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“A STUDY ON CONSUMER PERCEPTION TOWARDS

ONLINE SHOPPING IN INDIA”

Project Report Submitted to the University of Mysore in


Partial Fulfilment of the requirement for the Award of Degree
In

MASTER OF COMMERCE

SUBMITTED BY

GOUTHAMA. M.A.
M.Com, IV semester
Reg No: CM183741

DOS in COMMERCE

Manasagangotri Mysore

UNDER THE GUIDANCE OF:

Prof. B. NAGARAJU M.com, Ph.D.,


Professor DOS in COMMERCE

Manasagangotri

Mysore-570006

University of Mysore
DEPARTMENT OF STUDIES IN COMMERCE
Manasagangotri Mysore-570006
2019-2020
“A STUDY ON CONSUMER PERCEPTION TOWARDS
ONLINE SHOPPING IN INDIA”

Project Report Submitted to the University of Mysore in


Partial Fulfilment of the requirement for the Award of Degree
In

MASTER OF COMMERCE

SUBMITTED BY

GOUTHAMA. M.A.
M.Com, IV semester
Reg No: CM183741

DOS in COMMERCE

Manasagangotri Mysore

UNDER THE GUIDANCE OF:

Prof. B. NAGARAJU M.com, Ph.D.,


Professor DOS in COMMERCE

Manasagangotri

Mysore-570006

University of Mysore
DEPARTMENT OF STUDIES IN COMMERCE
Manasagangotri Mysore-570006
2019-2020
UNIVERSITY OF MYSORE

2019-2020

Prof. M. KUMARASWAMY DEPARTMENT OF STUDIES IN COMMERCE,

Professor and Research Supervisor MANASAGNGOTRI,

MYSURU-570006

CERTIFICATE
This is to certify that the Project work entitled “A STUDY ON CONSUMER

PERCEPTION TOWARDS ONLINE SHOPPING IN INDIA” is a record of


Project work done by Mr. GOUTHAMA.M.A., Student of DoS in Commerce during the

period of his study at DoS in Commerce under the supervision of Prof.B.NAGARAJU,


Professor of Commerce, Department of Studies in Commerce,
Manasagangotri, University of Mysore, Mysuru.

DATE: Dr. M. KUMARASWAMY

PLACE: MYSURU CHAIRMAN


UNIVERSITY OF MYSORE

2019-2020

Prof. B. NAGARAJU, M.com Ph.D. DEPARTMENT OF STUDIES IN COMMERCE,

Professor and Research Supervisor MANASAGANGOTRI,

MYSURU-570006

MOB:- 9945636998, Gmail – ID:- naga2747@gmail.com

CERTIFICATE

This is to certify the Mr. GOUTHAMA.M.A., Bonafede student of 4th semester,


M.Com of Department of Studies in Commerce during the academic year 2019-2020 and the
project report Entitled “A STUDY ON CONSUMER PERCEPTION TOWARDS

ONLINE SHOPPING IN INDIA” has been prepared by him in a partial fulfilment for
the award of MASTER OF COMMERCE under the my Supervision.

Date:-
Place: Mysuru Prof.B.Nagaraju
DECLARATION

I am GOUTHAMA M A, hereby declare that the project report entitled “A


STUDY ON CONSUMER PERCEPTION TOWARDS ONLINE SHOPPING IN
INDIA” prepared by me during 2019-2020 under the valuable guidance of

Prof.B.NAGARAJU professor and Research Guide, DOS in commerce,


Manasagangotri, Mysore in partial fulfilment for the award of Masters of
Commerce from the University of Mysore, Mysuru.

I further declared that this project is the result of my own effort and has not
been submitted to any other University or institution by me or anyone else for the
award of any degree or diploma.

Place: Mysuru

Date:

(GOUTHAMA M A)
ACKNOWLEDGEMENT

First I am especially indebted to my Father Anantha Bhatta and My Mother


Chetana for their Continuous Encouragement and Co-operation.

I express my deep Sense of Privilege to Prof. B. Nagaraju for his enduring


inspiration, guidance, thought provoking suggestion, sustained help and all his
monumental patience, nobility and kindness which enabled me to pass though successfully
a good number of necessary ordeals.

I am especially indebted to Dr. M. KumaraSwamy, DoS in Commerce,


Manasagangotri, University of Mysore for his continuous support and inspiration for
completing the Project.

I am especially indebted to all Professors, DoS in Commerce, Manasagangotri,


Mysuru for their Valuable Guidance throughout the Project Work.

I also extend my Sincere Thanks to Our Classmates and My Friends.

Finally, I would like to express my sincere thanks to all the people who have
helped to fulfill my project work directly or indirectly.

Place: Mysuru GOUTHAMA M.A.


Date:
TABLE OF CONTENTS

1.Contents

SI No. Contents Page No.

1 Introduction 01-11

2 Conceptual Framework 12-25

3 Online Shopping in INDIA 26-33

4 Data analysis and Interpretations 34-49

5 Findings and Suggestions 50-53

6 Conclusion 54-55

7 Bibliography 56-58

8 Appendices 59-62
2.List of Tables

Table No. Title of the table Page No.


4.1 Table showing classification on the basis of gender 35

4.2 Table showing classification on the basis age 36

4.3 Table showing classification on the basis of education 37

qualification
4.4 Table showing classification on the basis of occupation 38

4.5 Table showing classification on the basis of annual 39

income
4.6 Table showing classification on the basis of marital 40

status
4.7 Table showing awareness on Online Shopping 41

4.8 Table showing the respondents how frequently use 42

shopping web sites


4.9 Table showing respondents get know online shopping 43

4.10 Table showing online shopping websites visited for 44

shopping
4.11 Table showing factors that motivates to buy the products 45

in online
4.12 Table showing issues faced by the respondents while 46

shopping in online
4.13 Table showing respondents make their payments for buy 47

the products
4.14 Table showing respondents problem while shopping in 48

online
4.15 Table showing overall satisfaction with online shopping 49
3.List of Chart

Graph Title of the Charts Page No.


No.
2.1 Online shopping working model 23

2.2 Components of online stores 23

3.1 Major benefits of online shopping 28

4.1 Graph showing classification on the basis of gender 35

4.2 Graph showing classification on the basis age 36

4.3 Graph showing classification on the basis of education 37


qualification

4.4 Graph showing classification on the basis of occupation 38

4.5 Graph showing classification on the basis of annual income 39

4.6 Graph showing classification on the basis of marital status 40

4.7 Graph showing awareness on Online Shopping 41

4.8 Graph showing the respondents how frequently use shopping 42


web sites
4.9 Graph showing respondents get know online shopping 43

4.10 Graph showing online shopping websites visited for shopping 44

4.11 Graph showing factors that motivates to buy the products in 45


online
4.12 Graph showing issues faced by the respondents while shopping 46
in online
4.13 Graph showing respondents make their payments for buy the 47
products
4.14 Graph showing respondents problem while shopping in online 48

4.15 Graph showing overall satisfaction with online shopping 49


CHAPTER-1:
INTRODUCTION

1
INTRODUCTION

Commerce is the whole system of an economy that constitutes an environment


for business.[ The system includes legal, economic, political, social, cultural and technological
systems that are in operation in any country or internationally. Thus, commerce is a system or
an environment that affects the business prospects of economies It can also be defined] as a
component of business which includes all activities, functions and institutions involved in
transferring goods from producers to consumers.

E-commerce simply explains how business transaction can be executed across an


unreliable and unsecured medium like the internet. Because of E-commerce the trading
activities of the firm are increasing as a result the income for the country is also increasing.

Online shopping is the process of buying goods and services from merchants who sell
on the Internet. Online shopping is a type of electronic commerce used for business-to-business
(B2B) and business-to-consumer (B2C) transactions. 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.

According to Morgan Stanley’s report, the Indian e-commerce market will be worth $200
billion dollars by 2026.Indian Online shopping market will grow 30% in terms of gross material
value. By the end of 2018, the total value of Indian Online shopping market is expected to
exceed $50 billion. For the last few years the Online shopping website has become the need of
the Indian people. People come here and do shopping online as well as many online jobs. Top
10 online shopping website are:- flipkart.com , jabong.com, myntra.com,snapdeal.com
,amazon.in , ebay.in ,naaptol.com ,yebhi.com ,yepme.com ,infibeam.com ,homeshop18.com
&so on

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.

1
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.

Online shopping allows browsing through endless possibilities, and even offers
merchandise that unavailable in stores. If the customers are searching for a niche product that
may not be distributed locally, they are sure to find what they are looking for on the internet.
What’s even more useful is the ability to compare items, similar or not, online. Customers can
search through multiple stores at the same time, comparing material quality, sizes and pricing
simultaneously.

Shopping via the internet eliminates the need to sift through a store products with
potential buys like pants, shirts, belts and shoes all slung over one arm. Online shopping also
eliminates the catchy, yet irritating music, as well as the hundreds, if not thousands, of other
like-minded individuals who seem to have decided to shop on the same day.

2
1.1 REVIEW OF LITERATURE:
A detailed review of literature has been done and the information collected and utilized for the
research works have been presented below:-

Porter and Millar (1985) information gives competitive advantage to a company in


three different ways:

a) By changing industry structure and changing the rules of competition.

b) By providing companies with new ways to outperform their competitors

c) By creating new businesses, even from within a company’s existing operations.

Additionally, authors suggest five ways for Information Technology to be successfully


implemented in business processes. This can be done by:

 Assessing the intensity of information.


 Determining the role that Information Technology will have in the industry
structure.
 Understanding the ways that it can create competitive advantage for their
companies.
 Investigating the possibilities of new businesses.
 Developing a strategic plan to take advantage of Information Technology.

Martin Dodges (1999),” Finding the source of Amazon.com: examining the hype of the earth’s

biggest book store”, centre for advanced spatial analysis. Concluded that Amazon com
have been one of the most promising e-commerce companies and has grown rapidly by
providing quality service.

Miyazaki and Fernandez (2001)” Effects on Online privacy polices and Consumer

perceptions” substantiated that the prior experience was found to affect the intention and
behaviour significantly and in a variety of ways. The results of this study imply that the
technology acceptance model should be applied to electronic commerce research with
caution. In order to develop a successful and profitable web shop, understanding

3
customers' needs is essential. It has to be ensured that products are as cheap in a web
shop as purchased from traditional channels.

Kotler, (2003) described “Consumer buying method as learning, information-processing and

decision-making” activity divided in several consequent steps: Problem identification,


Information search, Alternatives evaluation, Purchasing decision, Post-purchase
behaviour. Efthymios, identified the main constituent of the online shopping experience
as follows: the functionality of the Web site that includes the elements trade with the
site’s usability. the emotional elements planned for lowering the customer’s hesitation
by communicating trust and credibility of the online seller and Web site and the content
elements including the aesthetic aspects of the online presentation and the marketing
mix.
Kotler & Keller (2009), a buyer goes through five stages while making a decision to
purchase. These stages are best explainable when a buyer goes for buying costly items,
such as a house, a car, diamond jewellery etc. However, in day- to- day purchase,
consumers may not go through all these stages, since some commodes do not need
information, and based on buyer’s previous experience they will visit a store for the
purchase.

Sharma and Mittal (2009) in their study “Prospects of e-commerce in India”, mentions that

India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle
class of 288 million people, online shopping shows unlimited potential in India. The
real estate costs are touching the sky. Today e-commerce has become an integral part
of our daily life. There are websites providing any number of goods and services. The
e-commerce portals provide goods and services in a variety of categories. To name a
few: apparel and accessories for men and women, health and beauty products, books
and magazines, computers and peripherals, vehicles, software, consumer electronics,
household appliances, jewelry, audio, video, entertainment, goods, gift articles, real
estate and services.
Samadi and Ali (2010) compared the perceived risk level between internet and store
shopping, and revisit the relationships among past positive experience, perceived risk
level, and future purchase intention within the internet shopping environment.

4
Kanwal Gurleen (2012), “Customers satisfaction towards Online shopping”, discussed that

different options in internet encouraged people to search and eventually purchase


online, because there are more than 100 million internet users in India. People those
who are using internet from 5 to 7 hours a day were found to be adopter of online
shopping. Price consciousness, convenience and variety, easy payment options and
challenges of online shopping are the factors found to be a significant in online
shopping.

Adrita Goswami (2013), studied “Customer Satisfaction towards Online Shopping” with

Special Reference to Teenage Group of Jorhat Town” study concludes that online
customers are satisfied in the aspects such as Price, Quality of products, Ease of use in
mobile platform and Timely Delivery at remote areas. This research explicitly indicates
that online marketer should give more importance on price factor and after sale factor.

Abhijit mitra. (2013), “e-commerce in India-a review”, international journal of marketing,

financial services & management research. Concluded that the e-commerce has broken
the geographical limitations and it is a revolution-commerce will improve tremendously
in next five years in India.

D.k.Gangeshwar. (2013),” e-shopping or internet marketing: a business review from Indian

context”, international journal of u- and e- service, science and technology. Concluded


that the ecommerce has a very bright future in India although security, privacy and
dependency on technology are some of the drawbacks of e-commerce but still there is
a bright future to ecommerce.

Dhevika V.P.T, Latasri O.T.V, S Karmugil (2014), in their paper “Factors Affecting

Online shopping of Customers” revealed that the most important factor influencing online
shopping is- security, followed by– trust worthy shopping and – website design/features
and the least important factor influencing is – bargaining shopping, there is no
significant association between security and website design/features of the respondents
and their overall online buying behaviour.

5
Saravanan S and Brindha Devi K (2015), “A Study on Online Buying behaviour with

special reference to Coimbatore city” focused on online shoppers’ preferences and problems
on various online shopping marketers. Higher computer literacy makes internet
shopping smarter. Their awareness about the internet also makes them better positioned
to identify and take decision for products and services.

Pooja Gupta (2015),” Comparative Study of online and offline shopping” The study tries to

recognize that, how consumer measure channels for their purchasing. Specifically, it
progresses a conceptual model that addresses consumer value perception for using the
internet shopping versus the traditional shopping. Earlier study showed that perceptions
of price, product quality, service quality and threat strongly impact perceived value and
purchase intents in the offline and online network. Observations of online and offline
buyers can be evaluated to see how value is constructed in both channels. It is hitherto
to recognize what factors influence online and offline shopping choice progression. The
objective of this study is to provide an impression of online shopping decision process
by comparing the offline and online decision making and identifying the factors that
motivate customers to decide whether to do online shopping or go for the offline
shopping. Consumer’s shop when and where they want, where they are comfortable
with the products and the choice of shopping. The study finds that female are more into
online shopping than male.

Francis Sudhakar K, Habeeb Syed (2016), “A Comparative study between Flipkart and

Amazon India”, conducted a study to critically examine various corporate and business
level strategies of two big e- tailer s and those are Flipkart and Amazon. Comparison
have been done considering e-commerce challenges, their business model, funding,
revenue generation, growth, survival strategies, Shoppers’ online shopping experience,
value added differentiation, and product offerings. Both these big players made their
own mark in India. The survey ended with Amazon as the winner, which satisfied the
customer in all the aspects.

Vijay govindarajan is one of the world’s leading experts on strategy and


innovation. Govindarajan, coxe distinguished professor at dartmouth college’s tuck
school of business and marvin bower fellow at harvard business school, is also a best-
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selling author. The biggest opportunity in India is e-commerce. Why? Three important
factors will drive this: 1) mobile sphone penetration; 2) a young demographic that is
used to ordering things using the mobile platform; 3) growth of consumerism with more
Indians with higher disposable income. We will see many new innovative business
models in the e-commerce space in the next five years. No doubt we will see new
innovative high-growth companies—Indian equivalents of Alibaba.

Shilppa Gupta(2017)” Indian people buy products believed in offline” shoppers believed

there was a wider purchase choice online rather than offline, that shopping online was
extremely convenient and easy, and that most goods were cheaper online than they were
offline,' says, Country Manager, West Africa, MasterCard Worldwide.
Times of India(2019) also explored the reasons why the majorities (78%) of Indians
surveyed do not currently shop online. Of this group, 59% said they were not sure that
making transactions online was secure or safe, 43% said they simply preferred to shop
in -store to look at the physical products and an additional 40% raised their concerns
about the time it would take for items to be delivered to them.
1.2 RESEARCH GAP:
From The above review of literature all are in according to their knowledge and
their experience. Some are told about the how Online Shopping is Helpful to consumer
and Their service some others told about its performance in India and some scholars about
its types and difference between online websites in India. it is learnt that very a small
number of studies have been conducted in India. Hence more research work can be done
in this area in India.

For the study will based on these subject only, like why online shopping are not a
big hit in India and reasons for the not big hit. This research will help to identify the
opinion and create awareness among general public with regard to online shopping India.

1.3 STATEMENT OF THE PROBLEM:


In these days of busy schedule no persons have time to wait for purchases the product.
therefore fastness is essential. In past consumers want to purchase products from Shops only
they have to wait in Shops and buy the products, because of that lots of time is waste.

Now a days introducing of online shopping websites is possible to save the time.
Consumers need not to stand in Shops. They can get the needed products in anywhere any time

7
with the help of Internet technology. Disclosing the password to other person is dangerous as
it may be miss use.

Some of the people still they don’t know how to use the online shopping websites or apps
in mobile or laptops. So that the illiterate people can easily misguide and fraud by others at the
time of Purchasing and payment.

Research methodology process includes a number of activities to be performed. These


are arranged in proper sequence of timing for conducting research. One activity after another
is performed to complete the research work. The Data collect from E-sources it might be In-
accurate. All the Primary Data collect from Google forms.

1.3 NEED FOR THE STUDY:


The online shopping market has evolved drastically and at unmatched speed over the
course of its short lifespan. As in India only 60% to 70% of peoples are known about the e-
shopping and it’s performance in India. As digital shopping is one of the burning issue in the
world and many of the countries are using online shopping for purchase day to day life
product. Online shopping has been a volatile and power full digital plat form for buy and
selling the product. because Now a days all are addicted to internet. Its save the time, paper,
workers, and transparent activity done at the same time miss use the knowledge as well as
technology, increase the fraud.

1.4 OBJECTIVES OF THE STUDY:

 To study the conceptual framework of the online shopping in INDIA


 To analyse the existing online shopping Technology.
 To Examine the awareness of consumer towards online Shopping.
 To evaluate the consumer opinion on Online Shopping web sites.
 To Asses the attitude of the consumer on purchasing products in online.
 To analyse risk associated with online shopping.

1.5 SCOPE OF THE STUDY:

The study shows that all have done e-shopping but majority of them are satisfied
with traditional shopping. Majorly business activity consist of B2B, B2C, C2Cand C2B
a consumer is a end user of the product. Consumer perception refers to consumer
awareness, their impressions, and their opinions about your product or business or

8
activity. Now a days seller is more responsible than buyer so the principal is changed
into caveat venditor.

The present study focused on only consumer perception towards online


shopping. This study cover the Business to consumer(B2C) , issues on purchase in
online shopping, attitudes, Satisfaction and awareness about the online shopping to
consumers in Sagar city.

1.6 RESEARCH METHODOLOGY:


RESEARCH DESIGN

The Research design of this study is descriptive. The study is concerned about the
factors that lead to stress among working women come under descriptive Research category.
The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have
been posed.

collect the data from

1) Primary data
2) Secondary data

Primary Data

Primary data was collected from Google form and their opinion and information for the
specific purposes of study helped to run the analysis. In essence, the questions asked were
tailored to elicit the data that will help for study. The data was collected through online
questionnaire to understand their experience and preference towards their loyal company.

Secondary Data

To make primary data collection more specific, secondary data will help to make it
more useful. It helps to improve the understanding of the problem. Secondary data was
collected from various sources such as different business websites and published papers.

SAMPLING DECISIONS:

9
Convenient sampling technique has been used to collect the data.

1. Sample size: 200 samples were taken for the study.

2. Research Instrument:

A structured questionnaire has been prepared to get the relevant information from the
respondents. The questionnaire consists of variety of questions presented to the respondents
for their responses. The researcher has been used structured questionnaire, support and
cooperation of the selected respondents of various fields.

Statistical tools and techniques

The present study used different statistical tools and techniques for the analysis and
interpretation of data such as tables, charts, graphs, figures etc.

1.7 LIMITATIONS OF STUDY:

 The Study is partial fulfilment for the award of Degree of MASTER OF COMMERCE.
 The study in the confined area to Sagar city Shivamogga(dis) Karnataka (State).
 Responses were restricted to only 200 sample out of the large population size.
 Limited time frame work.
 The study is based upon the consumer satisfaction, perception and experience of
online shopping.
 The data collected for the research is fully primary data given by the respondents by
filling the google form. because of COVID19.
 The questionnaire was made available to consumers through google forms.
 No personal biasness happen while taking filling the questionnaire because of the
online google form.

10
1.8 CHAPTERIZATION:

Chapter-1:- Introduction.

In this chapter, we can know about the brief introduction to online


shopping and it also includes review of literature, statement of problem, need of
the study, scope and objectives of the study, research methodology, limitations of
the study and summary of each and every chapter.

Chapter-2:- Conceptual framework.

This chapter focus on the Customer, Consumer, difference between


consumer and customer, types of customer and consumers, Consumer perception,
commerce, E-commerce, online shopping, Evolution of the Online Shopping,
How online shopping is workings.

Chapter-3:- Online Shopping In India

This chapter consists top Online Shopping web sites in India,


benefits, Advantages and disadvantages

Chapter-4:-Data Analysis and Interpretation.

This chapter covers analysis of collected data through questioner and


interpretation of the same with the help of simple graphs.

Chapter-5:-Findings and suggestions.

This chapter covers findings from the analysis and interpretation of


collected data, suitable suggestions for the findings to the online Shopping.

Chapter-6:-Conclusion.

This is the last chapter includes the conclusion for the study on consumer
perception towards online shopping.

11
.

CHAPTER-2:
Conceptual
Framework

12
Conceptual framework

Customer:-

A customer is an individual or business that purchases another company's goods or


services. Customers are important because they drive revenues; without them, businesses have
nothing to offer. Most public-facing businesses compete with other companies to attract
customers, either by aggressively advertising their products or by lowering prices to expand
their customer base

Businesses often honour the adage "the customer is always right" because happy
customers are more likely to award repeat business to companies who meet or exceed their
needs. As a result, many companies closely monitor their customer relationships to solicit
feedback on methods to improve product lines. Customers are categorized in many ways. Most
commonly, customers are classified as external or internal.

External customers are dissociated from business operations and are often the parties
interested in purchasing the final goods and services produced by a company. Internal
customers are individuals or businesses integrated into business operations, often existing as
employees or other functional groups within the company.

We often refer to customers who have a relationship with the supplier as clients. Also,
people who hire the services of a professional are clients, not customers. For example, a lawyer
has clients.

When a customer buys something, the seller immediately focuses on the next one.
However, with a client, the aim is to cultivate the relationship.

In many cases, the client-supplier relationship becomes similar to a partnership. This


does not tend to happen with customers.

Customer categories:-

There are many different types of customers:

13
 B2C

B2C stands for Business-to-Customer. For example, when I buy a coffee at a stall
at the train station, it is a B2C event.

 B2B

The term stands for Business-to-Business. For example, when the coffee stand
owner buys coffee from a supplier; both of them are businesses.

 C2B

C2B stands for Customer-to-Business. For example, when I sell my gold ring to a
pawnbroker or jewellery store.

 C2C

C2C stands for Customer-to-Customer. For example, when I want to sell my car
privately to another person. eBay is a huge C2C and B2C marketplace.

Consumer:-

Consumers are people or organizations that purchase products or services. The term
also refers to hiring goods and services. They are humans or other economic entities that use a
good or service. Furthermore, they do not sell on that item that they bought.

They are the end users in the distribution chain of goods and services. In fact,
sometimes the consumer might not be the buyer.

Consumers are the basic economic entities of an economy. All the consumers
consume goods and services directly and indirectly to maximise satisfaction and utility.

Consumers have limited income and by which they want to satisfy their maximum
utility (utility is the want satisfying capacity of a commodity).

Generally, consumer means an individual only; however, consumers will consist of a


particular individual, a group of individuals, institutions etc.

14
Types of Consumers:
According to the nature of consumption, consumers are of following types:
(i) Direct Consumers:
History tells us that at the very early stage of civilisation producers produced all the
basic needs of life for themselves and their families. All the basic needs like food, clothing and
shelter they produced for their own and their family’s consumption. Hence, the producers were
producing goods for their self- consumption. Thus, they were called as direct consumers or
direct producers also.

(ii) Consumers by Exchanging Products:


With passage of time and civilisation people understood the benefits of exchange.
Hence, they tried to specialise on a particular or few products and then tried to exchange the
product with the other product(s). The exchange started with barter system and now continuing
with monetary system.

This will create the concept of marketable surplus, i.e., the producers are not only
producing goods for self-consumption, but some excess or surplus product(s) they are keeping
to get other product(s) in exchange. For example, a farmer producing pulse not only for self-
consumption but the extra or surplus pulse he will exchange with the producer of other product,
say paddy.

(iii) Modern Consumers:


These consumers only go to the market to buy the goods and services available in the
market through money only. Here, the producers are also producing goods or services directly
sent to the market for the consumers. These consumers buy all the goods and services in lieu
of money. The modern consumers are the outcome of monetary system.

Importance of Consumers:

The importance of consumers in different avenues is discussed below:


(i) Encourage Demand:
Consumers are the main source of demand for all the goods. The producers of industrial
goods or the producers of agricultural products are all producing the various items according
to the demand in the market. According to Prof. Marshall, it is the demand which controls the

15
production or market. Hence, the consumers create demand in the market and producers
produce goods or services accordingly.

(ii) Create Demand for Various Products:


The different consumers have different types of demand or a single consumer can also
demand different types of products. These will encourage the producers to produce various
types of products in the market. For example, some consumers want to consume paddy,
whereas some consumers want to consume wheat.

However, there are some consumers; who want different qualities of paddy and wheat
also. Thus, there are some consumers who prefer red colour soap whereas other’ consumers
prefer green colour soap. Therefore, to satisfy all the types of consumers, producers must
increase the production of various products.

(iii) Increase Demand for Consumer Goods:


Consumers create more demand for all the types of consumer goods, like durable, semi-
durable and perishable goods. Durable consumer goods include furniture, utensils, televisions,
etc. and for semi-durable goods like clothes, books, shoes etc. On the other hand, perishable
goods like bread, butter, vegetables, fruits etc. are all demanded by the consumers for their
consumption purposes. Naturally, all these create an atmosphere to increase demand for
consumer goods.

(iv) Enhance Service Diversification


Consumers not only consume different varieties of goods, but also consume large
varieties of services to maintain the standard of living. These include health service,
educational service, banking and insurance service, transport and communication service, etc.
Day by day the consumption of these services is rising. This will lead to expansion or
enhancement of service sector within the economy.

Customers vs. Consumers:-


The terms customer and consumer are nearly synonymous and are often used
interchangeably. However, there exists a slight difference. Consumers are defined as
individuals or businesses that consume or use goods and services. Customers are the purchasers
within the economy that buy goods and services, and they can exist as consumers or alone as
customers.

16
Perception:-

In psychology and the cognitive sciences, perception is the process of getting,


interpreting, selecting, and organizing sensory information. It includes the collection of data
from sense organs through to the interpretation made by the brain. ... Perception is a lot more
than just "information coming in".

CONSUMER PERCEPTION :-

When we choose among competing options the sensory experiences we receive from
products and services become larger priority. Colours can be correlated or may even influence
our emotions more directly. Odours can stir emotions or create a calming feeling. They can
invoke memories or relieve stress. We are bombarded with the sound of voices and music
(some good, some painful) all the time – but now advertisers can be more selective about just
who hears what they have to say.

Common observation tells us that the effect of touch on consumer behaviour is


important, although scientists have done relatively little research on this sensory channel. To
influence clients when making their choices, understanding and managing brand equity comes
from achievement in brand management which makes strong attributes.

According to Ailawadi et al., (2003), this has led to various points of view on brand
equity dimensions, the factors that affect it, the perspective from which it should be studied as
well as how to measure it. Brands are regarded as an important source of capital for most
business. Low and Lamb Jr (2000) stated that when it comes to service market, the main brand
is the firm’s brand while in packaged goods market, the main brand is the product brand. A
powerful brand enhances a customer’s attitude and also the strength of the product association
of that brand. With the experience of the product attitude strength is developed.

FACTORS INFLUENCING ON CONSUMER PERCEPTIONS:-

Kotler (2005) says that perception is a process through which information is received,
selected, organised and interpreted by an individual. Factors that influence consumer
perceptions of a brand are:

17
• Quality

This is one of the factors which consumers take into account when making their
choice of brand. According to Uggla (2001), an integrals part of brand identity is quality.

• Price

According to McDonald and Sharp (2000) price can be used for brand choice in two
ways: either by going for the lowest price to escape financial risk or by going for the highest
price to achieve product quality.

• Influence by others

The advices of other people have a strong affect on consumers buying behaviour.
However, the degree of such affect depends on the situation or individual. Later adapters tend
to be more influenced than early adapters. Marketers cannot sharpen the influence by others

For example, a consumer wants to buy MacLean, while in the shop he or she comes in
contact with a friend who says Colgate makes my teeth brighter and whiter. The consumer
can be forced to buy Colgate.

• Advertising

The aim of advertisement is to create awareness. Advertisement is a conspicuous form


of communication. According to Aaker (2000), to make a brand strong we need to have
advertising, promotion and packaging to embrace regular positioning strategy over a period
of time. Some ways of reaching and communicating with the consumers is with the help of
advertising through television, cinema, radio, bill board etc.

• Packaging

The process of designing the cover of a brand/product is called packaging. According


to Kotler et al (2000), packaging is a type of advertisement that sales duties such as attracting
consumers, describing and selling the product.

• Convenience

According to Lin and Chang (2003) on consumer and easy access to brand/product in
store when buying low involvement product convenience of a brand has a significant effect.

18
COMMERCE:-

Commerce is the whole system of an economy that constitutes an environment


for business.[ The system includes legal, economic, political, social, cultural and technological
systems that are in operation in any country or internationally. Thus, commerce is a system or
an environment that affects the business prospects of economies It can also be defined] as a
component of business which includes all activities, functions and institutions involved in
transferring goods from producers to consumers.

Today commerce includes as a subset a complex system of companies which try to


maximize their profits by offering products and services to the market(which consists both of
individuals and other companies) at the lowest production cost. A system of international
trade has helped to develop the world economy but, in combination with bilateral or
multilateral agreements to lower tariffs or to achieve free trade, has sometimes harmed third-
world markets for local products.

In simple words “commerce is an Exchange of goods & services in terms of money. It


provides an economic value to the goods”.

When you buy something at a store you are participating in commerce. When one thinks
of different ways, he or she immediately recognize several different players of the
commerce…such as;

• Buyers: These are the people of the organization with money who want to purchase
goods& service products.
• Sellers: these are the people who offer goods and services to buyers. Sellers are
recognizing in different forms such as retailers who sell directly to consumers &
wholesalers who sell to retailers and others.
• Producers: These are the people organization that create the product & services that
seller’s offer to buyer.

E-COMMERCE:-
The Internet provides consumers with new means of obtaining useful information and
comprises all marketing and sales of products and services. Electronic-commerce is currently
attracting a great deal of interest. Not only is it growing rapidly, but also has a significant
impact on the computer market and people’s working style.

19
Increasingly more consumers are migrating to Electronic-commerce to make electronic
bill payments, to pay for information online, to purchase products, services and prepaid cell
phone airtime and even matrix report cards.
Electronic commerce is exactly analogous to a market place on the internet. It offers
buyers convenience. They visit World Wide websites of multiple vendors 24X7 and make
purchases without having to leave their homes or offices. For sellers E-commerce offers a way
to cut cost and expand their markets. They do not need to build, staff, or maintain a store or
print and distribute mail order catalogues. Automated order tracking and billing systems cut
additional labour cost.

Electronic buyers or consumers need to feel confident as they safely select and take
delivery of products, pay for them, and not to be concerned about compromise of payment
information (i.e.., credit card or bank account number).

E-commerce simply explains how business transaction can be executed across an


unreliable and unsecured medium like the internet. Because of E-commerce the trading
activities of the firm are increasing as a result the income for the country is also increasing
which has led for increasing the quality of life and standard of living of the people of the
country.

EVOLUTION OF ONLINE SHOPPING:-

The idea of online shopping predates the World Wide Web, for there are earlier
experiments involving real-time transaction processing from domestic television. The
technology based on videotext, was first demonstrated in 1979 by Micheal Aldrich, who
designed and installed systems in UK, including the first Tesco pilot system in 1984. The first
B2B was Thomson Holidays in 1981. History of online shopping starts not so long ago.

Tim Berners Lee created ''The World Wide Web Browser'' in 1990. It opened for
commercial use in 1991. This was considered to be a major boost for the ecommerce industry
and its future growth. Statistics state that the traffic on the backbone network of NSF jumped
to over 1 trillion bytes per month in this year itself after it was opened for commercial use.

A book called “Future Shop: How new technologies will change the way we shop and
what we buy” was published in the year 1992.The book was considered revolutionary
considering the fact that it talked about what will happen in the future of ecommerce and how
the Internet will take shape.

20
The year 1994 is considered as “Mother of all Years” for ecommerce, as Netscape
launched encryption certificate which became the trustworthy means of transmitting data over
the Internet. Few other developments took place such as online banking and the opening of an
online pizza by Pizza hut and this year also marked the launch of Yahoo! though the domain
was registered later in the year 1995. This truly gave the Internet and ecommerce a completely
new direction.

It was the year 1995 when NSF started charging a fee for registering domain names. At
that time the Internet had 12,000 domain names registered and the number jumped to over 2
Million in the next 3 years. $100 for 2 Years was the price for a Domain in the year 1995. In
this year, Amazon started operation, one of the largest shopping malls now. Then in 1996 eBay
started its online shopping portal. 1998 witnessed use of electronic stamps, where people can
download and print postal stamps after paying nominal fee.

Alibaba's sites Taobao and Tmall were launched in 2003 and 2008, respectively. As
they say, what followed after Google is history. Be it the dot com bubble or the Web 2.0, the
Internet has experienced exponential growth (with its own pitfalls) that has shaped the lives of
many. As we know it, the Internet continues to grow with major and minor ecommerce
companies launching their own set of stores. Today, we can literally buy anything via the
Internet. That is the wonderland of e-Shopping.

ONLINE SHOPPING:-

Electronic Shopping commonly known as E-Shopping. It is trading in products or


services using computer networks, such as the Internet. Electronic commerce draws on
technologies such as mobile commerce, electronic funds transfer, supply chain management,
Internet marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. Modern electronic commerce
typically uses the World Wide Web for at least one part of the transaction's life cycle, although
it may also use other technologies such as e-mail.

The emergence of World Wide Web has made the services available to customers
without leaving their home. The usage of internet is increasing more on the marketing services
and e- business. Online shopping is one of them which are emerging as the fastest growing
phenomenon. Companies are now using internet to build closer relation with consumers and
existing marketing partners. As said by Srisuwan & Barnes (2008; et al.,2007) that from virtual

21
reality displays that test new products to online virtual stores that sell them, the technology
explosion is affecting every aspect of marketing. The Internet has now become a truly global
phenomenon.

Online shopping is the process whereby consumers directly buy goods, services etc.
from a seller interactively in real-time without an intermediary service over 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.

Nowadays, online shopping is emerging a convenient way of shopping. Customers will


be able to save time & money, retrieve all the product information with clicks in few minutes.
According to survey done in 2015 by the Clicks stats, the growth & diverse internet population
means the people having diverse taste and purposes are going to web for information and buy
product and services. This survey is becoming true as now customers use online shopping
according to their needs, wants and adopting new technologies.

Online shopping made it easy for everyone with their product variations. An attempt of
comparison has been done considering e-commerce challenges, their business model, funding,
revenue generation, growth, survival strategies, Shoppers online shopping experience, value
added differentiation, and product offerings. Big players made their own mark in India, but
who is going to be ultimate winner or be the top one is going to be. A comparative study of
ecommerce sites delivers the information about the different strategies to succeed in e-
commerce market and different opportunities available in India.

India has always been a land of great potential. The socioeconomic condition of the
country has improved many folds after independence and India is now emerging as one of the
leading countries in the world. Moreover with the introduction of 5G network the use of e-
commerce have increased many fields in India .As technology is spreading to the remote
villages and many job opportunities are presenting themselves to the unemployed youth more
and more people are gaining awareness and the money to purchase expensive and luxurious
items over the internet. Online shopping is the process of buying goods and services from
merchants who sell on the Internet. Online shopping is a type of electronic commerce used for
business-to-business (B2B) and business-to-consumer (B2C) transactions. 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.

22
ONLINE SHOPPING WORKINGS:- Figure 2.1

Search Product Add to Cart Check out

Process online Payment


Order notification Check out

Order shipping Order conformation

E-Shopping offers products and services through websites, a customer simply has to
visit an Online Shopping website and browse various offering through browser catalog, a
customer can select multiple offerings and can add them to the shopping cart, once the shopping
is done the customer can checkout and proceed to payment section where various online
payment options are available like internet banking, credit card, debit card etc. Once payment
is done the customer is notified about the order and order is shipped on the postal address
provided by the customer.

COMPONENTS OF ONLINE STORE:-

Figure 2.2

An online store is a website through which customers place orders. It may represent a
small local store, a major retailer, an e-commerce store or an individual who sells projects
through a third-party site, such as eBay. The online store can operate under a number of
business models, including business-to-consumer, business-to-business or consumer to
consumer. To operate an online store, we need a product catalog, a shopping cart and other
items.

23
Web Hosting:

A web server hosts an online store and e-commerce hosting provides the functions
required to create, operate and manage an online store. Web hosting features include the
shopping cart software, SSL protocol, database support, payment processing services, security
features and other functions. E-commerce hosting is a service that web-hosting service
providers offer in addition to the web server needed to host the site.

Domain Name:

An online store requires a domain name to set up its online presence. The business
owner registers a domain name with a registrar and links it to the online store. The domain
name is a store’s online identify.

Dedicated IP Address:

An online store’s web server has an IP address that allows the user to connect to the
server. In turn, an online store encrypts the data that flows between a browser and web server
using the SSL protocol to protect customer data. A private SSL certificate ensures customers,
the website is secure.

Shopping Cart Software:

Shopping cart software, or e-commerce software, powers an online site. The software
supports the online store catalogue and order processing. This software can be purchased
through various vendors or hire a developer to create a shopping cart.

Merchant Interface:

A shopping cart interfaces with a merchant account with a financial institution that’s
required to process a credit card payment over the Internet in real-time. The merchant account
needed for your payment system can be obtained from a bank. The payment system can
integrate with the billing system.

Product catalogue:

The product catalogue is a virtual gateway that provides customers a listing of available
products and their descriptions, their classification as well as a retrieval function. It consists of
category pages and product lig pages. Using the product catalogue, the customer can order

24
goods, make payments, access customer service, provide feedback and perform other functions.

Online Payment Processor:

An online payment processor allows an online store to accept credit card payments. A
payment gateway validates the credit card data and then processes the transaction. After
decreasing the payment amount by the processing fee, the gateway deposits the remainder
into the online store’s bank account.

Shipping Costs Calculator:

Shipping costs can be calculated after the customer places an item in a shopping cart.
After or before the order is finalized, the calculator then determines the shipping fee based on
the criteria entered by the online store customer. For example, shipping costs may be
calculated on the basis of weight, destination and other criteria.

Tax Calculation:

An online sale is not complete until taxes have been calculated. The online store site
manager updates the tax rates on a periodic basis. Software can also be purchased that
automatically updates the tax rates. Some shipping companies provide software to merchants
to ensure the rates are current.

SERVICE PROVIDERS OF ONLINE SHOPPING:

flipkart.com

jabong.com

myntra.com

snapdeal.com

amazon.in

ebay.in

naaptol.com

yebhi.com

yepme.com

infibeam.com and so on
25
CHAPTER-3:
About
online shopping
in
india

26
OnLINE SHopping IN INDIA:

PREOMBLE:-
The birth and growth of Internet has been the biggest event of the century. E-Shopping
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 meagre 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. Over the
last two decades, rising internet and mobile phone penetration has changed the way we
communicate and do business. E-commerce is relatively a novel concept. It is, at present,
heavily leaning on the internet and mobile phone revolution to fundamentally alter the way
businesses reach their customers. While in countries such as the US and China, e-Shopping has
taken significant strides to achieve sales of over 150 billion USD in revenue, the industry in
India is, still at its infancy. However over the past few years, the sector has grown by almost
35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 2013 Industry
studies by IAMA2 I indicate that online travel dominates the Online shopping industry with an
estimated 70% of the market share. However, e-retail in both its forms; online retail and market
place, has become the fastest-growing segment, increasing its share from 10% in 2009 to an
estimated 18% in 2013. Calculations based on industry benchmarks estimate that the number
of parcel check-outs in e-Shopping portals exceeded 100 million in 2013. However, this share
represents a miniscule proportion (less than 1%) of India’s total retail market, but is poised for
continued growth in the coming years. If this robust growth continues over the next few years,
the size of the e-retail industry is poised to be 10 to 20 billion USD by 2017-2020. This growth
is expected to be led by increased consumer-led purchases in durables and electronics, apparels
and accessories, besides traditional products such as books and audio-visuals.

The value of Online Shopping in India is forecasted to boom from US$ 30 billion in
2016 to US$ 120 billion by the year 2020 due to its current Compound Annual Growth Rate
(CAGR) of over 51 percent per annum.

This growth is fuelled by the younger generation, aged between 15 and 35 years who
account for a shopping 75 percent of purchases made online. Online retail sector witnesses
some 55 percent growth annually with 65 million unique visitors every month. About 65

27
percent online shopping is for mobile phone handsets and fashion at 55 percent. Till 2016 end,
about 25 million new Internet users were being added in India. Over 65 percent of online
purchases in 2016 were made using smart phones and tabs.

Post demonetization on November 9, 2016, this figure has increased exponentially with
shopping for groceries, paying insurance premiums and school fees as well as other expenses
moving to the digital platform.

THE MAJOR BENEFITS OF ONLINE SHOPPING:

Benefit to
organization
Benefit to
consumers

Benefit to
society

ONLINESHOPPING benefits are broadly


classified in 3 major categories:-

Figure 3.1

BENEFIT TO ORGANIZATION:-

 Using Online Shopping, organizations can expand their market to national and
international markets with minimum capital investment. An organization can easily
locate more customers, best suppliers, and suitable business partners across the globe.
 Online Shopping, helps organizations to reduce the cost to create process, distribute,
retrieve and manage the paper based information by digitizing the information.
 Online Shopping improves the brand image of the company.
 Online Shopping helps organization to provide better customer services.
 Online Shopping helps to simplify the business processes and makes them faster and
efficient.
 Online Shopping reduces the paper work.
 Online Shopping increases the productivity of organizations.

28
BENEFIT TO CONSUMER:-

 Consumer can enquire about a product /service and place orders anytime, anywhere
from any location.
 Online Shopping application provides users with more options to compare and select
the cheaper and better options & also quicker delivery of products.
 A consumer can put review comments about a product and can see what others are
buying, or see the review comments of other customers before making a final purchase.
 A consumer can see the relevant detailed information within seconds, rather than
waiting for days or weeks.
 Online Shopping increases the competition among organizations and as a result,
organizations provide substantial discounts to customers.

BENEFITS TO SOCIETY:-

 Consumers need not travel to shop a product, thus less traffic on road and low air
pollution.
 Online Shopping helps in reducing the cost of products, so less affluent people can also
afford the products.
 Online Shopping has enabled rural areas to access services and products, which are
otherwise not available to them.
 Online Shopping helps the government to deliver public services such as healthcare,
education, social services at a reduced cost and in an improved manner

TOP TEN ONLINE SHOPPING SITES IN INDIA -

Figure 3.2

29
According to Morgan Stanley’s report, the Indian e-Shopping market will be worth $200
billion dollars by 2026.Indian E-Shopping market will grow 30% in terms of gross material
value. By the end of 2018, the total value of Indian E-commerce market is expected to exceed
$50 billion. For the last few years the E-Shopping website has become the need of the Indian
people. People come here and do shopping online as well as many online jobs. Top 10 online
shopping websites are:-

1. Amazon.in
A large number of people from India swear by the services of amazon. Amazon
and Flipkart are always at war with each other and are always at close heels. Amazon
has an equally large number of products as Flipkart. In fact, Amazon apparently sells
more than Flipkart. Since amazon is an American company, it lacks the desi taste that
would be preferred by an Indian. It would be wise to Indians its Indian domain. It would
then be an instant hit amongst the masses.
2. Flipkart.com
This one has to come first hands down. The entire country is completely
dependent on Flipkart for nearly all their shopping needs. Flipkart sells everything from
gift vouchers to electronics to home appliances. In fact, statistics claim that there are
more items on Flipkart than in a mall. Hence, Indians are heavily reliant on Flipkart for
all their shopping needs.
3. Paytm.com
Started just as mobile recharge app, now Paytm become the Indian Alibaba.
Provides a number of services like mobile recharge, bill payments, tickets etc. along
with a variety of generic products. Paytm offers cashback with the discounts, that makes
it different from other shopping sites in India. Sometimes such cashback makes a big
difference and saves your extra money. Paytm has now launched Paytm Mall which is
equivalent to Amazon and Flipkart. You can go and shop anything on Paytm mall.
Paytm mall offers electronic items, shoes, bags, home décor, clothing for men and
women and many more products which are 100% authentic. Once, you do shopping
from Paytm mall then you will get cashbacks, these cashbacks can be used later to
process mobile recharges, pay bills and other stuff.
4. Snapdeal.com
Snapdeal is a completely Indian website and is often preferred by the masses
for its cheap rates. It sells products at really low prices and hence, is a favourite of the
masses. It is a good idea to buy from Snapdeal if you are looking for absolutely cheap

30
prices. However, there have been times when consumers have complained of the
products of Snapdeal and hence, some of them stay away from Snapdeal.
5. Jabong.com
Jabong is again an American brand but seems to be doing very well in India. It
has a large number of clothes and accessories for sale and is a complete paradise for
those who love shopping for clothes. It has all kinds of products from western wear to
desi kurtas and it would be fun to sit home and shop for clothes on Jabong. Jabong is
excessively preferred by women shoppers.
6. Myntra.com
Myntra also has a large number of accessories and clothes on its online portal.
It has a large number of categories as well and one can buy from a category of their
choices. From western to ethnic to traditional, all kinds of clothes are sold on Myntra.
7. Homeshop18
This is an equally popular website amongst online shoppers. Those who do not
mind waiting a little extra for delivery at the reward of a lower price, order from here.
A lot of times, the cheapest of items and the remotest of items are easily found on
homeshop18.com. Thus, this site also has an equally large number of shoppers who are
loyalists. However, homeshop18 cannot be trusted when one is in an emergency. You’d
rather buy from one of the websites where they give express deliveries.
8. Shopclues.com
Shopclues is famous for their heavily discounted best shopping 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.
9. Voonik.com
Voonik is one of those sites that specifically focus on only women products.
This thing makes it more popular among women as compare to other fashion sites. The
products include Indian wear, western wear, lingerie & sleepwear, footwear, bags and
accessories, jewellery and beauty products. Voonik offers deep discounts on its
products along with cash back offers. Voonik was started in Bangalore with the vision
of being the personal stylist to every woman. It provides the free personalization which
is inbuilt in the app for its user.
10. Bigbasket.com
Bigbasket is the top grocery shopping site in India. From Bigbasket you can
purchase products under the category of grocery, household, personal care, gourmet,

31
beverage, dairy and fruit & veggie. It offers a wide range of top brands product. It
additionally offers up to 20% cash back on different debit & credit cards.

ADVANTAGES OF ONLINE SHOPPING:

 Convenience: Online stores are usually available 24 hours a day, and many
consumers have Internet access both at work and at home. Other establishments
such as internet cafes and schools pide access as well. A visit to a conventional
retail store requires travel and must take place during business hours.

 Information and reviews : Online stores must describe products for sale with text,
photos, and multimedia files. Some stores even allow customers to comment or rate
their items. There are also dedicated review sites that host user reviews for different

 products. Reviews and now blogs gives customers the option of shopping cheaper
organize purchases from all over the world without having to depend on local
retailers.

 Price and selection : One advantage of shopping online is being able to quickly
seek out deals for items or services with many different vendors (though some local
search engines do exist to help consumers locate products for sale in nearby stores).
Search engines, online price comparison services and discovery shopping engines
can be used to look up sellers of a particular product or service.

DISADVANTAGES OF ONLINE SHOPPING:

 Fraud and security concerns: Given the lack of ability to inspect merchandise before
purchase, consumers are at higher risk of fraud on the part of the merchant than in a
physical store. Merchants also risk fraudulent purchases using stolen credit cards or
fraudulent repudiation of the online purchase. With a warehouse instead of a retail
storefront, merchants face less risk from physical theft.
 Lack of full cost disclosure: The lack of full disclosure with regards to the total cost
of purchase is one of the concerns of online shopping. While it may be easy to compare
the base price of an item online, it may not be easy to see the total cost up front as
additional fees such as shipping are often not be visible until the final step in the
checkout process.

32
 Privacy: Privacy of personal information is a significant issue for some consumers.
Different legal jurisdictions have different laws concerning consumer privacy, and
different levels of enforcement. Many consumers wish to avoid spam and telemarketing
which could result from supplying contact information to an online merchant.
 Hands-on inspection: Typically, only simple pictures and or descriptions of the item
are all a customer can rely on when shopping on online stores. If the customer does not
have prior exposure to the items handling qualities, they will not have a full
understanding of the item they are buying. However, Written and Video Reviews are
readily available from. consumers who have purchased similar items in the past.

33
CHAPTER-4:
DATA ANALYSIS
&
interpretation

34
DATA ANALYSIS AND INTERPRETATION

The study was conducted to know the consumers satisfaction and thought towards
Online Shopping websites. The study was made by collecting the data from the source of filling
questionnaire by 200 samples taken out of the entire population. The analysis of the data is as
follows:-

Table 4.1 CLASSIFICATION ON THE BASIS OF GENDER-

Gender Number of Respondents Percentage (%)

Male 110 55

Female 90 45

Total 200 100

GENDER

Female

Male

Figure 4.1 Source: Field survey

INTERPRETATION:
Figure 4.1 shows that the percentage wise analysis of the data in respect of the gender
in which 45% of the respondents were female who prefer online shopping and 55% of
respondents were male. This defines that Online Shopping is more popular among the male for
the trend fashion available online.

35
Table 4.2 CLASSIFICATION ON THE BASIS OF AGE-

Age Number of Respondents Percentage (%)

20-25 96 48

25-30 64 32

30-35 20 10

35-above 20 10

Total 200 100

AGE
ABOVE35 20

30-35 20
20-25
25-30
25-30 64
30-35
Above35
20-25 96

0 20 40 60 80 100 120

Figure 4.2 Source: Field survey

INTERPRETATION:
Figure 4.2 shows percentage wise analysis of the respondent’s age in which 48% of
the respondents were between the age group of 20-25 and in age group of 25 -30 32% of the
respondents lie which defines that the youth is more active on using the Online shopping
website whereas, in the age group of 30 -35 and 35 above 20% of the people lies which depicts
that respondents of this age group are adopting the new way of technology & its usage and
online shopping is one of them which is they are using with good experience.

36
Table4.3 CLASSIFICATION ON THE BASIS OF EDUCATION QUALIFICATION:-

Education No. of respondents Percentage (%)

Upto SSLC 25 13
PUC 35 17
Graduation 60 30
Post-graduation 70 35
No education 10 05

Total 200 100

EDUCATION
Upto SSLC PUC Graduation Post-graduation No education

Figure 4.3 Source: Field survey

INTERPRETATION:
The above figure 4.3 reveals that 13% respondents are upto SSLC, 17% of
respondents are of PUC, 30%of respondents are of graduates, 35% of respondents are of post
graduates and there is 05% respondents for no education. The table shows that most of the
respondents are post graduated and all are having education.

37
Table 4.4 CLASSIFICATION ON THE BASIS OF OCCUPATION:-

Occupation Number of Respondents Percentage (%)

Employed 60 30

Agriculturist 30 15

Housewife 20 10

Student 90 45

Total 200 100

QUALIFICATION

30%
45%

15%
10%

Emplyoed Agriculturist House wife Student

Figure 4.4 Source: Field survey

INTERPRETATION:
Figure 4.4 shows that the percentage wise analysis of the data in which 45% of the
respondents are students who buy products through the Online Shopping websites where as
30% of the respondents are employed using Online Shopping sites more over Agriculturist
respondent and housewife are 15%&10%. This defines that again as the age group data here
also majority of the youth i.e. students and employed people uses Online Shopping website and
housewife are also adopting online site for shopping for saving their time and do household
work easily and on time.

38
TABLE 4.5 CLASSIFICATION ON THE BASIS OF ANNUAL INCOME:-

Income No. of respondents Percentage (%)

Below 2.5 lakh 88 44


2.5 to 5 lakh 18 09
5 to 7.5lakh 72 36
7.5 lakh above 22 11
Total 200 100

Annual income

<2.5 lakh 2.5-5 lakh 5-7.5 lakh >7.5 lakh

Figure 4.5 Source: Field survey

INTERPRETATION:
The figure 4.5 reveals that the income of respondents. Out of 88 respondents 44%
of respondents are having below 2.5lakh, 9% of respondents are having 2.5 to 5 lakh
income, 36% of respondents are having 5 to 7.5 lakh income, only 11% of respondents
are having above 7.5 lakh income. It shows middle class people are more respondents.

39
Table 4.6 CLASSIFICATION ON THE BASIS OF MARITAL STATUS:-

Marital Status No. of Respondents Percentage (%)

Married 72 36

Unmarried 128 64
Divorced 00 00

Living together 00 00

Total 200 100

MARITAL STATUS

Married

Unmarried

Figure 4.6 Source: Field survey

INTERPRETATION:
In the above Figure 4.6 shows that the more number of respondents are unmarried.
Out of 200 respondents 128 respondents are unmarried, 72 respondents are married. There is
no respondent is Divorced and Living together.

40
CLASSIFICATION ON BASIS OF BEHAVIOUR TOWARDS ONLINE
SHOPPING WEB SITES:-

TABLE 4.7 RESPONDENT AWARENES ON ONLINE SHOPPING:-

Awareness No. of respondents Percentage (%)

Yes 180 90
No 20 10

Total 200 100

AWEARNESS
yes No

No
10%

yes
90%

Figure 4.7 Source: Field survey

INTERPRETATION:
The table 4.7 reveals that the awareness of Online Shopping among the respondents.
Out of 200 respondents 90% of respondents have awareness on online Shopping Website and
only 10% of respondents are not aware on Online Shopping Website.

41
TABLE 4.8 HOW FREQUENTLY RESPONDENT SHOP THROUGH ONLINE-

Frequently Shopping Number of Respondents Percentage (%)


More than once in a month 55 27
Once in 1- 2 months 85 42
Once in 3- 6 months 45 23
Once in 7-12 months 15 08
Total 200 100

FREQUENTLY SHOPPING

8%
27% MORE THAN ONCE IN A MONTH
23%
ONCE IN 1-2 MONTH
ONCE IN 3-6 MONTH
ONCE IN 7-12 MONTH
42%

Figure 4.8 Source: Field survey

INTERPRETATION:
Figure 4.8 shows that the percentage wise analysis of that data of those respondents
who more active on online site purchasing in which 42% of the respondents uses Online
Shopping site uses more than once in a month ,once in 1- 2 month and 23% of respondents
uses it once in 3-6 months whereas, 27% of the respondents uses it once in a month whereas
very less percentage of respondents seem to inactive for shopping online i.e. 8% respondents
uses Online Shopping site once in 7-12 months. This defines that the people are more active
on online shopping for getting the new product available them on time.

42
TABLE 4.9 How respondents get to know about the products they purchase online:-

Know about the sites Number of Respondents Percentage (%)

Through friends 61 30

Social media 72 36

Through advertisements 47 24

Others 20 10

Total 200 100

ONLINE SITES KNOW TO CONSUMERS

10%
30% Though Friends
24% Social Media
Though advertisements
Other

36%

Figure 4.9 Source: Field survey

INTERPRETATION:
Figure 4.9 shows that 36% of the respondents get to know about the sites through the
social media whereas 30% of respondents get to know through the friends and 24% get to know
through the advertisement of the sites whereas 10% of the respondents specified that they get
to know through their children, self searching, visiting the sites which is inbuilt in the phone,
natural need or through directly self searching the site on their cell phone or laptops.

43
TABLE 4.10 Online web sites respondents visited for shopping:-

Visiting Online Sites Number of Respondents Percentage (%)

Amazon 85 42
Flipkart 55 27
Myntra 23 12
Others 37 19
Total 200 100

VISITING ONLINE SITES

19%
Amazon
42% Flipkart
12%
Myntra
Others

27%

Figure 4.10 Source: Field survey

INTERPRETATION:
Figure 4.10 shows the percentage wise analysis of the data in which 42% of the respondents
like to visit Amazon site ,27% of the respondents preferred to visit Flipkart and 12% of
respondents preferred Myntra for online shopping. In this figure it shows that 19% of the people
prefer the Jabong, indiatimes.com, shoppersstop.com, grabmore.in, shop.seventymm.com,
tradus.in, futurebazaar.com, lime road, club factory, Paytm, Brand factory and new launch sites
for shopping. This clearly defines that people are likely using Amazon and Flipkart. TABLE

44
4.11 Factors that motivated respondents to buy products online:-

Factors motivates to buy Number of Respondents Percentage (%)


Products
Easy payment 31 15
No hidden cost 20 10
No travel to shop 69 35
Wide range of products 80 40
Total 200 100

Factors that motivate to buy Products


through online web sites

15%
40% 10% Easy payment
No hidden cost
No travel to shop
35%
Wide range of product

Figure 4.11 Source: Field survey

INTERPRETATION:
Figure 4.11 shows that the 40 % of respondents liked their online shopping site because
of the wide range of the products available to them and 35 % of the respondents used it for not
travelling to shop to buy the product. Easy payment for buying the product was preferred by
the 15% of the respondents and 10% of respondents liked the sites because of no hidden cost
of the products they buy online

45
TABLE 4.12 Scope of improvement in the following issue faced by the respondents while
shopping products in online:-

STATEMENT AGREE NEUTRAL DISAGREE TOTAL


(8-10) (4-7) (0-3)
More secured 96 92 12 200
website
Delivery on time 110 70 20 200
Customer 134 47 19 200
service
Return/ 98 72 30 200
exchange policy
Clearly display 122 70 08 200
the hidden
context next to
the product
Website 106 68 26 200
interface
Product tracking 100 90 10 200
process

Scope of Improvement

134
122
110 106 100 90
96 92 98
70 72 70 68
12 20 47 19 30 8 26 10

MORE DELIVERY ON CUSTOMER RETURN/ CLEARLY WEBSITE PRODUCT


SECURED TIME SERVICE EXCHANGE DISPLAY THE INTERFACE TRACKING
WEBSITE POLICY HIDDEN PROCESS
CONTEXT NEXT
TO THE
PRODUCT

AGREE NEUTRAL DISAGREE

Figure 4.12 Source: Field survey

INTERPRETATION:
Figure 4.12 shows the percentage wise analysis of the data in which 67% of respondent
consider customer service an issue while shopping online and 61% and 48% of respondents
says online shopping should become more secure and display the hidden context next to
product because it still an issue for them where as 50% of the respondents agree that process
of tracking is an issue of online sites and . Also 55% of the respondents is the peoples not
satisfied are delivery on time of shopping

46
TABLE 4.13 Respondents make their payment of online shopping through:-

Mode of Payments Number of Respondents Percentage (%)

Debit card / credit card 98 49

Paytm 40 20

Bank transfer 15 07

Others 47 24

Total 200 100

Mode of payement

24%

49%
7%

20%

Debit card / credit card Paytm Bank transfer Others

Figure 4.13 Source: Field survey

INTERPRETATION:
From the Figure 4.13 shows the percentage wise analysis of the data in which 49% of
the respondents make their payments preferably through debit card / credit card, 20% of the
respondents prefers Paytm for making payments while placing order from online shopping
sites. Whereas, 24% of respondents specified that they use cash ,UPI or cash on delivery for
purchasing products from online and 7% of the respondents prefer bank transfer for placing
order while shopping online.

47
TABLE 4.14 Respondent is faced problem while doing online shopping time:-

Types of Problems No. of Respondents Percentage (%)


Shipping problem 34 17

Return & Cash back problems 120 60

Missing product information 18 09

Other problem 28 14

Total 200 100

Other problem

Missing product information

Return & Cash back problems

Shipping problem

0 20 40 60 80 100 120 140

Types of Problem

Figure 4.14 Source: Field survey

INTERPRETATION:
From the figure 4.14 shows the 17% of respondents faced shipping problem, 60%
respondents are faced return and cash back problem while shopping time,9% of respondents
are tells lack of missing product information and remaining 14%of respondents are faced other
problems like payment issues, quality change, miss product and so on .

48
TABLE 4.15 Respondents experience towards online shopping:-

Experience Number of Respondents Percentage (%)

Excellent 94 47

Good 54 27

Average 47 23

Bad 05 03

Total 200 100

EXPERIENCE ON ONLINE SHOPPING SITES

3%
23%
Excellent
47%
Good
27% Average
Bad

Figure 4.15 Source: Field survey

INTERPRETATION:
Figure 4.15 shows that the respondents experience towards online in which 47% of
respondents agreed that their experience is Excellent and 27% of the respondents agreed that
their experience is good their experience neither bad or good i.e. average.23% of the
respondents. Whereas, only 3% of respondent have bad experience while shopping online. This
shows that the respondents are satisfied with online shopping websites with more good &
average experi

49
CHAPTER-5:
Findings
&
Suggestions

50
FINDINGS
From the data collected we can observe that out of 200 respondents the Online
Shopping users is more as there is awareness about this concept in the society. The more
number of respondents is monthly users. Most preferred activity in online is shopping. Vital
reason to opt Online Shopping activity is for its Accessibility 24x7.More of the respondents
consider Online Shopping as necessity. Trust is the most important factor which influences
Online Shopping user. More number of the respondents are satisfied with Online Shopping and
it is their overall perception.

• Out of 200 respondents 55 % were male which defines that online shopping have more of the
customer base of males.

• 48% of the respondents fall in the age group between 20 -25 which defines that ecommerce
and new technology is adopted more by the youngsters whereas 20% of the respondents are
adopting the trend of Online Shopping web sites for shopping.

• Among these 45% of students and 30 % of employed respondents uses the Online Shopping.

• Amazon site is used by 42% of the respondents for shopping online, 27% of respondents uses
Flipkart & rest of respondents which also bye products from other web sites.

• 72% of respondents agree on the statement that online shopping should display hidden
context clearly and website should also become more secure.

• Online shopping website has customer service which is considered still an issue by 33% of
respondents.

• Product tracking process is considered neutral by 50% of respondents as an issue of Online


Shopping website.

• Selection of products with their detail information on the sites is considered very important
factor by the 55% of the respondents and 41 % of respondents considered it only important
factor which influenced them while shopping online.

• Delivery on time is considered still an issue by 45% of respondents who considered that
sometimes they get delay in delivering the product by the time or day specified.

• 47% of respondents considered website interface an issue while shopping online..

51
• Wide range of products & no travel to shop are considered the main factors by the respondents
for shopping online i.e. 40% and 35% of respondents respectively.

• Payment made for the product is done through debit card /credit card by 49% of respondents
and through Paytm by 20% and24% of others consider pay cash on delivery for the product or
some other payment modes liked BHIM apps, Google Pay , Phone Pay ,Amazon Pay…

52
Suggestions
When it comes to the operational aspects of online shopping, the providers should consider
these followings:

• They should adopt the most sophisticated advertisement strategies For Online
Shopping.
• As there is good future demand On Online Shopping Because of Time Savings,
COVID19, High Work pressure
• Online Shopping providers should standardize their services because Our government
giving more support on digital field.
• As still India in large segment of population is untapped regarding the online shopping
the available online shopping store can widen their market by getting into expansion
strategies.
• Remove the fear of product quality, durability and payments etc from the mind of
customers in regards of online shopping
• Wide expansion of internet services facilities in rural area can bring the more
customers for the online shopping web sites.
• Through prompt service, wide variety in rural area can bring the more customers
from the remote area can be tapped.
• Transaction security and consumers data safety are principal concerns of online
customers purchasing products or services online. Therefore online vendors can assure
their consumers by providing them guarantee, delivery on time, special offers, by
improving their technological.

When it comes to the operational aspects of online shopping, the consumer should consider
these followings:

• Consumer before purchasing the product once they have to check the product ratings,
quality, return policy and all product related information from other shopping websites.
• Consumer camper the price in offline and online

53
CHAPTER-7:
Conclusion

54
Conclusion
Online shopping is becoming more popular now a days with the increase in the usage
of World Wide Web and COVID19 effect. Understanding consumer need for online selling has
become challenge for marketers. Special understanding the consumer’s satisfaction level with
their experience towards online shopping, making improvement in the factors that influence
consumers to buy online and working on the factors that affect consumers to shop online will
help marketers to gain the competitive edge over others.

Online shopping to consumer is the help in finding the wide range of product without
going to shop and get home delivery of the product. With this online shopping has truly
revolutionized and influenced our society as a whole. This use of technology has open doors
opportunities that enable for more convenient lifestyle today. However, this concept of
online shopping led to the possibilities of fraud and privacy conflicts. Unfortunately, In rural
area some people they don’t know how to use online shopping in India. it shows that
technology till not reaches in rural area, so some educated people is possible to do some
criminal to manipulate the system and access personal information.

Luckily, our Prime minister lunch digital India concept introduced in 2015 so that’s the
reason today with the latest features of technology, measures are being taken in online
shopping. By doing this activity, society will continue to depend upon online shopping, which
will allow it to remain a tremendous success in the short period.

As this is an era of technology, people are more exposed to various sophisticated


technology which make their life easy and comfortable. online shopping is one among them
which is gaining more importance.

Finally, we can conclude that most of the people are satisfied and are ready to continue
online shopping facilities.

55
Bibliography:

56
Bibliography

• Spence, Homer, E., James F. Engel, and Roger D. Blackwell (1970), ìPerceived Risk in
MailOrder and Retail Store Buying,î Journal of Marketing Research, 7 (August), 364-369.

• TRUSTe (2000a), ìThe TRUSTe Story,î http://www.truste.com/about/about_truste.html


accessed November 2, 2000.

• Sheehan, Kim Bartel and Mariea Grubbs Hoy (2000), ìDimensions of Privacy Concern
Among Online Consumers,î Journal of Public Policy & Marketing, 19 (Spring), 62-73.

• TRUSTe (2000b), ìTRUSTe Unveils European Union Safe Harbor Privacy Seal Program:
Worldís Largest Privacy Certification Program Makes Landmark Move to Provide Global
Online and Offline Dispute Resolution,î http://www.truste.com/about/about_eu.html accessed
November 2, 2000.

• Kanwal Gurleen (2012), “Consumers Perception Towards online Shopping”, International


journal of management & Information Technology

• Goswami (2013), “Customer Satisfaction towards Online Shopping with Special Reference
to Teenage Group of Jorhat Town”, Indian Journal of Research

• Dhevika V.P.T, Latasri O.T.V, S Karmugil (2014), in their paper “Factors Affecting Online
shopping of Customers”

• Saravanan S and Brindha Devi K (2015), “A Study on Online Buying behavior with special
reference to Coimbatore city”, International Journal of Commerce, Business and
Management.

• Francis Sudhakar K, Habeeb Syed (2016), “A Comparative study between Flipkart and
Amazon India”, International Journal of Research in Regional Studies, Law, Social Sciences
,Journalism and Management Practices.

• Sharma and mittal (2019)”Prospects of e-commerce in india” Asian Journal of management


and research,3(2),396-408

. • Kothari C. R., Research Methodology, New Age Publication, 2nd Edition, New Delhi.

57
Website links
http://www.dummies.com
http://www.wikihow.com
http://shodhganga.inflibnet.ac.in
http://www.slideshare.net
http://www.investorwords.com
http://www.investopedia.com
http://www.gobankingrates.com
http://www.sharemarket.in
http://www.indiansharebroker.com
http://lastbull.com
http://www.bloggersideas.com/top-10-online-shopping-sites-in-india-best-shopping-
sitesindia/

References:
Magazines:
Business & Economy
Marketing mastermind
Business world

Textbooks:
The Complete E-Commerce Book - Janice Reynolds.
E-Commerce: An Indian perspective – S.J. Joseph

58
Appendices:

59
QUESTIONNAIRE
A STUDY ON CONSUMER PERCEPTION TOARDS OLINE SHOPPING IN INDIA

The purpose of this questionnaire is to find out their opinion about online shopping and identify what
main factors Indian online consumers take into consideration when purchasing products in online.
Please read the questions carefully and respond by marking the option that represents your opinion.
Remember there are no wrong or right answers. We are only interested in your opinion. Your
responses will remain anonymous and confidential. Thank you very much for your valuable time. Your
help is appreciated.

1.Name: ….......................

2. Gender:

o Male
o Female

3. Age:

o 20-25
o 25-30
o 30-35
o 35- above

4. Education

o Upto SSLC
o PUC
o Graduation
o Post Graduation

5. Occupation:

o Employed
o Agriculturist
o Student
o Housewife

6.Annual income:
o Below 2.5 lakh
o 2.5 to 5 lakh
o 5 to 7.5 lakh
o Above 7.5 lakh

60
7.Marital status
o Married
o Unmarried
o Divorced
o Living together

8.Are you aware of Online Shopping?


o Yes
o NO
9. How frequently you shop through online shopping websites?

o More than once a month


o Once in 1-2 months
o Once in 3-6 months
o Once in 7- 12 months

10. Which among the following the most you depend in online?
o E-Banking
o Online trading
o Online shopping
o Other
11. Reason you opt for Online shopping
o Convenience
o Accessibility 24X7
o Safe and secure
o service charges
12. How do you consider online shopping as?
o Necessity
o Comfort
o Luxury
o None of the above

13. How do you get to know about the products that you purchase online?

o Through friends
o Social media
o Through advertisements
o Others(specify)…

14. Which of the following site you visit for shopping?

o Amazon
o Flipkart
o Myntra
o Others(specify)…

61
15. What motivates to buy products online?

o Easy payment
o No travel to shop
o Wide range of products
o Others(specify)…

16. How do you make your payments on internet?

o Debit card / credit card


o Paytm
o Bank transfer
o Other (specify)…

17. Do you think there is scope of improvement in the following issue you faced while shopping
online? GIVE YOUR RATES 0 TO 10

STATEMENT 0-10

More secured website [ ]

Delivery on time [ ]

Customer service [ ]

Return/ exchange policy [ ]

Clearly display the hidden context next to the product [ ]

Website interface [ ]

Product tracking process [ ]

18 which type of problem is faced by you while doing online shopping time.

o Shipping problem
o Cash back problem
o Missing product information
o Other problem

19. What is your experience towards online shopping?

o Excellent
o Good
o Average
o Bad

20. Would you like to continue using online shopping facilities?


o Yes
o No
Comment: _________________________________________________
“THE TWO MOST Powerful WARRIORS ARE IN LIFE IS PATIENCE AND TIME”

THANK YOU

62

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