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ACKNOWLEDGEMENT

First and foremost, I would like to thank my respectable and learned


guide, Mr. Purunendu Patra but for who’s untiring, persevering and
unflinching help; this project would not have seen the light of day. It
is he who initiated the development of the project and was thus
instrumental in showing the right direction in the field of . He
provided encouragement and boost in the transformation of my
inherent internal knowledge into a real work for external audience.
Lastly, I would like to bestow my regards and gratitude to the
G.M.College, Autonomous, Sambalpur, specially Dr. S. Dash, HOD,
Department of Professional Courses, which provided me this
opportunity to undertake the Dissertation program on consumer
perception towards online shopping for allowing me to go through
this worthy dissertation programme.

(Subhasis Pattnaik)
PC13MBA005
CERTIFICATE OF THE GUIDE

This is to certify that the dissertation report entitle “CONSUMER


PERCEPTION

TOWARDS

ONLINE

SHOPPING”

submitted by SUBHASISH

PATNAIK bearing the Roll no- PC13MBA005 is his own work and has been

carried out under my supervision. It is recommended that the candidate may now
be evaluated for his dissertation work by the college.

DATE; 06th April 2015


PLACE: Sambalpur

(PURNENDU KUMAR PATRA)


Signature:
DECLARATION
I Subhasish Patnaik, Roll No. PC13MBA005, a student of Gangadhar

Meher

college(Auto), Sambalpur, hereby declare that the dissertation on “CONSUMER


PERCEPTION TOWARDS ONLINE SHOPPING”

is done by me is an authentic

work carried out for the partial fulfilment of the requirement for the award of the
degree of MBA program in management under the guidance by Mr. PURNENDU
KUMAR PATRA

The matter embodied in the project work has not been submitted for the award of
any other degree, diploma or any other similar title or prizes to the best of my
knowledge and belief.

Subhasish Patnaik
Roll No. PC13MBA005
MBA 2nd Year
.
CONTENTS

CHAPTER – I

INTRODUCTION
1.1

Significance of the study

1.2

Objective of the study

1.3

Scope of the study

1.4

Research objective

1.5

Limitation of the study

CHAPTER – II

REVIEW OF LITERATURE

2.1

National

2.2

International

CHAPTER – III

OVERVIEW OF THE INDUSTRY

1-4

5 - 10

11 – 18

3.1 Online shopping in india


3.2 Recent development
3.3 Gaint players in Indian online shopping
CHAPTER – IV

THEORIES OF THE STUDY

4.1 Introduction to the study


4.2 AIDA Principle in online shopping
4.3 Porterrs 5 force model in online shopping
4.4 Marketing mix (7p) in online marketing
4.5 Models of online marketing
19 – 28
CHAPTER – V

RESEARCH METHODOLOGY

29 – 35

5.1 Research objective


5.2 Determination of information needs and sources
5.3 Research framework
5.4 Data collection
5.4.1 Primary data
5.4.2 Secondary data
5.5 Sample design
5.5.1 Sample unit
5.5.2 Sample media
5.5.3 Sampling method
5.5.4 Sample size
5.5.5 Sample place
5.5.6 Sample design
CHAPTER – VI

DATA ANALYSIS

36 – 53

CHAPTER – VI

FINDING

54 - 55

CHAPTER – VI

SUGGESTION & CONCLUSION

56 - 61

CHAPTER – VII

BIBLIOGRAPHY

CHAPTER – IX

ANNEXURES
Chapter 1
INTRODUCTION

A Study on Consumer Perception towards online shopping

1
1.0 INTRODUCTION
Internet is changing the way consumers shop and buys goods and services, and has
rapidly evolved into a global phenomenon. Many companies have started using the
Internet with the aim of cutting marketing costs, thereby reducing the price of
their
products and services in order to stay ahead in highly competitive markets.
Companies
also use the Internet to convey, communicate and disseminate information, to sell
the
product, to take feedback and also to conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare
prices, product features and after sale service facilities they will receive if
they
purchase the product from a particular store. Many experts are optimistic about the
prospect of online business.
In addition to the tremendous potential of the E-commerce market, the Internet
provides a unique opportunity for companies to more efficiently reach existing and
potential customers. Although most of the revenue of online transactions comes from
business-to-business commerce, the practitioners of business-to-consumer commerce
should not lose confidence. It has been more than a decade since business-
toconsumer E-commerce first evolved. Scholars and practitioners of electronic
commerce constantly strive to gain an improved insight into consumer behavior in
cyberspace. Along with the development of E-retailing, researchers continue to
explain E-consumers’ behaviour from different perspectives. Many of their studies
have posited new emergent factors or assumptions that are based on the traditional
models of consumer behaviour, and then examine their validity in the Internet
context.
Online shopping is definitely a great way to shop with everything available on the
websites. From clothes, gift items, food, home needs, medicines, and many more,
this
mode of shopping allows one to shop conveniently without hassle on spending hours
in a supermarket or shopping areas. The Internet with its wide array of information
nooks, allows the customer to go through various reviews of the product or service
before actually heading for purchases. These online shopping websites also have
daily
deals for the customer looking for discounts and store offerings.

A Study on Consumer Perception towards online shopping

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1.1 SIGNIFICANCE OF THE STUDY
In recent years, online shopping has become very popular. The growth of technology
has made these a part and parcel of everyday lifestyle. The advent of plastic money
or
the debit /credit card and the smooth access to the World Wide Web has brought the
shops from around the world to the desktop. We personally have seen many of our
friends surfing through various online shopping sites and purchasing things.
Student
community has become so strong that even the parents seek the help and advice of
their children before conducting big purchases. This is solely because of their
exposure to web and social media. Moreover, while it comes to personal purchases,
students are very particular that they get best products available in the market
and seek
all the possible ways to secure the best products. This is where the role of online
shopping sites emerges. Students who are well versed in the use of internet and
active
in social media, know about online markets and have tried at least some of them.
The study is very relevant because it can give a clear picture of the future of
online
markets in India and the emerging trends in this particular field. The various
factors
that influence online shopping habits and its merits and demerits are also dealt
with.The study also tries to have a comparison of online shopping habits among
different age group as well as income group.

1.2 Objective of the Study


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
Ebusinesses’ strategies. The specific objectives of this research are:
1.

To know the consumers awareness and perception about the products and
services provided on internet.

2.

To know how it provides products and services and satisfies their customers.

3.

To know how it reduces the uncertainty in purchase decision process.

1.3 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 :

A Study on Consumer Perception towards online shopping

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1.

The Study was conducted among the Internet users.

2.

The Geographical area covered was Sambalpur.

3.

The Study was based on a Schedule of Questions.

4.

The scope of internet shopping

1.4RESEARCH OBJECTIVE
1. To analysethe consumer interest on online marketing.
2. To determine the factors affecting online buying.
3. To evaluate the growth of online marketing.
4. To forsee the demand of online shopping in india.
5. To study the impact of traditional retailer over the online retailer.
6. To gather information regarding growing sector for online purchasing.
7. To understand the barriers of online marketing.
8. To know the consumers awareness and perception about the products and services
provided on internet

9. To examine what the consumer had bought and what they want to purchase in the
near future.

1.5 LIMITATIONS OF THE STUDY


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 can not 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.
A Study on Consumer Perception towards online shopping

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CHAPTER -2
LITRETURE REVIEW

A Study on Consumer Perception towards online shopping

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CHAPTER-2
REVIEW OF LITRETURE
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 change
humanbehaviour 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.
ArchanaShrivastava, UjwalLanjewar, (2011) in online buying, the rate of diffusion
andadoption of the online buying amongst consumers is still relatively low in
India. 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 and

A Study on Consumer Perception towards online shopping

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relative 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.
J.SINHA 2010The number of people engaged in various online activities is increasing
every 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.
Lal studied 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.

A Study on Consumer Perception towards online shopping

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2.2 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 eBusiness 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 under
variouscontexts 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 shopper_s 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-commerce
design 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.

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


sometraditional service quality dimensions that determine customer satisfaction,
such as
thephysical appearance of facilities, employees, and equipment, and employees_
responsiveness and

A Study on Consumer Perception towards online shopping

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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
problemsolving behaviors and then towards extensive problem-solving behaviors
[Schiff man et al.,
2001].
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 [1997] 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.
Other discriminating factors were; control over, and convenience of, the shopping
process,

A Study on Consumer Perception towards online shopping

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affordability of merchandise, customer service and ease of use of the shopping
site. In
another study, Jarvenpaa et al. [2000] tested a model of consumer attitude towards
specific
webbase stores, in which perceptions of the store's reputation and size were
assumed to affect
consumer trust of the retailer. The level of trust was positively related to the
attitude toward
the store, and inversely related to the perception of the risks involved in buying
from that
store. Jarvenpaa et al. [2000] concluded that the attitude and the risk perception
affected the
consumer's intention to buy from the store.
Consumer risk perceptions and concerns regarding online shopping are mainly related
to
aspects involving the privacy and security of personal information, the security of
online
transaction systems and the uncertainty of product quality. Trust is interwoven
with risk
[McAllister, 1995]. One of the consequences of trust is that it reduces the
consumer’s
perception of risk associated with opportunistic behavior by the seller [Ganesan,
1994]. Lack
of trust is frequently reported as the reason for consumers not purchasing from
Internet shops,
as trust is regarded as an important factor under conditions of uncertainty and
risk in
traditional theories.
Mayer et al. [1995] developed a model which combines traditional marketing
philosophy on
consumer motivation to buy and the trust model. In this model, trust propensity;
which is a
personality trait possessed by buyers; is an important antecedent of trust. In
Internet
shopping, there is not much information available to the buyer regarding the
seller, prior to
purchase. A buyer with a high propensity to trust will more likely be a potential
customer
than a buyer with a lower propensity.
Purchase decisions are ultimately guided by consumers' perceptions of the product
or service. Of
course, the critical nature of perceptions as they relate to purchase behaviour has
been repeatedly
demonstrated in advertising and marketing research. Negative perceptions of the
product, service,
brand, or company almost always translate to a lost sale or, at a minimum,
expressed lower intentions
to purchase the advertised product or service. If the goal is to increase online
spending among
consumers, particularly female consumers, then consumers' perceptions of online
shopping are
ultimately matters the most. Presumably, the more positive consumers perceive the
online buying
experience the more likely they will make online purchases. The primary construct
that we believe
will have a bearing on perceptual differences between male and female internet
shoppers is emotion.
Related to emotion are two additional constructs, trust and convenience. (Robertson
, Zielinski and
Ward, 1984)

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CHAPTER - 3
OVERVIEW OF THE INDUSTRY

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OVERVIEW OF THE INDUSTRY
3.1 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 200607, 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.

A Study on Consumer Perception towards online shopping

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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
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 200405(source IAMAI). These figures clearly show that online shopping has
truly come of age

A Study on Consumer Perception towards online shopping

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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 as
convenience, 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
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
$1520,000/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

A Study on Consumer Perception towards online shopping

14
Samsung India recorded a 120 percent jump in online buying from its site over the
year 20042004
05 (Source: Samsung). Nirula’s witnessed more than double growth in its B2C e-
commerce
e
revenues in the year 2005-06
06 and is positive for the next one to two years (Source: Nirula’s).
Companies like eBay India have seen a large increase in the number of sellers and
buyers
from B and C cities
ties and in a year the eBay community (buyers and sellers) base has increased
to 1.7 million users, which shows that more Indians are shopping online (Source:
eBay).
Online sales are currently marked by a single digit growth, but the leading garment
retailers
retail
like Pantaloon, Shoppers’ Stop and Globus have already made business strategies to
enter
into the world of e-retailing.
retailing. Famous apparel brand Zodiac has already started online stores.
The main motive of these retailers through online sales is to reach the
the global markets and the
small towns where they do not have the outlets. Thus the India's Internet shopping
sector is
preparing for a massive growth, which is fuelled by increasing broadband usage and
growing
e-commerce.

3.3 GAINT PLAYERS IN INDIAN ONLINE SHOPPING

Flipkart.com is an e-commerce
commerce website founded
by SachinBansal and BinnyBansal in 2007. Both
are from IIT Delhi Alumni and also worked in
Amazon.com.

FlipKart.com

Flipkart.com ranks #502 in world according to


Alexa traffic rankings. In Google page it ranks #6.
It forms advertising revenue of $4.8 million. It
receives 2.2 million page views in a day and
generates $6,574 in advertising revenue every
day. Moreover it has certain losses 0.60% in
traffic ranking. Loading time of an average page is
2.1
.1 sec as it is much faster than 29% of sites
around the world. The mode of payments include
Credit card, Debit card, Net banking, e-gift
e
vouchers, cash on delivery.

A Study on Consumer Perception towards online shopping

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eBay is an online shopping website a consumer
to consumer corporation which helps the people
and businessman to buy and sell products
worldwide. It is operated to almost 30 countries.

Ebay.in

Snapdeal.com

eBay ranks #544 among Alexa traffic ranking. In


Google it has pagerank #6. The advertising
revenue inculcated was about $4.4 Million.
Moreover it receives 2 million pageviews per day
which generates $6,066 in the advertisement
revenue. Recently it has shown 15.13% growth in
traffic rank. The pageloading time is upto 2 sec
which iss likely faster than 24% sites across the
world.
Snapdeal deals with online marketing of
products including Mobiles, Electronics, Fashion
accessories, Apparel, Footwear, Kids, Home and
Kitchen, Sports, Books; and services like
Restaurants, Spas & Entertainment. It was
launched by KunalBahl, a Wharton graduate
and RohitBansal, alumnus of IIT Delhi, in
February 2010.
It ranks #576 in the world as per Alexa traffic
ranking.It ranks # 5 in Google PageRank. The
advertising revenue is about $4.2 million. It
receives 1.9 million page views in a day and
generates $5,729 in advertising revenue. It has
suffered loss of 4.16 % in traffic ranking. The
loading time of an average page is 1.6 sec which
is faster than 46% of sites across the world.

A Study on Consumer Perception towards online shopping

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It is an online shopping commerce for Home;
Lifestyle & Fashion e-retailer
retailer founded in 2009
BigShoeBazaar.com has a user base of about 1.5
million people. Yebhi.com offers lifestyle &
Home products and products from a range of
some 250 brands to its customers dealing in
Shoes, Apparels, Bags, Mobiles, Cameras,
Sunglasses, Watches, Home furnishing, Home
decor, Home ware, Lingerie and Fragrances.
It ranks #1,782 among Alexa traffic ranking. It
ranks #4 in Google page ranking. Advertising
revenue is about $1.4 million. It receives 617,284
page views per day generating $1,852 in
advertising revenue. It has recently shown 6.70
Growth among traffic ranking. The page loading is
about 2 sec which is faster than 39% of sites
s
around the world.

The International giant eCommerce retailer


recently stepped into India with a Indian
version site www.amazon.in, since the
launch, amazon.in has seen a nice growth
in the number of customers. Amazon.com
too had a huge
e number of Indian customers
even before it launched store in India. The
store hosts wide range of products like
Electronics, Mobiles, Laptops, Books,
Fashion, Jewellery, Kitchenware and more
A reputed online shopping retail website having
headquarter in Gurgaon,Shopclues
Shopclues.com maintains
more than 12,000 merchants who are registered with
the company. It is one of the top ecommerce websites
in India, which deals in more than 2 million products.
They guarantee authenticity of products, warranty and
even ensure lowest price. They even have a record of
catering to more than 42 million online visitors. The
company has even more than 350 registered
employees across the country. They offer wide range
of branded products to consumers from every corner
of the country.

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17
Shopclues.com initiate free delivery services at the
doorsteps of customers through reputed courier
services to nearly 10,000 cities across the country.
They even initiate a 30-day
day return guarantee if unable
to meet customer satisfaction. One of the
leading online
shopping
companies
in India,
Shopclues.com accepts online payment through major
credit and debit cards, including net banking services.
The online shopping website service employs more
than 400 personnel for effective handling of the
business and is even fundedd by national institutional
investors.

Myntra is an Indian ecommerce site. It is


regarded as India’s top 3rd online site to shop
products. Myntra allows its users to chose
varieties of dress. One can choose any type of
dress of any brand from Myntra. The
Th best thing
about Myntra is its product quality and service.
Now, Myntra is merged into Flipkart to compete
Amazon, but myntra.com is still running as a
separate website and entity. Buying clothes and
gifts online can be best done via Myntra.

HomeShop18 is the online & on-air


on
retail
marketing and distribution venture of
Network18 Group that was launched as
India’s first 24 hour Home Shopping TV
channel on April 9, 2008. HomeShop18 offers
innovative, differentiated and demonstrative
retail experiences on TV and internet and has
emerged as the largest multimedia retailer in
India with a user base of 2.5 million users and
some prestigious awards.
HomeShop18 is a venture of the Network18
Group, India’s fastest growing media and
entertainment group that operates
opera
India’s
leading business news television channels
like CNN-IBN, CNBC
TV18 and CNBC
Awaaz .
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CHAPTER - 4
THEORIES OF THE STUDY

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4.1 INTRODUCTION TO THE STUDY
The Internet has entered the mainstream consciousness over the past decade. This
has
happened primarily because the web has got a graphical interface and Internet has
moved from governmental control to private hands. The activities which are
happening on the Internet are email and instant messaging, general web surfing or
browsing, reading news, hobby searches, entertainment searches, shopping and buying
online, medical information searches, travel information searches, tracking credit
cards, and playing games.
Communication i.e. email, chat or instant message is the basic activity for which
Internet is used. It is the single most important reason for people to go online.
E-mail
provides the opportunity to communicate more often with a much broader circle of
people than one can reach by telephone or by mail in a convenient way. In India too
email constitutes the major activity on the Internet. It was found that more
elderly
people are increasingly using email as compared to the younger generations.
In India the top five online activities are e-mail, surfing, chatting, search and
job
search. Some of the sites, which are commonly used for these particular activities,
are:
Yahoo -Most preferred communication portal, tops for email and chat
Indiatimes –Best event and sports news provider.
Naukri-Best recruitment portal
Google-Best information domain
Shaadi-Best for matrimonial services
eBay-Best online shopping portal
Rapid growth of cybercafés across India
Access to Information

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The increase in number of computer users
Reach to net services through broadband
Middle-class population with spending power is growing. There are about 200
million of middle-class population good spending powers. These people have
very little time to spend for shopping. Many of them have started to depend on
internet to satisfy their shopping desires.
The figures from IAMAI show that the internet users in India will grow to 200
million
by 2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and
46% are in the 26-35-year range.

Indian online matrimonial sector is worth around $230 million.

Worldwide e-commerce is only growing at the rate of 28%, since India being a

younger market, the growth of e-commerce is expected at 51% in the coming years.

In line with global trends finally India has also started shopping online these

days. As per the study by IAMAI online shopping in India has rose from $11million
in 1999-2000 to $522 million in 2008 and it is expected to rise above $700 million
by
end March 2010.

Indians are also Shopaholics like other Asians. There is a strong booming

young adult population in India with good levels of disposable income.


In India
Over $50 Billion and growing rapidly - Most popular online shopping products
include: books (45%), electronic gadgets (42%), railway tickets (38%), accessories
apparel (35%), apparel (35%), gifts (34%), computer and peripherals (32%), airline
tickets (28%), music downloads (21%), movie downloads (21%), hotel rooms (22%),
magazines (18%), tools (16%), home appliances (16%), toys (16%), jewelry (17%),

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movie ticket (15%), etc.
Payments
Online shoppers commonly use a credit card to make payments, however some
systems enable users to create accounts and pay by alternative means, such as:

Billing to mobile phones and landlines

Cash on delivery (C.O.D., offered by very few online stores)

Cheque/ Check

Debit card

Direct debit in some countries

Electronic money of various types

Gift cards

Postal money order

Wire transfer/delivery on payment

Some sites will not accept international credit cards, some require both the
purchaser's
billing address and shipping address to be in the same country in which site does
its
business, and still other sites allow customers from anywhere to send gifts
anywhere.
The financial part of a transaction might be processed in real time (for example,
letting the consumer know their credit card was declined before they log off), or
might
be done later as part of the fulfillment process.

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4.2 AIDA PRINCIPLE IN ONLINE MARKETING :
1. ATTENTION
2.INTREST
3.DESIRE
4.ACTION

4.3 PORTER 5 FORCE ANALYSIS IN ONLINE SHOPPING


Porters Five Forces is a framework for describing factors that affect the
profitability and
attractiveness of industries. Named after Michael E. Porter, this model identifies
and analyzes
5 competitive forces that shape every industry, and helps determine an industry's
weaknesses
and strengths.
1. Supplier Power
2. Buyer Power
3.Competitive Rivalry
4.Threat of Substitutes
5. Threat of New Entry
1. Supplier Power
Here we assess how easy it is for suppliers to drive up prices. This is driven by
the
number of suppliers of each key input, the uniqueness of their product or service,
their
strength and control over us, the cost of switching from one supplier to another,
and so
on. The fewer the supplier choices we have, and the more we need suppliers' help,
the
more powerful the suppliers are.
2. Buyer Power
This
his is driven by the number of buyers, the importance of each individual
individual buyer to
one’s business, the cost to them of switching from one’s products and services to
those
of someone else, and so on. If you deal with few, powerful buyers, then they are
often
able to dictate terms to you.

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3. Competitive Rivalry
What is important here is the number and capability of your competitors. If you
have
many competitors, and they offer equally attractive products and services, then
you'll
most likely have little power in the situation, because suppliers and buyers will
go
elsewhere if they don't get a good deal from you. On the other hand, if no-one else
can
do what you do, then you can often have tremendous strength.
4. Threat of Substitutes
This is affected by the ability of your customers to find a different way of doing
what
you do – for example, if you supply a unique software product that automates an
important process, people may substitute by doing the process manually or by
outsourcing it. If substitution is easy and substitution is viable, then this
weakens your
power
.
5. Threat of New Entry
Power is also affected by the ability of people to enter your market. If it costs
little in
time or money to enter your market and compete effectively, if there are few
economies of scale in place, or if you have little protection for your key
technologies,
then new competitors can quickly enter your market and weaken your position. If you
have strong and durable barriers to entry, then you can preserve a favorable
position
and take fair advantage of it.

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Porter’s five forces for Online Retailer
Supplier power:
Here, suppliers are the manufacturers of finished products. For any product, there
are
many suppliers online, so they can’t show power on online retail companies. For
example, if you take computers category, there are many suppliers like Dell, Apple,
Lenovo, and Toshiba everyone wants to sell their products through online retails
like
Flipkart,Amazon,Snapdeal etc. Selling online saves a lot of money for the
manufacturers, and as many people nowadays prefer purchasing product through
online stores, Companies cannot afford to lose this channel. So, in this industry
the
supplier power is low.
Buyer power:
Buyers in this industry are customers who purchase products online. Since this
industry is flooded with so many players, buyers are having lots of options to
choose.
With many competitors like Amazon.com, eBay, Snapdeal etc. Customers get a wide
range of choices. Customer would prefer the one who would provide goods at
reasonable price, deliver it fast and provide them with other benefits like Cash on
Delivery, EMI facilities, other offers etc. Here Buyers have more power.
Competitive Rivalry:
Competition is very high in this industry with so many players like Jabong,
Snapdeal,
Amazon, Homeshop18 etc. Many competitors means more choices for the customer to
choose from. This also increases the cost incurred by the company to stay in the
customer’s mind i.e. on Promotions and Advertisements etc. Giving the customer
better deals, making customer’s experience delightful and continuous innovation can
help a company to stay at top even with tons of competitors around.
Threat of New Entrants:
Threat of new entrants is very high in this online retail industry because of
following
reasons:
Indian government has allowed 51% FDI in multi-brand online retail and 100%
FDI in single brand online retail. So, this means foreign companies can come
and start their own online retail companies.
There are very less barriers to entry like less capital required to start a
business,
less amount of infrastructure required to start business. All you need is to tie up
with suppliers of products and you need to develop a website to display
products so that customers can order products, and a tie up with online payment
gateway provider like bill desk.
Industry is also going to grow at a rapid rate. It is going to touch 76 billion $
by
2021. Industry is going to experience an exponential growth rate. So, obviously
no one wants to miss this big opportunity.
With the new entrants like Jabong, Snapdeal etc. rapidly racing towards the top
Position.
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25
Threat of substitutes:
Substitute for this industry as of now is physical stores. Their threat is very low
for this industry because customers are going for online purchases instead of
going to physical stores as it will save time, effort, and money. With the advent
and penetration of internet and smart phones, future in retail belongs to online
retail.
When we compare relative quality, relative price of product a person buys
online with physical store, both are almost same and in some cases, online
retail store offers more discounts and this attracts the customer to purchase
products online.
4.4 MARKETING MIX OF ONLINE SHOPPING :
The elements of marketing mix are also being applied for online marketing.
Marketing
mix is essential for analysing the business. Marketer analyses the parameters then
select appropriate strategy in order to face the market complexion effectively. The
7Ps
of marketing is being applied in the online marketing industry. The effect of
marketing mix is being explained below diagram :

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4.5 MODELS OF ONLINE SHOPING

By:Mary Ann Eastlick


This chart shows how consumer attitude toward online shopping can lead either to
approach
coping (wanting to shop online) or to avoidance coping (deciding not to search or
shop
online). Someone who is optimistic toward the benefits of online shopping will
develop
approach coping. A person who is pessimistic toward online shopping will think of
the
drawbacks to it and decide to purchase in physical stores instead, which is
avoidance coping.

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FRAMEWORK FOR CONSUMERS’
CONSUM
INTENTIONS TO SHOP
HOP ONLINE
Source: research by Emerald

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CHAPTER - 5
RESEARCH METHODOLOGY

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5.0 RESEARCH METHODOLOGY
5.1 Research Objective
To know and understand the consumer’s perception and awareness about internet
marketing/
shopping. This will help to know the attitude and perception of consumers towards
online
shopping and what are the factors which shape the consumer’s perception towards
online
shopping. Also what are key concerns from the point of view of consumer while
online
shopping.
5.2 Determination of information needs and sources
The following was the information required:

What is consumer’s attitude towards online shopping?

What are the key concern areas for consumers while online shopping?

Which factors shape the consumer’s attitude towards online shopping?

How has been recent shift taking place in online shopping?

5.3 Research Framework


Eleven different factors were identified by studying the existing models of
consumer
attitudes(Refer Annexure 1, 2) that play an important role in online purchase, then
a model
was proposed leading to online shopping.
The data was collected only through Questionnaires. The sample size was 100. And
random
sampling was done among the internet users.
5.3.1 Proposed Model
After examining the 10 empirical studies, we identify a total of eleven
interrelated factors for
which the empirical evidences show significant relationships. These ten factors are
perceived
usefulness, perceived ease of use, perceived enjoyment, information on online
shopping,
security and privacy, quality of internet connection, attitude towards online
shopping,
intention to shop online, online shopping decision making, online purchasing, and
consumer
satisfaction.
Six (perceived usefulness, perceived ease of use, perceived enjoyment, information
on online

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30
shopping, security and privacy, quality of internet connection )are found to be
ordinarily
independent and five (attitude toward online shopping, intention to shop online,
decision
making, online purchasing, and consumer satisfaction) are ordinarily dependent
variables.
Consumer satisfaction is considered to be a separate factor in this study. It can
occur at all
possible stages depending on consumer’s involvement during the online shopping
process.
The relationships between satisfaction, attitude, intention, decision making and
online
purchasing are proposed to be two-way relationships due to the reciprocal
influences of each
on the other. In addition, three of the antecedents, perceived usefulness,
perceived ease of
use, perceived enjoyment , have been found to have direct impact on consumer
satisfaction.
Perceived Usefulness
Perceived usefulness is defined as the degree to which a person believes that using
a
particular system would increase his or her job performance. It is an important
factor
affecting acceptance of an information system, because the ultimate aim of any
person is the
superior job performance.
Perceived Ease of Use
This is an important factor that affects the acceptance of a particular information
system. It is
defined as the degree to which a person believes that using a particular
information system
would be free of effort. Hence an application perceived to be easier to use would
more likely
be accepted by the user.
Perceived Enjoyment
Enjoyment refers to the extent to which the activity of using a computer is
perceived to be
enjoyable in its own rights. This is seen as an intrinsic source of motivation to
use a particular
application.
Amount of Information
Amount of information is defined as the information which is available for the
product which
a person wants to buy through online shopping. This factor eases the decision of
the user to
actually buy the product or not, or which product to buy. This factor becomes even
more
important in case of High Involvement product.

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Security and Privacy
Security and privacy are the main factors which hinder the growth of online
shopping. The
user is concerned about his ID and Password which can be stolen by persons with
wrong
intentions and then misuse it. At the same time they are concerned that their
personal
information may be sold to the third party which poses a serious threat to their
privacy.
Quality of Internet Connection
Not only is the presence of internet connection necessary but also its Quality is
important to
shop online. This is an important factor which determines whether the user would
shop online
or not because presence of internet is a basic necessity for this mode of shopping
Attitude and perception towards online shopping
Consumer’s attitude and perception toward online shopping have gained a great deal
of
attention in the empirical literature. It is believed that consumer attitudes will
affect intention
to shop online and eventually whether a transaction is made. It refers to:1) The
consumer’s acceptance of the Internet as a shopping channel
2) Consumer attitudes toward a specific Internet store (i.e., to what extent
consumers think
that shopping at this store is appealing).
Intention to shop online
Consumer’s intention to shop online refers to their willingness to make purchases
in an
Internet store. Commonly, this factor is measured by consumer’s willingness to buy
and to
return for additional purchases. The latter also contributes to customer loyalty.
Consumer’s
intention to shop online is positively associated with attitude towards Internet
buying, and
influences their decision-making and purchasing behavior. In addition, there is
evidence of
reciprocal influence between intention to shop online and customer satisfaction.
Online shopping decision making
Online shopping decision-making includes information seeking, comparison of
alternatives,
and choice making. The results bearing on this factor directly influence consumer’s
purchasing behavior. In addition, there appears to be an impact on user’s
satisfaction. Though

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32
it is important, there are only five studies that include it.
According to Haubl and Trifts (2000), potential consumers appear to use a two-stage
process
in reaching purchase decisions.
Initially, consumers typically screen a large set of products in order to identify
a subset of
promising alternatives that appears to meet their needs. They then evaluate the
subset in
greater depth, performing relative comparisons across products based on some
desirable
attributes and make a purchase decision.
Online purchasing
This is the most substantial step in online shopping activities, with most
empirical research
using measures of frequency (or number) of purchases and value of online purchases
as
measures of online purchasing; other less commonly used measures are unplanned
purchases
Online purchasing is reported to be strongly associated with the factors of
personal
characteristics, vendor/service/product characteristics, website quality, attitudes
toward
online shopping, intention to shop online, and decision making (Andrade 2000;
Bellman et al.
1999)
Consumer satisfaction
It can be defined as the extent to which consumer’s perceptions of the online
shopping
experience confirm their expectations. Most consumers form expectations of the
product,
vendor, service, and quality of the website that they patronize before engaging in
online
shopping activities.
These expectations influence their attitudes and intentions to shop at a certain
Internet store,
and consequently their decision-making processes and purchasing behavior. If
expectations
are met, customers achieve a high degree of satisfaction, which influences their
online
shopping attitudes, intentions, decisions, and purchasing activity positively. In
contrast,
dissatisfaction is negatively associated with these four variables (Ho and Wu 1999;
Jahng et
al. 2001; Kim et al. 2001).

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Information on
online shopping
Security & Privacy

Attitude
towards
online
shopping

Intention

to shop
online

Decision
Making

Online
Purchase

Perceived Usefulness

Perceived Ease of use


CONSUMER SATISFACTION

Perceived Enjoyment

5.4 Data Collection Method5.4.1 Primary Data


It is original primary data, for specific purpose of research project. For this
project, I have to
use following common research instrument or toolQuestionnaireQuestionnaire
development is the critical part of primary data collection method. For this I
will prepare a questionnaire in such a way that it will be able to collect all
relevant
information regarding the project. The questionnaire was designed using various
scaling
techniques. The questionnaire was used mainly to test the model proposed for
consumer
perception towards online shopping. Likert five point scales ranging from Strongly
Agree to
strongly disagree was used as a basis of Questions. The data collection was done
over a
period of 8 weeks
This was done by going directly to the respondents or through mails.

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5.4.2 Secondary Data
It will be collected to add the value to the primary data. This may be used to
collect necessary
data and records by different websites, magazines, annual reports, journals,
reference books,
and newspapers, etc.
5.5 Sample Design
5.5.1 Sample Unit
For studying consumer perception on online shopping, samples were selected from
Sambalpur,Odisha.
5.5.2 Sample Media
The respondents in the samples are reached through personal interviews.
5.5.3 Sampling Methods
Sampling methods fall under two broad categoriesa) Non-probability sampling
methods.
b) Probability sampling methods.
5.5.4 Sample size- 100
5.5.5 Research place-Sambalpur
5.5.6 Sample Design
I have prepared this project as descriptive type, as the objective of the study.

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CHAPTER - 6
DATA ANALYSIS

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6.0 DATA ANALYSIS
6.1 THE INTERNET USAGE
The objectives of the research were studied with respect to a regular online
shopper who
shopped more than once because they would be the right respondent to give an
insight about
the online shopping. Therefore it is firstly important to understand who is a
regular online
shopper. In the survey the respondents where asked the following questions which
helped to
know about a regular shopper.

1.

Q.1 Do you use Internet?

Yes 98%

No 02%

yes
no

INTERPRETATION
The above pie -chart represent that 98% consumers had used the internet. The
uses of internet is a vital thing in todays competitive era. The rapid uses of
computer
has make the internet well known to others. While as the influence of social media
and mobile internet makes the uses of internet more popular. The 02 % people were
never uses the internet from the study of 100 individual respondent.

Q.02 How long have you been using Internet?


Less than 1 year

3 – 5 years

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37
1 – 3 years

More than 5 years

90%

78%

80%
70%
60%
50%
40%
30%
14%

20%
10%

2%

6%

0%
Les s
than1year

1–3years

3–5years

More than
5years

INTERPRETATION
The diagram shows that shopping has increased with the usage of Internet over the
years. Regular shoppers who have been using Internet for more than one year had
shopped to 98% and regular shoppers who have been using Internet for more than five
years have shopped to 78%. Internet is not a new concept for these regular online
shoppers and they have been using it for more than 5 years now. The increased usage
over the years has lead to an increase in shopping, as these regular shoppers are
able
to make use of the various e-commerce activities.
Q.3 On the average, how much time (per week) do you spend in surfing the Web?
0 – 5 hours
6 – 10 hours

16 – 20 hours
More than 20 hours

11 – 15 hours

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40%

36%

35%
28%

30%
25%

20%

20%
12%

15%
10%
5%

4%

0%
0 -5
h o u rs a
week

6 - 10
h o u rs a
week

11 - 15
h o u rs a
week

16 - 20
h o u rs a
week

Mo re
th a n 2 0
h o u rs a
week

INTERPRETATION
The research shows that 36% of the online shopping had been done who use Internet
for more
than 20 hours a week and 96% of the shopping has been done by regular shoppers who
have
been using Internet for more than 5 hours a week. As more the regular online
shopper are
using the Internet it is seen that they end up buying more also. This shows that
Internet is
becoming an integral part of the daily activity of the regular online shopper. The
regular
online shoppers who have been using Internet for more than 20 hours are more
comfortable
and confident as a result they purchase more online as compared to who use Internet
for less
number of hours.The study shows that the growing usage of Internet has lead to
increase in
online shopping as seen above. There is a positive relation between increase usage
of Internet
and online purchase. The marketers should capture this enormous growth, which can
be
brought by the penetration of broadband and lowering the prices of computers. Thus
increase
in usage of Internet over the years and the more time spent has lead to an increase
in
shopping. But one needs to know whether online shopping is an integral part of
regular
shoppers or not this understood as follows.

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39
Q.4 Have you purchased anything online ever?

NO
35%

YES
65%

INTERPRETATION
The research showed that 65% of the Internet users had shopped online while 35% had
not
bought anything. This is mainly because of the changing lifestyle and taste
patterns. As the
life is getting more and more fast paced more people are moving on to shop online
mainly
because of convenience. This shows that a more Internet users are using it as a
shopping
medium and there is a huge potential in this sector but one should not be carried
away by this
figures. There could be a possibility that only a small section of the online
shoppers are
shopping or only a particular category of good had brought about this huge number.
As a
resultthe entire analysis was done incase of a regular online shopper to understand
the
shopping behavior of the online shoppers.
The following question helped to understand who is a regular online shopper among
the 65%
who had indulged into online shopping.

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40
The web online activity
The following classifications are done to study the online activities in case of a
regular
online shopper.
Fig. 5 Online Activities

10%

32%

Shopping

20%

Communication

Finance

24%
14%
Inf ormation
Entertainment
Gathering

The Internet offers four basic services communication (socializing service with
peer
group or core group (email) or with new groups of people (chat), information
services,
entertainment services and commerce services and shopping. The research shows 32%
of the regular online shoppers use Internet for communication while only 10% uses
it
for shopping which shows that communication still forms the major activity among
the regular online shoppers.
Fig. 6 Online Activities by Age
70%
60%

18-30 years

50%

31-40 years
40%

41-50 years

30%
20%

above 50
years

10%
0%
communication

Inf ormation
gathering
Finance

Shopping

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41
This classification further provides an insight that Internet is mainly used as a
means
of communication in respect all the age groups of the regular online shoppers. It
contributes to 60% of the major activity among the regular online shoppers who lie
between the age group 18-30 years. It could be seen that shopping as a basic
activity
on the Internet contributes to the minimum. Internet as a medium of shopping is
maximum used by regular online shoppers between the age group18-30 years, which
is 18% while above 50 years it is used just to 2%. The increase in usage among the
18-30 years is basically due to high awareness. The marketers should focus mainly
on
the age group between 18-30, as they are the main drivers for growth. Thus the
research shows that though the regular shoppers are using the Internet for quiet
some
time now but shopping still remains a small part of the major activity
Fig. 7 Online Activities by Time
90%
80%
70%
60%

Communication

50%

Information

40%

Entertainment

30%

Finance

20%

Shopping

10%
0%
0-5 hours

6-10 hours

11-15
hours

16-20
hours

more than
20 hours

It is evident that regular online shoppers also spend a major part of their time in
communication unlike the occasional online buyers. In 0-5 hours a week they spend
77% of their time in communication, which includes email, and chat as the major
activity with shopping which does not seem to exist at all. Information search
constitute 20% of the time. The information search increases as the regular online
shoppers tries to figure out ways to surf the Internet and access the information
they
require. It is true that more regular online shoppers use Internet shopping sites
to

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42
gather information about products rather than to make a direct purchase.
But it is to be noticed that as the time spend increases communication falls and
other
activity picks up like entertainment and finance. One could see from the graph that
between 16-20 hours a week communication falls further but information search also
falls as the regular online shoppers becomes more focused in their information
search
rather than wandering aimlessly in the Internet space. They continuously use search
engines for routine information needs. The time spent on entertainment increases
marginally to 18%. As the people spend more time it has been seen that activities
like
shopping and finance related needs increases. The regular online shoppers who use
the
Internet for more than 20 hours a week has shown that they have indulged into more
shopping i.e.10%. It is true that as the regular online shoppers spends more time
on
the Internet there is a possibility that they would end up buying more as they are
ease
with the use of internet. Increased usage of Internet is positively related to the
buying
behavior on the Internet.
AnalysisIt is true that increase in internet has lead to an increase in the online
shopping as 78%
of the online shopping has been done by the regular online shopper who have been
using internet for more than five years and 36% of the online shopping have been
done among the regular shopper who uses the Internet for more than 20 hours a week.
Thus increase in usage of Internet has lead to an increase in online shopping. But
shopping still constitute a small amount of the major activity on the internet as
32% of
the regular online shoppers uses Internet for communication while only 10% uses it
for shopping. Communication still constitutes the major activity on the Internet.

A Study on Consumer Perception towards online shopping

43
6.2 Demographic Factors
Online behavior is affected by demographics i.e. by gender, education and income.
6.2.1 Hypotesis
1. More male Internet users are frequent online buyers than female Internet users.
2. Regular online buyers are better educated than occasional online buyers.
3. Income is higher in case of a regular online shopper than occasional online
buyer.

Fig. 8 Online Shopping & Gender

28%
Female

72%
Male

Among the 65% of the online shopping, males (72%)had purchased more as compared
to women (28%). This shows that it is true that more males are shopping online as
compared to women. This is mainly because women still like to feel, see and touch
the
product before buying. It was noticed that some of them felt shopping as a reason
to
go out with the family and spend time together, which was not possible in case of
online shopping. As more and more Indian women are flocking to Internet there is a
possibility that they might end up in a purchase. Also an increase in the spending
power in the hands of the women might lead to an increase in the online shopping.
The research showed that 28% of the women who shopped online fall mostly in the
service and executive class with an income above Rs10,000. The marketers should
make sure that they produce the item keeping in mind the needs of the women

A Study on Consumer Perception towards online shopping

44
population as they still continue to be an important decision maker when shopping
for
the family.
Fig. 9 Online Shopping & Educational Qualification

3%

8%

Non

Matriculate

Matriculate

54%

35%

Postgraduate

Graduate

Educational difference is a significant demographic variable, which shows that


regular
shoppers who were better educated made more purchases online. 89% of the shopping
has been done by the regular shopper whose is educated with a graduate or
postgraduate degree. This shows that frequency of purchase is more in case of a
higher educated regular shopper as compared to a online shopping done by a regular
online shopper with matriculate (8%) and non matriculate (3%).
Fig. 10 Online Shopping & Income
38

40
35
30
25

less5000

21

5000-10000

20
15

10000-25000

15

14

above25000

11
8

10
5
5

5
1 1

1 1

0
Student

Service/Executive

Business

Others

A Study on Consumer Perception towards online shopping

45
Income and buying behavior are positively related. It was seen that a regular
online
shopper with a higher income had purchased more online as compared to lower
income online shopper. This trend was seen in all segment of the population. It is
true
that more the income in the hands of the population they would indulge in shopping.
The service class had done the major purchase in all the various levels of income.
It
can be seen that hardly any purchase is done among the regular online shopper whose
income lies below Rs5000.
AnalysisThus three hypotheses stated were true in case of the regular online
shopper and it can
interpreted that online shopping is effected by demographics like gender, education
and income levels. Among the 65% of the online shopping, males (72%)had
purchased as compared to women (28%). There is a positive relation between
education and income of the online shoppers. 89% of the online shopping was done
among the regular shoppers who were educated with a graduate or postgraduate
degree compared to 11% shopping who were matriculate and non-matriculate. A 60%
of the shopping was done by the regular shopper who had income more than Rs
25,000 than 40% who had income less than Rs.25,000.
6.3 Motivating & Satisfaction Factors
To identify the factors which Internet users choose to buy or not buy online and
how
frequently they make such purchases. Analyzing the importance of satisfaction level
in the online purchasing environment.
6.3.1 Hypothesis
Consumers who make frequent online purchases are higher in convenience orientation
than those who purchase occasionally.

A Study on Consumer Perception towards online shopping

46
Fig. 11 Online Shopping & Motivating Factors

7%
Product

32%

Comparison

Convenience

26%
Saves Time

12%
Superior
selection

23%
Price

It is believed that consumers whether online shoppers or non-online shoppers value


price to convenience but the study contrast this popular belief. The study showed
that
32% of the shopping had been done by the regular shopper who think convenience is
the main driving force while 23% of the shopping had been done for whom price was
the main orientation for shopping online. Other motivating forces, which had lead
to
online shopping, were saves time (26%), product availability and superior selection
(12%), and product comparison (7%). Convenience here is characterized as ease of
purchase, home delivery and ability to shop 24x7. These factors motivate the
regular
online shopper to buy over the Internet and regular online shoppers who value
convenience are more likely to buy on the web, as compared to occasional online
shoppers. Every connection is a potential for net shopping. Therefore the companies
should attract and retain its regular online shoppers, as the Internet is a tangled
jungle
of web sites, which is possible at a click of a mouse. They should design
strategies and
develop products keeping in mind the convenience factors.

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47
Fig. 12 Barriers to Shopping Online

9%

7%

33%

Others

Privacy &

Unfamiliar

Security

14%
Hassle of
returning

16%
21%

Lack of
Customer
Service

Inability to
touch & feel

The main areas for concern in respect of the regular online shoppers while shopping
were privacy and security (33%). Most of them still preferred the conventional
method of shopping like the touch and the feel factor (21%). They felt that it is
possible to see, feel, touch and try the products before buying in a shopping store
as
compared to Internet shopping. Other reasons that concern the regular online
shoppers
were inability to reach the customer service (16%), hassle of returning the product
(14%), technical foul –ups, hesitant in purchasing from an unfamiliar source and
person and delivery costs. The marketers should formulate such strategies so that
the
privacy and security concern can be taken care off.

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48
Fig. 13 Convenience- The Motivating Factor
80%
74%

70%
60%
50%

48%

purchase

40%

convenience

30%

27%

20%

20%
12%
5%

10%

9%

5%

0%
Only once

2-4 times

More than
5 times

More than
6 times

It has been seen that there is a positive correlation between the frequency of
purchase
and the convenience factor for buying in the Internet arena. The regular online
shopper who had purchased more than 6 times (9%) for them convenience is the most
important motivating factor (48%)for shopping on the Internet. Convenience has been
characterized as ease of purchase, home delivery and ability to shop 24x7. The
online
shopper believes that large amount of information about the product and the ability
to
compare prices is available at a click of a mouse thus making the entire shopping
experience very convenient. Thus the marketers to should keep the convenience
factor
in mind while providing the goods and services.
6.3.2 Satisfaction Index
It is important to understand the satisfaction level among the regular online
shoppers,
which had lead to online shopping. This could be understood by the satisfaction
index
and the frequency of purchase among the shoppers.

A Study on Consumer Perception towards online shopping

49
Fig. 14 Satisfaction Index

12%
Dissatisfied

2%
Highly
Satisfied

31%
Neither
Satified nor
Dissatisfied

55%
Satisfied

A 55% of the regular online shoppers were satisfied with 12% dissatisfied. An
important thing to be noted is that only 2% of the regular online shoppers were
highly
satisfied while 31% of the regular online shoppers were neither satisfied nor
dissatisfied. This shows satisfaction level plays an important role in online
shopping
with more regular shoppers falling under the category of satisfied. This shows that
they were overall satisfied by the experience of shopping online. But the companies
should take measures so that the dissatisfied and the neither satisfied nor
dissatisfied
category of regular online shoppers could be moved to satisfied or highly
satisfied. A
note should be taken that only 2% of the regular online shoppers are highly
satisfied
which shows that there are still concerns, which poise the regular shoppers from
using
the Internet frequently as a shopping medium.
Satisfaction level can also be measured by the frequency with which the online
shoppers purchase online. According to human psychology it is true that frequency
of
purchase depends upon the satisfaction level received. According to the figure 2
(already explained), a 74% of the regular online shopper has purchased 2-4 times
and
9% had purchased more than 6 times indicating that an increase in the confidence
level and accepting the Internet as a shopping medium. The increase in the
frequency
of shopping was mainly because they were overall satisfied by the entire shopping
experience.

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50
AnalysisIt is seen that the main orientation for buying among the regular online
shoppers were
convenience (32%), saves time (26%), price (23%), product availability and superior
selection (12%), and product comparison (7%). The hypothesis stated that
convenience is major factor motivating the regular shopper was true as 75% of the
regular online shoppers who have shopped more than 5 times felt it was necessary as
compared to 25% who shopped less than 5 times.
The barriers to online shopping as stated by the regular online shopper were
privacy
and security (33%), inability to touch and feel the product (21%), customer service
problems (16%), hassle of returning the product (14%), purchasing from unfamiliar
source and person (9%) and other problems (7%).
Satisfaction level plays an important role in online shopping, as 55% of the
regular
online shoppers that are satisfied tend to purchase more. It can also be seen that
74%
have shopped more 2-4 times and 11% had shopped more than 5 times showing that
satisfaction level plays an important role in online shopping.
6.4 Future and growth of Online Shopping
This can be understood by the categories of good bought by the regular online
shoppers presently and the future of the various categories.
Fig. 15 Present & future categories of Goods
120%
100%
80%
60%
40%
20%
0%
Books

R a ilw a y
t ic k e t s

A ir lin e
t ic k e t s

P re s e nt

E le c t r o n ic
G a d g e ts

G if t s

M o v ie s
t ic k e t s

F u tu r e

A Study on Consumer Perception towards online shopping

51
It is seen that railway tickets 70% and airline tickets 93% are the most popular
categories among the online shoppers followed by books and electronic gadgets. This
is the main category, which is bringing about online shopping culture among the
regular online shoppers. The companies should bring out innovative ways so that
there
is a growth in other categories of goods also. The entire shopping culture among
the
regular shoppers is brought mainly by the travel categories followed by electronic
gadgets. The graph shows that online shopping is tend to grow in the coming years
as
consumers want to buy more in the future.
Table 1 Future Categories of Goods
Railway tickets

83%

Airline tickets

80%

Electronic Gadgets

50%

Books

43%

Gifts

33%

Movies tickets

30%

Jewellery

23%

Computer Software

20%

Hotel Rooms/Car Rental

20%

Event Tickets

13%

Toys

13%

Infant / Child items

10%
Food / Groceries

7%

Accessories apparel

3%

A Study on Consumer Perception towards online shopping

52
CD/Videos

3%

Magazines

3%

Home tools and products

3%

Sporting goods

3%

The table I shows that shows that there is a future growth in the electronic gadget
and
book categories also apart from railway and airline tickets, which continues to be
on
the priority list. There is a growth in these categories because traditionally
products
like audio-video, apparel, and computer accessories were purchased through catalogs
and other forms of direct mail but toady online shopping serves a convenient means
of
distribution channel. Another reason for the growth in these categories is because
of
well-established sites for travel, audio-video (e.g., CD-Now), and computers
(e.g.www.dell.com, www.sonyvaio.com), which lure the consumers to buy these
products. These goods do well because consumers are not bothered much about the
touch and feel factors, which generally drive the shopping in India unlike
categories
like apparels and groceries where it still remain an important factor while
purchasing.
It is difficult to change the set mindset of consumers for certain categories of
goods
but still companies should keep innovating and find means and ways to attract more
online shopping.
AnalysisThere is a future growth in online shopping which can be especially seen in
the travel
arena with railway 83% and airlines 80%, electronic gadgets (50%)and books (43%).
Gifts also seem to show a growth in the coming years. Thus the marketers should
mainly focus on these growing categories of goods, which would drive the online
shopping in the future.

A Study on Consumer Perception towards online shopping

53
CHAPTER – 7
FINDINGS

A Study on Consumer Perception towards online shopping

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7.0 FINDINGS
The findings show that Internet usage has increased over the years and it is
leading to an
increase in online shopping and also shows the consumers attitude and perception
towards
online shopping. Communication still forms the major activity among the large
number of
online shoppers as 32% of regular online shopper use Internet for communication as
compared to shopping (10%).
Online shopping is affected by demographics as it has been seen that more males are
shopping online as compared women online shoppers and there is a positive relation
between
education and income levels with respect to the increased online shopping
behaviour.
The most important motivating factor, which influenced the online shopping, was
convenience followed by time saving and price. Regular online shoppers considered
convenience as the main motivating factor while buying and were less price
sensitive. But the
online marketers should attempt to differentiate their products or services making
the
comparison easier. The marketers should bring out innovative ways so that the
consumers can
do more online shopping while taking the full advantage of rich information, easy
access and
convenience of the Internet.
One of the main concerns among the online shoppers was privacy and security.
Another
reason that hindered online shopping was the touch factor. Consumers still
preferred the
experience they get from traditional stores like feeling the store’s atmosphere,
interacting
with a salesperson, and seeking sensory stimulation. This might hinder the use of
certain
goods like grocery and apparel, as the touch factor is the main factor, which
drives the
shopping for these goods. The future of online shopping is bright especially in the
categories
of travel, books, electronic gadgets and gifts.

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CHAPTER-8
SUGGESTION & CONCLUSION

A Study on Consumer Perception towards online shopping

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8.1 SUGGESTION
Online shopping in India is poised for greater acceleration as PC and Internet
penetration grows. It is becoming one of the top Internet activities and there is a
huge
growth in this business as more manufacturers and providers are integrating the
Internet into their sales model. But there are many things that need to occur in
online
shopping to generate higher revenues and the key to it lies in the hands of the
marketers. To make online shopping a boom following methods can be followed.
India has a strong research and development (R&D) capability so companies
should innovate rapidly to take care of the security issues. Technology like text
to
speech softwares should be innovated to take care of the security concern.
In India the total ownership of credit cards is small as compared to its
population and there are also hesitant in using it as a mode of online payment
therefore alternative methods of payment like cash on delivery (COD) where the end
user pays cash after the product is delivered and debit cards where the bank
accounts
are directly debited should be used. Other technologies like encryption
technologies
trusted third-party certifications; digital ID systems and prepaid cards should be
used.
The consumers should be made aware that one of the safety aspect of using
credit cards online is that in case of disputed credit card payments for online
transactions the onus is on the merchants to prove that the transaction actually
took
place, as online users don't physically sign a credit slip. As a result online
users are
protected from fraudulent use of credit cards.
There is a growth in the cellular phone market in India, more merchants should
make use of this device allowing the customers to access the Internet and use it as
mode of payment thereby obviating the need for PCs and credit cards.
It is not only important to pay strong attention to the security issue and create
new, innovative safeguards that protect consumers but the merchants should promote
these safeguards to the marketplace and make the prospective consumers aware that
the communications, personal data, credit card accounts, and transaction
information
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57
can be protected.
One of the factors that hinder Internet penetration in India is access. More
companies should adopt click and mortar model with the real world operations to
complement its online presence for e.g. customers can walk to the office to access
its
services.
Merchants should provide goods and services that offer the right value for
money. There should be transparency in policies (returns, privacy, shipping, etc),
insurance against fraud and a good after sales services should be provided to
consumers making it an enjoyable experience.
Consumers today demand a better, more efficient and less cumbersome way to
compare and buy products online. Innovative service should be provided to consumers
so that they can compare products, which are available online using their mobile
phones.
Online shopping today is an incomplete, fragmented, and sometimes frustrating
process. Therefore merchants should set themselves apart from their competitors by
factors other than price, constantly innovate and move towards creating customer
confidence to trade online. They should provide massive selection at lower prices,
offer a personalized customer experience and their web sites should deliver a
shopping
experience that addresses all of the consumer needs like recommendation about the
products, feedback from other customers, etc.
Vendors should educate the customers about e-commerce like educating them
on safety tips like reading the item description, looking for a seller’s feedback
score
and asking questions, detecting spoof mails and informing them about the new online
crimes which happen regularly.
In India still the penetration of Internet has not happened the way it should
have been which hampers online shopping. Ecommerce revolution can be brought
about by providing more broadband connections at affordable prices.

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There is a huge market for business in the rural India therefore efforts should
be such that to bring these people also into experiencing online shopping.
Companies
should create more Indian language software or content as Internet still is a
primarily
English language world and language could be a barrier in rural India. Only few
language portals like webduniya.com exist today.
Most of the Indians still like to see the product before buying; efforts should be
made to change this mindset of the people by making them aware of the benefits of
online shopping.
To make online shopping big the shopping web sites should give the customers
the convenience to shop anything on a single site like ordering pizzas, movie
tickets,
groceries, etc rather than in scattered places. The site should not only provide
information content but also tools to navigate and evaluate this information. The
information on the site should be just sufficient for the consumers to make a
decision
and not to overload them with information, which results in confusion.
Convenience and time saving are the main reason to shop online. Therefore
Business to Consumers (B2C) sites should be designed in such a way that consumers
spend less time in finding information they are looking for as delays in searching
or
loading a web page might turn the consumers to other sites which have faster
download and display times.
Since consumers control the experience they receive from shopping over the
Internet, there is a need to find ways of managing the amount of information
available
over the Internet. Sites that are able to offer this information and present it in
a simple
way to understand will become the preferred destination for online shopping.
The key to selling to a customer which cannot be seen is to get the customer to
trust the website with which they have electronic transactions.
Active participation from consumer marketing companies to manufacturing
industries is required to make online shopping a booming sector.

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59
Some of the things, which the consumers should take into considerations while
online
shopping, are:
Use a secure browser. The browser should comply with industry security
standards, such as Secure Sockets Layer (SSL).
Consumers should shop with the known companies, as it is easy to set up a
shop online under any name. If they are not familiar with a merchant they should
ask
for paper catalogue or brochure to get a better idea about the merchandise and
services
and should find about the company’s refund and return policies. Consumers should
also search for the reviews of the company.
Read the privacy policy on the site of the companies before shopping as this
helps to know what information is being collected and how it would be used.
Keep a print record of the transactions this would come handy in case of any
fraud.
One should find out how the company secures the financial and personal
information before paying the bills.
The personal information should be kept private like address, telephone
numbers, email, etc. One should avoid using telephone numbers or date of birth for
establishing a password instead should use a combination of numbers, letters and
symbols.
Proper research should be done about countries shopping laws and merchant
when shopping from other countries.

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60
8.2 CONCLUSION
This research shows that online shopping is having very bright future in India.
Perception towards online shopping is getting better in India. With the use of
internet,
consumers can shop anywhere, anything and anytime with easy and safe payment
options. Consumers can do comparison shopping between products, as well as, online
stores.

This study is mainly focus on the factors from the Internet and examines those
factors
that affect the consumer’s online shopping behaviours. The research focus on the
Internet shopping (include the nature of Internet shopping, E-commerce website, and
online security, privacy, trust and trustworthiness) and online consumer behaviours
(include background, shopping motivation and decision making process). Those
factors were looked at, and examined to reveal the influence at online consumer
behaviours. In addition, the previous researches were used to help researchers
understanding more comprehensively. Moreover, the customer’s purchase decision
making process was also examined to identify the potential factors. The information
search is the most important factor that helps the customers find the suitable
products
or services for their needs. Therefore, the online retailers have to enhance and
improve
the information supporting such as provide much detailed product information and
use
internal search engine in order to increase the efficient of information search.
For the
evaluation stage, customers more think a lot of the reputation from the E-commerce
website, and the payment security for the purchase stage. At the post-purchase
stage,
the factor of after services which is the most concerned about. Overall, the
factors
from the Internet that influenced or prevented online consumer behaviours need to
be
carefully concerned by the online retailers, who can utilize the appropriate
marketing
communications to support the customer’s purchase decision making process and
improve their performance.

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BIBLOGRAPHY
1)Ramaswami&Namakumari, Marketing Management-Planning, Implementation and Control,
MacMillan India Ltd, New Delhi
2)Bhatnagar, A, Misra, S., and Rao, H. R., ‘Online risk, convenience, and Internet
shopping
behavior,’ Communications of the ACM 2000
3)Alexandru M. Degeratu, ArvindRangaswamy and Jianan Wu (2000) Consumer
ChoiceBehaviour in Online and Traditional Supermarkets: The Effects of Brand Name,
Price, and other Search Attributes, International Journal of Research in Marketing,
Vol. 17,
No.1, p. 55-78. Available at:
http://www.smeal.psu.edu/ebrc/publications/res_papers/1999_03.pdf
4)Aron M. Levin, Irwin P. Levin, and C. Edward Heath (2003) PRODUCT
CATEGORYDEPENDENT CONSUMER PREFERENCES FOR ONLINE AND OFFLINE
SHOPPING FEATURES AND THEIR INFLUENCE ON MULTI-CHANNEL RETAIL
ALLIANCES, Journal of Electronic Commerce Research, VOL. 4, No. 3. Available
at:http://www.csulb.edu/web/journals/jecr/issues/20033/paper1.pdf
5)Ali S S, Models in Consumer Buying Behaviour, Deep & Deep Publications.
6)Kothari C. R., Research Methodology Methods and Techniques, WishwaPrakashan, New
Delhi.

7)www.wikipedia.com
8) www.amzon.com
9)www.flipkart.com

A Study on Consumer Perception towards online shopping

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QUESTIONAIRE
Kindly highlight/bold your answers.
1. Do you use Internet?
Yes

2.

How long have you been using Internet?


Less than 1 year
1 – 3 years

3.

No

3 – 5 years
More than 5 years

On the average, how much time (per week) do you spend in surfing the Web?
0 – 5 hours

16 – 20 hours

6 – 10 hours

More than 20 hours

11 – 15 hours
4.

Have you purchased anything online ever?


Yes

5.

No

Which category (ies) of goods have you bought through Internet?


Books

Railway tickets

Electronic Gadgets

Airline tickets

CD/Videos

Computer Hardware

Accessories apparel

Computer Software

Gifts

Magazines

Event Tickets
Hotel Rooms/Car Rental
Jewellery
Infant / Child items

Movies tickets
Office Supplies
Food / Groceries
Home tools and products

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Sporting goods
Toys

6.

Health and fitness products


Any other, specify………………

When did u shop for the first time?


Last 6 months
6 months- 1year
1-3 year
3-5 year
More than 5 year

7.

How frequently did you purchase online?


Only once
2-4 times
More than 5 times
More than 6 times

8.

Overall, were you satisfied with your experience of online shopping?


Highly Satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied

9.

Where do you most often access the Internet?


Home

Cyber-cafes

Office / College

Any other, specify………

10.
What are the activities that you use Internet for? (Kindly rank them between 1 to
5,with 1=most used, 2=used to a large extent, 3=used to a good extent, 4=used
sometimes,
5=rarely used)

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Communication (E-mail, Instant Messaging, Bulletin Boards, News Groups, Chat, etc.)
Information Gathering (Research, News, Sports scores, Search for employment, etc.)

Entertainment (Games, Adult entertainment, Entertainment sites, Sports, Music, Web


page
design, etc.)
Finance (Investment portfolio, financial research, online banking, check stock/fund
quotes,
trading, etc.)
Shopping (Researching purchases, purchasing, auctions, Selling, Classifieds, etc.)
11.
Which category (ies) of goods are you planning to buy through internet in the near
future?
Books
Electronic Gadgets

Airline tickets

CD/Videos

Computer Hardware

Accessories apparel

Computer Software

Gifts

Magazines

Event Tickets

Beauty products

Movies tickets

Health and fitness products

Hotel Rooms/Car Rental


Jewellery

Office Supplies
Food / Groceries

Apparel gift certificates

Pharmaceuticals

Infant / Child items

Home tools and products

Sporting goods
Toys
12.

Railway tickets

Home appliances
Any other, specify………………

What is your main motivation for buying through Internet?


Convenience (ease of purchase, home delivery, ability to shop 24x7)

Price

Saves time
Superior selection/Availability

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Product comparison
Any other, specify………………
13.

What, according to you, are the most important barriers to purchase online?
I am worried about giving out my credit card number
I don’t have a credit card
I don’t like providing personal information
I don’t want to purchase from someone with whom I am not familiar
I enjoy going out to do my shopping
I like to see/touch the product in person, before I buy it
Internet is too slow / Pages take too long to load
I am worried about the cost/hassle of returning the product
Delivery costs are too high
Prices are too high
Technical foul-ups prevent transactions from going through
I can’t find anything that I want to purchase on the Internet
I don’t know how but I am uncomfortable about purchasing through Internet
The process is expensive due to cost of access
Any other, specify…………

PERSONAL DETAILS
14.

Age:
Below 18 yrs
18 - 30 yrs
31 - 40 yrs
41 – 50 yrs
Above 50 yrs

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15.

Educational Background:
Non-Matriculate
Matriculate
Graduate
Postgraduate

16.

Occupation:
Business/Self Employed
Service/Executive
Student
Any other, specify………………

17.

Gender:
Male
Female

18.

Average Monthly Income:


Less than Rs. 5,000
Rs. 5,000 – Rs. 10,000
Rs. 10,000 – Rs. 25,000
Rs. 25,000 – Rs. 50,000
Above Rs. 50,000

Name:

_____________________________

Contact No.: ______________________________


City:

______________________________

A Study on Consumer Perception towards online shopping

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