A

Comprehensive project report

On

“CONSUMER BUYING BEHAVIOR TOWARDS ONLINE SHOPPING IN GUJARAT”

Submitted to

Shri Jairambhai Patel Institute of Business Management and Computer Application

In Partial Fulfillment of the requirement of the Award for the Degree of

Master of Business Administration

In

Gujarat Technological University

Under The Guidance of

Prof. RASHESH PATEL

Submitted by

Mehul Dhameliya (137690592023)

Krunal Dhanani (137690592024)

[Batch: 2013-15]

Shri Jairambhai Patel Institute of Business Management and Computer Application

MBA PROGRAMME

Affiliated to Gujarat Technological University, Ahmedabad

May 2015

DECLARATION

We Mehul Dhameliya and Krunal Dhanani hereby declare that the report for comprehensive

project entitled “CONSUMER BUYING BEHAVIOR TOWARDS ONLINE SHOPPING IN

GUJARAT” is a result of our own work and our indebtedness to other work publication,

references, if any , have been duly acknowledged.

Place: - Gandhinagar Mehul Dhameliya

Date: - Krunal Dhanani

ACKNOWLEDGMENT

We as Students of M.B.A of Shri Jairambhai Patel institute of business

Management and Computer Applications, present our sincere thanks to our

Honorable Director Dr .S.O. Junare for permitting us to undertake the project as a

part of our curriculum.

We must however specially acknowledge our indebtedness to Prof. Rashesh

Patel (Associate Professor, NICM-SJPI), who has been a source of continuous

guidance and inspiration to us.

Last but not the least, we would like to thank all the concerned who

knowingly or unknowingly helped us in doing this comprehensive project. Their

co-operation is indeed unplayable by mere thanks.

Shri Jairambhai Patel Institute of Business

Management and Computer Application (Formally Known as National Institute of Cooperative Management), Approved by AICTE, New Delhi and Affiliated With Gujarat Technological University, opp. Amusement Park, Indroda Circle, Gandhinagar-382007 Phone:079-23213043,37-38-39 Fax: 079-23213036 Web: www.nicm.org.in E mail:director_mbanicm@yahoo.com

CERTIFICATE

This is to certify that Mehul Dhameliya and Krunal Dhanani student of MBA(2013-2015 batch)

at Post Graduate of Gujarat Technological University- MBA,SJPI has prepared a Comprehensive

Project Report on “CONSUMER BUYING BEHAVIOR TOWARDS ONLINE SHOPPING

IN GUJARAT” in partial fulfillment of two years full-time MBA Programe of Gujarat

Technological University, Ahmedabad. This project has been undertaken under my supervision

found satisfactory.

Date:-_____________ Prof. Rashesh Patel

Place:- Gandhinagar Assistant Professor

Project guide

Dr. S.O.Junare

Director- Technical Campus

PREFACE

It gives us great pleasure in presenting the comprehensive project titled “CONSUMER

BUYING BEHAVIOR TOWARDS ONLINE SHOPPING IN GUJARAT”. This project has

helped us in gaining valuable online shopping knowledge in the field of consumer buying

behavior and perception of online shopping. Through our interaction with people of different age

groups and occupation made us understand what they think about online shopping. This project

helps us buying behavior toward online shopping.

Moreover during this phase of learning we have imbibed many things within us and we are sure

that those all things would prove very helpful to us throughout our perception and will provide us

the back bone for any such further activity in future.

INDEX

NO. Particular Page no.

1.

GENERAL INFORMATION

Introduction

Types of mutual fund

Overview of World Market

Overview of Indian / Gujarat Market

Growth of Mutual Fund Industry

2. ABOUT MAJOR COMPANIES IN THE INDUSTRY

3. LITERATURE REVIEW

4. RESEARCH METHODOLOGY

Objective of the Study

Problem of the Study

Research Design

Research Type

Data Collection Method

Sources of the data

Hypothesis

5. DATA ANALYSIS FINDINGS AND INTERPRETATIONS

6. CONCLUSION

7. BIBLIOGRAPHY

8. APPENDIX

ABSTRACT

Over the last performance and retailers are devising strategies to meet the demand of

online shoppers they are busy in studying consumer behavior in the field of online

shopping, to see the consumer attitudes towards online shopping. Therefore we have

also decided to study consumer’s attitudes towards online shopping and specifically

studying the factors influencing consumers to shop online.

The population selected for the research is Gujarat, the sample size selected for this

research is 100 and we have used convenience sampling technique.

Our findings indicated that among the four factors selected for this research the most

attractive and influencing factor for online shoppers in Gujarat is Website

Design/Features, following convenience the second most influencing and thirdly time

saving. Results have also showed that security is of important concern among online

shoppers in Gujarat. The research has also found that there are some other factors

which influence online shoppers including, less price, discount, feedback from previous

customers and quality of product. For the second research question i.e. who are online

shoppers in term of demography: the correlation results for the age and attitudes

towards online shopping has showed that elderly people are not so keen to shop online.

Whereas for education it is concluded that higher education makes online shopping less

attractive, for the income the correlation results are so weak hence we could not

conclude anything out of it. It is expected that this study will not only help retailers in

Gujarat to devise successful strategies for online shoppers but it will also provide a base

for similar studies in the felid of consumer attitudes towards online shopping.

INTRODUCTION

INTRODUCTION

Online shopping is the process whereby consumers directly buy goods or services from

a seller in real-time, without an intermediary service, over the Internet. It is a form of

electronic commerce. The sale or purchase transaction is completed electronically and

interactively in real-time such as in Amazon.com for new books. However in some

cases, an intermediary may be present in a sale or purchase transaction such as the

transactions on eBay.com.

An online shop, e-shop, e-store, internet shop, web shop, web store, online store, or

virtual store evokes the physical analogy of buying products or services at a bricks-and-

mortar retailer or in a shopping centre. The process is called Business-to-Consumer

(B2C) online shopping. This is the type of electronic commerce conducted by

companies such as Amazon.com. When a business buys from another business it is

called Business-to-Business (B2B) online shopping.

A large percentage of electronic commerce is conducted entirely in electronic form for

virtual items such as access to premium content on a website, but mostly electronic

commerce involves the transportation of physical items in some way. Online retailers

are sometimes known as e-tailors and online retail is sometimes known as e-tail. Almost

all big retailers are now electronically present on the World Wide Web.

Online marketplaces such as eBay and Amazon Marketplace have significantly reduced

financial and reputational barriers to entry for SMEs wishing to trade online. These

marketplaces provide web presence, marketing and payment services and, in the case

of Amazon, fulfillment. This allows SMEs to focus on their core competencies e.g.

managing supplier relationships. Moreover, SMEs have choices online, as these

marketplaces compete with each other (some retailers sell across several

marketplaces) and retailers ‘own websites. They also compete with paid search

providers and others in providing marketing to SMEs.

Customer ratings are a key element of the marketplaces, enabling SMEs to build a

reputation at low cost relative to the offline environment. This element of reputation may

be achieved quickly (just one piece of feedback generates a rating) and is tied to

particular platforms (i.e. ratings are non-transferable).

OVERVIEW OF ONLINE SHOPPING

Online shopping is the process of buying goods and services from merchants who sell

on the Internet. Since the emergence of the World Wide Web, merchants have sought

to sell their products to people who surf the Internet. Shoppers can visit web stores from

the comfort of their homes and shop as they sit in front of the computer

Consumers buy a variety of items from online stores. In fact, people can

purchase just about anything from companies that provide their products online. Books,

clothing, household appliances, toys, hardware, software, and health insurance are just

some of the hundreds of products consumers can buy from an online store.

Many people choose to conduct shopping online because of the convenience.

For example, when a person shops at a brick-and-mortar store, she has to drive to the

store, find a parking place, and walk throughout the store until she locates the products

she needs. After finding the items she wants to purchase, she may often need to stand

in long lines at the cash register.

In contrast, online shopping helps consumers avoid these disadvantages.

With online shopping, a person logs onto the Internet, visits the store's website, and

chooses the items she desires. The items are held in a virtual shopping cart until she is

ready to make her purchase. The shopper can remain in her pyjamas as she does

her shopping, and the process can be conducted in the wee hours of the morning or late

into the night. Online stores never close — they're open 24 hours a day.

Despite the convenience of online shopping, not everyone chooses to purchase

items and services online. Some people like the idea of physically going to a store and

experiencing the shopping process. They like to touch the merchandise, try on clothing,

and be around other people. Online shopping doesn't permit shoppers to touch products

or have any social interaction. It also doesn't allow them to take the merchandise home

the same day they buy it.

Other people may worry about shopping online because they fear their credit

card information will be compromised. Since it's necessary to provide credit card

information when purchasing products online, people worry they may become the

victims of identity theft. This discourages some consumers from participating

in online shopping.

Another reason some consumers avoid shopping online is the fact that they

worry that the products they purchase are not accurately portrayed in the website's

picture. They worry that the picture of the item may appear one way, but the actual item

may look completely different — perhaps of lesser quality. It's also impossible to try on

apparel when conducting online shopping.

A consumer has to rely on body measurements in order to make sure the

clothing will fit properly. If the clothing arrives in the mail and it's too small, the consumer

has to return the item. This is a potential inconvenience that some shoppers may not

wish to face.

NEED FOR INTERNET SHOPPING

Few developments have altered India‘s lifestyle more quickly and more completely than

the Internet. Online access has enabled people from all walks of life to bring entire

libraries, entertainment venues, post offices and financial centers to a workplace, to a

desktop or to a shirt pocket. The Internet‘s largest and most meaningful impact may

very well be on the way consumers shop for everything from gifts, gadgets and

groceries to clothing, cars, and cruises.

The ease and selection that the Internet provides to shoppers has changed the face of

retailing. More and more, consumers visit a store‘s Web site to make their choices

before traveling to the store itself; and in a rapidly swelling tide, many shoppers are

bypassing the store altogether and ordering online directly from the Web sites of their

favorite brands and outlets. Companies like Sphere, Sears and Crate & Barrel have

increased the range and quantity of products available at their online stores and are

sending online coupons and sale announcements via e-mail directly to their customers.

Because online stores are open 24 hours a day, seven days a week, and their

inventories are often more complete than those of their brick-and-mortar counterparts,

the Internet makes it easy for shoppers to compare products within or between stores,

to read product reviews from other customers, to access vendor return policies and to

find warranty information.

ONLINE SHOPPING IN GUJARAT

With better penetration of internet and broadband service, Gujarat has emerged as

one of the top five online shopping markets in the country, leading e-commerce

company eBay India claimed in Ahmedabad today.

According to eBay India, Gujarat ranked 4th after Maharashtra, Delhi and Tamil Nadu,

among the 28 states and seven Union Territories covered under the third edition of the

Census done by the company.

During the census in 2009, Gujarat was ranked at seventh, from which it has jumped to

fourth position.

"The increase in e-commerce activities in Gujarat has been mainly due to the greater

penetration of internet and broadband service in the state," head of eBay

Motors Ashish Shah told media persons in Ahmedabad.

"Also the city of Ahmedabad ranks 7th among top 10 ecommerce hub in the country, as

per our census," he said.

Ecommerce hub has been defined as sum of all transactions, buying and selling, both

domestic and global, on eBay from the city or state.

Also two rural towns of Gujarat Sajiyavadar and Adala, figure in the top five rural hubs

witnessing active buying and selling trends on eBay, Shah said.

He further said that on eBay South Indian states were the biggest buyers with 38 per

cent share, while states of West India were the largest sellers with over 40% share of

products sold.

ONLINE SHOPPING IN AHMEDABAD

Ahmedabad is the largest city and former capital of the Indian state of Gujarat. The city

is the administrative headquarter of Ahmedabad district and is the judicial capital of

Gujarat as the Gujarat High Court is located here. With a population of more than 5.8

million and an extended population of 6.3 million, it is the fifth largest ci ty and seventh

largest metropolitan area of India. Ahmedabad is located on the banks of the River

Sabarmati, 32 km (20 mi) from the state capital Gandhinagar. Ahmedabad’s business

opportunities, as well as its potential to offer a higher standard of living, attract migrants

from all over India and, in turn, make the city a melting pot of many communities and

cultures.

Online shopping in Ahmedabad, Gujarat is fast becoming popular as there are-no

waiting in lines or in traffic, you can shop from the convenience of your home, easier to

do comparison shopping, discounts and you can shop at ANY time without restrictions.

The city has a booming economy and that reflects well in the shopping style of the

Ahmedabad people. Apart from the regular shops and snobbish malls, today online

shopping in Ahmedabad grows in popularity as more people are turning to online

shopping for all their needs.

Ahmedabad online shopping is easy, convenient and less time-consuming. You will just

have to choose your favorite product, call or email or just drop a note at the website that

you have entered and the product will be delivered to you within a very short span of

time. You will just need a Credit or Debit Card or net banking with requisite money,

order online and have the product at your home. There are various products to buy,

shop online in Ahmedabad.

.

ONLINE SHOPPING IN INDIA

The birth and growth of Internet has been the biggest event of the century. E-commerce

in India has come a long way from a timid beginning in the 1999-2000 to a period where

one can sell and find all sorts of stuff from a high end product to a meager peanut

online. Most corporations are using Internet to represent their product range and

services so that it is accessible to the global market and to reach out to a larger range of

their audience.

Computers and the Internet have completely changed the way one handles day-to-day

transactions; online shopping is one of them. The Internet has brought about sweeping

changes in the purchasing habits of the people. In the comfort of one's home, office or

cyber cafe or anywhere across the globe, one can log on and buy just about anything

from apparel, books, music and diamond jewellery to digital cameras, mobile phones,

MP3 players, video games, movie tickets, rail and air tickets. Ease, simplicity,

convenience and security are the key factors turning the users to buy online.

E-commerce revenues in the country are projected to reach Rs 2,300 crore in the year

2006-07, growing at 95 per cent over 2004-05(Source: Internet and Mobile Association

of India, IAMAI). This pertains to the business-to-consumer (B2C) segment. It may be

too early to do a comparison with the e-commerce scenes in countries such as the US

where billions of dollars are spent online but the business in India is growing

exponentially every year, albeit from a smaller base, the total revenues have reached a

respectful size.

2011 would probably go down as the year when online shopping came to life in India.

Latest comScore data estimates that nearly 60 per cent of online users in India visited a

retail site in November 2011. The number of online shoppers increasing 18 per cent in

the past year. comScore has released a report on visitation to the top retail and coupon

sites in India based on data from its comScoreMedia Metrix service and reports that

coupon (daily deal) sites are also a part of the e-commerce craze. An estimated 16.5

per cent of the Indian online population visited deal sites such

as Snapdeal.com and Mydala.com last month.

Internet users in India have gone up from 50 million in 2007 to 300 million in 2014.

With over one-third non-English speaking internet users, e-commerce players see

capturing customers in this segment as a next logical step.

Local language Internet users are growing at 40 per cent per year. With online

shopping gaining nationwide traction, there is a large population that would be more at

ease shopping in their language. For Snapdeal, Hindi and Tamil versions of the platform

has resulted in increased reach within the Hindi-heartland and Tamil Nadu.

Ecommerce players said content in local language would not only result in ease of

shopping for customers but also aid in bringing the larger population of the country

online. Browsing properties and product categories would be uniform across languages

on the websites.

If the Internet is anything to go by, India's technological and economic growth has

moved into the top gear.

With more India's online shopping registering a phenomenal 100 per cent annual

growth, many retail chains and consumer durable companies are joining the Web

bandwagon to tap the E-shopping market.

The online shopping industry in India is fast catching on, not just in the larger metros but

also in the smaller cities. At present the market is estimated at Rs 46,000 crore and is

growing at 100 per cent per year.

India has more than 100 million Internet users, out of which around half opt for online

purchases and the number is growing every year. With such a large market size,

companies, right from retail shops to consumer goods, are entering the Web space to

attract potential customers.

GLOBAL INTERNET SHOPPING SCENARIO

The rapidly increasing popularity of online shopping is a truly global phenomenon.

Online shoppers can be found scattered across the globe, but the world‘s most avid

Internet shoppers hail from South Korea – 99 percent of Internet users in South Korea

have shopped online. German, UK and Japanese 9 consumers come in a close second.

US consumers are slightly more recalcitrant, clocking in at number eight.

At the other end of the spectrum, the world‘s slowest adopters come from Egypt, where

67 percent of the online population have never made a purchase over the Internet,

followed by Pakistan (60%) and the Philippines (55%).

Chart showing Top 10 Countries who made purchase online

Source: Trends in Online Shopping, a Global Nielson Consumer Report, February 2014

PAYMENT OPTIONS IN ONLINE SHOPPING

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

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 19 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.

GROWTH OF INTERNET SHOPPING IN INDIA

Juxt today released their annual ‘India Online 2011‘ report which puts number of active

Indian Internet users at 65 Million as compared to 51 Million last year. The report

released by Juxt is based on land survey conducted among 201,839 individuals spread

across all 4 regions of the country between Apr-Mid June 2011.

Interesting Findings of the Indian Online 2011 report

28% growth in Internet users (From 51 Mln last year to 65 Mln this year)

Internet reaches 29 million Indian households

9 out of 10 ‗home‘ and ‗office‘ based online Indians log on to the net ‗daily‘

Net surfing is among top 3 favorite ‗indoor entertainment‘ for 3 out of 4 of them

9 out of 10 of them (86%) use social media sites

Home‘ is the single largest place of access (58%), and the most preferred place

of access (43%).

8 out of 10 mobile internet users are ‗dual‘ users, ‗only mobile‘ based usage a

lowly 3% – 1.8 million users

As per the India Online Report by Juxt, in urban areas, there has been 9.40% increase

in internet using households (individuals) and 4.71 % increase in internet using

households (individuals) in rural areas in year 2011 as compared to year 2010.

ONLINE SHOPPING PLATFORM

How it works:- We average votes of all online shop and shop which has lower

average comes first for example if 3 peoples have given rank Ebay and Flipkart

to 1,6,5 and 8,1,6 so we get average for ebay is 4 (1+6+5/3) and for Flipkart is 5

(8+1+6/3). In this case Ebay comes first and Flipkart second.

Here is real average for each ranked site (last Updated 28th Oct 2014)

Amazon- 4.75,

Flipkart-4.78,

Snapdeal-4.90,

Paytm-5.01 ,

Ebay.in- 5.02,

Jabong.com- 5.11,

Myntra- 5.16,

Shopclues-5.55,

Pepperfry- 5.81,

Homeshop18- 5.87.

(1)Amazon.in Score (4.75)- World leader in e-commerce market recently started

operation in india, Now Indians can buy Books, CDS and Electronic at cheaper price

from Amzon.in. For limited time they offering free shipping.

Amazon Coupons

Amazon Deals & Offers

(2) Flipkart.com – Score (4.78) – Founded in 2004 with only Rs. 400000 now in 2014

tuned over 60,000 Crore company. You can not only buy books online through Flipkart,

but also mobile phones & mobile accessories, laptops, computer accessories, cameras,

movies, music, televisions, refrigerators, air-conditioners, washing-machines, Clothing,

Footwear, Accessories, MP3 players and products from a host of other categories. After

takeover of letsbuy.com now flipkart is largest player of e-commerce of India.

Flipkart Coupons

Flipkart Deals & Offers

(3) Snapdeal.com -Score (4.90) SnapDeal offers everything from local daily deals on

restaurants, spas, travel to online products deals. They offer you best price with free

shipping.

Snapdeal Coupons

Snapdeal Deals & Offers

(4) Paytm.com- Score (5.01) – Started with Mobile Recharge and

Bill Payment website now Paytm selling everything from Home Decor, Clothing, Laptops

to Mobile at killer price. In very short time period Paytm has grown very fastly and able

to place under our Top 10 Indian Shopping Website list.

Paytm Coupons

Paytm Deals & Offers

(5) ebay.in -Score (5.02) After almost 6month of dominating at number

1 ebay has come down at number two on indiafreestuff.in list. eBay.in is the Indian

version of the popular online shopping portal eBay.com – world’s online marketplace.

Ebay has a diverse and passionate community of individuals and small businesses.

Ebay offers used and fresh items with a wide network of international

shipping. http://www.ebay.in

Ebay Coupons

Ebay Deals & Offers

(6) Jabong.com:- score (5.11) Jabong Fashion & Lifestyle Store offers you great

discount on all listed product.They offers wide range of products from Apparel to Home

needs.

Jabong Coupons

Jabong Deals & Offers

( 7) Myntra.com :- score (5.16) Myntra.com is leading online retailer of lifestyle and

fashion products. Myntra offers T-shirts, Shoes, watches and more at discounted price.

Myntra Coupons

Myntra Deals & Offers

(8) Shopclues.com:- score (5.55)- Shopclues is famous for theirheavily discounted Jaw

Dropping deals. Shopclues is one of the best online stores that offers a wide variety of

cameras, Computer accessories, Mobile, Gift, Jewellery, Cosmetics, toys, clothes,

books and bag. Their Jaw Dropping deal has become most liked deal of 2012.

Shopclues Coupons

Shopclues Deals & Offers

(9) Pepperfry.com :- score (5.81)-Pepperfry is one of leading Indian website in selling

lifestyle products ranging from men and womens clothing, home decor, jewellery,

perfumes and cosmetics, furnitures, bags and accessories.

Pepperfry Coupons

Pepperfry Deals & Offers

(10) Homeshop18.com -Score (5.87) here you find large range appliances, kitchen,

cameras, mobiles, laptops, site, indian, gifts, apparel, buy, online, gifts. and more,

HomeShop18 is a venture of theNetwork18 Group, India’s fastest growing media and

entertainment Group. Network18 operates India’s leading business news television

channels – CNBC TV18 and CNBC Awaaz. HomeShop18 has also launched India’s

first 24 hour Home Shopping TV channel. The company has its headquarters in Noida,

UP. The website has received the ‘Best shopping site” award from PC World Magazine

in 2008

Homeshop18 Coupons

Homeshop18 Deals & Offers

LITERATURE REVIEW

LITERATURE REVIEW

The current literature on consumer online purchasing decisions has mainly

concentrated on identifying the factors which affect the willingness of consumers to

engage in Internet shopping. In the domain of consumer behavior research, there are

general models of buying behavior that depict the process which consumers use in

making a purchase decision. These models are very important to marketers as they

have the ability to explain and predict consumers’ purchase behavior.

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

continuum extending from routine problem-solving behaviors, through to limited

problem-solving behaviors and then towards extensive problem-solving behaviors

[Schiff man et al., 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, 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. Mayer et al. [1995] proposed that ability, benevolence

and integrity constitute the main elements of trustworthiness. Ability refers to skills,

competencies and characteristics that a seller has in a specific domain. In this context,

sellers need to convince buyers of the competence of their companies in the Internet

shopping business. Benevolence is the extent to which the seller is perceived by the

buyer as wanting to ‘do well’. Sellers have to convince buyers that they genuinely want

to do good things for buyers, rather than just maximize profit.

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 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.

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

multiple principle goals of online shopping which are determined by the end user.

Time and Energy saving

It is time saving and energy saving. Person can easily login to online site

while sitting at home. So by this we can say that it is time as energy saving.

Availability

People while sitting at one place, can reach to number of products with

different varieties and can order them and would get them at their door step.

Comparison of Products

Online shopping gives the benefit of comparing the products on the various

attributes like pricing, texture, substitution of products etc….

Thus, our aim of our project is to have understanding about the online

shopping behavior among different age-shoppers.

SCOPE OF THE STUDY

1. The Study was conducted among the Internet users.

2. Consumer perception among the online shopping.

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

4. The scope of internet shopping

It was a time of past to spared your business in market by conventional methods. Old

market is today converted in high tech markets. Today if you want to purchase any item

from abroad you need not to go or you need not to call them for a sample. You can find

their products and see the catalogue on internet. Internet enables you to shop

throughout world from the comfort of your home. Internet has some special

characteristics which no other medium have.

Only internet can provide you such special information even no salesman can help you

as internet helps. Countless people can see products at a single movement, as well as

they can purchase the product same time. You can compare various product and

choose which is more useful for you, You have the facility to visit websites as much as

you like no restriction on you here you will find approximately all world class brands and

their products you have the facility to compare them, arrange according to many types

like by price, by size, by category, by most saleable item and many more.

This facility enables you to choose. This way of shopping provides a new way of

shopping. You get to identify the products, compare the prices and quality and view the

products from different angles. Testimonials and reviews are the unique feature of

shopping where you can share your experiences with other users/consumers. The most

exciting aspect of internet shopping is that it is a 24x7 affair! And youre free to shop on

your leisure hours and even holiday are useful for shopping for you. Your time is best

valued here. You need not to go market so no tension of conveyance, pollution, traffic

etc.

The other dimension is that you directly purchase the items from original merchant in

online shopping no mediator comes between you and merchant so it becomes cheaper

to purchase item. Fewer mediators less price. Merchant will also save his money by

selling of goods on internet. Merchant need not to spend for staff, showroom, other

shop expenses. He can sale by less resources and less expenses, some online store

do not have their physical showroom they display their product and services online and

deliver goods on customer 's door such merchant save a lot of expenses and they work

in less capital that’s why they are able to sale goods on low prices.

Internet has a very bright future. If you want to increase your business and cross the

boundaries of region you need to take help of internet. Without going online you cant

think about your progress worldwide. In this regard you can see all large scale business.

Big brand, big shopping store are online. Online shopping is the demand of today’s

modern time. Time and quality is the main subject of online shopping. Today everybody

is running to save time and who saves time automatically save money. Day to day

needed item is now available on internet and people prefer to shop online. Not only for

progress but also to survive in this competition era business internet help.

Are you looking for the fastest website for online shopping at low price branded

products than http://www.shoppingsnooper.com/ is the one name in one of the fastest

and largest shopping search engine. Here you can search every type of products at

competitive prices. Visit http://www.shoppingsnooper.com/ to see the unbeatable speed

of searching.

RATIONALE OF STUDY

Selling on internet has a large potential due to the very high targeting possibilities As a

result of this exceptional development, the online selling industry is becoming interested

in the use of internet to reach their customers. Hence a better understanding of online

shopping is critical to the effective use of this channel of approach to the consumer. It is

especially important to know what is the consumer’s perception towards online

shopping, benefits perceived by them and what factors attract them towards online

shopping.

ADVANTAGES OF ONLINE SHOPPING

Some reasons given below why Online Shopping is liked by many:

Convenience

The convenience of this method of shopping is what like best about it. Where else can

people do shopping even a midnight wearing your night suit? People do not have to wait

in a line or wait till the shop assistant is ready to help people with the purchases. People

can do shopping in minutes even if they are busy apart from saving time and avoiding

crowds. Online shops give us the opportunity to shop 24 hours.

Better Prices

Another thing which fascinates people is the cheap deals and better prices they get

from online stores because products come direct from the manufacturer or seller without

middlemen involved. Many online shops offer discount coupons and rebates.

Variety

The choices people can get for products are amazing. One can get several brands and

products from different sellers at one place. People can get in on the latest international

trends without spending money on airfare.

Send Gifts

Online Shopping makes sending gifts to relatives and friends easy, no matter where

ever they stay.

Comparison of Prices

Online shops make comparison and research of products and prices possible. Online

stores also give people the ability to share information and reviews with other shoppers

who have firsthand experience with a product or retailer.

Compulsive Shopping

Many times when people go out on Shopping people end up buying things which we do

not require because of the shop keepers up selling skills. Sometimes we even

compromise on our choices because of the lack of choices in those shops.

Other benifits

There are many advantages to shopping online. Retailers offer better pricing online that

are giving to consumers that shop online discounts from the act of store shopping,

driven by the elimination of a middleman and those associated cost. As an extra

incentive many online sites offer discounts and rebates that give consumers additional

savings. If you shop at an online store and there is no physical store within the state

limits there is no sales tax added.

Variety is another reason that consumers use online stores. There are more sizes and

more colors offered online for the consumer to choose from. You have the ability to

order an item that is out of stock and it will be shipped to you when it is available.

Sending gifts is also much easier with the help of online shopping. You can send it

anywhere and the costs to you will be the same amount. Online shopping comes with

fewer expenses, because when you go to the mall you end up paying for food, cost of

your travel, and impulsive shopping. Using an online store gives you the right to

compare prices from one location as well which will boost the consumers buying power.

PROBLEM OF ONLINE SHOPPING

Shopping online may seem the easiest thing to do these days, where you can

search, click and buy in the comfort of your own home. However there are

recurring issues which are preventing customers from completing their potential

purchases.

70% of the time, customers abandon their online shopping carts due to

unexpected delivery costs; consumers expect the prices to be transparent, or

free. However there are some sites such as Amazon that allow customers to

choose from a range of delivery prices, but their lowest (or free) price

generally comes with a later delivery date which may not be suitable for those

who want their purchase in a hurry.

Lack of information about product amounts to 56% of customers leaving retai l

websites, and anything they might have already put in their shopping carts.

Regardless of the price of the product, customers want to know as much as

they can about i t. Generic text across all products can be a turn-off (for

example: “We stock a range of beauti ful dresses for all occasions” – users

want to know which occasion is the best for the dress they’re looking at) and

people also want to know about size , durabi li ty, material and what other

people have thought about the i tem.

There are many scams and false websites online which is perhaps

responsible for a 50% drop out due to security reasons. If users do not

believe their card detai ls and personal information will be secure, they will

avoid buying with that merchant. Consumers may also smell a fake when i t

comes to premium goods advertised at “too good to be true” prices, because

they probably are too good to be true.

46% will find a website hard to navigate around, probably meaning that they

can’t find what they are looking for. This struggle may be due to complex

websites and a lack of search options, but may also be attributed to poor

mobile website experiences.

Other problems highlighted in the study i ncluded problems at checkout and

the lack of customer support. In a survey, 83% of shoppers said they needed

a form of support during their online shopping experience: 31% expect

immediate help and 40% expect a helping hand within five minutes. The most

popular service needed for customer support is by telephone (61%) which

highlights the need for clear contact information; customers also expect the

abi li ty to email (60%) and may also require live chat and click to call.

CONVENIENCE OF ONLINE SHOPPING

Convenience is a top priority in today's society. Many consumers like shopping to be

quick, simple, and easy. It is convenient for all people who has computer access or is

too busy and/or lazy to walk around the mall. Online shopping also saves you time and

money, because you do not have to wait in line, or pay for the cost of gas. The online

store has unlimited storage space, so they will have more options, there is also no

pressure at an online store. There is no salesperson following you around, or telling you

that you should purchase the item.

Online shopping has become an important part of many people’s lives. Many college

students use online shopping to find their books for cheap. According to Morah, both

retailers and consumers have embraced online sales as a cheaper and more

convenient way to shop. There are many advantages to online shopping like cost

savings, convenience, variety, and other various things. Online shopping is convenient,

because you can do all of your shopping from one spot. Online shopping also saves you

time and money, because you do not have to wait in line, or pay for the cost of gas.

Also the online store has unlimited storage space, so they will have more options. Also

there is no pressure at an online store. There is no salesperson following you around, or

telling you that you should purchase the item.

IMPLICATIONS OF ONLINE SHOPPING

Many people shop online and the debate between if online shopping is helping or

hurting the local economies has been a widely discussed topic. There are many benefits

to shopping online. I believe that shopping online may not significantly help the local

economies, but it is helping the national economy. If people are buying products then

the economy is being helped. Consumers are using the internet to find the best deal

possible. Also many people are using the internet to select large item for their vacations

Online shopping has helped people in the hurting economy. Consumers are spending

their money online while under the influence. Many people are thrilled with their

purchases that they made while under the influence. Customers say that drinking while

shopping online makes the sting of hitting the purchase button away. Shopping online

while intoxicated may be on its way to helping the economy.

There are many different benefits to online shopping. Different consumers have their

different view of online shopping, but it has made shopping much more convenient.

Online retailers are also benefiting from the fact that people can shop online, because it

allows college students that do not have the means to make it to the store be able to still

be a consumer. Many people have used online shopping for the convenience factor. If

you ask someone what is the best thing about shopping online they will say

convenience. Consumers are excited about shopping online, because there are so

many advantages that come from it.

Online Shopping is important to the economy, because it makes it more convenient for

consumers to spend the money and retailers to jump start the economy. The more

dollars that are put into the economy, the more productivity is generated. Retailers

should start moving towards online shopping as the standard of the shopping. Online

shopping is more convenient for people and it is easier for consumers with limited

mobility. Online shopping is going to be moving in the right direction.

RESEARCH METHODOLOGY

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.

DATA COLLECTION METHOD

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 tool-

Questionnaire-

Questionnaire 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.

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.

SAMPLE DESIGN

Sample Unit

For studying consumer buying behavior towards online shopping, samples were selected from

Gujarat states.

Sample Media

The respondents in the samples are reached through personal interviews.

Sampling Methods

Sampling methods fall under two broad categories-

a) Non-probability sampling methods.

b) Probability sampling methods.

Sample size- 100

Research place- GUJARAT States

Sample Design

I have prepared this project as descriptive type, as the objective of the study.

Data analysis

The tool that we will use for our data analysis is a 5 Point Likert Scale (1=Strongly

Disagree, 2=Disagree, 3=Uncertain / Not applicable, 4=agree, 5=Strongly Agree). The

Likert scale is a scale that is commonly used for questionnaires, and is mostly used in

survey research. Our research is also survey based research so it would be easy for us

to interpret the analysis. The advantage of using likert scale can be to create interest

among respondents as likert scale can be interesting for users and they often enjoy

completing a scale like this. Another advantage can be simplicity as the real strength of

Likert scale is the simplicity and ease of use. As mentioned above those two methods

are used to descriptive and survey questionnaire.

DATA ANALYSIS

LIMITATION OE THE STUDY

Every study will have its problems and limitations at some point during the project. This

study is no different. The use of a non-probalistic sample in the research was a major

limitation because there was no way to make sure that the sample taken represented

the total population of the Internet users. A non-probability sample lacks the accuracy

and precision that a probability sample might offer. Though this samples provided a

better insight about the online shoppers but there could be a possibility that a

respondent may have done online shopping but is not a regular Internet user. It was

seen that some respondents were biased towards some questions. Another major

limitation encountered doing the research assignment was the issue regarding the time.

Limitation of the study is the selection of the existing studies. Owing to time limitation,

only a few number of journals were searched. This may leave some other prominent

empirical studies out. In addition, owing to the multidisciplinary nature of online

shopping, it would be very interesting to compare IS literature to other disciplines that

study online shopping attitudes and behavior.

LIMITATIONS, PERILS AND DANGERS OF ONLINE SHOPPING

Scams and internet fraud is no more news in the internet world. Scammers have gone

deep online. Millions of dollars are reported every day of the year to be lost by innocent

souls. Men and women are duped online every day without any form of comfort in their

lives. Since the internet is for all and sundry, excessive exposure to it could be

dangerous and risky. The problem with online shopping ranges from A to Z. They are

avoidable if they are known. It should be clear that not everybody online is there to buy

or sell real products. Some are there for fraud and online scams. I am a victim of such

disaster before I learnt my lesson in the hard way. Internet fraud is all over my dear

reader.

As earlier quipped, internet fraud is very common on the internet market. Online

shopping is characterized with internet catastrophes. Since online shopping in the most

popular means of shopping, it is important to note that everybody is now online.

Exposure of the internet is now the avenue for some weaklings and indolent people to

fraud innocent shopping seekers. One need to be on the watch out against internet

fraud when one is sincerely going for online shopping.

Poor network server.

Sometimes in developing countries of the world has poor network provider. It could in

such a way limit one’s online shopping in any form. News has made it clear that internet

connections are faster than each other; some are very slow while some are time

wasters to say.

Goods in transit

Goods might be declared in transit when been tracked on the internet. This is a great

limitation. This hinders the buyer to receive the good at the stipulated time. He receives

such goods very late at the eleventh hour. It is very common to almost all shops. Steps

are on to set everything in the right order.

Currency barrier

Not every country in the world has the same currency. Dollars are popularly used but

some countries have no access to dollars. This has limited online shopping in the recent

years.

There are limitations. There are dangerous strives. There are perils. Language could

also limit online shopping. Before you pay for anything online.

RECOMMENDATION

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 software’s 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

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.

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.

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.

CONCLUSION

The e-commerce is one of the biggest things that have taken the business by a storm. It is

creating an entire new economy, which has a huge potential and is fundamentally changing the

way businesses are done. It is believed that electronic commerce will become a huge industry in

the coming years and online shopping is now becoming a significant part of the consumers daily

life to meet their never ending requirements in a convenient way.

Online shopping is picking up and is becoming a trend. More consumers are indulging into

Internet shopping as seen by the research because of the value proposition it offers to a customer

such as convenience, 24x7 shopping, doorstop delivery, a broad product selection and the ever-

expanding range of unique and unusual gift ideas as well as increased consumer confidence in

shopping on the internet is increasing. The main motivating factor seen during the research was

the convenience and customer service which drives the people to online shopping as a result

today they are buying airline and railway tickets, books, home appliances, electronic gadgets,

movie tickets, etc by logging on to a web site, than driving up to a store .

As the research suggest that increase in usage of internet increases the online shopping so there is

a need to increase in broadband penetration as it accelerates the growth of online trade. A huge

buyers and sellers across demographics are shopping online because of the changing lifestyles

and shopping habits but the majority of the users are males. It was seen that despite the immense

possibilities available on the Internet it is mainly used for mailing, chatting and surfing. E-mail

applications still constitute the bulk of net traffic in the country.

Increased Internet penetration, a hassle free shopping environment and high levels of Net

savviness see more and more Indians shopping online.

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Prussakov Evgenii, Online shopping through consumer’s eyes, Am Navigator, 2008.

Price Lisa, The best of Online Shopping, Ballantine Books, 2001

Simpson Paul, Online Shopping: The rough Guide,3rd edition, 2000

Lillian Clark and Peter Wright, A review of Common Approaches to understanding

Online Consumer Behaviour, PP- 5.87- 5.122

Tonita Perea Monsuwe, Benedict G. C. Dellaut and KodeRuyter, What Drives

Consumers to shop Online? A literature review, PP- 765-789.

Donthu, Naveen and Adriana Garcia (1999), The Internet Shopper, Journal of

Advertising Research, V39 (3), 52-58.

Research report By: IAMAI

Emerald, Framework for consumers’ intentions to shop online, research report

Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and NO.2, 2005

http://en.wikipedia.org/wiki/online_shopping

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www.flipkart.com

www.amazon .com