A Study On Consumer Perception On Online Purchase
A Study On Consumer Perception On Online Purchase
A Study On Consumer Perception On Online Purchase
ONLINE PURCHASE”
Roll No.:
40324401717
Batch (2011-2014)
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CERTIFICATE
Innovation in Techonology and management . The matter embodied in this project work
has not been submitted earlier for the award of any degree or diploma to the best of my
Countersigned
(Director / Project Coordinator)
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Aknowledgement
I shall remain greatly indebted to several persons who have provided help, support and
Inspiration throughout my research work during my final report. I would like to express
my great regards to Prof. Meenakshi Kharb of Institute of Innovation in Technology and
Management (IITM), who provided me valuable suggestions for this training program.
Under her guidance, I was able to accomplish my project with confidence. I earnestly hope
that it provides useful and workable information and knowledge to any person reading it.
BBA
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CONTENTS
S No Topic Page No
1 Certificate 2
2 Acknowledgement 3
3 Chapter-1: Introduction 5
4 Chapter-2: Research Methodology 16
5 Chapter-3: Data Presentation & Analysis 25
6 Chapter-4: Summary and Conclusions 42
7 References/Bibliography 45
8 Appendices 47
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CHAPTER 1
INTRODUCTION
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Online 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. Consumers find a product of interest by visiting the website of the
retailer directly or by searching among alternative vendors using a shopping
search engine, which displays the same product's availability and pricing at
different e-retailers. As of 2020, customers can shop online using a range of
different computers and devices, including desktop computers, laptops, tablet
computers, smartphones, and smart speakers.
Online shopping is the process of buying goods and services from merchants
who sell on the Internet. Since the emergence of the World Wide Web,
merchants have sought to sell their products to people who surf the Internet.
Shoppers can visit web stores from the comfort of their homes and shop as they
sit in front of the computer Now a day, online shopping has become popular
among people, they have become techno savvy and feel very comfortable in
using internet. So online shopping has becoming a trend that is why it is
necessary to make a study on online shopping usage and perception. The main
aim of this research is to study the perception of the customers towards online
shopping and also discriminate this perception gender vise. For this purpose,
with help of convenient sampling method 150 respondents were selected and
data were collected through structured questionnaire. On the basis of data
analysis it is found that most of the customers were perceived that online
shopping is better option than manual shopping and most of the customers were
satisfied with their online shopping transactions. Customers are accessing their
net at their home and office/ college. Largely customers are buying clothe,
electronics items and accessories. Most alarming barrier for online shopping
was customers have to give their credit card number and they can’t see products
personally. Customers agree with the statement that online shopping is more
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expensive than manual shopping, its take more time to deliver the products and
they are facing problems while making online purchases
HISTORY
Online stores usually enable shoppers to use "search" features to find specific
models, brands or items. Online customers must have access to the Internet and
a valid method of payment in order to complete a transaction, such as a credit
card, an Interac-enabled debit card, or a service such as PayPal.
One of the earliest forms of trade conducted online was IBM's online
transaction processing (OLTP) developed in the 1960s and it allowed the
processing of financial transactions in real-time. The computerized ticket
reservation system developed for American Airlines called Semi-Automatic
Business Research Environment (SABRE) was one of its applications. Here,
computer terminals located in different travel agencies were linked to a large
IBM mainframe computer, which processed transactions simultaneously and
coordinated them so that all travel agents had access to the same information at
the same time.
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Specific features of online shopping
Online shopping consist of various features which also highlight the benefits
from e – shopping. Thus, the features are described as:
24 X 7 Service available.
Easy Access with multiple devices.
Single click to navigate multiple sites
Comparison can be made in real time.
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Specific features of online shopping
Online shopping consist of various features which also highlight the benefits
from e – shopping. Thus, the features are described as:
24 X 7 Service available.
Easy Access with multiple devices.
Single click to navigate multiple sites
Comparison can be made in real time.
Flexible Payment methods
Online stores do not have space constraints and a wide variety of products can
be displayed on websites. It helps the analytical buyers to purchase a product
after a good search.
Customers can purchase items from the comfort of their own homes or work
place. Shopping is made easier and convenient for the customer through
internet. It is also easy to cancel the transactions.
The following table depicts the factors which motivate the online shoppers to
buy products online.
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6. We can compare various models / brands.
2. No pressure shopping
Customers do not have to stand in queues in cash counters to pay for the
products that have been purchased by them. They can shop from their home or
work place and do not have to spend time traveling. The customers can also
look for the products that are required by them by entering the key words or
using search engines.
4. Comparisons
The mall is open on 365 x 24 x 7. So, time does not act as a barrier, wherever
the vendor and buyers are.
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6. Online tracking
Online consumers can track the order status and delivery status tracking of
shipping is also available.
Ease of use is the prime reason that drives the success of e-commerce. Though
internet provides a quick and easy way to purchase a product, some people
prefer to use this technology only in a limited way. They regard internet as a
means for gathering more information about a product before buying it in a
shop. Some people also fear that they might get addicted to online shopping.
1. Delay in delivery
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2. Lack of significant discounts in online shops
Physical stores offer discounts to customers and attract them so this makes it
difficult for e-tailers to compete with the offline platforms.
Lack of touch-feel-try creates concerns over the quality of the product on offer.
Online shopping is not quite suitable for clothes as the customers cannot try
them on.
Physical stores allow price negotiations between buyers and the seller. The
show room sales attendant representatives provide personal attention to
customers and help them in purchasing goods. Certain online shopping mart
offers service to talk to a sales representative,
The traditional shopping exercise provides lot of fun in the form of show-room
atmosphere, smart sales attendants, scent and sounds that cannot be experienced
through a website. Indians generally enjoy shopping. Consumers look forward
to it as an opportunity to go out and shop.
A customer has to buy a product without seeing actually how it looks like.
Customers may click and buy some product that is not really required by them.
The electronic images of a product are sometimes misleading. The colour,
appearance in real may not match with the electronic images.
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People like to visit physical stores and prefer to have close examination of good,
though it consumes time. The electronic images vary from physical appearance
when people buy goods based on electronic images.
The disadvantages of online shopping will not hinder its growth, Online
shopping helped businesses to recover from the recession.
Merchants should pay attention to the stumbling blocks and ensure secure
payment system to make online shopping effective, The following advice may
be followed by the E-merchants and by the online shoppers.
Literature review
Bellman et. al. (1999) investigated various predictors for whether an individual
will purchase online. These authors concluded that demographic
variables, such as income, education and age, have a modest impact on the
decision of whether to buy online, whereas the most important determinant
of online shopping was previous behaviour, such as earlier online purchases.
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Venkatesh (2000) reported that perceived convenience offered by Internet
Vendors has a positive impact on consumers' attitude towards online
shopping, as they perceive Internet as a medium that enhances the outcome of
their shopping experience in an easy way. Online shopping holds a great
potential for youth marketers.
Bhattacherjee (2001) stated that satisfied users are more likely to continue the
IS use. Thus, we point that adoption and continuance are
connected to each other through several mediating and moderating factors such
as trust and satisfaction.
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Guda et. al (2007) in two experiments, the impact of shopping context on
consumers’ risk perceptions and regulatory focus was examined.
They predicted that individuals perceive an online (vs. conventional) shopping
environment’s more risky and that an online shopping environment, by
its risky nature, primes a prevention focus.
Thakur Sonal and Aurora Rajinder (2015) found that Internet is one of the
ways which is changing the consumers shopping and buying
behaviour. Mostly consumers are using the internet to buy the product and to
compare prices and features of product therefore; e-companies should
understand the internet users’ perception towards the online shopping. The
prospect of online marketing is increasing in India with the increasing internet
literacy.
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CHAPTER - 2
RESEARCH METHODOLOGY
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2.1RESEARCH
2.2Methodology
A sample design is a procedure or plan drawn up before any data are collected
to obtain a sample from a given. It is impossible to conduct a research with
entire population. The sample design was selected in advance according to the
objectives of the study.
Sometimes, the entire population will be sufficiently small, and the researcher
can include the entire population in the study. This type of research is called a
census study because data is gathered on every member of the population.
Usually, the population is too large for the researcher to attempt to survey all of
its members. A small, but carefully chosen sample can be used to represent the
population. The sample reflects the characteristics of the population from which
it is drawn.
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probability of being selected. Probability methods include random sampling,
systematic sampling, and stratified sampling. In non probability sampling,
members are selected from the population in some non random manner. These
include convenience sampling, judgment sampling, quota sampling, and
snowball sampling. The advantage of probability sampling is that sampling
error can be calculated. Sampling error is the degree to which a sample might
differ from the population. When inferring to the population, results are
reported plus or minus the sampling error. In non probability sampling, the
degree to which the sample differs from the population remains unknown.
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stratum. This differs from stratified sampling, where the stratums are filled by
random sampling.
These are the type of questions that are used to allow the respondents to express
their views in a free flowing manner.
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Objectives of the Study
SWOT ANALYSIS
Strengths
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Accessibility
Lower Prices
Weaknesses
Industry Specific
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Unfortunately, it will be very difficult for eCommerce stores to expand into
these industries.
Opportunities
Growing Market
One of the biggest opportunities for the online shopping industry is the
growing market. While most consumers in developed countries already have
electronic devices, there are plenty of consumers in developing countries who
don’t — and, as a result, don’t buy goods online. As the prices of electronics
continue to decline, it’s likely that we’ll see an increase in the number of
potential internet shoppers. This will subsequently result in a greater volume
of eCommerce sales.
Influencers
There are a number of internet users who use their large social followings to
promote various goods and services. These people, known as influencers,
present a powerful marketing opportunity for savvy eCommerce sellers. With
social media becoming such a huge part of our everyday lives, influencers are
set to play an increasingly important role in how products are marketed —
and eCommerce stores are best positioned to take advantage of this.
Threats
Competition
Although the eCommerce industry’s low barrier to entry is, on the one hand, a
Strength, it also poses a significant threat for existing sellers. This is because
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of how easy it is for just about anyone — anywhere — to launch a new
eCommerce store and compete with other online shopping businesses. It’s
important to know that this element of competition doesn’t affect the success
of the eCommerce industry as a whole, but affects individual businesses.
Fraud
Data Concerns
Aside from blatant fraud, there’s a lot of potential for things to go wrong with
online shopping — especially when it comes to users data. Shopping online
requires you to hand over a lot of sensitive data, including your payment
details, address, and other assorted information. If this information gets into
the wrong hands, it can have devastating consequences. Also, since the
introduction of new data-related regulations like the European Union’s
GDPR, there are new complexities in the data aspects of running an online
business.
Monopolies
Since eCommerce stores can cater to entire countries — or even the entire
world — it leaves a lot of potential for monopolies to form. Perhaps the best
example of this is if you review how Amazon has affected bookstores. In the
past, a variety of local bookstores (including mom and pop stores, smaller
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chains, and larger chains) would have serviced a given area. With the advent
of huge eCommerce alternatives like Amazon, these stores are dying off and
Amazon is becoming the one-stop-shop for books. This trend may spread into
other markets, and may at some point warrant government regulation
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CHAPTER 4
DATA ANALYSIS
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QUESTION 1
As the data depicts the majority of people who use e-commerce services are
of age 21 to 25 that is 48% followed by people of age 16 to 20 that are 24%
while 22% are people of age 26 to 30 and 6% people of age 30 and above.
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QUESTION 2
Occupation
The data depicts the use of e-commerce websites for purchasing products
where students use 30% followed by employed people at 44% with 18%
retired people and 8% prefer not to say.
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QUESTION 3
Income
As the data depicts the people with income of 10 lakhs and above barely use
ecommerce services for shopping while people with 5-10 lakhs income shop
the most at 70% followed by people with 1-5 lakhs income at 28%.
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QUESTION 4
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QUESTION 5
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Its very much evident from the data above that people who prefer to shop
online are attracted by various factors such as 44% people are attracted by
discounts and offers followed by people who are attracted by advertisements
at 34% with 14% are attracted by the user interface and lastly 8% people are
pleased by the variety of products.
QUESTION 6
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According to the survey analysis , 66% people buy personal care from the online purchase
then 54% household utilities 40% electronics 44 % stationary , 34% clothes, 32% tickets
and then there items .
QUESTION 7
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As the data depicts that 46% people spend on a average of Rs.1000-5000 in a
month on online shopping whereas 42% spend Rs.5000-10000 in a month
followed by people who spend less than Rs.1000 in a month at 8% and lastly
4% people spend Rs.10000 and above on online shopping in a month.
QUESTION 8
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The data reveals that people who chose online shopping prefer flipkart for
online shopping with 36% with amazon at 34% followed by aliexpress at 16%
and lastly ebay with 14%.
QUESTION 9
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As the data depicts 54% people find online shopping beneficial while 46%
think it is still a waste of time and money.
QUESTION 10
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As the data depicts 68% prefer purchasing groceries from e-commerce
websites while 32% opt for offline purchase.
QUESTION 11
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As the data depicts 60% people think that purchasing products from e-
commerce websites is a boon while 40% think that it is a bane.
QUESTION 12
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According to the survey most of the people prefer online shopping because it
is convenient ,there is no need to deal with a sales person and there is a ease
of finding products also we can compare products easily . people prefer online
shopping because there is a ease of return and refund of the products .
QUESTION 13
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As the data depicts 40% prefer to purchase products from e-commerce
websites using credit cards whereas 30% opt for a debit card as a payment
method and 26% use mobile wallets as a payment methods lastly 4% people
choose cash on delivery for online shopping.
QUESTION 14
QUESTION 15
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What is the Reason for not Purchasing online ?
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CHAPTER 5
SUMMARY AND CONCLUSION
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Findings:
⦁ The majority of youth has shown a positive response towards e commerce services
and it’s very much evident from the data that as the age increases the number of e
commerce service users decreases. Thus, we can conclude that higher aged groups haven’t
still shown that much keen interest towards e-commerce services.
⦁ The data reveals that students are more tilted towards e-commerce services followed
by employed , retired and then come others.
⦁ E-commerce services are used by the majority of people on a daily basis followed by
people who use it on a weekly basis and monthly basis.But, there are still few people who
never availed e-commerce facilities.
⦁ The major chunk of people have shown positive outlook towards e commerce services
but, they still don’t find it that credible due to various drawbacks that it possesses.
⦁ The major chunk of people would definitely recommend e-commerce services among
their peers
⦁ Though people are reluctant to use e-commerce services but still the masses find it
safe to use as but there are many who don’t find it. There are few who are neutral in their
opinion..
⦁ People would be more keen to shift towards other websites if they provide better
services as compared to other websites against those who are unlikely to move.
⦁ The data reveals that most of the people find ecommerce services informative in
nature but, there are a few who don’t find it so followed by those who aren’t sure about it.
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⦁ Most of the people find e-commerce services user friendly in nature which very much
forms the basis for websites if they aren’t user friendly people won’t be inclined towards it.
CONCLUSION
E-Commerce services. The findings of this study show that despite of many advantages of
online shopping. People still consider it as an alternative for shopping in malls and
markets. Although every shop in every market has increase the human interaction with
offers but most of people visit only once a week or more. This reason is that in case of
online shopping interpersonal interaction with customers is seldom possible. Identification
& measurement of customer’s expectations of the internet banking services provide a
frame of reference & their related quality dimension.
The main factors which persuade people to use e-commerce are comfort & convenience &
the facility which attracts them most is quality & variety. Therefore the implementation of
quality initiatives should begin with defining customer’s need & preferences & their
related variety dimensions There is still a lot needed for the online shopping to make
reforms and convince their customers for using internet for their shopping and window
shopping
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Going through the survey the main problem lies that still customers have a fear of losing
their details and thus do not go on for online shopping. Markets are trying their level best
by providing the best buying options to the customers but then to there is lot of factors
which betrays a customer from buying from the markets. Markets are providing a security
and offers also so that the customers can be attracted. By asking the shopkeepers we came
to know that maximum numbers of shoppers are elderly and business man.
BIBLIOGRAPHY
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https://www.researchgate.net/publication/335676504_CUSTOMER_PE
RCEPTION_TOWARDS_ONLINE_SHOPPING
https://en.wikipedia.org/wiki/Consumer_behaviour
https://en.wikipedia.org/wiki/Online_shopping
https://en.wikipedia.org/wiki/Buyer_decision_process
https://www.ijert.org/a-study-on-customer-perception-towards-online-
shopping
https://www.academia.edu/4810700
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https://www.scribd.com/document/269591736/CONSUMER-
PERCEPTION-TOWARDS-ONLINE-SHOPPING-FINAL-
SUBHASISH-PATNAIK-pdf
BOOKS
APPENDIX
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Questionnaire
1. Age ?
a. 16-20
b. 21-25
c. 26-30
d. 30 and above
2. Occupation ?
a. Student
b. Employed
c. Retired
d. Prefer not say
3. Income ?
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a. 1-5 lakhs
b. 5-10 lakhs
c. 10 lakhs and above
a. Yes
b. No
a. User interface
b. Discounts and offers
c. Advertisements
d. Variety
a. Electronics
b. Personal care products
c. Household utilities
d. stationary
e. Clothes
f. tickets
a. Amazon
b. Flipkart
c. Aliexpress
d. Ebay
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a. Yes
b. No
a. No guaranty
b. Forgery
c. High price of products
d. Security issue
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