ONLINE

SHOPPING
BEHAVIOUR

Problem Statement
OBJECTIVE:
The objective of this research study is to investigate online consumer behavior, which in turn provides
E-marketers with a constructional framework for fine-tuning their E-businesses strategies.
The specific objectives of this research are:
1.

To 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.

SCOPE OF THE STUDY

4.

The Study was conducted among the Internet users.

5.

The Geographical area covered was IIT Guwahati Campus and Guwahati City.

6.

The Study was based on a Schedule of Questions.

Organization of Team
1.

Shashwat Mohanta (Team Leader)

2.

Tushar Ranjan

3.

Pragya Chansoriya

4.

Nishu Gupta

5.

Ritu Yadav

6.

Aparna Balagopalan

7.

Yaksh Chaudhary

8.

Ankit Soni

9.

Sunil Bandawla

10.

Subham Tayal

11.

Piyush Kedia

Methodology
We

interviewed nearly 71 people with

varying backgrounds with
predetermined set of questions
followed by data compilation in the
form of pi chart and later analyzed the
organized data to draw the conclusions.

QUESTIONAIRRE
1.
a)

How frequently do you shop online?

Monthly

b)

3-4 times a month

c)

More than 3-4 times a month

d)

Only during sale

2. What are the reasons to prefer online shopping?

e)

Low price

f)

Variety of products

g)

Home Delivery

h)

Time Accessibility

3.What is the most preferable product type for online shopping?

a)

Electronics

b)

Cosmetics

c)

Apparel

d)

Books

4.Which sites do you prefer for online shopping?

e)

Flipkart

f)

Snapdeal

g)

Myntra

h)

Jabong

i)

Amazon

j)

Others

5.Do you compare online shopping sites?

a)

Yes

b)

No

6.Do you use brand filters for the following products?

c)

Stationery

d)

Apparel

e)

Cosmetics

f)

Electronics

7.What is your maximum spending limit for your online expenditure?

a) Rs. 500
b) Rs. 2000
c) Rs. 5000
d) Rs. 10000
e) More than Rs. 10000
8. What is your preferred mode of payment?
f) Cash on delivery
g) Net Banking
h) Credit Card
9.What are the limitations of online shopping according to you?
i) Credit Card misuse
j) Personal info misuse
k) Look and feel of products
l) Biased reviews

10. What are the post purchase problems faced by you?

a)

Delay in delivery

b)

Cheap quality of products

c)

Damaged products

d)

Cancellation of delivery

11. Do you recommend your friends/family for online shopping?

e)

Yes

f)

No

HYPOTHESIS
1)Frequency of online shopping:
Since the survey was conducted in the city of Guwahati and a large amount of responses from
IIT Guwahati were taken, it is hypothesized that a majority would shop online monthly on an
average. The major reason presumed for this is easy access to the internet and sufficient funds
for purchase.

2)Reasons for shopping online:

The survey collection drive was done in Guwahati ,where the shoppers market options for a
particular product are limited.Hence, variety is presumed to be the strongest driving force for
shopping online.

HYPOTHESIS
3)Most purchased product category:
It is hypothesized that the most popular category would be books ,given
the demanding academic situation.
4)Most commonly used sites:
Since speedy delivery of products in almost all categories have been
extended on Amazon, in contrast with other sites, we predict that Amazon
will be highest ranking in terms of usage data.
5)Comparison of online shopping sites:
Since most consumers are concerned with the price and quality of the
products ordered online, we hypothesize that a majority will compare
online shopping sites.

HYPOTHESIS
6) Brand filters:
It is hypothesized that brand filters are in case of products which are
expensive and have an effect on the perception of an individuals
personality in the society like cosmetics, electronics etc.
7)Spending limit:
It is hypothesized that the personal spending limits would be around
Rs.1000-Rs.2000.
8)Mode of payment:
Cash on delivery ,being the safest option is predicted to be the most
used mode of payment.

HYPOTHESIS
9)Limitations of online shopping:
Hypothesis put forward is that the lack of actual touch and feel of
products is seen as the greatest disadvantage of online shopping.
10)Post-purchase problems:
It is hypothesized that the bad quality of products received would
be the problem frequently faced by consumers.
11)Recommendations to family and friends:
Since it is in consumer behaviour to give a response in some
manner to the satisfaction or dissatisfaction experienced over a
product ,we hypothesize that a majority will recommend to/not to
buy particular products online from particular forums.

Demographics
Gender

36.6
63.4

Female

Male

Education
14.1%

22.5%
63.4
%
Undergraduate

M.Tech

Ph.D

Frequency of Online Shopping

4.22
16.9
53.52
25.35

Monthly

3-4 Times a month

More than 3-4 times a month

Only during sale

Reasons for Online Shopping

Low Price 3

Variety of Products 1 3

49

37

14

10%

44

37

11

Time Accessibility 3 3

28

38

14

Home Delivery 11

0%

42

23

20%

30%

Strongly Disagree
Agree

40%

44
50%

60%

Disagree
Strongly Agree

70%

80%

Neutral

90%

100%

Most preferable product for online

shopping

11.2
35.2

21.1

32.4

Electronics

Books

Apparel

Cosmetics

Preference of Online Shopping Sites

Others; 7%
Jabong; 10%

Flipkart; 31%

Myntra; 13%

Snapdeal; 17%

Flipkart
Myntra

Amazon; 23%

Amazon
Jabong

Snapdeal
Others

Do you compare between Online

Shopping Sites?

12.67

87.32

Yes

No

Use of Brand Filter

Stationery

9.85

90.14

42.25

Apparel

57.74

64.79

Cosmetics

74.64

Electronics
0%

35.21

10%

20%

30%

40%

Yes

25.35
50%

60%

Column1

70%

80%

90%

100%

Maximum Spending Limit for Online

Shopping

14.1

5.6
32.3

18.3
29.6

5000
More than 10000

2000
500

10000

Mode of Payment

12.46
26.76

Cash On Delivery

61.97

Net Banking

Credit/Debit Card

Limitations of Online Shopping

Credit Card Misuse

Personal Info Misuse 3

14

24

13

Look and Feel of products 7

21

10%

27

41

29.6

Biased Reviews 1 10
0%

35

56.3

28
20%

Strongly Disagree
Agree

23

38
30%

40%

50%

Disagree
Strongly Agree

60%

23
70%

80%

Neutral

90%

100%

Post-Purchase Problems

7.04
16.9
50.7
25.3

Cheap Quality of Products

Damaged Products

Delay in Delivery
Cancellation of Delivery

Will you recommend your family

and friends to shop online?

No; 44%
Yes; 56%

Yes

No

DATA ANALYSIS

A survey of 11 question was rolled out and 71 responses collected

36.6% of the total sample collected were female.

The factors that forms the major reason for Online shopping were analyzed.

Major factors which influence Online Buying

Lowest Pricing

Product Variety

Home Delivery

Variety of products is more important for females (88%) as compared to males (78%)

Variety of products is more important for married consumers (86%) as compared to single
consumers (78%)

Variety of products is not a factor for consumers who bought only once in a year (60%) as
compared to 90% for consumers who bought quarterly or only during promotion.

Results showed that online product reviews and recommendations doesnt impact consumers
behavior towards online purchase.

RESULT

Increased Internet penetration, a hassle free shopping environment and high levels of Net savviness
see more and more Indians shopping online.

BARRIERS TO GROWTH OF ONLINE MARKET

Consumer Bias

Consumers often display a bias for brands that they know well and have had a good experience in
the past. Thus products of brands with a favorable bias will score over the products of less popular
brands. A few would risk buying expensive jewelry from an unknown jeweler online.

Lack of Touch Feel-Try Experience

The customer is not sure of the quality of the product unless it is delivered to him and post delivery
of the product, it is sometimes a lengthy process to get a faulty or the unsuitable product changed.
Thus, unless the deliverables are as per the customers expectations, it is hard to infuse more
credibility in the e-Tailing market.

Mounting Competitive Pressures

To attract customers, the competing online players are adopting all means to provide products and
services at the lowest prices. This has resulted in making the consumers choice-spoilt, who in turn
surf various websites to spot the lowest price for the product. Thus, although the number of
transactions is increasing, the value of the products sold is continuously falling owning to high
competition and leaner margins.

Seasonality

E-Tailing Market is faced by seasonal fluctuations. As told by an Industry player, August to

February is the peak seasons for sale, while March to July is the dry seasons for sale. During the
peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day, New Year, Christmas,
Mothers Day, Friendship Day etc are. On these occasions younger generations prefers buying and
sending gifts online.

Credibility in Payment System

Online frauds and breach are the biggest barriers to online sales. As a result, prospective buyers
prefer staying away from revealing their credit card and bank details.

Untimely Delivery of Products

It might take a few minutes to search, book and pay for products and services online, but the
delivery of the product may take unreasonable time.

It is a challenge for E-marketers to convert low frequency online buyers into regular buyers
through successful website design and by addressing concerns about reliable performance. Thus,
the online retailing raises more issues than the benefits it currently offers

Suggested Implementation:

Regarding Damaged Products:

Online Shopping Websites can feature the possibility of immediate return of damaged
goods with the delivery man himself.

Regarding Trial Experience:

The websites can collaborate with some kind of Virtual Trial Room Technology so that
the users can have a hand-on trial experience in the Apparel Category.