Below 25
26-30
31-35
22
36 and more

31

Fig. 5 Age-Wise Analysis

From the figure named as age wise analysis, it is clear that in this survey we have 29
number of respondents are in the age of below 25. In age distribution of 26-30 we have 31
number of persons which is the highest amongst the all and 22 persons fall in 31-35 age and
rest 17 persons fall in more than 36 years old respondents. The questionnaire responses
mainly show the young generation which is actively part of the research.

Table No.3 Education Analysis

Education Background Frequency
Matriculation or below 7
Intermediate 15
Bachelors 37
Masters or Above 41
Grand Total 100

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 Educational Background

15

41 Matriculation or below
Intermediate
Bachelors
Masters or above

37

Fig. 6 Educational Background of Respondents

The highest frequency 41 % among the respondents falls under the category of Masters and
above the level of studies followed by the 37 % who has the Bachelors degree. A very
nominal percentage of almost 15% categorized in the matriculation and intermediate level of
studies.

Table No.4 Income Distribution among respondents

Income Distribution (Month) Frequency
Less than Rs. 30,000 33
Rs. 30,000 to Rs. 60,000 27
Rs. 60,000 to Rs. 120,000 7
More than Rs. 120,000 3
Can’t tell 30
Grand Total 100

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 Income Distribution
33
35 30
27
30
25
20
15
7
10
3
5
0

Fig. 7 Income Distribution

From the survey it was analyzed that the highest frequency in income distribution fall under
Can’t tell which is very strange thing but from the survey it is happening, may be males are
reluctant to tell their income while we have majority of respondents are males and 20% fall
under less than 30K.

Table No.5 Frequently Buy Online

Time frequency Frequency
Frequently or at least once a month 19
Once in six month 37
Once a year 29
Never bought online 15
Grand Total 100

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 How frequently buy online

37
40
35 29
30
25 19
20 15
15
10
5
0
Frequently or Once in six months Once a year Never bought
atleast once a online
month

Fig. 8 Analysis of frequently buys online

There are some respondents who had never bought online anything. 37% of
respondents have bought things online once in six months, 29% respondents bought online
things once in a year and 19% respondents lies under the category of respondents who buys
frequently or at least once a month. It is clear from the data that majority of the people in
Nainitalbuys things online once in six months.

From the next questions we can analyze that how long people have been buying
online in Nainital. We know that 15% of people had not made online purchases.

Table No.6 Analysis of Duration of online shopping

Duration Frequency Percentage
Less than year 25 29%
1 to 5 years 48 56%
More than 5 years 9 10%
Grand Total 85 100

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 Duration of Online Shopping

48
50
45
40
35
30 25
25
20
15 9
10
5
0
Less than year 1 to 5 years More than 5 years

Figure 9: Analysis of Duration of online shopping

From the above question, it is clear that from 56% of respondents have been doing online
shopping for 1 to 5 years, it indicates that people in Nainital City somehow likes and do
online shopping and are involve in it. While 29% respondents have been doing online
shopping less than 1 year and only 10%% have been doing online shopping more than 5
years.

Table 7: Online products segmentations

Product Segmentation Frequency Percentage
Mobile 44 52%
Clothes 17 20%
Music Software 7 8%
Books 10 11%
Cosmetic and Jewelry 3 4%
Others 4 5%
Grand Total 85 100%

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 Product Segmentation

3 4
Mobile
10
Clothes
Music Software
7
44 Books
Costmetic and Jewelery

17 Others

Figure 10: Product Segmentation

From the above chart, total 85 respondents who had made online purchasing out of which 44
respondents bought smart phones and it is the highest frequency of 52 % followed by clothes
products of 20%.Music and software are bought by 8% of consumers who are buying online.
Books, Cosmetics and jewelry and others are bought by 11%, 4% and 5% respectively.

Table 8: Main reason for online shopping of smartphone

Reasons Frequency Percentage
Price 47 55%
Convenience and Time Saving 25 29%
Fast Shipping 0 0%
Trust 0 0%
Brand Conscious 2 3%
Friend Referred 11 13%
Grand total 85

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 Reasons for online shopping of smartphones
47
50
45
40
35
30 25
25
20
15
10
5 0 11
0 0 2

Figure 11: Reasons for online shopping of smartphones

From the above figure it is clearly visible that 55% of respondents buy smartphones online
because of price and 29% believes that buying smartphones online is convenient and time
saving. While 13% are buying because of friend referral and only 3% are brand conscious.

Table 9: Visit retail store before purchasing online

Visit retail store first before making final Frequency Percentage
online purchase
Yes 9 11%
No 76 89%
Grand Total 85 100%

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 Visit retail store before online purchasing

Yes
No

76

Fig. 12 Visit retail store before making online purchasing

This question was asked to judge the consciousness of consumer and approach regarding the
selection of product about offered online products. It is analyzed that 11 % of respondents do
visit the retail store to see and check the actual product before actually buying from an online
store while 89% of them don’t bother to see the actual product in offline store.

Table 10: How many times Smart Phones you did buy online in a year
Purchase smartphones online in a year Frequency Percentage
Atleast once 62 72%
1 to 3 times 20 24%
More than 3 times 3 4%
Grand Total 85 100

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 Online purchase of smartphones in a year

62
70
60
50
40 20
30
20 3

10
0
Atleast once 1 to 3 times More than 3 times

Fig. 13 Purchase Smart Phones online in a year

It was asked in survey questionnaire that how many times they bought electronic
products over the internet during last year. As per response, 72% people say that they bought
electronics products at least once in a year and 24% of respondents say 1 to 3 times in a year
while only 4% respondents say more than 3 times in a year, It can be easily analyzed from
sample of data that majority of the people bought goods once a year means they are not
addicted to online shopping of smart phones.

Table 11: Idea of buying online Smart Phone

Idea Frequency Percentage

Referred by friend/family member 24 28%

Saw an online advertisement 40 47%

Saw an offline advertisement (paper advertisement) 8 10%

I was just waiting for launch of this product since long 13 15%

Grand Total 85 100%

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 Getting idea of buying smartphone

I was just waiting for launch of this product since

13
long

Saw an offline advertisement 8

Saw an online advertisement 40

Referred by friend/family member 24

0 5 10 15 20 25 30 35 40 45

Fig. 14 Purchase Smart Phones online in a year

To find the motivation behind purchase and the factors that urge consumer for buying
certain smart phones, following question was asked that how they got the idea of buying
specific electronics product through an online store.
24 out of 85 respondents are influenced and referred by family and friends followed
by 40 respondents saw an online advertisement on different websites and stores and are
inclined to do online shopping in Nainital City, so that inNainital, it would be better to do
online and offline advertisements and increase customer satisfaction because majority of the
people bought electronic good on the recommendations of family members and social life
cycle

Table 12: Visit different online stores before actual purchasing

No. of stores visited on an average Frequency Percentage
1 to 3 Online stores 27 32%
3 to 5 Online stores 35 41%
More than 5 stores 23 27%
Grand Total 85 100%

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 Visit online store before purchase

23 27

1 to 3 online stores
3 to 5 Online stores
More than 5 Stores
35

Fig. 15 Visit online stores before purchase

32% of the people visit 1 to3 stores before the actual purchase. 41% of people visit 3
to 5 stores and 127% of the respondents even go beyond 5 stores to do research about the
product respectively. Majority of the people of Nainital City do search and survey before
online purchasing of electronic goods by going through different online stores. Therefore, the
Smart Phones companies would require doing market research before launching the product
and in market research they would do analysis of online stores and product delivery and
return policies, reviews and rating of the products. It will increase sales of the smart phones
in Nainital ultimately.

Table 13: Crucial Factor affecting Consumer’s decision making in final selection of
smartphones
Factors Frequency Percentage

The best prices 33 38%

Convenience and Time saving 25 29%
Not available in local stores 15 18%
Product reviews available 9 11%
Price comparison available 3 4%
Grand Total 85 100%

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 Factors effecting final decision of purchasing

33
35
25
30
25
15
20
15 9
10 3
5
0
The best Convenience Not available Product Price
price and time in local reviews comparision
saving stores available available

Figure 16: Analysis of Critical Factors affecting consumer mind

As analyzed from the result in online shopping in Nainital, consumer concerns are
price factor, convenience and time saving. 38% of respondents consider price as the most
important factor followed by 29 % people who consider convenience and time saving. The
remaining percentage of 18% falls under the category of those respondents for whom the
particular product is not available in local stores, 11% on product reviews available and 4%
on price comparisons available.
In Nainital, consumer mind is not different, consumer behavior is normal as other
cities consumer behavior norms. They are very conscious about cost cutting and time saving;
majority of the peoples’ decision is affected by the best price offer, therefore, the sellers of
the Smart Phone must take price into consideration in their online stores in order to increase
their sales.

Table 14: After receiving the Product (Smart Phone) what a customer does
After receiving the product Frequency Percentage
Discuss with friends, Family about the purchased product 65 76%
(Smart Phone)
Contact typically the seller for further guidance if need 9 11%

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Write a review about the product 6 7%
Others (None) 5 6%
Grand Total 85 100%

After receiving the product

5 Discuss with family and friends

6 about the ourchased smartphone
9
Contact typically the seller for
further guidance

Write a review about the product

65

Others

Figure 17: Analysis Consumer behavior after receiving the product

After purchasing of electronic product, people in Nainital,76% of people share their

experience with their family members and friend. and only 11% of the consumer contact the
seller for certain details of the purchased product. It is evident from the research that in
Nainital, the family system and the social networking is strong. People go for face to face
conversation as compared to online social networks. Therefore, the sellers of the Smart
Phones who are providing their product online must consider this norm in this country and
provide the best quality as referrals based on consumer experience.

Table 15: Main barriers in online shopping

What are the main barriers which keep you away from Frequency
shopping Online?
Safety of Payment 31
Low Trust level of online stores 14
High Shipping Cost 15

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Value Added Tax/ Customs duty 18
Refund Policy and Warranty Claims 5
Delivery too slow 7
Others (Don’t have Credit Card) 10
Grand Total 100

Main Barriers
Safety of payment

Low trust
18
15 5
High Shipping Cost

7
Value Added tax/ Custom duty
14 22

Refund Policy and Warranty

10
Claims
Detivery too slow
31

Others (Don’t have Credit Cards)

Figure 17: Main barriers in online shopping

And in the survey questionnaire it was asked, what is the main barrier which keeps
consumers away from shopping online. The particular questions was asked from both the
consumer who has been doing online shopping as well as from those who even don’t go for
online shopping to judge their concerns regarding shopping over internet.
From the survey it is revealed that safety of payment is the biggest barrier in online
shopping in Nainital 31% of the respondents ranked safety of payment as the main concern
and 24% do not trust much on online stores.
15% of people reject the idea of online shopping due to high shipping cost involved
and 18% do prefer local stores due to value added tax in Nainital. A nominal combined
percentage of 22% do not shop online due to refund policy, claims, slow delivery and lack of
availability of credit card.
.

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 CHAPTER 6
OUTCOME AND
LEARNING FROM
THE PROJECT

46 | P a g e
Outcome and learning from the Project

This study was accomplished to determine the consumer behavior in Nainital city
towards online shopping for Smart Phones. Online shopping is increasing in Nainital but
acceleration of online shopping is not as rapid as compared to metro cities like Delhi and
Mumbai. In research, online consumer behavior theories applied named as goal oriented
online buyer and experimental motives of online shopping and highlighted into consumer
characteristics, online consumer behavior, factor predicting online shopping and consumer
mindset in online shopping.
TAM (Technology Acceptance Model) and TRM (Theory of Reasoned Action)
identifies factors such as internal beliefs, attitudes, and intention for online shopping; study
revealed that online shopping is mostly influenced by social network/circles and personal
experience. Consumers are doing online shopping because of convenience and time saving.
“Search as recreation” mind set in is studied under experimental online shopping behavior.
The survey questionnaire was prepared and distributed among personal contacts and
received 100 responses. The questionnaire format have three main segments such as general,
identified variables then in last customer concern in online shopping. From the survey it is
accessed that Online shopping is more popular among the males as in Nainital most online
shopping was made by males with 58% and majority of the respondents were young; aged
between 25 to 30 years old with 20% weight-age and income distribution fell into less than
30k as lower middle class while majority of the respondent are educated and have done post-
graduation.
But some of the people in Nainital are not doing online shopping with 15% and those
who are doing online shopping falls under the category of doing less than one year or 1 to 3
years so it is evident that the trend of online shopping is not as much popular in the economy
as whole and mostly people do visit retail store before online shopping.
The online shopping is getting popular among the young generation as they feel it
more comfortable, time saving and convenient. It is analyzed from the survey that when a
consumer makes a mind to purchase online Smart Phones he or she is affected by multiple
factors. The main crucial identified factors are time saving, the best price and convenience.
The best price factor is popular among people of Malegaon because generally in online
markets prices are lower as against the physical markets. People compare prices in online
stores and then review all feedbacks and rating about product before making the final

47 | P a g e
selection of product and decision. To purchase online things the Smart Phones are in demand
because of the best price, convenience and time saving.
The main barrier in the process of online shopping is the safety issue. People of
Nainital are afraid to share their personal information and financial information on internet.
Credit cards are also not available to all in general as majority of the consumers are young
generation and in Nainital Region to avail credit cards in not a simple process. Due to which
consumers are reluctant to make online purchasing, then second the most familiar barrier is
the low level of trust on online stores therefore, sellers have to make proper strategies to
increase the consumer’s level of trust on them.

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 BIBLIOGRAPHY

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REFRENCES

Dasgupta, S. (2006).Encyclopedia of virtual communities and technologies. London: Idea

Group Inc (IGI).

Deborah J. Terry, C. G. (1993). The Theory of reasoned action. Japan: Pergamon Press.

Gilbert A Churchill, D. I. (2009). Data Collection Secondary Data. In D. I. Gilbert A

Churchill, Marketing Research: Methodological Foundations (p. 264). USA :Cangage
Learning Inc. . . .

Ha¨ubl, G. (2000). The Effects of Interactive Decision Aids.Consumer Decision Making in

Online Shopping Environments: 5.

Hasslinger, A. (2007). Consumer Behaviour in Online Shopping.18-22.

Jansson-Boyd, C. V. (2009). Consumer Psychology.England: McGraw-Hill International.

Kadhi, W. E. (2009). Cross-cultural destination image assessment.DiplomicaVerlag.

KEYS, T. P. (2011).The Painter's Keys.Retrieved from

http://quote.robertgenn.com/auth_search.php?authid=6466

Krishnamurthy, S. (2006).Contemporary research in e-marketing, Volume 2. London: Idea

Group Inc (IGI).

Kuester. (2012). Strategic Marketing & Marketing in Specific Industry Contexts, University
of Mannheim, p. 110.

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 ANNEXURE

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 Questionnaire

1. What is your gender?

a. Male
b. Female

2. Your age?
a. Below 25
b. 26-30
c. 31-35
d. 35 or more

3. What is your level of education?

a. Matriculation or below
b. Intermediate
c. Bachelors
d. Masters or Above

4. What is your monthly income?

a. Less than Rs. 30,000
b. Rs. 30,000 to Rs. 60,000
c. Rs. 60,000 to Rs. 120,000
d. More than 120,000
e. Can’t tell

5. How frequently do you buy online?

a. Frequently or at least once a month
b. Once in six month
c. Once a year
d. Never bought online

6. For how long have you been shopping online?

a. Less than a year

52 | P a g e
b. 1 to 5 years
c. More than 5 years

7. What products do you normally purchase online? (You can select more than 1)
a. Books
b. Mobile / computer / Camera
c. Clothes
d. Music, Software
e. Other (Please Specify) _______________________________

8. Main Reason for online Shopping of Smartphone?

a. Price
b. Convenience & time saving
c. Fast Shipping
d. Trust
e. Brand conscious
f. Friend Referral

9. Do you go to a retail store first before making your final purchase online?
a. Yes
b. No

10. Approximately how many times did you shop smart phones over internet during the last
year?
a. At least once
b. 1 to 3 times
c. More than 3 times

11. How did you get the idea of buying specific brand of smart phone through an online
store?
a. Referred by friend/family
b. Saw an online advertisement
c. Saw an offline advertisement (Local smart phones store)
d. I was just waiting for launch of this product since long
53 | P a g e
12. How do you find the specific smart phones fitting to your own needs?
a. Product Ratings
b. Product reviews
c. Advice from offline store
d. Referred by colleague / Friend / Family member
e. Compare description and prices
f. New technology/ product in market

13. Do you visit different online smart phones stores before the actual purchase, how many
stores on average do you visit before purchasing it?
a. One to three online stores
b. 3 to 5 online stores
c. More than 5 stores

14. What are the crucial factors which affect your decision making in the final selection of
the product (Select all which apply)
a. The Best prices
b. Convenience & Time saving
c. Not available in local stores
d. Price comparison available
e. Product reviews available

15. After receiving the Smartphone, do you?

a. Discuss with Friends / Family about the purchased Smartphone
b. Write a review about the Smartphone
c. Contact typically the seller for further guidance if needed
d. Others specify _____

16. What are the main barriers which keep you away from shopping online of smart phone?
a. Safety of payment
b. Low trust level of online store / Brand
c. Value added tax / customs duty
d. High Shipping Cost
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e. Refund Policy
f. Warranty and claims
g. Delivery too slow
h. Others reasons (please specify) _________

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