project

RESEARCH PROJECT REPORT ON

Consumer Behaviour

“A Case study of Online Shopping Trend at Veterinary Campus”, Selesih,” Aizawl

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

MASTERS IN BUSINESS ADMINISTRATION

UNDER THE SUPERVISION OF:

Dr. Amit KumarAsst Professor

Mizoram University

SUBMITTED BYAbhishek PrasadUniv. Roll no:1MBA 2013-14

DEPARTMENT OF MANAGEMENTMIZORAM UNIVERSITY

TANHRIL, AIZAWL

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CERTIFICATE

I hereby certify that this dissertation entitled: “Consumer Behaviour , A

case study of online shopping trend at Veterinary Campus ” is a bonafide work of

Abhishek Prasad under the guidance of Dr Amit Kumar. This dissertation is

submitted in partial fulfillment of the requirements for the award of MBA

(MASTER OF BUSINESS ADMINISTRATION of the Mizoram University (a Central

University).

During the period of study at this university, he/she was found to be a

sincere, hardworking and well-behaved person.

Date:

Dr Elangbang Nixon Singh Dr Amit Kumar

Head of Department Asst Professor

Mizoram University Mizoram University

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ACKNOWLEDGEMENT

I take this opportunity to extend my sincere thanks to Dr. Elangbam Nixon Singh ,Head of

Department . Dept of Management, Mizoram University for offering a unique platform to

earn exposure and garner knowledge in the field of marketing research and strategy.

I am deeply indebted to my project guide Dr Amit kumar . Dept of Management,

Mizoram University , for guiding me throughout the project and providing valuable

inputs and insights. His knowledge and experience served as a continuous source of

encouragement and motivation for me.

During this work in particular and my MBA in general I have collaborated with many of

my classmates for whom I have a high regard, and I wish to extend my warmest thanks

to all those who supported me all along.

Abhishek Prasad

Roll Number – 1

MBA Batch 2013-2015,

Dept of Management,

Mizoram University.

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DECLARATION

I do here by solemnly declare that the project report entitled “Consumer

Behaviour, A case study of Online Shopping trend at Veterinary

Campus, Selesih” submitted by me for partial fulfilment for the award of

MASTER OF BUSINESS ADMINISTRATION, is my own effort and has not

been submitted earlier for the award of any degree in full or partial.

Abhishek Prasad

Date:

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PREFACE

As a part of the MBA Circulam and in order to gain practical Knowledge in the field of

management, I am required to make a report on “Consumer Behaviour of Residents of

Veterinary Campus, Selesih” .The Basic Objective behind doing this project report is to

get knowledge of different tools of marketing. In this project report I have included

various concepts, effects and implications regarding consumer behavior of online

customers and their inclination towards Online Shopping.

Doing this Project report helped me to enhance my knowledge regarding the work in to

the attitude of consumer towards E- Commerce. We doing undergo many experiences

related with our topic concepts. Through this report we come to know about importance

of team work and role of devotion towards the work

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Contents

Chapter 1

INTRODUCTION……………………………………………………………… 8 -17

Aim & Establishment of the study……………………...……………………....18 - 20

Chapter 2

Literature review………………………………………………….……………. 22 - 26

Annexure…………………………………………………………….…………. 27 -31

Chapter 3

Analysis and interpretation:…………………………….……………………...33 -51

Chapter 4

FINDINGS……………………………………………………………………….53

Discussion of Findings and Implications…………………….…………………..53

SUGGESTIONS & SUMMARY………………………………………..………54

CONCLUSION…………………………………………………………………. 54

Limitations and Future Research Directions…………………………………….54

References ………………………………………………………………….......55 - 56

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Chapter 1

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INTRODUCTION

Online shopping or e-shopping is a form of electronic commerce which allows consumers

to directly buy goods or services from a seller over the Internet using a web browser. The

English entrepreneur Michael Aldrich invented online shopping in 1979. In the last few decades

internet has revolutionised the lives of millions of users with its immense applications. With the

growing proclivity and economic growth online shopping has increased drastically. The world of

electronic commerce, also known as e-commerce, enables consumers to shop at online stores and

pay for their purchases being contented at home. By just clicking a mouse, shoppers can buy any

product online -- from household items to home loans. Consumers expect merchants not only

make their products available on the Web, but also to make payments a simple and secure

process. Online shopping is beneficial for both consumers as well as merchants.

With 100 million Indians expected to shop online by 2016, e-commerce sector in the country will

grow to be a $15 billion market in two years, according to a report by Google and Forrester

Consulting. “The consumer confidence to shop online has grown significantly in the last year

and a half. About 8 million people were shopping online in 2012 and the number this year is

expected to be 35 million. By 2016, online shopper base will grow almost three times to 100

million, and over 50 million new buyers will come from tier I and II cities,” Google India

Managing Director Rajan Anandan said.

Additionally, of the 100 million online shoppers, about 40 million are expected to be women.

Already, women buyers in tier I cities are driving growth, outspending men by 2X.

“Women buyers are set to become the most significant contributor to the growth of online

shopping and there is a huge opportunity waiting to be unlocked in this user segment,” Google

India Industry Director for Ecommerce (Local and Classifieds) Nitin Bawankule said.

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Internet is changing the way consumers shop and buy 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 product and service in order to stay

ahead in highly competitive markets.

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. 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’ behavior from different perspectives.

With the above background in mind, this research has been conducted to gain an insight into the

online buying behavior of consumers. The objective is to understand the buying decision

process, the psychographic profile of the consumers and to find the factors which influence

online buying behavior.

The findings should help an Internet marketer to determine the product/service categories to be

used for marketing or to be introduced for a specific segment of consumers. This would also

allow them to add or remove features which are important in the buying decision process.

CONSUMER BUYING BEHAVIOUR

The study of consumer behavior enables marketers to understand and predict buying behavior of

consumers in the marketplace; it is concerned not only with what consumers buy, but also with why

they buy it, when and where and how they buy it, and how often they buy it, and also how they

consume it & dispose it.

DEFINITION

Consumer buying behavior can be defined as the way in which consumers or buyers of goods and

services tend to react or behave when purchasing products that they like. Buyers tend to exhibit

different types of buying behavior when they are in the process of purchasing goods and services and

the behaviors witnessed are influenced by the type of product he/she wants to buy.

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FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR

Fig: 1

Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class

Culture: - The set of basic values perceptions, wants, and behaviors learned by a member of

society from family and other important institutions. Culture is the most basic cause of a person’s

wants and behavior.

Sub Culture: - Sub culture includes nationalities, religions, racial group and geographic regions.

Many sub culture make up important market segments and marketers often design products.

Social Class: - Almost every society has some form of social structure; social classes are

society’s relatively permanent and ordered divisions whose members share similar values,

interests and behavior.

Social factors affecting consumer buying behavior:

A consumer’s behavior is also influenced by social factors, such as the (i) Groups (ii) Family (iii)

Roles and status.

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Groups: - Two or more people who interact to accomplish individual or mutual goals. A

person’s behavior is influenced by many small groups. Groups that have a direct influence and to

which a person belongs are called membership groups.

Family: - Family members can strongly influence buyer behavior. The family is the most

important consumer buying organization society and it has been researched extensively.

Marketers are interested in the roles, and influence of the husband, wife and children on the

purchase of different products and services.

Roles and Status: - A person belongs to many groups, family, clubs, and organizations. The

person’s position in each group can be defined in terms of both role and status.

Personal factors affecting consumer buying behavior: - It includes

Age and way of life:

A consumer does not buy the same products or services at 20 or 70 years. His lifestyle, values,

environment, activities, hobbies and consumer habits evolve throughout his life.

For example, during his life, a consumer could change his diet from unhealthy products (fast

food, ready meals, etc..) to a healthier diet, during mid-life with family before needing to follow

a little later a low cholesterol diet to avoid health problems.

For a brand or a retailer, it may be interesting to identify, understand, measure and analyze what

are the criteria and personal factors that influence the shopping behavior of their customers in

order to adapt.

Purchasing power and revenue:

The purchasing power of an individual will have, of course, a decisive influence on his behavior

and purchasing decisions based on his income and his capital.

As for social status, some consumers may also look for the “social value” of products they buy in

order to show “external indications” of their incomes and their level of purchasing power.

Lifestyle:

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Life Style is a person’s Pattern of living, understanding these forces involves measuring

consumer’s major AIO dimensions, i.e. activities (Work, hobbies, shopping, support etc.) interest

(Food, fashion, family recreation) and opinions (about themselves, Business, Products)

Personality and self-concept:

Personality is the set of traits and specific characteristics of each individual. It is the product of

the interaction of psychological and physiological characteristics of the individual and results in

constant behaviors.

Because consumers do not just buy products based on their needs or for their intrinsic features

but they are also looking for products that are consistent and reinforce the image they have of

themselves or they would like to have.

Psychological factors

Among the factors factors influencing consumer behavior, psychological factors can be divided

into 4 categories: motivation, perception, learning as well as beliefs and attitudes.

Motivation:

Motivation is what will drive consumers to develop a purchasing behavior. It is the expression of

a need is which became pressing enough to lead the consumer to want to satisfy it. It is usually

working at a subconscious level and is often difficult to measure.

Perception:

The process by which people select, Organize, and interpret information to form a meaningful

picture of the world.

Learning:

Learning is through action. When we act, we learn. It implies a change in the behavior resulting

from the experience. The learning changes the behavior of an individual as he acquires

information and experience.

Beliefs and attitudes:

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A belief is a conviction that an individual has on something. Through the experience he acquires,

his learning and his external influences (family, friends, etc..), he will develop beliefs that will

influence his buying behavior.

TYPES OF BUYING BEHAVIOR

There are four different types of buying behavior based on the types of products that are intended

to be purchased.

Fig: 2

STIMULUS-RESPONSE MODEL

Fig: 3

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The stimulus–response model is a characterization of a statistical unit (such as a neuron) as a

black box model, predicting a quantitative response to a quantitative stimulus. In this model,

marketing and other stimuli enter the customers “black box” and produce certain responses.

Marketing management must try to work out what goes on the in the mind of the customer – the

“black box”.

8 Reasons Consumers Like To Shop OnlineBecause of the numerous advantages and benefits, more and more people say they prefer online

shopping over conventional shopping these days. It’s important to understand the psyche of the

online shopper. Cater to this and you’ll have them flocking to your... er, online store. Here’s

what they say are important to them -- and here’s how you can get a leg up by catering to these

desires and fantasies. Know what the consumer wants and play to it -- plug into your thinking all

the ways that you can meet these desires, through your competitive intelligence, competitive

pricing, customer service, and more.

From shopping in their pajamas to convenience for elderly and disabled, the consumer comments

below highlight what’s positive about online shopping for them. Also because of wider choice,

not subject to upselling or impulse buying, better prices, good for the environment, and more.

There are many reasons for online retailers to be sanguine about the future of online retail. Here

are some consumers’ reasons for buying online, in their own words:

1) Convenience: Where else can you do shopping, even at midnight, wearing your

jammies? You don’t have to wait in a line or wait till the shop assistant helps you with

your purchases. You can do your shopping in minutes even if you are busy, apart from

saving time and avoiding crowds. Online shops give us the opportunity to shop 24 x 7

and also reward us with ‘no pollution’ shopping.

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2) Better Prices: I get cheap deals and better prices from online stores because products

come to you directly from the manufacturer or seller without middlemen involved. Many

online shops offer discount coupons and rebates.

3) Variety: One can get several brands and products from different sellers at one place. You

can get in on the latest international trends without spending money on travel; you can

shop from retailers in other parts of the country or even the world without being limited

by geographic area... These stores offer a far greater selection of colors and sizes than

you will find locally. If you find that the product you need is out of stock online, you can

take your business to another online store where the product is available.

4) Fewer Expenses: Many times when we opt for conventional shopping we tend to spend a

lot more than the required shopping expenses, on things like eating out, traveling,

impulsive shopping etc.

5) Comparison of Prices: Online shops make comparison and research of products and

prices possible. Online stores also give you the ability to share information and reviews

with other shoppers who have firsthand experience with a product or retailer.

6) Crowds: If you are like me, you would like to avoid the crowds when you do the

shopping. Crowds force us to do a hurried shopping most of the time. Crowds also create

a problem when it comes to finding a parking place nearby where you want to shop and

going back to your vehicle later loaded with shopping bags.

7) Compulsive Shopping: Many times when we go out shopping we end up buying things

which we do not require because of the shopkeepers’ upselling skills -- or we’ll

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

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8) Discreet Purchases: Some things are better done in privacy. Online Shops enable me to

purchase undergarments and lingerie or adult toys without the embarrassment that there

are several people watching me and my choices.

More comments about shopping online:

Shopping online is so much easier than lugging my daughter around with me, and you can

find great deals just about everywhere, that make up for the shipping and handling fees.

Online shopping will become a necessity for most of the people in the world. You can easily

compare price, features, function, and get the latest updates of any products just by your

mouse!

Online shopping makes it easy for me to compare sellers before buying. I can get more detail

before making a decision to buy or not.

Nowadays the car park charges are so high that it puts me off; and with online shopping I can

look at what they have to offer without being bothered or interrupted by shop assistants.

With online shopping, we all benefit greatly from this endless competition between online

retailers. Another excellent way to save money by buying online is deals offered by retailers,

great discounts and savings only for those who purchase specific products online.

It is so much easier to sit at home, find my size, color, and style and then it's delivered to my

front door.

One can shop online from a worldwide selection of a specific product. Everything is just one

click way from you -- and online comparison of prices helps to buy cheapest product within a

specific quality range.

Online shopping is convenient and hassle free. In India more and more people are shopping

online each day. And they are reaping the benefits as well. Some websites are also offering

online shopping of grocery products – which I think is a leap forward from the typical online

selling.

Better prices is one of the main reasons that online shopping has taken off. The simple fact

that the middle men are cut out of the delivery chain leads to a reduction in the cost and thus

the final price of the product.

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I love online shopping because my dog is not allowed in a lot of stores, even though he is

well behaved. I hate crowds and lines too.

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Aim & Establishment of the study

Aim of Study:

PRIMARY RESEARCH OBJECTIVE

To determine the factors and attributes which influence online buying behavior of consumers.

SECONDARY RESEARCH OBJECTIVES

To study the factors affecting consumers to buy online.

To find out which type of goods customers generally purchase online.

To find out which type of shopping is more satisfactory to them.

To study customer online purchasing power.

To find out which type of shopping is more satisfactory to them.

Scope of Research

This study helps to know the online buying behavior of customer.

This study helps to know which type of goods customers generally purchase online.

To study the factors affecting the consumers to buy online.

This study helps to know the interest of customers to shop online in future.

Methodology

The purpose of this study is analyzing factors affecting online shopping behavior of consumers

in Veterinary Campus, Selesih. This goal has been followed by examining the effect of perceived

risks, service and infrastructural variables and return policy on attitude toward online shopping,

impact of domain specific innovativeness, subjective norms perceived behavioral control and

attitude toward online shopping on shopping behavior as the hypotheses of the study.

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Independent variables in this study are as follows:

Financial risks

Product risks

Monthly Income

Non-delivery risk

Gender

Return policy

Education

Subjective norms

Perceived behavioral control

Credit Card, E-banking, use of Social Media

Dependent variables are:

Attitude

Average Amount spent

Online shopping behaviour

For testing hypotheses of the study, statistical tools of MS excel was used.

The research work is conducted by taking Five hypotheses:

1. Traditional shopping is more satisfactory to customers.

2. Customers are not much aware about online shopping.

3. Fear of non-delivery of order will have negative influence on attitude towards shopping

online.

4. Having a friendly website and good service to better help the customers for shopping,

will have positive influence on attitude towards shopping online

5. The future of online shopping is bright in Veterinary campus.

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Sources of Data:

This study uses Primary Data . In a bid to test the research model and achieve the research

objectives , a survey questionnaire was conducted among the dwellers of the Veterinary college .

The data were collected from 50 respondents through Structured questionnaires. The study

includes respondents in Veterinary College.

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Chapter 2

Literature review

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The major reasons for conducting this study are to find out the factors affecting the Residents of

veterinary College/campus (consumers ) to buy online, to find out which type of goods

customers generally purchase online, and to find out which type of shopping is more satisfactory

to them.

Compared to physical stores, online stores have many advantages: They are convenient and time

saving and no more traveling and waiting in lines is needed. They are open in all time and they

are accessible anytime and anywhere. These stores provide consumers with free and rich

information about products and services. They also have some online tools to help consumers

compare and make purchase decisions among various products and services.

However, online stores also have disadvantages compare to brick-and-mortar stores. In online

stores customers can’t have any sense about the product they see in the internet (seeing,

touching, tasting, smelling, and hearing) as they search for and purchase products. In online

stores, consumers may develop low trust and perceive elevated risk highly because of the lack of

face-to-face communication. Although this difficulty can be reduced by using certain software

tools such as the online recommendation agent (Häubl and Murray, 2003; Xiao and Benbasat,

2007) and the online negotiation agent (Huang and Sycara, 2002; Huang and Lin, 2007).

Many studies have been concerned with identifying the characteristics of online customers.

Factors investigated in this respect have included demographics [Verchopoulos, Siomkos, and

Doukidis, 2001], psychographics [Sin and Tse 2002], and attitudes [George 2002]. For example,

Verchopoulos et al. [2001] found that adopters of Internet shopping in Greece have generally

been young, highly, educated, high-income earning males who have previously used it. Sin and

Tse [2002] found that adopters in Hong Kong have similar demographic profiles, in addition to

being more time-conscious, self-confident, and heavier users of the Internet. In the case of Saudi

Arabia, Abdul-Muhmin and AL-Abdali [2004] found that the adoption of B2C e-commerce is

greater among older, highly educated, high-income respondents.

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The Primary focus of the project is to find out the customer behavior of the Inhabitants of

Veterinary college, Selesih in relation to Online Shopping. There are numerous questions on

various subjects which try to evaluate the different dimensions of consumer behaviour.

Post Data Reduction, the data would further be analyzed to find out the impact of various factors

on each other as well the correlation amongst them . For testing hypotheses of the study,

regression analysis was used. The factors as well as their correlation would be studied with the

help of the following techniques:

REGRESSION ANALYSIS; Regression analysis is a statistical technique for estimating the

relationships among variables. It includes many techniques for modeling and analyzing several

variables, when the focus is on the relationship between a dependent variable and one or more

independent variables. More specifically, regression analysis helps one understand how the

typical value of the dependent variable changes when any one of the independent variables is

varied, while the other independent variables are held fixed

The Regression Analysis would be performed between the dependent variable Attitude,Average

Amount spent online, Online shopping behavior and the independent variables such as Frequency

of Purchase of products and services online, Income, owning a Credit Card , Gender, Occupation,

Education and Age, Financial risks, Product risks, Non-delivery risk.

.

Conceptual Model:

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Fig 4: Conceptual Model

DISCRIMINANT ANALYSIS: It is a regression based statistical technique used in determining which

particular classification or groups (such as 'ill' or 'healthy') an item of data or an object (such as a

patient) belongs to on the basis of its characteristics or essential features. It differs from group

building techniques such as cluster analysis in that the classifications or groups to choose from

must be known in advance.

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CLUSTER ANALYSIS: Cluster analysis is a class of statistical techniques that can be applied to data that

exhibit “natural” groupings. Cluster analysis sorts through the raw data and groups them into

clusters. A cluster is a group of relatively homogeneous cases or observations. Objects in a cluster

are similar to each other. They are also dissimilar to objects outside the cluster, particularly objects

in other clusters. Cluster analysis is also called classification analysis. In cluster analysis there is no

prior knowledge about the group or cluster membership is required for any of the objects, which is in

contrast with the discriminant analysis.

Depending on the reasons for a person to be online, consumers can be clustered into homogeneous

groups. The corresponding questionnaire and factors are listed below:

Q: Mark the importance of the factors which influence you while making an online purchase?

Brand Name

Service delivery time

Website Content

Recommendation by friends

Online Ads - posters/banners

Online reviews by users of product

Ease of payment and security

FACTOR ANALYSIS: Factor analysis is a statistical method used to describe variability among

observed, correlated variables in terms of a potentially lower number of unobserved variables

called factors. In other words, it is possible, for example, that variations in three or four observed

variables mainly reflect the variations in fewer unobserved variables. Factor analysis searches for

such joint variations in response to unobserved latent variables. The observed variables are

modeled as linear combinations of the potential factors, plus "error" terms. The information gained

about the interdependencies between observed variables can be used later to reduce the set of

variables in a dataset. This procedure helps gaining insight into psychographic variables.

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To find the major factors on which customers can be loaded, Factor Analysis would be done based

on Questions which can be of this sort:

Please select your level of agreement to the following questions.

a. Shopping on internet saves time.

b. It is a great advantage to be able to shop at any time of the day.

c. I prefer traditional/conventional shopping to online shopping

d. Online shopping is risky

The complete set of questions is given in Q11 of the annexure. The above attributes need to be

answered on a 5-poing Likert scale (1= Strongly Agree and 5= Strongly Disagree).

Annexure

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ONLINE SHOPPING HABITS AMONG STUDENTS, SUPPORTING STAFF AND PROFESSORS OF VETERINARY

COLLEGE, SELESIH

Questionaire

Please fill in the Consumer Behaviour Survey to help me in my Project. Your responses would serve

as a base to my research , and would guide me in discovering important facts about the Buying

Process.

Name:

Gender: Male Female Age:

Education level

Matriculation Higher Secondary Bachelor’s Degree

Master Degree PhD Degree

Occupation

Under graduate student Post graduate student Supporting Staff

Asst Professor Asso Professor Professor

Monthly income:

Less than Rs.2000 Rs. 2000-5000 Rs.5000-10000 Rs.10000-40000

Rs .40000- 70000 More than Rs 70000

1. Have you ever had online shopping?

Yes No

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2. If you never had online shopping, please specify the reason

I don’t know about online shopping

Risk of credit card transactions

Internet illiteracy

Risk of identity theft

Other reasons,

a. Please

specify……………............................................................................................................

3. How many times did you have online shopping during last one

year?................................................

4. What is your Favourite online Shopping site?

a. Flipkart b. Myntra c. Snap Deal d. Jabong e. Amazon

Other Please Specify________________

5. In general, you prefer to do your shopping of following commodities : ( select only one)

Items

a. Software

b. Cosmetics

c .Books

d. Clothing

e. Furniture

f. Electronic gadgets

g. Computer Hardware

h. Music,Videos,CDs

i. Travel (airlines,Car rentals, hotels)

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f. Other Items

g. Other (Please Specify)______________________

6. : Mark the importance of the factors which influence you while making an online purchase?

Very Important Important Of Little Importantance Unimportant

Brand Name

Service delivery

time

Website Content

Recommendation

by friends

Online Ads -

posters/banners

Online reviews by

users of product

Ease of payment

and security

7. How much money did you spend for online purchase in last 1 year?

None

Upto Rs 500

Rs 500- Rs 2000

Rs 2000 – Rs 5000

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Rs 5000 – Rs 10000

More than Rs 10000

8. How often do you use internet for shopping?

Very often Often Sometimes Rarely Never

9. Do you use internet prior to a purchase for collecting information?

Yes No

10. If yes, how often?


11. Please select your level of agreement to the following questions.

Strongly

Agree

Agree Indifferent

/ Neutral

Disagree Strongly

Disagree

a) Shopping on internet saves time.

b) It is a great advantage to be able to shop

at any time of the day.

c) I prefer traditional/conventional

shopping to online shopping.

d) Online shopping is risky

e) Online shopping will eventually

supersede traditional shopping.

f) A long time is required for the delivery of

products and services.

g) Selection of goods available on the

internet is very broad.

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h) The description of products shown on the

websites are very accurate.

i) The information given about the product

on the site is sufficient.

j) Online shopping is as secure as

traditional shopping

k) While shopping online I hesitate to give

my credit /Debit card no.

l) Internet reduces the monetary cost of

traditional shopping.

m) Necessity of having a bank account or

credit card creates difficulty.

n) I prefer cash on delivery than payment

via credit/debit card.

o) I will purchase only if there is provision of

home delivery.

p) Online shopping infrastructure in India is

underdeveloped.

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Chapter 3

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Analysis and interpretation:

DATA COLLECTION METHOD

EXPLORATORY RESEARCH

For exploratory research, following techniques were used:

Open-ended questionnaire- These questions were used to discover different attributes required to

study the online buying behavior.

SECONDARY RESEARCH

Secondary research was done from the following sources:

Journals and research papers available online.

Analysis of internet shopping survey:

1. Have you ever had online shopping?

Yes No

Result 1:

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89%11%

yes no

INTERPRETATION: The above graph represents that 89 % of residents of veterinary

college have done online shopping at some point of time or other while there are still 11% of

residents who have never done online shopping.

2. If you never had online shopping, please specify the reason

I don’t know about online shopping

Risk of credit card transactions

Internet illiteracy


Other reasons,

b. Please

specify……………............................................................................................................

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Result 2:

I don’t know about online...

Risk of credit card transact...

Internet illiteracy


Other reasons

0

20

40

60

24%

60%

8%6%

2%

INTERPRETATION: The above graph represents the reasons which have abstained the

people from online shopping. Out of the 11% residents who have never purchased online 24%

don’t know about online shopping. Other 60% of them fear to make credit card transactions.8%

of them accepted to be Internet illiterate. 6% of non –online purchasers fear identity theft.2%

of them have other reasons for not shopping online.

3. How many times did you have online shopping during last one

year?................................................

Result 3:

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1 - 3 times 4 - 6 times 7 - 9 times 9 - 11 times More than 11 times

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Number of times Customers Purchased through online Shopping Sites in one year.

INTERPRETATION: The above graph represents the frequency of purchases in a time span

of one year.The above graph represents that 27% of the customers have made purchases

between 1-3 times.45% of the online purchasers have done 4-6 times purchases. More

aggressive customers making 7-9 times purchases range between 18% .The shopaholics range

upto 10%.

4. What is your Favourite online Shopping site?

b. Flipkart b. Myntra c. Snap Deal d. Jabong e. Amazon

Other Please Specify________________

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Result 4:

11%

62%

20%2% 5%

Flipkart

Myntra

SnapDeal

Jabong

Amazon

INTERPRETATION: The clear winner here stands to be Myntra with a whooping percentage

share of 62%. The other favourite site among customers are snapdeal with 20% .Other

preffered sites are flipkart with 11% ,Amazon with 5% and jabong with 2%.

5. In general, you prefer to do your shopping of following commodities : ( select only one)

Items

a. Software

b. Cosmetics

c .Books

d. Clothing

e. Furniture

f. Electronic gadgets

g. Computer Hardware

h. Music,Videos,CDs

i. Travel (airlines,Car rentals, hotels)

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f. Other Items

g. Other (Please Specify)______________________

Result 5:

Clothing Books Electronic gadgets

Travel Computer Hardware

Software Music,Videos,CDs

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%47%

20%

13%10%

6%3%

1%

INTERPRETATION: The above graph represents the commodities consumers prefer to

purchase through e –commerce sites. Mostly consumers prefer to buy clothing which build

upto 47%. 20% of the consumers buy books. Another 13% of the consumers preffer to buy

electronic gadgets . While 10% of them spend on travel.6% of them are buying computer

hardware .3% of them also like to buy software and 1% buy music,videos and CDs.

6. Mark the importance of the factors which influence you while making an online purchase?

Very Important Important Of Little Importantance Unimportant

Page | 38

Brand Name

Service delivery

time

Website Content

Recommendation

by friends

Online Ads -

posters/banners

Online reviews by

users of product

Ease of payment

and security

Result 6:

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Brand Nam

e

Servic

e deliv

ery time

Websit

e Conten

t

Recommen

dation by f

riends

Online A

ds - poste

rs/ban

ners

Online r

eview

s by u

sers o

f product

Ease o

f paym

ent a

nd securit

y 0%

20%

40%

60%

80%

100%

120%

Unimportant Of Little ImportantanceImportant Very Important

INTERPRETATION: The above graph represents the importance of the factors which

influence customers while making an online purchase.

i) Brand name: Brand name is very important to the customers .33% of the customers

feel that brand name is a very important factor influencing purchase decisions.67 %

of the purchasers feel that brand name is important. None of the shoppers ignore the

Brand name.

ii) Service delivery time: The Service delivery time is very important to 83% of the

customers while 17% of the online purchasers feel that delivery time is an important

factor. None of the consumers feel that delivery time is unimportant.

iii) Website Content: 23%of the shoppers agree that website content is very important.

70% of the clients feel that it is an important factor while rest of the 7% people say

that websit content is of little importance to them.

iv) Recommendation by friends: 12% of the customers feel that recommendation by

their friends is a very important factor. 28% of the consumers say their friends

recommendation is important. A large part of the online purchasers constitu ting upto

43% feel that friends recommendation is of relatively little importance to them. There

Page | 40

is 17% of the population which feels that friend’s recommendations are not at all

important.

v) Online Ads- posters /banners: 16% of the consumers accept that advertisements are

very important to them. There are another 27% who feel that advertisements are

important.These group of consumers are those who have a relatively updated

knowledge of the market and are aware customers.

The consumers who feel that online ads,posters or

banners are of little importance make upto 42% while there are 15% of the shoppers

who say that advertisements are not important.

vi) Online reviews by users of product: 77% of the shoppers agree that reviews are

very important.Reviews are given by those consumers who have purchased a similar

product and have given their feedback online on the site.These reviews seem very

important to most of the online purchasers . 22% of the customers say that reviews

are important. There are 1% of the consumers who say that reviews are of little

importance while none of them have said that reviews are not important.

vii) Ease of payment and security: A very high percentage of 92% agree to the fact that

online payment security is very important.8% of the consumers feel that online

security is important.None of them are in the favour of ignoring the importance of

online payment security.

7. How much money did you spend for online purchase in last 1 year?

None

Upto Rs 500

Rs 500- Rs 2000

Rs 2000 – Rs 5000

Rs 5000 – Rs 10000

More than Rs 10000

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Result 7:

None Upto Rs 500 Rs 500- Rs

2000 Rs 2000 – Rs 5000 Rs 5000 –

Rs 10000 More than Rs 10000

0%5%

10%15%20%25%30%35%40%45%50%

11%

4%

46%

29%

6%4%

INTERPRETATION: The above graph represents the amount of money spent by

consumers in the last one year.

i) None : 11% of the respondents who have never made an online purchase

obviously have not spent anything.

ii) Upto Rs. 500: 4% of the consumers have spent upto Rs. 500.

iii) Rs 500-Rs 2000: 46% of the consumers have spent between Rs 500- Rs 2000.

iv) Rs 2000 – Rs 5000: 29% of the consumers have spent in between Rs 2000 –Rs

5000.

v) Rs 5000- Rs 10000: 6% of the consumers have spent within Rs 5000 – Rs 10000.

vi) More than Rs 10000: 4% of the shoppers have spent more than Rs 10000.

8. How often do you use internet for shopping?


Result 8:

Page | 42

6%20%

55%

8% 11% Very often

Often

Sometimes

Rarely

Never

INTERPRETATION: The above graph represents the frequency of purchases done by

customers on the e-commerce sites. 6% of the customers claim that they shop very often on e-

commerce sites.20% say they often go for online shopping while 55% of them agree that they

shop online some times.8%of the customers rarely go for online purchase.11%of them have

never made any online purchases.

9. Do you use internet prior to a purchase for collecting information?

Yes No

Result 9:

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89%

11%

Yes No

INTERPRETATION: The above graph represents the customers who use internet for

collecting information prior to making a purchase. 89%of them say yes while 11% of them say

no. These 11% of them are obviously the ones who have not experienced online shopping.

10. If yes, how often?


Result 10 :

Page | 44

Very oftenOften

Sometimes Rarely

Never

0%

10%

20%

30%

40%

50%

60%

19%

52%

12%

6% 11%

INTERPRETATION: The above graph represents the group of customers who research

before making a purchase. 19%of the customers claim that they very often do deep research on a

product before making a purchase.52 % put themselves on often studying products on the

internet while 12% agree that it is only sometimes that they search for information on the

internet.6% of them fall in the category of blind/unaware buyers who purchase products without

much of prior information search.11% of them abstain themselves from purchasing online.

11. Please select your level of agreement to the following questions.

Result 11: Levels of agreement to various questions.

Page | 45

a.)Sh

opping on in

ternet

saves

time.

b.) It is

a gre

at ad

vantag

e to be a

ble to sh

op at an

y time o

f the d

ay.

c.) I p

refer

traditional/

conventional s

hopping to onlin

e shopping.

d.) Onlin

e shopping is

risky.

e.) Onlin

e shopping w

ill eve

ntually su

persed

e trad

itional shopping.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

INTERPRETATION: The above graph represents the level of agreements to various

statements.

Page | 46

a) Shopping on the internet saves time: 67% of the customers strongly agree that

shopping on the internet does save time. The rest of the 32% also agree shopping on

the internet saves time.there are none of the customers who disagree to the above

statement.

b) It is a great advantage to be able to shop at any time of the day:74% of the

customers strongly agree that yes it is a great advantage to be able to shop at any time

of the day. Unlike traditional shopping these store are open 24 X 7. Another 26% of

the customers also agree that it is an advantage in consideration to time.

c) I prefer traditional/conventional to online shopping: 19% of the customers

strongly agree that they prefer traditional shopping over online shopping. 32% agree

that they are still more inclined towards conventional shopping over traditional

shopping. 42% of the respondents are neutral and do not have a stand on either of the

sides. 6% disagree to the statement while 1% stongly disagree.

d) Online shopping is risky:11% of the respondents strongly agree that online shopping

is risky.16% of the respondents agree that shopping is risky.13% of them are neutral

on the statement. A large share of 55% do not agree that online shopping is risky.5%

of the purchasers strongly disagree that online shopping is risky.

e) Online shopping will eventually supersede traditional shopping: 3% of the

customers strongly agree that online shopping will eventually supersede traditional

shopping. 4% of the customers agree that eventually online shopping will take over

traditional shopping.9% are indifferent on the point. A large part of 61% consider that

online shopping will not take over conventional shopping.23% of the customers

strongly disagree to the above statement.

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0%20%40%60%80%

100%

Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

Result 11: Levels of agreement to various questions.


statements.

f) A long time is required for the delivery of products and service: 5% of the

customers strongly agree that a long time is required for the delivery of

products .21% of the customers agree that it requires quite some time for the delivery

of products to their location.10% do not have any thing to comment on the statement.

52% of the customers are quite satisfied and disagree that delivery of products and

service requires a long time. There are 12% of the customers who are very satisfied

with the service.

g) Selection of goods available on the internet is very broad : 28% of the customers

strongly feel that the options available to them on online shopping sites is very

broad.66% of the customers are also very satisfied with the broad range of options

available on the e- commerce sites.6% of them are neutral .There are none who doubt

or are dissatisfied with the choices available to them on the shopping sites.

h) The description of products shown on the websites are very accurate:19% of the

customers strongly agree that the description of products shown on the websites are

very accurate.51% of the customers also are in favour of the above statement.11%

Page | 48

have a neutral view to it.12% disagree that the products description are accurate. 7%

of the customers are quite dissatisfied with the accuracy of product description.

i) The information given about the product on the site is sufficient: 16% of the

customers strongly agree that information given about the product on the site is

sufficient.49% of the customers agree that product information is sufficient.9% of the

customers are neutral to the statement.16% of the customers are not satisfied with the

information given about the product on the site.10% of the customers seem

completely dissatisfied.

j) Online shopping is as secure as traditional shopping: 18% of the customers

strongly agree that online shopping is as secure as traditional shopping.32% of the

customers also agree that online shopping is secure .11% do not have a clear

perception so they are neutral. 23% of the customers disagree to the above statement.

They somewhat have a feeling of insecurity.16% have a high feeling of insecurity

towards online shopping.

0%20%40%60%80%

Strongly AgreeAgree

NeutralDisagree

Strongly Disagree

47% 56%

7%

72%

5%

32%15%

19%

62%

6%

73%

Page | 49


statements.

k) While shopping online I hesitate to give my credit /Debit card no: 23% of the

customers strongly agree that while shopping online they hesitate to give their

credit/debit card numbers. 47% of the customers have also agreed that they hesitate to

some extent to give their credit card numbers.6% of the customers are indifferent to

it. 15% of the customers are comfortable in giving their credit/debit card numbers.

9% of the customers strongly disagree to the satement as they are very comfortable

to giving their credit/debit card numbers while shopping online.

l) Internet reduces the monetary cost of traditional shopping: 11% of the customers

strongly agree that internet does reduce the monetary cost over traditional shopping.

56% of other customers also strongly agree that internet reduces the monetary cost

compared to traditional ways of shopping. 8% of the customers do not have a definite

point and are neutral to the question.19% of the customers disagree to the statement

as they do not find any significant reduction in monetary cost.6% of the customers are

strongly dissatisfied with the above statement.

m) Necessity of having a bank account or credit card creates difficulty: There are

only 1% of the customers who find that necessity of bank account and credit cards

creates difficulty.7% of the customers also agree that bank account and credit card

necessity does create some amount of difficulty. 7% of the customers are neutral to

the statement. 62% of the customers disagree with the statement as bank accounts are

priority needs in the modern day. There are 23% more customers who strongly

disagree with the above statement.

n) I prefer cash on delivery than payment via credit /debitcard: 8% of the customers

strongly agree that they prefer COD compared to online payment.72% of the

customers also strongly agree that COD is a much better option.12% have a neutral

view. 6 % of the customers disagree to the statement.2% strongly disagree.

o) I will purchase only if there is provision of home delivery: 2% of the customers

strongly agree that they will purchase only if there is a provision of home delivery.

Other 5% of customers also prefer home delivery. 6% are neutral towards this. 73%

Page | 50

of the customers do not have much alignment towards home delivery. 14% of the

customers strongly disagree towards the statement.

p) Online shopping infrastructure in India is underdeveloped: 18% of the customers

strongly agree that shopping infrastructure is underdeveloped .32% of the customers

agree that shopping infrastructure in India has scopes fore development.11 % of the

customers are neutral on the statement.23% disagree to the statement that

infrastructure in India is underdeveloped.16% of the customers strongly disagree.

Page | 51

Chapter 4

Page | 52

FINDINGS

Discussion of Findings and Implications

From the study on consumer behavior it is clearly evident that most of the customers are well

aware of the current marketing trends of Online Shopping. However not all of the inhabitants of

the veterinary campus are online shoppers ,there is still 11% of the population who are unaware

of the E-commerce activity or due to one or more reasons keep themselves away from it.

The primary data was collected by a structured questionnaire with a sample size of 50, which

resulted in the finding that 89% of the people shop online while there are still 11% of the people

who are unaware or fear online shopping due to some reasons and have abstained themselves

from going online . Regular online shoppers in the focused group are less, most of them like to

shoponline occasionally. Primarily, customers like to shop for online clothing , Books and after

that Electronics Gadgets. The products they are least likely to purchase are furniture or Music

video Cds. 70% respondents are still more satisfied with traditional shopping, so more efforts

should be made in to bring satisfaction to online buyers. Online shopping will have a great future

in Veterinary Campus, 95% respondents would like to shop online in future.

Though online shopping seems to have a good future in Vety Camus but still 40% of the total

respondents don’t have much affinity towards shopping online. Thus there is a need to take steps

for making them aware about online shopping, to educate them about online shopping and to

bolster their confidence.

1. The first hypothesis proved true as 60% of respondents are still more satisfied with

traditional shopping.

2. The second hypothesis partly proved true because the research work showed that many

Indian women are enthusiastically shop online but many are still not interested.

3. The third hypotheses also proved true as 90% of respondents like to shop online in

future, which shows the brightness of future of online shopping in India.

Page | 53

SUGGESTIONS & SUMMARY

Research thoroughly about the website before ordering and check whether it is offering a

secure portal or not. Secure websites use encryption techniques to transfer information

from buyer’s computer to the online seller’s computer. The only person who can decrypt

the code is the person being granted with access privileges. Shop at Secure Web portals

CONCLUSION

Though online shopping seems to have a good future in India but still 40% of total

respondents don’t like to shop online thus there is a need to take steps for making them

aware about online

shopping, to educate them about online shopping & to fetch their confidence.

The percentage of regular online shoppers are less than as compared to occasional buyers,

so steps should be taken by online companies to convert the occasional buyers in to

regular shoppers.

Area of advertisements should be broadening to add more & more customers.

It’s the need of time that customers should change their attitude and accepts the benefits

of online shopping.

Companies who are offering products or services online should be aware of quality of

their product or services so that their goodwill would be maintained.

Limitations

1. The research was conducted during a specific period and as consumer behavior

is a constantly volatile scenario with innumerous external factors affecting the

consumer. A stable consumer behaviour is difficult to realize for a long duration

of time.

Page | 54

References:

Websites:

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Global online shopping habits: PwC. (n.d.). Retrieved from www.pwc.com/gx/en/retail-consumer/retail-

consumer.../index.jhtml.

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Journal of the Academy of Marketing Science .

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VALIDATION. Journal of Electronic Commerce Research, VOL 10, NO 1, .

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