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CHAPTER 1

INTRODUCTION

1.1. Introduction
Nowadays, the Internet is being widely used in daily life. The existence of the
Internet brought many advantages to individuals’ daily lives. With the help of the medium,
people can communicate, learn, entertain, buy products and get services. Of course the
disadvantages of it have long been discussed; as the virus threat, the risk of personal
information theft, spamming etc. However since the advantages outweigh the drawbacks,
most of the people cannot resist bringing it to the centre of their lives.

Since the beginning of the Internet, individuals have shown interest to the Internet.
According to Internet World Stats' statistics today more than Three billion people linked to
the Internet. This number shows that 40 percent of the world population uses the Internet.
Consequently, the Internet can be used for the competitive advantage by organizations and
actually it is a powerful source to use

The Internet have been using for several different purposes. Besides that, it has also
brought a different dimension to commercial activities. The Internet has created a new
market for both customers and organizations, and has been an alternative market to the
traditional market. Web sites provide a chance to search information about products/services,
place a comment or give orders Therefore, the previous experiences of marketing has turned
into a different segment. Now organizations are taking consider to provide different payment
methods, different shipping alternatives and even different web interfaces for different
geographic.

Today, with the rise of the technology, significant portion of commercial activities
take place over the Internet. Since commercial activities' main goal is to sale, sale can be
realized by the purchase of a different party, as we know customers. Therefore, for electronic
commercial activities, it is important to analyze online customers' behaviour. Furthermore, in
order to develop and apply effective marketing strategies the factors that affect consumer
behaviours should be investigated. Online retailers can better understand customer needs and
wants by directly analyzing the interaction between a customer and the online shop.

Analyzing consumer behaviour is not a new phenomenon for scholars. Philip Kotler,
marketing expert, have studied on this topic. Theories about consumer behaviour have been
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used to develop an effective marketing strategy. Moreover, it is impossible to think

marketing without the Internet in today's world. Online marketing is the topic that have been
researched and made applications many times by researcher from past to nowadays. Studies
on online shopping investigated the factors that influence online shopping as well as motives
for, value of and antecedents of online buying behaviour. As a result, the academic
researchers and the business world started to focus on the consumer side of the online
purchasing behaviour and a lot of researches and articles were prepared to make guidance for
the development of online shopping.

1.2. Problem Statement

There are millions of people online any time and they all are a potential consumer in
the online market. Since there are so many providers, the most important thing for
organizations is to understand what are consumer wants and needs in this competitive
business environment.

In the Internet shopping market since there is no face-to-face contact, analyzing and
identifying factors that influence the consumer is vital. Moreover, consumers have new
demands in the Internet medium. Therefore, it becomes more important to answer consumer's
demands to retain the customer.

Being aware that customers are performing a major role in marketing, finding out how
the factors that are essentially affecting the purchasing intentions are important. Analyzing
the process of shopping activities, how consumer decide and make purchasing over the
Internet and what they buy need to be identified by online providers in order to satisfy and
succeed in the competitive business environment. Customer behaviours are influenced by
different factors such as culture, social class, references group relation, family, salary level
and salary independency, age, gender etc. and so they show different customer behaviours.

Previous research streams on online shopping behaviour, investigated main factors

influencing online shopping adoption. In this study, research has been made comparative
online buying behaviours of consumers that are located in India & Global and studied on the
findings of the research.
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1.3. Need and Scope of the study

Need
The need of this study is to investigate the factors that affect online purchasing
behaviour of consumer groups selecting mobile phones. Moreover, it is also wanted to
identify and analyze online buying habits of consumers in India.

The survey method have used in India in order to find out the differences of the
online buying behaviour. In the questionnaire, we search if the preferences of consumers
have been different or not and we try to demonstrate whether the consumers have differences
or similarities.

The result of this study would contribute marketers who want to penetrate the market
in India who is already present in the market and wants to maintain the loyalty of their
customers. It can also be a part of the study on international consumer behaviour toward
online shopping.

It covers a review of electronic commerce, online shopping and online shopping

behaviour literature and its dimensions, along with the discussions of habits. It focuses on the
research design and method; research objectives, variables of the study, the research
instrument, sampling, and data collection are discussed in this chapter. Findings regarding the
differences in online shopping behaviour and consumption value as well as the findings on
differences in online shopping behaviour are presented. The study concludes with a
discussion of findings, the contribution with implications for future research and business
practices.

Scope
The consumers in today’s era have not only many stores choice, but they also have a
wide variety of channels to choose from. With the start of numerous channels (e.g. Mobile
Commerce, E-Commerce) and a continuous increase in the competition among channels, the
understanding of what incites consumers to purchase from one channel rather than another
becomes progressively important channel design and management.
In recent years, studies distinguished another non store retail format Internet. Recent
studies investigated why consumers shop through stores, catalogs, or the Internet (Black et al.
2002).The study contributes to the current marketing literature by comparing the offline and
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online channel side-by-side.

This study also contributes hypothetically and practically to a better understanding of
consumer behaviour, particularly the online buying decision process.

1.4 PRIMARY OBJECTIVES:

To study the customer purchasing behavior of mobile phones towards online
shopping.

SECONDARY OBJECTIVES:
 To find out the factors affecting the online shopping behaviour.
 To study the behavior of online shopping
 To find out the reason for using the online mobile shopping.
 To study the Satisfaction level of online shopper.

1.5 RESEARCH METHODOLOGY

This chapter illustrates the way of the research has been conducted by presenting the
methodologies and theories used. The technical details of the research are described and
detailed. Important issues such as, philosophy of the research, preparation of the research, the
method and procedure of data collection, components of questionnaire, sampling decision are
covered.

The first process is topic selection. The knowledge, observations and interest on a
topic help to finalise the topic. After that, theories and literatures have been searched to
support the research. Next, the problem and the research question have been developed and
research method has been selected. The next step is to collect data with using the methods
planned. After the data is collected, I analyse the data with selected theories. At last, the
conclusion is drawed.

This research started with exploratory study however developed into an explanatory study
since the first aim was gaining knowledge about consumer behaviour and following with
being able to gain information toward online consumer behaviour. After that specific factors
have been identified which are the important during the online purchase.
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1.5.1 RESEARCH DESIGN

Research design specifies the methods and procedures for conducting a particular
study. A research design is the arrangement of conditions for collection and analysis of the
data in a manner that aims to combine relevance to the research purpose with economy in
procedure. Research design is broadly classified into three types as

 Exploratory Research Design

 Descriptive Research Design
 Causal Research Design

Descriptive research design:

It includes surveys and fact finding enquires of different kinds. It simply describes
something such as a demographic of employees. It deals with description of the state of offers
as it is and the researchers have no influence on the respondents.

1.5.2. Sampling design

In order to address the research aim the participants were selected using a non-probability
sampling method. There are many different types of non-probability sampling methods;

Convenience sampling, as the name implies is a specific type of non-probability sampling

method that relies on data collection from population members who are conveniently
available to participate in study.

Convenience sampling is a type of sampling where the first available primary data source will
be used for the research without additional requirements. In other words, this sampling
method involves getting participants wherever you can find them and typically wherever is
convenient. In convenience sampling no inclusion criteria identified prior to selection of
subjects. All subjects are invited to participate.
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In its basic form, convenience sampling method can be applied by stopping random people
on the street and asking questionnaire questions. ‘Pepsi Challenge’ marketing campaign can
be referred to as another effecting example for this sampling method. ‘Pepsi Challenge’ is
occasionally held in large shopping centres and other crowded locations and all members of
population are invited to participate in the contest without any discrimination.

In business studies this method can be applied in order to gain initial primary data regarding
specific issues such as perception of image of a particular brand or collecting opinions of
perspective customers in relation to a new design of a product.

However, the use of this sampling technique is discouraged by many dissertation supervisors
due to inability to generalise research findings, along with other disadvantages mentioned
further below.

This sampling technique may prove to be effective during exploration stage of the research
area, and when conducting pilot data collection in order to identify and address shortcomings
associated with questionnaire design.

1.5.2.1 Population

A research population is also known as a well-defined collection of individuals or objects

known to have similar characteristics. The entire group of people or objects is which the
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researcher wishes to generalize the study findings. Population for the study consists of people
who use E-Commerce. The population size is 220.

1.5.2.2 Target Respondents

The Target Respondents of this research include all people who buys mobile phones through
E-Commerce.

1.5.2.3 Sampling type

Convenience sampling, as the name implies is a specific type of non-probability sampling

method that relies on data collection from population members who are conveniently
available to participate in study.

Convenience sampling is a type of sampling where the first available primary data source will
be used for the research without additional requirements. In other words, this sampling
method involves getting participants wherever you can find them and typically wherever is
convenient. In convenience sampling no inclusion criteria identified prior to selection of
subjects. All subjects are invited to participate.

1.5.2.4 Sample Size:

The substantial portions of the target customer that are sampled to achieve reliable result are
120

1.5.3 Data collection:

Data collection is one of the most important aspects of research. For the success of any
project accurate data is very important and necessary. The information collected through
research methodology must be accurate and relevant. Methods of data collection:  Primary
Data  Secondary Data Primary Data: Data collected by a researcher is known as primary
data. It is collected by a person for his own use obtained from findings. This is considered as
firsthand information. This is that data which is collected by us to meet our own specific
purpose. The data is collected by the means of questionnaire filled in by the people living in
Chennai. This method of data collection is very popular. Secondary Data: Secondary data
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means data that are already available i.e., they refer to data which has already been collected
and analyzed by someone else. This type of data information can also be used by the
researcher for his use as second hand information sources through which secondary data can
be collected. Secondary data may either be published data or unpublished data.

1.5.3.1 Type of data used

Both primary and secondary data has been used

1.5.3.2 Data source

Depending on the nature of the information to be gathered, different instruments are used to 6
conduct the assessment such as records, surveys, interview or questionnaires. The tool used
for this study is a questionnaire and interview.

1.5.3.3 Questionnaire Design

A well-designed questionnaire motivates the respondent to provide complete and accurate

information. In this project, the questionnaire is used as a data instrument for collecting the
primary data.

1.5.3.4 Type of Questionnaire

The different types of questionnaire are open ended question, closed ended questions and
multiple choice questions This Project’s questionnaire is combinations of aforementioned
formats.

1.5.3.4 Scales used for questionnaire development

The scales used for the development of questionnaire is yes or no dichotomous scale and
likert 5 point scale.

1.5.4 Tools used for Analysis

1.5.4.1 Descriptive Analysis

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Descriptive analysis includes statistical procedures that we use to describe the population. 
Explanatory tables  Explanatory Charts

1. Percentage Analysis
Percentage refers to a special kind of ratio in marketing comparison between two or
more data to describe Relationships. Percentage can be used to compare the relative
terms. (The distribution of two or more series of data).

Percentage = Number Of Respondents X 100 /Total Respondents

1.6 Inferential Analysis (Statistical Tools)

Inferential statistics makes inferences about populations using data drawn from the
population. Instead of using the entire population to gather the data, which is done by
collecting a sample or samples from the millions of residents and make inferences about the
entire population using the sample.

The collected data was tabulated and analyzed using the following statistical tools.

 CORRELATION
 ANOVA
 CHI SQUARE TEST
 FRIEDMAN TEST

 CORRELATION:

Correlation is computed into what is known as the correlation coefficient, which range
between-1 and +1 perfect positive correlation implies that as one commodity moves, either
upward or down ward, other will move in same direction, alternatively, perfect negative
correlation means that if one commodity moves, either upward or downward, the other will
move in opposite direction. If the correlation is 0, the movement’s old price is said to have no
correlation, it is completely random. It is denoted by “’The Karl Pearson’s coefficient of
correlation.
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 FRIEDMAN TEST
The Friedman test is the non-parametric alternative to the one-way ANOVA with repeated
measures. It is used to test for differences between groups when the dependent variable being
measured is ordinal. It can also be used for continuous data that has violated the assumptions
necessary to run the one-way ANOVA with repeated measures (e.g., data that has marked
deviations from normality)

 CHI-SQUARE TEST

The chi-square test is used to determine whether there is a significant difference between the
expected frequencies and the observed frequencies in one or more categories. This analysis in
statistics is used to test the goodness of fit to verify the distribution of observed data with
assumed theoretical distribution. Therefore, it is a measure to study the divergence of actual
and expected frequencies. It makes no assumptions about the population being sampled.

The formula for computing Chi – Square (χ2) is as follows.

χ2 ={(O-E)2 /E}

O is the Observed Frequency in each category

E is the Expected Frequency in the corresponding category

df is the "degree of freedom" (n-1) χ2is Chi Square

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1.7 Limitations of the study

 The respondents belong only to Chennai region, so that customer preferences
may vary in other areas.
 Number of period was limited to 60 days.
 The number of respondents were restricted to 120, so the analysis may vary if
the population is high.
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CHAPTER 2.
LITERATURE REVIEW

Oxford Dictionary (2012): Electronic commerce, also referred as e-commerce is defined by

Oxford Dictionary (2012) as 'Commercial transactions conducted electronically on the
Internet’. Another definition made by Financial Times (2012) as a buying and selling activity
over the Internet. To sum up e-commerce can be defined as the buying, selling and
exchanging of goods and services through an electronic medium (the Internet) by businesses,
consumers and other parties without any physical contact and exchange.

(Xavier and Pereira, 2006): ‘The rise of these new information and communication
technologies and of Internet users, has introduced a new marketing reality’.

(Shaw, 2006; XV): This new presence changes the relations between the players.
Furthermore businesses have realized and seen the importance of the Internet and it has
become that e-commerce in the business context, for most companies, can be seen as a
complement.

2.2.1 Categories of E-commerce

Kotler and Armstrong, 2012; 533): So many company now operate on the Internet. Some of
companies only have a web presence, called as click-only dot-coms, such as Amazon.com
and Expedia.com. These companies sell products and services directly to consumers via the
Internet. On the other hand traditional companies also enhance their marketing strategies to
adopt today's requirements and create their own online sales channels and become click-and-
mortar companies. Nowadays it is hard to find an organization that doesn't have a web
presence.

(Lee and Turban, 2001 ; 75): Another type of transaction, business to consumer e-
commerce activities also known as e-retailing, take place between between organizations and
the customers. E-commerce is just another tool for retail companies selling products by using
web-based technologies. www.gap.com is an example for this kind of companies which use a
web site to reach their customers and also providing shipping services. The success of this
area mainly based on trust issue.
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(Muzumdar, 2011; 9). The final online marketing domain is consumer to business online
marketing. With today's Internet environment consumers can reach companies easily. Using
the web, consumers can drive transactions with businesses, rather than the other way around.
In this transaction, dominating factor is seen as price

(Kotler and Armstrong, 2012; 536): For instance, Priceline.com provides to companies to
buy airline tickets, hotel rooms etc which are put by consumers on the web site. Consumers
can also send requests and complaints via complaint web sites

The emergence of e-commerce has begun with two organisations. Amazon.com, Inc and
eBay Inc. have been the early leaders of the e-commerce industry (Slideshare, 2011). Both of
them are now offering many different types of products to many parts of the world. Since
then, Amazon and Ebay have become the icons of the new economy. Paying visits to their
Web sites has become part of our regular life (Shaw, 2006, XV).

eBay is founded by Pierre Omidyar in 1995 and first product had been sold at the same year
by him as well. He says that ‘it was a broken laser pointer, I was about to throw away’ (eBay,
2012).

A collector bought it and this leads to a new way of the commerce. In 1996, the company
already reached 41,000 users. ‘Since then eBay have a presence in 39 markets with more than
90 million eBay.com users worldwide’ (eBay, 2012).

Today’s customers are now spending most of their time on the internet for their purchasing
decisions. Web 2.0 technology is making the internet more social and the consumers’
creating the content has accelerated the pace of development even more (Lai and Turban,
2008).

There are many social media platforms those have different functions and features. One of
the most popular social media platforms are the social networking sites such as Face book
and Twitter. 'Social commerce is an emerging and fast-growing trend in which online shops
are able to connect with other shops in the same online marketplace' (Stephen and Toubia,
2009; 262).
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For instance a floral company has made a big amount of its revenue with a help of Face book.
They have put an e-commerce platform into its Face book page and allowing consumers to
make quick purchases from this platform. Moreover, the company can publish every
campaign info in that page. Furthermore, consumers can make comments whether they like
or dislike to some publishing such as photos (Booz & Company, 2011; 3).

(Kotler and Armstrong, 2012; 532).: Due to technological innovations, the traditional way
of shopping has become insufficient for individuals. Individuals now prefer easy ways to
reach brands and stores and it can be said that that 'The Internet has fundamentally changed
customer's notions of convenience, speed, price, product information and service. As a result,
it has given marketers a whole new way to create value for customers and build relationships
with

(Korper and Ellis, 2001; 1). E-commerce provides consumers more choices, more
information and more ways to buy. Moreover, e-commerce will remain as a medium to sell
products, services and content over the internet .

(Deaton and Muellbauer, 1980, Solomon, 2006, Wright and et al., 2008) : It is no secret
that businesses' main goal is to sale and sale is provided for other party, consumers.
Therefore, for commercial activities, analysing consumers' behaviours is crucial and since
there is no face to face interaction in online businesses, it becomes more important to
understand key features of consumer behaviours.

Rogan (2007, cited in Nazir, et al., 2012) indicates the importance of the relationship
between the marketing strategy and the behaviour of consumer. He illustrates that 'the
strategy is about increasing the probability and frequency of buyer behaviour and
requirements for succeeding in doing this are to know the customer and understand the
consumer's needs and wants'.

Consumer's characteristics are also studied by Kotler and Armstrong (2010) and they
explain the way of the perception of the buyers, how they interpret and receive the stimuli
from advertisements. According to Kotler and Armstrong (2010; 161) the decisions of
consumers are influenced by several characteristics and these characteristics are linked with
the needs of the consumers.
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Wu, 2003; 38, Kotler and Armstrong, 2010; 161). : Consumer behaviours can be explained
in four dimensions which are personal characteristics, psychological characteristics, social
characteristics and cultural characteristics (Identifying these characteristics are crucial to
decide marketing strategies and to target correct consumer groups.

Smith and Rupp (2003) argue psychological factors of consumer behaviours in the online
shopping context. Online consumers psychologically deal with themselves and they
frequently questioning themselves. Motivation make consumers to ask themselves, should
they look a better price or should they shop online more often and these kind of questions.
Perception is one of the important factor and make consumers examine the security of the
web site or the quality of the product. In this case the seller organizations have to be
successful in terms of providing customers a confidence. Another psychological aspect is
personality. The personality factor may drive consumers to ask themselves what kind of web
sites are best suited for their personal preferences. Personal preferences manage consumers
to decide.

(Wu, 2003; 38).:The fourth one is attitude and attitudes can change easily, therefore
marketers are many interested in these features Consumers try to find out what they like or
not in respect to a particular situation. The last factor is emotion, they may consider their last
experience. Consumers are affected by choices and emotions alter with the experience of
their choice.

Christopher and Huarng, 2003): The social influence comes from the reference groups.
For the online consumers reference groups are identified as virtual communities, consisting
of discussion groups on a web site. Other people’s experiences, opinions have shown in this
medium and affect consumers. Another one are contact links, web site links related to the
product or the service, which make individuals ensure about the decision.

According to Kotler and Armstrong (2007) the effects of the Reference Groups are mainly
based on the belief that a person’s behaviour is influenced by many small groups. Family is
one of this reference group. There are different ways that reference groups influence an
individual’s attitude, they may expose a new behaviour or life style or may create a pressure
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to accept the attitude.

Smith and Rupp (2003) stated that different social classes create different behaviours.
Consumers from lower social classes would not have the same properties such as higher
intention to buy or higher probability like higher social classes.

Kotler and Armstrong (2007) discussed that culture set values and beliefs in the early ages
therefore person’s wants and needs are driven by this setted features. Almost everything we
do; how we give and receive information, make decisions, lead and manage, working teams,
use time is influenced by culture.
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CHAPTER 3

PROFILE

3.1 INDUSTRY PROFILE

20th century has been an era that, social, economic and political changes have occurred.
Along with the globalism, disappear of the borders, technologic developments and
unavoidable passing to the information society has deeply affected and changed the current
rules of the business world. Especially, in the last parts of the 20th century with rapid changes
in the information technologies, computers have become an integral part of the life. With the
developments in the information and communication technologies over these years,
computers’ capacities have grown rapidly and local networks have become a network that
connects all the computers in the world, the Internet. In the information era, the Internet has
become more and more necessary.

Nowadays computer and the Internet have been indispensable tools for our daily life in
conjunction with the rapid development of knowledge and technology. With the rise of this
new technology

‘Internet’ individuals have started searching everything they want from this medium.
Moreover it is a commonplace of information gathering. Those technologies loom large in
our social life and business life as well.

THE CONCEPT OF E-COMMERCE

The internet technology, appearing during the last quarter of the 20th century and having
been used frequently for few years in daily lives, has influenced all parts of our lives in a
short time. The changing in technological area all over the world has changed the concept of
information and communication. The use of internet for commercial purposes gave rise to the
existence of the electronic commerce (e-commerce) phenomenon. With the implementation
of these information and communication technologies by commercial institutions in order to
support business activities, electronic business concept was developed.

HISTORY OF E-COMMERCE
One of the most popular activities on the Web is shopping. It has much allure in it — you can
shop at your leisure, anytime, and in your pajamas. Literally anyone can have their pages
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built to display their specific goods and services.

History of ecommerce dates back to the invention of the very old notion of "sell and buy",
electricity, cables, computers, modems, and the Internet. Ecommerce became possible in
1991 when the Internet was opened to commercial use. Since that date thousands of
businesses have taken up residence at web sites.
At first, the term ecommerce meant the process of execution of commercial transactions
electronically with the help of the leading technologies such as Electronic Data Interchange
(EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange
business information and do electronic transactions. The ability to use these technologies
appeared in the late 1970s and allowed business companies and organizations to send
commercial documentation electronically.
Although the Internet began to advance in popularity among the general public in 1994, it
took approximately four years to develop the security protocols (for example, HTTP) and
DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a great
number of business companies in the United States and Western Europe represented their
services in the World Wide Web. At this time the meaning of the word ecommerce was
changed. People began to define the term ecommerce as the process of purchasing of
available goods and services over the Internet using secure connections and electronic
payment services. Although the dot-com collapse in 2000 led to unfortunate results and many
of ecommerce companies disappeared, the "brick and mortar" retailers recognized the
advantages of electronic commerce and began to add such capabilities to their web sites (e.g.,
after the online grocery store Webvan came to ruin, two supermarket chains, Albertsons and
Safeway, began to use ecommerce to enable their customers to buy groceries online). By the
end of 2001, the largest form of ecommerce, Business-to-Business (B2B) model, had around
$700 billion in transactions.

According to all available data, ecommerce sales continued to grow in the next few years
and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales.
Ecommerce has a great deal of advantages over "brick and mortar" stores and mail order
catalogs. Consumers can easily search through a large database of products and services.
They can see actual prices, build an order over several days and email it as a "wish list"
hoping that someone will pay for their selected goods. Customers can compare prices with a
click of the mouse and buy the selected product at best prices.
Online vendors, in their turn, also get distinct advantages. The web and its search engines
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provide a way to be found by customers without expensive advertising campaign. Even small
online shops can reach global markets. Web technology also allows to track customer
preferences and to deliver individually-tailored marketing.
History of ecommerce is unthinkable without Amazon and Ebay which were among the first
Internet companies to allow electronic transactions. Thanks to their founders we now have a
handsome ecommerce sector and enjoy the buying and selling advantages of the Internet.
Currently there are 5 largest and most famous worldwide Internet retailers: Amazon, Dell,
Staples, Office Depot and Hewlett Packard. According to statistics, the most popular
categories of products sold in the World Wide Web are music, books, computers, office
supplies and other consumer electronics.
History of ecommerce is a history of a new, virtual world which is evolving according to the
customer advantage. It is a world which we are all building together brick by brick, laying a
secure foundation for the future generations.

SOCIAL COMMERCE
Social commerce is a subset of electronic commerce that involves social media, online media
that supports social interaction, and user contributions to assist online buying and selling of
products and services.
More succinctly, social commerce is the use of social network in the context of e-commerce
transactions.
The term social commerce was introduced by Yahoo! in November 2005, which describes a
set of online collaborative shopping tools such as shared pick lists, user ratings and
other user-generated content-sharing of online product information and advice.
The concept of social commerce was developed by David Beisel to denote user-
generated advertorial content on e-commerce sites, and by Steve Rubel to include
collaborative e-commerce tools that enable shoppers "to get advice from trusted individuals,
find goods and services and then purchase them". The social networks that spread this advice
have been found to increase the customer's trust in one retailer over another.
Social commerce aims to assist companies in achieving the following purposes. Firstly, social
commerce helps companies engage customers with their brands according to the customers'
social behaviors. Secondly, it provides an incentive for customers to return to their website.
Thirdly, it provides customers with a platform to talk about their brand on their website.
Fourthly, it provides all the information customers need to research, compare, and ultimately
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choose you over your competitor, thus purchasing from you and not others.
Today, the range of social commerce has been expanded to include social media tools and
content used in the context of e-commerce, especially in the fashion industry. Examples of
social commerce include customer ratings and reviews, user recommendations and
referrals, social shopping tools (sharing the act of shopping online), forums and
communities, social media optimization, social applications and social
advertising. Technologies such as Augmented Reality have also been integrated with social
commerce, allowing shoppers to visualize apparel items on themselves and solicit feedback
through social media tools.
Some academics have sought to distinguish "social commerce" from "social shopping", with
the former being referred to as collaborative networks of online vendors; the latter, the
collaborative activity of online shoppers.

Online Shopping Websites

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Factors that affecting Consumer Behaviours, Consumer Characteristics in the Online

Medium

3.2 COMPANY PROFILE

Ninjacartbsite:www.Ninjacart.com
Headquarters: Bengaluru
Size: 201 to 500 employees
Founded: 2015
Type Company: Private
Industry: Logistics & Supply Chain
Revenue: $8.5 M

Ninjacart are a fast growing start-up, building next generation online market for fruits,
vegetables, pulses and staples. Ninjacart enable farmers and producers to sell directly to retail
stores by providing a selling platform and assisting in warehousing and fulfilment. Our
primary aim is to remove the middlemen, commission agents and auction agents in mandis
and provide an efficient price discovery platform and supply chain for the producers
Ninjacart enables retailers and merchants to source fruits and vegetables directly from
farmers. The Bengaluru-based startup has successfully done away with middlemen,
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commission agents, and auction agents present in mandis, and replaced them with a
technologically driven supply chain and price discovery platforms. This has helped increase
the income of over 2,500 farmers and reduce wastage. Currently, the startup handles 14,000
tons of fruits and vegetables and reaps revenue of around Rs 4 crore every month.
Ninjacart is India's leading agri-marketing platform connecting vegetables and fruits farmers
directly with businesses. At one end, Ninjacart help farmers get better prices and consistent
demand and on other-end, Ninjacart help retailers to source fresh vegetables at competitive
prices directly from farmers. Ninjacart leverage technology, data and tons of craziness to
change the way vegetables and fruits reach our plate — lower wastage, More income for
farmers, Safe & Fresh vegetables for you and me.
Currently, Ninjacart are 700+ employees, who help farmers in Karnataka and Tamil Nadu to
sell more than 100 tonnes of vegetables and fruits every day to 1300+ retailers in Bangalore
and Chennai. Ninjacart pick up the produce from farmers’ fields and deliver it at the doorstep
of retailers. Ninjacart are India’s largest private agri-marketing platform. Our core purpose is
Safe food for everyone. Aim is to make each and every vegetable and fruit safe to eat in
future for everyone, every day. Ninjacart is India's largest agri marketing platform, solving
one of the country’s toughest supply chain problems through technology. Ninjacart connect
farmers directly.
At one end, Ninjacart help farmers get better prices and consistent demand and on other-end,
Ninjacart help retailers to source fresh vegetables at competitive prices directly from farmers.
Ninjacart do this effectively at lower cost, better speed and larger scale using integrated
supply chain. Ninjacart move 120 tons of fresh produce in less than 12 hours daily in
Bangalore and Chennai. Ninjacart are 450 people company. In next 18 months, Ninjacart
want to scale to 1000 Tones and expand to entire south India. Ninjacart are funded by Accel
Partners, Nandan Nilekani, Mistletoe(Japan) & Qualcomm Ventures Ninjacart is a business-
to-business agri-marketing platform that helps farmers sell their fruits and vegetables directly
to retailers and restaurants.
 23

Team Ninjacart

It is hard to put a figure to how much food is lost and wasted in India today due to lack of
adequate infrastructure; however, a 2011 report by a UN body, FAO, puts wastage of fruits
and vegetables as high as 45 percent of produce (post-harvest to distribution) for developing
Asian countries like India. In India, where over 58 percent of the rural households depend on
agriculture as their principal means of livelihood, such wastage proves to be expensive.
Thirukumaran Natarajan, also an IIM-Kozhikode alumnus and co-founder of Ninjacart, who
was accompanying Sharath, realized another glaring flaw in the system. He told us-
“Inefficiencies could be seen in almost every aspect. There Ninjacart a lot of middlemen
involved, there was no price transparency whatsoever. The produce of the farmers exchanged
a lot of hands before reaching the eventual consumer, which resulted in farmers hardly
making any money in this whole scenario. Ninjacart felt this is a market which has huge
potential, has tremendous scope of development and is literally untapped. Ninjacart almost
instantly realised there is a lot of value addition that can be done in this space by bringing
technological and operational efficiencies.”
And thus was born Ninjacart, an online platform through which retailers and merchants can
source fruits and vegetables directly from the farmers. Ninjacart has successfully done away
with middlemen, commission agents and auction agents present in “mandis”. This startup
also provides an efficient price discovery platform to the farmers. Since Ninjacart ensures
that the produce reaches their clients effectively via an efficient and technologically driven
 24

supply chain, they have struck a win-win situation. Kartheeswaran KK, an IIM-Ahmedabad
alumnus and one of the six co-founders of Ninjacart,

Pickup Process at Ninjacart

Though Ninjacart started its operation in May 2015 as a hyper-local grocery delivery
company, after six months of operation, the co-founders including Ashutosh Vikram, IIM-
Kozhikode alumnus, Sachin P Jose, with over three years of experience in UI/UX and
Vasudevan Chinnathambi, SOIL alumnus, Sharath, Thirukumaran and Kartheeswaran, felt
that the backend supply chain of fruits and vegetables was broken and inefficient. So, by
December 2015, the company pivoted the model to become a full-fledged Business To
Business (B2B) marketplace, changing the way kirana stores and supermarkets source their
supply. Ashutosh says,
“As of June 2016, Ninjacart had a customer base of over 400 retail stores and restaurants in
Bangalore. Our average monthly tonnage is about 1.4k tons and monthly revenue of around
Rs 4 crore.”
Bangalore-based Farmily, co-founded by Karthik Natarajan; Farm Taaza, founded by Silicon
Valley veterans; and Gurgaon- based fresh2all, founded by Purnima Rao, are some other
players in the B2B fresh produce supply chain. According to Vasudevan, Ninjacart is the only
player in this space that delivers quality goods in a span as short as eight hours.
Ninjacart, which is funded by Accel Partners, Qualcomm Ventures, M&S Partners
(Singapore) and Zop Smart, has two distribution centres – one near Hoskote and another in
Jigani.
 25

Ninjacart with farmers

Every stakeholder who is a part of the Ninjacart ecosystem benefits.
The farmers (suppliers) are able to sell their produce at a better price than the market without
being exploited by the middleman through a one point sale. The farmers receive their
payment immediately via a bank transfer. The farmers are also spared from dealing with the
uncertainties of price, associated with selling in markets. Ninjacart procures all the produce
through a fair grading procedure. Ninjacart sends their vehicles along with crates to farmer
locations to bring goods to their collection centers, free of cost.
Shopkeepers and restaurants (customers) get fresh and good quality vegetables and fruits at
their doorstep at competitive prices without having to visit the market very early in the
morning.
Ninjacart also holds seminars to educate farmers on the working of the market and fair
pricing. Sachin explained to us how “Rythu abhivrudhi karyakrama” (Farmer Development
Programme) works-
“Ninjacart educate the farmers about the exact market prices and how Ninjacart bring
transparency in the whole process. Ninjacart also discuss good varieties of seeds and suggest
best practices that a few farmers follow to get good yield.”
 26

Ninjacart Farmer Training Programme

Key Numbers
Technology & data science makes Ninjacart what it is today and will define our tomorrow.
Ninjacart are using technology for the people who are neglected the most — the farmers, to
improve their income and change their families’ lives forever.
Best part of what Ninjacart do is the challenge to conceive and build for an unknown:
unknown — something from scratch with truckloads of assumptions. Ninjacart don’t have
option to copy or rebuild what already exists across the world.
This throws up the most challenging problems any problem solver, creator and disruptor
would love to solve and makes it a best place to fail, learn and build something great.
 27

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1 PERCENTAGE ANALYSIS
Table 4.1.1 Occupation of the respondents

Frequency Percent Valid Percent Cumulative Percent

Valid student 66 55.0 55.0 55.0

part time 10 8.3 8.3 63.3

full time 25 20.8 20.8 84.2

self employed 1 .8 .8 85.0

professional 14 11.7 11.7 96.7

unemployed 4 3.3 3.3 100.0

Total 120 100.0 100.0

Chart 4.1.1 Occupation of the respondents

Inference

From the above chart it is found that 55% of the respondents belong to students category,
20.8% of the respondents are full time employees, and 11.7% of the respondents are
professionals
 28

Table 4.1.2 Educational level of respondents

Frequency Percent Valid Percent Cumulative Percent

Valid UG 55 45.8 45.8 45.8

PG 65 54.2 54.2 100.0

Total 120 100.0 100.0

Chart 4.1.2 Educational level of respondents

Inference

From the above chart it is found that 54.2% of the respondents are post graduates, 45.8% of
the respondents are under graduates.
 29

Table 4.1.3 Monthly income of the respondents

Frequency Percent Valid Percent Cumulative Percent

Valid <1L 35 29.2 29.2 29.2

1L-3L 9 7.5 7.5 36.7

3L-5L 10 8.3 8.3 45.0

Not interested 66 55.0 55.0 100.0

Total 120 100.0 100.0

Chart 4.1.3 Monthly income of the respondents

Inference

From the above chart it is found that 55% of the respondents don’t want to share their
income, 29.2% of the respondents earn <1 lakhs.
 30

Table 4.1.4 Purpose of using internet

Cumulative
Frequency Percent Valid Percent Percent

Valid research work,home work, 22 18.3 18.3 18.3

study

social websites 53 44.2 44.2 62.5

Game 6 5.0 5.0 67.5

online shopping 16 13.3 13.3 80.8

information 14 11.7 11.7 92.5

Business 5 4.2 4.2 96.7

Others 4 3.3 3.3 100.0

Total 120 100.0 100.0

Chart 4.1.4 Purpose of using internet

Inference

From the above chart it is found that 44.2% of the respondents use internet for social
websites, 18.3% of the respondents for studies, and 13.3% of the respondents for online
shopping.
 31

Table 4.1.5 Purchase mobile phones online

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 96 80.0 80.0 80.0

No 18 15.0 15.0 95.0

never 6 5.0 5.0 100.0

Total 120 100.0 100.0

Chart 4.1.5 Purchase mobile phones online

Inference

From the above chart it is found that 80% of the respondents like to purchase online, 15% of
the respondents don’t want to purchase.
 32

Table 4.1.6 Preferable mode of payment

Frequency Percent Valid Percent Cumulative Percent

Valid debit card 22 18.3 18.3 18.3

credit card 26 21.7 21.7 40.0

net banking 20 16.7 16.7 56.7

cash on delivery 52 43.3 43.3 100.0

Total 120 100.0 100.0

Chart 4.1.6 Preferable mode of payment

Inference

From the above chart it is found that 43.3% of the respondents prefer cash on delivery, 21.7%
of the respondents prefer credit card, and 16.7% of the respondents prefer net banking.
 33

Table 4.1.7 Product groups online

Frequency Percent Valid Percent Cumulative Percent

Valid basic phone 2 1.7 1.7 1.7

windows phone 2 1.7 1.7 3.3

android phone 104 86.7 86.7 90.0

i phone 8 6.7 6.7 96.7

Others 4 3.3 3.3 100.0

Total 120 100.0 100.0

Chart 4.1.7 Product groups online

Inference

From the above chart it is found that 86.7% of the respondents buy android phone, 6.67% of
the respondents buy iPhone, and 3.3% of the respondents buy others.
 34

Table 4.1.8 Visit the store to see the product before purchasing

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 38 31.7 32.2 32.2

No 37 30.8 31.4 63.6

in some cases 43 35.8 36.4 100.0

Total 118 98.3 100.0

Missing System 2 1.7

Total 120 100.0

Chart 4.1.9 Visit the store to see the product before purchasing

Inference

From the above chart it is found that 36.4% of the respondents go to store in some cases,
32.2% of the respondents go to store before purchasing online.
 35

Table 4.1.9 Visit online sites for offers

Cumulative
Frequency Percent Valid Percent Percent

Valid Never 6 5.0 5.0 5.0

once a day 21 17.5 17.5 22.5

once a week 27 22.5 22.5 45.0

once a month 12 10.0 10.0 55.0

occasionally (special offers) 54 45.0 45.0 100.0

Total 120 100.0 100.0

Chart 4.1.9 Visit online sites for offers

Inference

From the above chart it is found that 45% of the respondents visit online websites for special
offers, 22.5% of the respondents visit online once a week, 17.5% of the respondents visit
once a day.
 36

Table 4.1.10 Online shopping is safe

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 32 26.7 26.7 26.7

Agree 56 46.7 46.7 73.3

neutral 30 25.0 25.0 98.3

disagree 2 1.7 1.7 100.0

Total 120 100.0 100.0

Chart 4.1.10 Online shopping is safe

Inference

From the above chart it is found that 46.7% of the respondents agree that online shopping is
safe, 26.7% of the respondents strongly agree that online shopping is safe.
 37

Table 4.1.11 Risk in giving credit card information

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 11 9.2 9.2 9.2

Agree 49 40.8 40.8 50.0

neutral 38 31.7 31.7 81.7

disagree 18 15.0 15.0 96.7

strongly disagree 4 3.3 3.3 100.0

Total 120 100.0 100.0

Chart 4.1.11 Risk in giving credit card information

Inference

From the above chart it is found that 40.8% of the respondents agree to that it’s a risk to give
credit card information, 31.7% `of the respondents are neutral, 15% of the respondents
disagree to the point.
 38

Table 4.1.12 The product may come different from the website

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 18 15.0 15.0 15.0

Agree 44 36.7 36.7 51.7

neutral 33 27.5 27.5 79.2

disagree 12 10.0 10.0 89.2

strongly disagree 13 10.8 10.8 100.0

Total 120 100.0 100.0

Chart 4.1.12 The product may come different from the website

Inference

From the above chart, it is found that 36.7% of the respondents agree that the product may
come different from website, 27.5% of the respondents are neutral, 15% of the respondents
strongly agree to the above point.
 39

Table 4.1.13 Wait for the product to be delivered

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 8 6.7 6.7 6.7

Agree 62 51.7 51.7 58.3

neutral 36 30.0 30.0 88.3

disagree 12 10.0 10.0 98.3

strongly disagree 2 1.7 1.7 100.0

Total 120 100.0 100.0

Chart 4.1.13 Wait for the product to be delivered

Inference

From the above chart, it is found that 51.7% of the respondents prefer that they don’t want to
wait for the product, 30% of the respondents are neutral to the point, and 10% of the
respondents disagree to the above point.
 40

Table 4.1.14 Online shopping saves time and money

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 63 52.5 52.5 52.5

Agree 41 34.2 34.2 86.7

neutral 10 8.3 8.3 95.0

strongly disagree 6 5.0 5.0 100.0

Total 120 100.0 100.0

Chart 4.1.14 Online shopping saves time and money

Inference

From the above chart it is found that 52.5% of the respondents strongly agree to that
shopping saves internet to save money and time, 34.2% of the respondents agree to the above
point, 8.33% are of the respondents neutral.
 41

Table 4.1.15 Product options can be compared easily

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 49 40.8 40.8 40.8

Agree 51 42.5 42.5 83.3

Neutral 14 11.7 11.7 95.0

Disagree 6 5.0 5.0 100.0

Total 120 100.0 100.0

Chart 4.1.15 Product options can be compared easily

Inference

From the above chart it is found that 42.5% of the respondents agree that product options can
compare multiple brands, 40.8% of the respondents strongly agree to the above point, 11.7%
of the respondents are neutral.
 42

Table 4.1.16 Pre order mobile phone before launching by comparing features

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 30 25.0 25.0 25.0

Agree 48 40.0 40.0 65.0

neutral 20 16.7 16.7 81.7

disagree 21 17.5 17.5 99.2

strongly disagree 1 .8 .8 100.0

Total 120 100.0 100.0

Chart 4.1.16 Pre order mobile phone before launching by comparing features

Inference

From the above chart it is found that 40% of the respondents agree to pre order mobile before
launching, 25% of the respondents strongly agree to the above point, 17.5% of the
respondents disagree to the above point.
 43

Table 4.1.17 Customer care accessible when needed

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 23 19.2 19.2 19.2

Agree 50 41.7 41.7 60.8

neutral 35 29.2 29.2 90.0

disagree 8 6.7 6.7 96.7

strongly disagree 4 3.3 3.3 100.0

Total 120 100.0 100.0

Table 4.1.17 Customer care accessible when needed

Inference

From the above chart it is found that 41.7% of the respondents agree to that customer care is
accessible, 29.2% of the respondents are neutral, 19.2% of the respondents strongly agree to
the above point.
 44

Table 4.1.18 Recommend others to purchase online

Frequency Percent Valid Percent Cumulative Percent

Valid strongly agree 44 36.7 36.7 36.7

Agree 44 36.7 36.7 73.3

neutral 22 18.3 18.3 91.7

disagree 10 8.3 8.3 100.0

Total 120 100.0 100.0

Chart 4.1.18 Recommend others to purchase online

Inference

From the above chart it is found that 36.7% of the respondents agree and strongly agree
would recommend purchasing mobile phones with online shopping, 18.3% of the respondents
are neutral to the point.
 45

Table 4.1.19 Overall experience

Cumulative
Frequency Percent Valid Percent Percent

Valid completely satisfied 50 41.7 41.7 41.7

moderately satisfied 54 45.0 45.0 86.7

slightly satisfied 12 10.0 10.0 96.7

not at all satisfied 4 3.3 3.3 100.0

Total 120 100.0 100.0

Chart 4.1.19 Overall experience

Inference

From the above chart it is found that 45% of the respondents are moderately satisfied about
the overall experience, 41.7% of the respondents are completely satisfied, 10% of the
respondents are slightly satisfied to the above point.
 46

4.2 CORRELATION

Null Hypothesis (H0):

There is no significant relationship between occupation and online shopping
Alternative Hypothesis (H1):
There is a significant relationship between occupation and online shopping

TABLE 4.2.1 Correlations

which of would you

the like to
following is purchase
your mobiles
current through
occupation? online?

which of the Pearson Correlation 1 .428(**)

following is your
current occupation? Sig. (2-tailed) . .000

N 120 120

would you like to Pearson Correlation .428(**) 1

purchase mobiles
through online? Sig. (2-tailed) .000 .

N 120 120

** Correlation is significant at the 0.01 level (2-tailed).

INFERENCE:
From the above table it is clear that, r value is 0.000. Null hypothesis 𝐻0 is rejected since p
value is less than 0.05 and alternative hypothesis 𝐻1 is accepted. Hence there is a significant
relationship between occupation and online shopping.
 47

4.3 CHI SQUARE TEST

Null Hypothesis (H0):
There is no association between monthly income and preferable mode of payment
Alternative Hypothesis (H1):
There is a association between monthly income and preferable mode of payment

Crosstabs
TABLE 4.3.1 what is your average monthly income? * preferable mode of payment
Cross tabulation

Count

preferable mode of payment

credit net cash on

debit card card banking delivery Total

what is your <1L 8 10 4 13 35

average
monthly 1L-3L 0 2 4 3 9
income? 3L-5L 0 6 0 4 10

Not interested 14 8 12 32 66

Total 22 26 20 52 120

TABLE 4.3.2 Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 21.949(a) 9 .009

Likelihood Ratio 24.059 9 .004

Linear-by-Linear Association 1.238 1 .266

N of Valid Cases 120

a 8 cells (50.0%) have expected count less than 5. The minimum expected count is 1.50.
 48

INFERENCE:
From the above table it is clear that Null hypothesis 𝐻0 is accepted since p value is 0.009
which is lesser than 0.05 and alternative hypothesis 𝐻1 is accepted. Hence there is a
association between monthly income and preferable mode of payment.

4.4 FRIEDMAN TEST

Null Hypothesis (H0):

There is no difference between shopping online saves time & money and product options can
compare multiple brands

Alternative Hypothesis (H1 ):

There is a difference between shopping online saves time & money and product options can
compare multiple brands

NPar Tests

Friedman Test

TABLE 4.4.1 Ranks

Mean Rank

shopping on the internet save money and time than shopping in stores
1.44

product options can be compare multiple brands easily

1.56
 49

TABLE 4.4.2 Test Statistics (a)

N 120

Chi-Square 3.920

Df 1

Asymp. Sig. .048

a Friedman Test

INFERENCE:

From the above table it is clear that Null hypothesis 𝐻0 is rejected since p value is 0.048
which is less than 0.05 and alternative hypothesis 𝐻1 is accepted. Hence there is a difference
between shopping online saves time & money and product options can compare multiple
brands.

4.5 ONE WAY ANOVA

Null Hypothesis (H0):

There is no significant difference between educational level and customer care accessible.

Alternative Hypothesis (H1):

There is significant difference between educational level and customer care accessible.
 50

4.5.1 ANOVA

Sum of Squares df Mean Square F

after sales, customer care is Between Groups .239 1 .239 .251

accessible when need
Within Groups 112.428 118 .953
assistance

Total 112.667 119

TABLE 4.5.2 ANOVA

Sig.

after sales, customer care is accessible when need Between Groups .618
assistance
Within Groups

Total

INFERENCE:

From the above table it is clear that Null hypothesis 𝐻0 is accepted since p value is 0.618
which is greater than 0.005 and alternative hypothesis 𝐻1 is rejected. Hence there is no
significant difference between educational level and customer care accessible.
 51

CHAPTER 5

5.1 SUMMARY OF THE FINDINGS

Based on the data collected from the person using 104 questionnaires, the following
findings were obtained.

 Most of the respondents (44.2%) use internet more for social websites, 18.3%
for for studies, and 13.3% for online shopping.
 80% of the respondents prefer buying through online, 15% don’t want to.
 About 43.3% of the respondents prefer cash on delivery, 21.7% prefer credit
card, and 16.7% prefer net banking.
 Almost 86.7% of the respondents prefer to buy android phones, 6.67% prefer
iPhone.
 36.4% of the respondents go to store in some cases, 32.2% go to store to see
the product.
 About 45% visit the online websites for special offers, 22.5% visit online
websites once in a week.
 Almost 46.7% of the respondents agree that online shopping is safe, 26.7%
strongly agree to the point.
 40.8% of the respondents agree that it’s a risk to give credit card information,
31.7% `are neutral.
 Most of the respondents (51.7%) don’t want to wait for the product, 30% are
neutral to the point.
 About 52.5% of the respondents strongly agree that online shopping saves
time & money, 34.2% agree to this point.
 42.5% of the respondents agree that product options can be compared, 40.8%
strongly agree to this point,
 Most of the respondents (40%) agree to pre order mobile before launching,
25% strongly agree to the point.
 About 41.7% of the respondents agree that customer care is accessible, 29.2%
are neutral.
 36.7% agree and strongly agree that they would recommend others to do
online shopping.
 52

 Most of the respondents (45%) are moderately satisfied about the overall
experience, 41.7% are completely satisfied.

5.1.1 Findings on the basis of hypothesis testing:

CORRELATION

 There is no significant relationship between occupation and online shopping.

CHI- SQUARE TEST

 There is a association between monthly income and preferable mode of payment.

ONE WAY ANOVA CLASSIFICATION

 There is no significant difference between educational level and customer care
accessible.
 There is no significant difference between educational level and online shopping is
safe.

FRIEDMAN TEST

 There is a difference between shopping online saves time & money and product
options can compare multiple brands.
 53

5.2 SUGGESTIONS

 In order to retain consumers, loyalty programmes can be introduced. Discounts can be

given on a regular basis.
 Awareness campaign about the online websites can be done in the rural areas.
 Transactions should be safe and proper security should be assured to the people
making online purchases.
 Government should play a pivotal role in encouraging online shopping
 E-marketers must give a thought to secure, time saving, information about product
and services factors when they design there online product strategy.
 Online companies must focus on providing extra facilities like goods exchange policy
to online shoppers so that shoppers will have easy to purchase products over online.
 They can provide more information about the product and service availability which
will improve the knowledge of the customers and help them shop easily.
 Most of the educated people are familiar with online less educated by creating
awareness and educating them.
 As the distribution and logistics in India is not very well organized and prone to fraud
hence buying of high value items involves huge risk and it is necessary for the
companies to find a better and safe way of delivery these kind of goods
 Convenience of shopping can be developed by bringing in user friendly methods of
making purchase online easier.
 54

5.3 CONCLUSION

The study reveals that most of the respondents prefer purchasing on online. Most of
the customers are satisfied by online shopping, but the only hinder is that they are not fully
secured. The customers also feel that it is very easy to purchase goods online rather than to
move shop to shop. From the research it can be set that in today’s fast moving world people
don’t have time to travel to buy goods and other factors like distance, traffic make it even
more difficult for a person to manually go to shops and buy goods and hence people have
started using online shopping for purchasing and because of payment modes like cash on
delivery has rapidly increased the number of the online shoppers and this list will keep on
increasing. Government has to improve security laws related to online websites so that the
online customers feel secured in case of debit card, credit card or online payments.