“A STUDY ON FACTORS INFLUENCING CONSUMER BUYING

BEHAVIOUR

TOWARDS ONLINE SHOPPING”

A Study with reference to online shopping towards Chennai city

Submitted to the University of Madras

In the partial fulfilment of the degree of

MASTER OF COMMERCE

BY

Miss. G.MAHESWARI

Reg. No: 531900778

Under the supervision of

Mrs. E.Charumathy, M.Com, M. Phil., M.B.A., Ph.D.

Assistant professor

PG &Research Department of Commerce

PG AND RESEARCH DEPARTMENT OF COMMERCE

BHATAVATSALAM MEMORIAL COLLEGE FOR WOMEN

KORATTUR

CHENNAI- 80

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 DECLARATION
I hereby declare that the project entitled “A STUDY ON FACTORS
INFLUENCING CONSUMER BUYING BEHAVIOUR TOWARDS
ONLINE SHOPPING”-A study with special reference to online shopping
towards Chennai city submitted by me in partial fulfilment of the requirement
for the award of the Degree of Master of commerce, is the research work done
by me under the supervision of Mrs.E.CHARUMATHY, M.com.,M.Phil.,
M.B.A., NET, P.h.D., Assistant professor PG& Research Department of
commerce BHAKTAVATSALAM MEMORIAL COLLEGE FOR
WOMEN, Chennai-600080 and this project report has not previously formed
the basis for the award of any degree , diploma, associate fellowship of any
other academic courses.

PLACE:
G.MAHESWARI
DATE: Reg .No.531900778

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BHAKTAVATSALAM MEMORIAL COLLEGE FOR WOMEN

CHENNAI-600080.

Certificate
This is to certify that the project report titled “A STUDY ON
FACTORS INFLUENCING CONSUMER BUYING
BEHAVIOUR TOWARDS ONLINE SHOPPING” submitted for the
degree of Master of Commerce by Miss. G.MAHESWARI , Reg.NO.
531900778, is the record of Research work carried out by her, under my
guidance and supervision and this work as not formed the basis for the award
previously of any degree, diploma, associate fellowship or any other academic
courses.

PLACE: Mrs .E. CHARUMATHY

DATE: Project Guide

Internal Examiner External Examiner

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ACKNOWLEDGEMENT
At the outset I thank Lord almighty for showering his blessing on me to submit
this project report. I thereby sincerely thank the management of
BHAKTAVATSALAM MEMORIAL COLLEGE FOR WOMEN
and express my sincere thanks to our Vice-chairman Madam
Dr.K.MAARAGATHMANI, MBA, Ph.D, for having given me an opportunity
to pursue my project work.

I am grateful to our Secretary sir

Dr. S.P RAJAGOPALAN, M.S.C., M.phil., Ph.D., for his valuable support
and I also extent my sincere thanks to our Associate secretary Madam
Dr. C.N ESWARI, M.A., M.Phil., Ph.D For have support. I extend my
sincere gratitude to our beloved Principal Madam
Dr.V.KALAIVANI,M.COM., M.Phil., M.B.A., Ph.D, for granting me
permission to pursue my project.

I am indebted to record my deep sense of gratitude to

Dr.K.R.DHANALAKSHMI, M.com., M.phil., Ph.D,MBA,PH.D,SET,
Associate professor and Head., PG& Research Department of Commerce for the
continuous support in completing this project.

I am extremely grateful to my class guide

Mrs.E.CHARUMATHY,M.com.,M.phil., M.B.A., NET., Ph.D, Assistant
professor PG& Research Department of Commerce, for her valuable guidance,
encouragement and constant support.

My sincere thanks to all my professors of PG& Research Department of

commerce for the encouragement valuable suggestion and advice. I thank our
librarian for her continuous support.

I extend my sincere thank to my affectionate and beloved parents and friends

who gave me inspiration, enormous interest and helped me to different stage of
this project

(G.MAHESWARI)

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 CONTENT

S.NO TITLE PAGE.NO

1 INTRODUCTION 5-39
2 REVIEW OF LITERATURE 41-48
3 FINDINGS AND 50-57
SUGGESTION
BIBLOGRAPHY 58

A STUDY ON FACT ORS INFLUNECING CONSUMER BUYING

BEHAVIOUR TOWRDS ONLINE SHOPPING

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 CHAPTER-1

INTRODUCTION

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INTRODUCTION

All business starts with production and ends with consumption. It is not
necessary that consumers should be in a near place of production to buy the
products or goods. The modern marketing world, adoption of technology by the
people connecting the producer and consumers in a easy way to satisfy their
needs. This implies that the manufacturers must be making efforts to ensure that
their products are in demand and reach the ultimate consumers all over the
globe. This also implies that the manufactures assess the needs of the
consumers, their tastes and preferences and plan the product accordingly. Not
only that, they also ensure that people are aware about the product and its
features. All these activities are said to be part of marketing function of any
organisation. Thus ,marketing refers to the process of ascertaining consumers’
needs and supplying various goods and services to the final consumers or users
to satisfy those needs. Basically, marketing is the performance of business
activities that direct flow of goods and services from producers to consumers or
users.

The world market is derived from the Latin word ‘Marcatus’, meaning
merchandise, ware traffic, trade or place where business is conducted.
Originally, the word market stood for the place where buyers and sellers gather
to exchange their goods. The concept of exchange lead us to the concept of
market. There is a stock market and an automobile marketing, retail market for
furniture. Apart from tangible goods, a market offers a wide range of services
such as banking, insurances, transport, health services, communication etc.

MARKETING:

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Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchange that
satisfy individual and organisational objectives.

Marketing is a comprehensive term. It facilitates the flow of goods and services

from producer to consumer. Human efforts, finance and management constitute
the primary resources in marketing. Marketing focuses the resources objectives
of an organisation on customer needs. Marketing comprises activities involved
in the satisfaction of customer needs at a profit. Marketing functions are
undertaken to orient all parts of the business towards the creation of a satisfied
customer. Thus, marketing means managing markets to bring about exchanges
and relationships for the purpose of satisfying needs and wants.

TRADITIONAL CONCEPT OF MARKETING

According to the traditional concept, marketing means selling goods and

services that have been produced. Thus, all those activities which are concerned
with persuasion and sale of goods and services are called marketing. This
concept marketing emphasizes on promotion and sale of goods and services and
little attention is paid to consumer satisfaction. This concept has the following
implications:

(a) The main focus of this concept is on product i.e, we have a product and it
has to be sold. So, we have to persuade the consumers to buy our
products.
(b) All efforts of the marketing people are concentrated on selling the
product. They adopt all means like personal selling and sales promotion
to boost the sales.
(c) The ultimate goal of all marketing activity is to earn profit through
maximization of sales.

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 TRADITIONAL CONCEPT OF MARKETING
 Focus on Product
 Mean Selling
 End Profit through maximization of sales

MORDERN CONCEPT OF MARKETING

The modern concept of marketing considers the consumers’ want and needs as
the guiding spirit and focuses on the delivery of such goods and services that
can satisfy those needs most effectively. Thus, marketing starts with identifying
consumer needs then plan the production of goods and services accordingly to
provide him the maximum satisfaction. In other words, the products and
services are planned according to the needs of the customers rather than
according to the availability of materials and machinery. Not only that, all
activities (manufacturing, research and development, quality control,
distribution, selling etc) are directed to satisfy the consumers. Thus, the main
implications of the modern concept are:

(a) The focus of this concept is on customer orientation. The marketing

activity start with an assessment of the customer needs and plans the
production of items that satisfy these needs most effectively. This also
applies to all other marketing activities like pricing, distribution and sales
promotion.
(b) All marketing activities like product planning, pricing, packaging,
distribution and sales promotion are combined into one as coordinated
marketing efforts. This is called integrating marketing.

It implies :

 Developing a product that can satisfy the needs of the consumers.

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  Taking promotional measures so that consumers come to know about the
products, its features, quality, availability etc.
 Pricing the product keeping in mind the target consumers’ purchasing
power and willingness to pay;
 Packaging and grading the product to make it more attractive and
undertaking sales promotion measures to motivate consumers to buy the
product;
 Taking various other measures(e.g, after sales service) to satisfy the
consumer’s needs.

(c). The main aim of all effort is to earn profit through maximization of
customer satisfaction. The implies that, if the customers are satisfied , they will
continue to buy, and many new customers will be added. This will lead to
increase sales and so also the profits.

MODERN CONCEPT OF MARKETING

 Focus on Customer need
 Mean Coordinated marketing efforts
 End Profit through customers satisfaction

It may be noted that with growing awareness of the social relevance of

business, marketing has to take into account the social needs and ensure that
while enhancing consumer satisfaction, it also aims at society’s long-term
interest.

DEFINITION OF MARKETING:

Marketing is social and managerial process by which individual and group

obtain what they need and want through creating, offering and exchanging

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product of value with others. Marketing is a human activity directed satisfying
needs and wants through exchange process- Kotler.

American Marketing Association (AMA) defines, marketing as the

performance of business activities that direct the flow of goods and services
from the produces to consumer or user. According to this definition, marketing
comprises a wide range of activities. E.g designing, pricing, promoting and
distributing goods and services.

According to Hansen,” marketing is the process of discovering and translating

consumer needs and wants into product and services specification creating
demand for these product and services and then in turn expanding this demand”.

According to the Converse ,”Marketing include those business activities which

are involved in the flow of goods and services from production to
consumption”.

According to Duddy and Reizan “Marketing is the economic process by which

goods and services are exchanged and their values determined in terms of
money prices”.

According to Peter F .Drucker “Marketing is not only much boarder than

selling, it is not specialised activity at all. It encompasses the whole business,
concern and responsibility for marketing must, therefore, permeate all of the
enterprise”.

According to Buskirk “Marketing is an integrated system of action that creates

value in goods through the creation of form, pace, time and ownership utilities”.

BASIC GOODS MARKETER:

Basic goods are those goods which are very basic for industrial infrastructure
development in a country. Producers of basic goods come under basic industries

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category . The development of the basic goods market depends upon the
development of the consumer goods markets . In other words , basic goods
derive demand from the demand of consumer market. So demand for basic
goods is known as “Derived demand”.

INTERMEDIATARY GOODS MARKETER:

Machines, machine tools , equipment ,components and spare parts from the
intermediary goods market. The manufacturer of television sets buys
components and assembles them into television sets without producing every
components from either manufacturers.

CONSUMER GOODS MARKET:

Goods are required for direct consumption of human beings or for direct use in
the form of raw materials for industries. Consumer goods market is further
divided into non-durable goods market and durable goods market. Electronics,
household appliances ,passengers, cars etc., from durable consumer markets.

DEFINITION OF BUYING :

In the words of Pyle ,” buying comprises all those activities involved in finding
a suitable source of supply selecting the desired quantity , quality , grade, style
and size and combing to agreement with reference to the price to the price,
delivery date and their conditions”.

DEFINTION OF CONSUMER BEHAVIOUR:

According to J.F.Engels ” The activities and the action of people and

organisation that purchase and use economic goods and services , including the
influence on these activities and actions”.

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According to P.K.Agarwal “ Consumer behaviour refers to all the
psychological, physiological , socio psychological reasons of individual
consumer’s response marketing appeals”.

According to Philip Kotler “ The field consumer behaviour studies how

individuals , groups , and organisations select , buy, use, and dispose of goods,
services or ideas or to experiences to satisfy their needs and wants”.

According to James F, Blackwell , Roger D “ we define consumer behaviour as

those actions directly involved in obtaining, consuming and disposing of
products and services including the decision process that precedes and follow
the action”.

According to Gray Armstrong is very important .They define consumer buying

behaviour as follows:

“The buying behaviour of final consumers-individuals and households who buy

goods and services for personal consumption”.

WHO IS A CONSUMER?

A consumer is one who actually purchases a product or services from particular

organisation or shop. A customer is always defined in term of specific product
or company.

DEFINITION:

According to Cravens, hells and Woodruff “ consumers are people in families

and other kinds of household who buy and use product and services in order to
satisfy their personal needs and wants.

American consumers very tremendously in age, Income, education level. They

also buy an incredible variety of goods and services. How these diverse
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consumers make choice among various products embraces a fashionating of
factors.

CONSUMER:

An individual who buy product or services for personal use and not for
manufacturer or resale. A consumer is someone who can make the decision
whether or not to purchase an item at the store, and someone who can be
influenced by marketing and advertisement. Any time someone goes to store
and purchase a toy, shirt , beverage or anything else they are making that
decision as a customer.

Consumer is the kind it is the consumer who determine what a business is .

Therefore, a sound marketing program should be start with a careful analysis of

consumers .In particular, a marketer should final answers to the following
questions:

 What they buy?

 How they buy ?

 When they buy?
 Where they buy?
 How often they buy?

CONSUMER BEHAVIOUR:

A consumer is an ultimate buyer. However , the term buyer is boarder than

consumer. There are two categories of buyers, namely, individual consumer and
business buyer. As already stated that an individual consumer buys for personal
consumption. But a business buyer buys things for manufacturing other

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products for reselling or for use in the running of his enterprise. A buyer or
consumer becomes a customer is one who regularly visit a place of business or
patronises a product or service . Customer is the king.

It is the consumer on whose decision demand of any products/services is

dependent. The attitude of consumers decides how existing goods and services
will be sold. Many economic , Social , culture and Climatic factors determine
the attitude of consumers. Buying decisions are also influenced by education,
life style, Size of family etc. Of the consumer. So it is essential to study how
and why a particular consumers behaves the way he/she does.

MARKETING MIX:

 Product.
 Place.
 Price.
 Promotion.

PRODUCT:

A product means the goods and services a company offers to market. A

product is a bundle of tangible and intangible attributes .The product element of
the marketing mix includes planning, developing, and producing the rights type
of products and services . In product mix, decisions are taken on design of the
product, size and weight of the product quality of the product, volume of output,
brand name, packaging , product range , product testing, warranties and after
sales services.

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PRICE :

Price is the amount of money which customers pay to buy a products. Price is
an important element in marketing mix. Price is the only tools among the four
Ps o which generate revenue for marketer. Price mix involves decisions

regarding base price , discount allowance ,freight payment, credit etc.

PROMOTION:

Promotion means activities that communicate the merits of the product and
persuade target consumers to buy it. The promotion mix consists of advertising,
personal selling , sales promotion, and public relations. Promotion mix based on
the nature of the product, type of customers, the promotion budget , nature of
demand etc.

PLACE:

Place includes a company’s overall plans to make the product available to target
consumers. Distribution system is to be designed to physically handle and
transport the product through intermediaries.

IMPORTANCE OF CONSUMER BEHVIOUR:

The modern basic marketing management tries to solve the basic problems of
consumer in the area of consumption .To arrive in the market a firm has to be
constantly innovating and understand the latest behaviour and taste.

It is important for the marketers to understand the buyer behaviour due to the
following reasons:

 The study of consumer behaviour for any products is of vital importance

to marketers in shaping the fortunes of their organisation.

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  It is significantly for regulating consumption of goods and services
thereby maintaining economic stability.
 It is useful in developing ways for the more efficient utilization of
resources of marketing.
 Today consumers give more importance on environment friendly
products . They are concerned about health, hygiene and fitness ,They
prefer natural products.
 The growth of consumer protection movement has created an urgent
need to understand how consumer make their consumption and buying
decisions.
 Consumer taste and preferences an ever changing study of consumer
behaviour gives information regarding colour, design etc which
consumers wants.

NATURE OF CONSUMER BEHVIOUR:

1. PROCESS:
Consumer behaviour is a systematic process relating to buying
decisions of the consumers. The buying process consists of the
following steps:

 Need identification to buy the products.

 Information search relating to the product.
 Listing of alternative brands.
 Evaluating the alternative ( cost- benefit analysis).
 Product decision .
 Post- purchase evaluation by the marketer.

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2.INFLUENCED BY VARIOUS FACTORS:

Consumer behaviour is influenced by a number of factors. The factors

that influence consumers are: marketing, personal, psychological, situational,
social, cultural etc.

3.DIFFERENT FOR ALL CONSUMERS:

All of consumers do not behave in the same manner. Different

consumers behave differently .The difference in consumer behaviour is due to
individual factors such as nature of the consumer’s life style, culture, etc.

4. DIFFERENT FOR DIFFERENT PRODUCTS:

Consumer behaviour is different for different products. They are some

consumers who may more quantity of certain items and very low /no quantity of
some others items.

5. REGION BOUNDED:

The consumer behaviour varies across states, regions and countries. For
instance, the behaviour of urban consumers is different from that of rural
consumers. Normally, rural consumers are conservative (traditional) in their
buying behaviour.

6.VITAL FOR MARKETORS :

Marketers need to have a good knowledge of consumer behaviour. They need

to study the various factors that influence consumer behaviour of their target
consumers. The knowledge of consumer behaviour enables marketers to take
appropriate marketing decisions.

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7. REFLECTS STATUS:

Consumer buying behaviour is not only influenced by status of a consumer,

but also reflects it. Those consumers who own luxury cars, watches and other
items are considered by others as persons of higher status.

8.SPREAD- EFFECT:

Consumer behaviour has a spread effect. The buying behaviour of one person
may influence the buying behaviour of another person. For instance, a customer
may always prefer to buy premium brands of clothing, watches and other items
etc. This may influence some of his friends, neighbours, colleagues. This one
of the reasons why marketers use celebrities like Shahrukh khan, Sachin to
endorse their brands.

9. STANDARD OF LIVING :

Consumer buying behaviour may lead to higher standard of living . The more
person buys the goods and services, the higher is the standard of living.

10. KEEPS ON CHANGING:

The consumer’s behaviour undergoes a change over a period of time

depending upon changes in ages, education and income level etc. For instance
kids may prefer colourful dresses, but as they up as teenagers and young adults,
they may prefer trendy clothes.

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CONSUMER DESCISION MAKING PROCESS:

The decision –making process for consumers is anything but straight

forward. There are many factors that can affect this process as a person works
through the purchase decision. The number of potential influences on consumer
behaviour is limitless. However, marketers are well served to understand the
key influences. By doing so that they may be in a position to tailor their
marketing efforts to take advantages of these influences in a way that will
satisfy the consumer and the marketer.

VIRUTAL MARKET:

With advancement of technology the buyer and sellers can, now-a-days ,

Interact with each other by using internet. This is called virtual market.

FUNCTIONS PERFORMED IN MAREKTING:

1. MARKET RESARCH:
Marketing research involves collection and analysis of facts relevant to
various aspects of marketing. It is a process of collecting and analysing
information regarding customer needs and buying habits, the nature of
competition in the market, prevailing prices, distribution network,
effective of advertising media etc. Market research gathers, records and
analyses facts for arriving at rational decisions and developing suitable
marketing strategies.
2. PRODUCT PLANNING AND DEVELOPMENT:
The marketers gather information regarding what are the needs of the
consumers and then decide upon what to produce. So, the task of
marketing begins with planning and designing a product for the
consumers. It can be done while modifying and improving an already
existingproduct.

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 3. BUYING AND ASSEMBLING:
Buying and assembling activities as a part of marketing refers to buying
and collection of required goods for resale. This function of marketing is
primarily relevant to those business organizations that are engaged in
trading activities .In the collect of manufacturing organizations, buying
and assembling involves buying raw material and components required
for production of finished goods.

4.PACKAGING:

Packaging involves putting the goods in attractive packets according to

the convenience of consumers. Important considerations to be kept in view in
this connection are the size of the package and the type of packaging material
used. Packaging is also used as a promotional tool as a suitable and attractive
packages influences of the demand of the products.

5.STANDARDISATION AND GRADING:

Standardisation refers to development of standards for production of goods

with respect to shape, design , colour and other characteristics. Standardisation
is defined as “the determination of basic limits or grades in the form of
specifications to which manufactured goods must conform and classes to which
the product of agriculture and extractive industries may be sorted”. Grading is
the process of sorting individual specimens of a given product to the standard
grades or classes to which they belong.

6.BRANDING:

Branding means an attractive name, symbol or identify mark to the product to

make product different from others so that it is known by that name or symbol
or mark. Similarly, you must be familiar with brand like colgate toothpaste, Lux
for soap and so on.

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7. PRICING THE PRODUCT:

Pricing involves decisions regarding fixation of product prices, keeping in the

view the product costs, the capacity of customers to pay and the prices of the
competitive products .It is an important decisions as it influences the sales and
so also the profits. So pricing to be done very carefully.

8. PROMOTION OF THE PRODUCT:

Promotional activities include advertising, personal selling , sales promotion

and publicity .All promotional activities involve communication with the
existing and prospective customers whereby they are made aware of the
product ,its distinctive features, price, availability. The objective of promotional
activities is to motivate the consumers to buy the product.

9. SELLING:

Selling is the act of transferring possession and ownership of goods by sale. It

is also the process of persuading the prospective buyers to buy the product.
Selling is the crown of all marketing activities. The object of selling is to
dispose of goods at satisfactory prices. Selling involves transfer of ownership of
goods to the buyer.

10. TRANSPORTATION:

Transportation is quite vital to marketing .It is through physical means that

goods are moved from the point of production to the point of consumption.
Transportation helps in assembling and dispersion goods. Transportation create
place utility by carrying commodities from where their utility is relatively low
place where is higher. Transportation also creates time utility by speedy
despatch through various modes of transportation.

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 ONLINE SHOPPING

Online shopping is a form of electronic commerce which allows consumers to

directly buy goods and services from a seller over the internet using a web
browser or a mobile app. Consumers find a product of internet 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. Customers can shop online using a range of
different computers and devices, including desktop computers, laptops, tablet
computers and Smartphone.

An online shop evokes the physical analogy of buying products or services at

a regular “bricks and –mort” or shopping center; the process is called business-
to-consumer(B2C) online shopping. A typical online enables the customer to
browse the firms’ range of products and services, view photos or images of the
products, along with information about the product specifications, features and
prices.

Online stores usually enable shoppers to use “search” features to find specific
models, brand 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 interact-enabled debit card or a service such as paypal. The largest of
the online retailing corporations are Amazon, E-bay, Flipkart, Snapdeal.

In 1991 the worldwide web opened for commercial use. In 1994 other
advanced took place, such as online banking and the opening of a online pizza
shop by Pizza Hut. During that same year ,Netscape introduced secure sockets
Layer encryption of data transferred online, which has become essential for
secure online shopping. In 1994 ,the German company Intershop introduced its

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first online shopping system. In 1995, Amazon launched its online shopping
site, and in 1996, ebay appeared.

Meaning:

Online contracts are classified as distance contracts, which means that the trader
(service, provider, seller) and the consumer(natural person who is acting for
purpose which are outside his trade, business or profession ), in lack of their
simultaneous , actual and physical presence enter into contract not by meeting
in person.

DEFINITION :

The act of purchasing products or services over the internet. Online shopping
has grow in popularity over the years , mainly because people find it convenient
and easy to bargain shop from the comfort of their home or office. One of the
most enticing factors about online shopping particulars during a holiday season,
is it alleviates the need to wait in long lines or search from stores for a particular
item.

NEED FOR INTERNET SHOPPING:

Few development have altered India’s Lifestyle more quickly and more
completely than the internet. Online access has enabled people from walks of
life to bring entire libraries, entertainment venues, post office and financial
centers to a workplace , to desktop or to a shirt pockets. The internet’s largest
and most meaningful impact may very well be on the way consumers shop for
everything from gifts, gadgets and groceries to clothing, cars, and cruises.

The ease and selection that the internet provides to shoppers has changed the
face of retailing . More and more, consumers visit a store’s website to make
their choices before travelling to the store itself; and in a rapidly swelling tide,
many shoppers are by passing the store altogether and ordering online directly

24
from the websites of their favourite brands and outlets. Companies like
Amazon, Flipkart have increased the range and quantity of product available at
their online stores and are sending online coupons and sale announcements via
e-mail directly to their customers.

Because online stores are open 24 hours a day, days a week and their
inventories are often more complete than those of their brick and mortar
counterparts, the internet makes it easy for shoppers to compare products within
or between stores, to read product reviews from other customers, to access
vendor return and to find warranty information.

ADVANTAEGES OF ONLINE SHOPPING:

Shopping today has become much more comfortable as it does not require an
individual to visit the store and invest the time in searching physically. In the
current era, the internet has also revolutionized the overall ways that people can
shop today. Dues to numerous advantages and benefits more people in current
days prefer purchasing online over traditional visiting stores. The following are
the main advantages of online shopping.

CONVENIENCE:

Customers can purchase items from the comfort of their own homes or
workplace. Shopping is made easier and convenient for the customer through
internet. It is also easy to cancel the transactions.

The following table depict the factor which motivate the online shoppers to buy
products online.

Top 6 reasons given by shoppers in buying through internet

 Saves time and efforts.

 Convenience of shopping at home.

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  Wide variety/ range of products are available.
 Good discount/lower prices.
 Get detailed information of the product.
 We can compare various models.

NO PRESSURE SHOPPING:

Generally, in physical stores, the sales representatives try to influence the

buyers to buy the product. There can be some kind of pressure, whereas the
customers are not pressurized in any way in online stores.

SAVES TIME:

Customers do not have stand in queues in cash counters to pay for the products
that have been purchased by them. They can shop from their home or workplace
and do not have to spend time travelling . The customers can also look for the
products that are required by them by entering the key words or using search
engines.

COMPARIONS:

Companies display the whole range of products offered by them to attract

customers with different tastes and needs. This enables the buyers to choose
from a variety of models after comparing the finish, features and price of the
product on display, sometimes, price comparisons are also available online.

AVAILABILITY OF ONLINE SHOP:

The mall is open on 365*24*7. So time does not act as a barrier whenever the
vendor and buyers are.

ONLINE TRACKING:

Online customers can track the order status and delivery status tracking of
shipping is also available.
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ONLINE SHOPPING SAVES MONEY:

To attract customers to shop online, e-tailers and marketers offer discount to the
customers. Due to elimination of maintenance, real estate cost the retailers are
able to sell the products with attractive discounts through online. Sometimes ,
large online shopping sites offer store comparison.

CASH ON DELIVERY:

Cash on delivery option, customers can pay the cost after checking their
products. They provide many discount offers for the customers. Customer can
buy their products in discount offers.

VARIETY OF PRODUCTS:

Online shopping provides more options than other purchasing options. It means
that customers have large variety of products to buy. Online shopping is more
beneficial in electronic products shopping. Latest electronics products like
mobiles are available on net before market.

EASY TO SHOP:

Online shopping also reduces the efforts in searching products in market.

Customers can easily search the product in the catalog of online shopping
websites. This is very helpful to those persons who can’t go outside to buy
heavy products like refrigerator. They ship the products and delivered at house
with no or very less shipping charges.

SHOPPING CONVENIENCE:

A customer can make a purchase anytime from anywhere and using any device
without having to spend time physically going to the store. This will save the
customer the time as well as money and energy that he or she could have used
to go and from the physical store. Most online electrical store businesses

27
combine the deliveries to the customers, so that they only make one or two trips
that end up serving a number of customers.

The online shopping store provides adequate information about products in all
the categories. This will help the user to select the best product that adequately
addresses customer needs, regardless of its location.

5 KEY ELEMENTS EVERY SUCCESSFUL ONLINE SHOP NEEDS:

1. GREATER USER EXPERIENCE:

Customers associate well designed websites with quality and reputation.
According to the effective measure report of December 2013, 22% of
online shoppers revealed that a good site design will see them spending
more money on website. Apart from an attractive site, every website
should have a logical flow so that customers always know what to do
next and how to get back to where they were. Ensure your products are
easy to find, easy to buy and that your website entices your visitors into
not leaving without giving you some way of getting in contact with them
once they have left. Enticement items can be used for remarketing, to
build your database or to mine abandoned basket, so don’t neglect this
aspect.

2.COMPETITIVE PRICES AND A LARGE RANGE OF QUALITY

PRODUCTS:

As, in retail, if you come to an online shop and most products show “out
of stock” or you have a very limited range of products, it will almost always be
a negative online shopping experience. The effective measure report measured
that 47.5% of online shoppers would increase their spend on a website if they
have more quality spend on a website if they have more quality products to
offer and 60.5% of the shoppers are very price sensitive, so if you stock great
products at competitive prices you will dramatically increase your chances of
28
taking a bigger chunk of the market. Lastly, ensure you have great products
descriptions and quality product images, as these are two factors that increase
the perception of quality when it comes to online shopping.

3.FREQUENT MARKETING CAMPAIGNS:

Whether its ignorance or stubbornness, many business are unwilling to

spend money on marketing and advertising, but you cannot build a shop and
magically expect people to find your store and start buying your products.
You need to have a great marketing strategy that covers both on site
campaigns as well as external drives to pull people to your site.

4.QUICK DELIVERY AND PROFESSIONAL PACKAGING:

Two elements we’ve noticed time and time again is that quicker delivery times
and seamless returns has a massive impact on online shop sales. Amazon.com is
a trend setter in delivery and logistics as they are always to improve their
turnaround times. They have set up warehouses across the globe and are even
starting to predict your buying behaviour based on browsing and then loading
your “predictive parcel” in a locker ready for shipping once you hit the “Buy
now button.” They do all this because they understand the importance of
quicker delivery times for their customers. Furthermore it needs to be as easy to
return a product as it is to buy it. Being able to return products easily is essential
when incorrect items are delivered or if the item is broken and so on, it also
gives consumers the confidence to buy items such as clothing and shoes without
having to try them on first.

5.MORE PAYMENT OPTIONS AND SECURITY:

It is quite obvious but worth mentioning- if you have various methods for
client to pay, your sales will increase. This is a trend that allows traditional
retail where you can buy cash, swipe your card, make an EFT or get it on credit

29
through personal loan. Online shopping has had limited options in the past when
it comes to payment, but voucher shopping and prepaid cards have become
increasingly popular. Merchants like paypal offer safe way to buy while
protecting your credit card details. A creative new player is credit .co.Za, a
division of popular personal loans company Direct Axis. It has been integrating
with numerous online shops to offer credit for online purchases. This is not
only for the benefit of the customer, it’s also beneficial from a legal perspective
to protect the own business. If you have these five elements you should be in a
good position to increase the sales in an increasingly competitive market but
also a growing market. You don’t always have to be the best at everything you
do, but you always need to know what the best are doing so you can devise your
counter strategies. Good luck and happy selling.

APPLICATIONS USED FOR SHOPPING:

1.SNAPDEAL.COM

Snapdeal is an e-commerce company based in India. It is a daily deals website

that features discount offers across lifestyle segments such as dining, health and
beauty , entertainment and travel . It also offers discount on product like
electronic perfumes, watches, bags, sunglasses, apparel and mobile phones.

Snapdeal serves as an advertising platform for merchants and a discount

platform for consumers . For the merchants who partner with snapdeal, it s a
cost effective channel for acquiring new customers. It also works as a risk –free
alternate marketing channel from the merchant’s standpoint they are passing on
the passing on the customer acquisition cost in the form of a discount offer.

30
PRODUCT CATGORIES PROVIDED BY SNAPDEALS .COM

 Mobile and accessories.

 Men’s and woman’s apparel.
 Watches, Bags and Accessories
 Electronic and camera.
 Computers and peripherals
 Perfumes beauty and health .
 Jewellery.
 Books .
 Home appliances.
 Toys.

TERMS OF SALE ,WEBSITE TERMS OF USE ,PRIVACY POLICY:

This user agreement which is intended to be a legally contract between you and
us contain the following:

 Term of sale: This governs your purchase and use of the coupons/
vouchers.
 Website term of use: This govern the access and use of the website.
 Privacy policy: This govern the use of personal information we collect.

31
 You agree that you are of legal to enter into binding contracts, have read,
understood and are bound by the user agreement .If you do not be bound
by this user agreement, you should not use this website or contact any
purchase /sale transaction.
Reference to you, ”user” mean the end user accessing the website ,its
contents and using the functionalities offered through the website. Service
provider mean independent third party service providers or merchants
and “we”, “us”, ”Jasper Info Tech” and “our” shall mean jasper Info Tech
pvt.Ltd.

2. AMAZON.COM
Amazon is an American multinational electronic commerce with
headquarters in Washington, unites states . It is the world ‘s largest online
retailer. The company also produces consumer electronics-notably the
Amazon kindle e-book reader-and is a major provider of cloud computing
services.

Jeff Bezos incorporated the company (as cadabra) in July 1994 and the
site went online as Amazon.com in1995. Amazon started as online
bookstore, but soon diversified, selling DVDs, CDs, Software, Electronic
, Apparel, furniture, foods, toys, and jewellery.

The company began as an online bookstore. While the largest brick-and

mortar bookstores and mail order catalogs might offer 20000 titles, an
online bookstore could sell far more. Amazon logotype is an arrow
lending from A to Z, representing customer satisfaction . A goal was to
have every product in the alphabet.

32
PRODUCT CATEGORIES PROVIDED BY AMAZON:

 Books.
 Electronic and computers.
 Home, Garden and tools.
 Pet products.
 Grocery, Health and beauty .
 Kitchen and Dining .
 Furniture and Decor.
 Toys, kids and baby.
 Clothing, shoes and jewellery.
 Sports and outdoors.

33
EBAY.COM:

Ebay is an American multinational internet consumer-to-consumer that manages

ebay.com an online auction and shopping website in which people and business
buy and sell a broad variety of goods and services worldwide .Founded in 1995,
ebay is one of the notable success stories of the dot-tom bubble; it is now a
multi billion dollar business with operations localized in over thirty countries.
E bay expanded from its original “set time” action format to include
“Buy It now “ standard shopping by UPC,ISBN or other kind of SKU; online
classified advertisement; online event ticket trading online money transfers and
other services.

PRODUCTS CATEGORIES PROVIDED BY EBAY.COM

 Fashion.
 Motors.
 Electronics.
 Collection and Art.
 Home , outdoors and Decor.
 Entertainment.
 Sporting Goods.

34
Mode of receipt of advance purchase consideration:

International reseller will accept your payments through its designated

payment collection agent in India who is registered with paisa pay facility of
e,bay.in .International reseller will only purchase your items upon your
payments being approved by paisa pay.

Price of goods and service:

The price of the goods as displayed on this webpage is all inclusive price but
shall exclude any entry taxes, municipal taxes levied in any part of India before
delivering the goods to you, which shall be paid by you to the international
reseller and or/its agents /service provider /contractor/sub contractors in India
before the goods delivered to you.

Export and Import:

The international reseller shall be the exporter for the purpose of impact of
goods into India and You shall be the importer for the same purpose. Trade
policy and delivery of goods to you such other activities as may be necessary to
clear the goods from customs department.

Limitation of liability :

International reseller shall not be To you For any indirect, Incidental

consequential punitive or special Damages, Arising out of related to these
global buying terms or In manner relating to buying ,Reselling, Packing,
storing, customs clearance, shipment etc.

35
4.FLIPKART:

Flipkart is an Indian e-commerce company headquartered in banaglore,

Karnataka .It was started by two IIT graduates, sachin Bansal and Binny in the
year .They were working iAmazon previously .Earlier,Flipkart mainly dealt
with books but now, it has expanded to electronic goods and variety of other
products.Flipkart was founded in2007 by sachin Bansal and Binny Bansal both
alumni of the Indian institute of technology Delhi.Flipkart is among the top 30
indian website s has been credited with being a India’s largest online bookseller
with over 11 milion titles on offer.

PRODUCTS CATEGORIES PROVIDED BY FLIPKART:

 Books.
 Mobiles and Accessories.
 Computer
 Music CD,DVDS
 TV video and Mp3 player
 Home and kitchen applicanes.
 Pen and stationary.

36
ORDER PROCESSING :

We will process orders placed by customers who follow special links from your
site to the flipkart. We will track sales made to customers who purchase
products by using special links from your site to the flipkart site and will make
available to you reports summarizing this sales activity .The form content and
frequency of the report may vary from time to time in our discretion.

Product link:

A product is any product listed on the flipkart site that is fulfilled by us or our
behalf , a digital product or any product sold by a third party of seller on the
flipkart site. For each selected product, you will display on you will display on
your site a short description review or other reference. You will be responsible
for the content style and placement of these references.

General link to Flipkart site home page:

You can may provide a general link on your site in the home page of th flipkart
site to the home page of the flipkart site.

Policies and pricing:

Customers who buy products through its program will be deemed to be our
customers .Accordingly all of our rules, policies and operating procedures
concerning customer orders, customer service and product sales will apply to
the those customers. We may change our policies and operating procedures at
any time.

37
Termsof use:

This is agreement the consumer and Amazon digital services, inc. before
using the amazon games and software download service(the “games and
software service”) , please read these terms of use, all rules and policies related
to the games and software service ( including but not limited to any specific
rules or usage provision specified on any specific product, application or service
detail page or in any link form a detail page), the amazon privacy privacy notice
at http//www.amazon.com/conditionsofuse (collectively, this agreement”). If
you use the games and software service, you will be bound by the terms of this
agreement.

Copyright complaints:

Amazon respects the intellectual property of others. If you believe that you
work has been copied in a way that constitutes copyright infringement, please
follow our notice and procedure for making claims of copy right information.

RISK OF LOSS:

All items purchased from Amazon are made payment to a shipment contract.
This means that the risk of loss and title for such pass to you upon our delivery
product.

NEED OF THE STUDY:

 The research is conducted to highlight the importance of secondary

data playing a vital role in identifying the factors and variable in a
study.
 It helps to have a clear idea to develop a future research.
 This study helps to design a conceptual framework for the future
research.

38
OBJECTIVES OF THE STUDY:

 To study the basic concept of consumer buying behaviour.

 To review the theoretical background of online shopping.
 To identify the factors influencing the consumer to buying
behaviour.
 To study the factors affecting level of online shopping.

SCOPE OF THE STUDY:

 The study is to understand the concept of consumer buying

behaviour.
 The views and opinions of the consumer of the previous research
are considered in this study.
 To highlights the importance of review of literature.

LIMITATIONS OF THE STUDY:

 This study has based on the past studies.

 This study has core constraints of time.
 Since it is pandemic period the study will limit itself from
resources brought through journals.
 Inspite of these limitations all effects have been taken to do the
project genuine and fulfilling the objectives to make the study
correct.

39
 CHAPTER-2

REVIEW OF LITERATURE

40
REVIEW OF LITERATURE

A literature review surveys scholarly articles, books, dissertations, conference

proceedings and other resources which are relevant to a particular issue, area of
research , or theory and provides context for a dissertation by identifying past
research.

Zhou et al.(2007),discovered that consumer traits , internet self efficacy, prior

online shopping experience , shopping orientations, economic benefit
perception are some of the factors affecting online shopping acceptance of
customers.

Siu and cheng (2001) it was found that economic benefits , product
availability, security risk are also important factors in classifying online
shoppers.

Another research conducted by Donthu and Garcia (1999) for consumer

characteristics related to online shopping, it was found that consumers who seek
convenience and variety do more shopping online. They also found that such
people are also more innovative and spontaneous.

Sodijasbir(2014) in the Indian journal of applied research, E-Tailing Boom-

Impact on retailing, research has analyse opportunities and threats . The
finding are biggest competitive strategy adopted by these e-tailers is low
pricing which has remarkably increased their sales and reduced the sale of brick
and mortar stores.

41
Chaudhary Meenakshi (2013) in the International journal of scientific and
research publications, a study on growth of retail market in India with special
reference to boarding of Mall culture in tier 2 city.

NagraGangandeep ( 2013) in the international journal of scientific and

research publications, A study of factors affecting online shopping behaviour of
consumers the researcher works on the impact of demographic factors of
consumer on online shopping parameters like satisfaction with online shopping,
future purchase intention, frequency of online shopping, number of items
purchased, and overall spend on online shopping. The study reveal that online
shopping India is significantly affected by various demographic factors like age,
gender, family size and income.

Arorayoti(2013) in the journal of computer engineering, prospect of E-retailing

In India , the researcher has analysed the factors that amount to the growth of e-
retailing in India . The researcher finds E-retailing or online shopping has
become part and parcel of people in India.

Sandhu Vikram( 2013), in radix international journal in social science, e-retail:

its growth and prospects, the researcher critically evaluates the suitability of
business environment for e- retailing in India and find the factors responsible
for the success of e-retailing in India . As a result are e-retailing is associated
with numerous benefits both for the e-retailers and the consumers.

Chandra P. Sathish and Sunitha. G(2012) in the journal of art science and
commerce, e-retailing – the mantra of modern retailer’s success, researcher
drives the factors for growth of the e-tailing and also elucidate the strategic role
of e-tailing in achieve the retail organization objectives. Researcher finds that E-
retailers, need to revisit some basic retail functions, and develop further
competencies in the areas of merchandising and demand forecasting, then it can
be a new success mantra of any retailer.

42
10.Thamizhvanan (2012) in the journal Emerald Insight , Determinants of
customers’ online purchase intention empirical study in India , researcher has
analysed customer online purchase intention, shopping orientations factors,
online trust and prior online purchase. The research established that impulse
purchase orientation, prior online purchase experience and online trust have
significant impact on the customer purchase intention. Males are found to have
more intention to shop online than females.

11.Kumawat Mahesh and Vermasanjeev (2012), in international journal of

engineering and management sciences, online retailing in India: opportunities
and challenges, the researcher finds opportunities and challenges of online
retailing .The result show that in the next 5 years, online retailing in India will
strengthen further.

12.Haq Zia (2012) in the journal of research in management and commerce,

perception towards online shopping: an empirical study of India consumers,
researcher works on the factor affecting the perception of India online buyers
and demographic profile of the customers give any impact on online shopping .
Researcher finds that few consumers were buying through online regularly.

Goswamishubham and Mathurmeera (2011) in the journal of IJMT, retail

goes online an Indian perspective, researcher investigates online retailing
development and growth in India and researcher finds that exponential growth
in online shopping in India and its threat to Kirana and small retailers.

HollowayB.Beatty E. Sharon (2005), in the journal of marketing, service

failure in online retailing .A recovery opportunity, researcher works on services
failure of online shopping and finding shows that online retailing effectively
and successfully recover their services and consumers reaction also positive.

43
Srinivasan Raji .Finch T Austin (2005) , in the journal of marketing, strategic
firm commitments and rewards for customer relationship management in online
retailing , researchers test the proposed model with a multi method approach
that uses manager ratings of firm CRM and strategic commitments and third
party customers ratings of satisfaction from 106 online retailers. The findings
indicate that firms with moderate brick- and mortar experiences are better able
to leverage CRM for superior customer satisfaction outcomes than firms with
either low or high bricks and mortar experience.

.Szymanski M .David, Richard T. Hise( 2004) , in the journal of retailing,e-

satisfaction :an initial examination , researcher works on finding factors of
customer satisfaction with online retailing and they find that convenience, site
design and financial security are the dominant factors in consumer assessments
of e-satisfaction.

Nazirsajid, TayyabArsalan and JavedIrum (2012) in the international

journal of computer science, online shopping is affecting consumer buying
behaviour in Pakistan the main objective of this study to find factors which are
affecting the consumers directly for online shopping and findings sows that
psychological factors, Social factors, emotional factor privacy factors which
affects the buyer attitude of online purchase.

Li Na and Zhangping (2002) , in eight Americas conference on information

system, consumer online shopping and behaviours: An assessment of research,
The objective of this paper is to synthesize the representative existing literature
on consumer online shopping attitudes and behaviour based on a analytical
literature review. This paper identifies 10 factors in the area of online shopping
and proposes a model describing and predicting the relationships among these
factors.

44
Ahh Tony and Han Ingoo (2005) , in the journal of science direct, its impact
of web quality and playfulness on user acceptance of online shopping, the
researcher test the relationship between web quality factors and user acceptance
behaviour and researcher finds that playfulness plays an important role in
enhancing user attitude and behavioural intention to use a site.

online shopping is the process consumer go through when they decide to shop
on the internet. The internet has developed into a new distribution channel
(Hollensen, 2004) and the evolution of this channel, e-commerce has, been
identified by Smith and Rupp( 2003) to be the most significant contribution of
the information revolution. Today, internet has developed into a high
competitive market and in order to have an impact on customer and to retain
them , it is first step to identify certain influencing aspects when purchasing
online, these can be regard as factor. The proposed research will be focused on
identifying and analyzing these factors.

In a study conducted by Kunz (1997) on online shopping, it was found that

consumer demographic affect the purchase intentions in a significant manner.
The results of the study says that men are more likely to purchase via Internet
and those who intend to shop online are likely to be young .The study also
explored that people living in large metropolitan areas do less shopping online
as compared to those who live in suburban areas.

Few other studies (Fram and Grady, 1997) ; Mehta and sivadas ,( 1995);
Sultan and Henrichs , (2000) also reported that gender, residential location,
age, education and household income are important predictors of internet
shopping.

45
The work of Kim and park(2005) using U.S sample suggests that their
positive attitudes as well as willingness to search for pre- purchase information
leads to a strong likelihood that they will buy online.

Monsuwe, (2004) online shoppers are required to have computer skills in order
to use the internet for shopping. Hence, those who are not comfortable with
using the computer, will likely do their shopping at the traditional store, modern
shop, or discount store because it will be faster shopping there than in the
internet shop.

Heish et al. (2013) stated that internet is influencing people’s daily life more so
as compared to past. People activities have gradually shifted from physical
conditions to virtual environment.

Goldsmith and Flynn (2004) state that the home catalog is another traditional
selling channel where people can shop at home because of the varieties of
products offered in the catalog. They can order through the phone or by mail . It
is convenient except that they are not able to touch or feel products before
purchasing.

Christian and France (2005) proves that customers satisfied the most were
privacy ( Technology factor), Merchandising (product factor), and convenience
(shopping factor); also followed by trust, delivery, usability, product
customization, product quality and security. Surprisingly, security was chosen
as the last choice comparing to others. This was assumed that security is
perceived as a standard attribute in any websites so other attribute take priority
once customers have to choose the site to shop from.

46
David J .Rubinstein (2002) has studied about factors attracting customers to
the site and factors being able to retain customers by mainly considering the
role of price.

Pavlou (2003) online purchase intention can be defined as a situation where a

consumer is willing an intends to make online transactions. Purchases intention
can also be defined as a consumer’s intention to build an online relationship and
have transactions with a web retailer.

Delafrooz narges et al , (2009) found that utilitarian orientations,

convenience, price and wider selection are a significant determinant of
consumers attitude toward online shopping. Consumers are looking for more
convenience (time and money saving ), cheaper prices and wider selection when
they shop online. Consumers who value the convenience, prices and wider.

Factors influencing people’s online shopping attitude have researched and

documented in the context of traditional consumer literature. A review of
empirical studies in this area shows that the theories of reasons action
(Fishhbein and Anjzen , (1975) and acceptance model are among the most
popular theories to explain online shopping.

Lusuch (1987) suggested that in the traditional shopping environment, there are
four unique characteristics of services which differentiate services from goods.
These characteristics are generally summarized as intangibility, inseparability,
heterogeneity and perish ability.

Vrechopolous et.al (2000) found that the most highly valued characteristics on
a websites include quality and the amount information provided for a products
or services. Discount or promotions, product range, delivery quality and
accessibility are the significant purchase motiavtors..

47
Anderson and Srinivasan (2003) businesses that can create trust and increase
the perceived value of online shopping can turn their satisfied consumers into
loyal ones in the e-marketing environment.

Rohm and Swaminathan’s ( 2004) claims in “typology of online shoppers

into” convenience shoppers, balanced buyers, variety seekers and store-
oriented shoppers, based upon their present shopping motivation. Rohm and
swaminathan’s (2004) findings about convenience and variety seeking are
major motivating factors of online shopping.

Teo et al., (2004) uncertainties about products and shopping processes, truth
worthiness of the online seller, or the convenience and economic utility they
wish to drive from online shopping determine the cost versus the benefits of this
environment.

Sherry et al. (2007) sated that delivery time and search time are the prime
factors that affect intention to buy online , besides negotiation is the another
factor which make greater impact on online shopping.

According to Gefen et.al (2003), trust is more related to the individuals’s

beliefs that the targeted website has sufficient level of ability, benevolence and
integrity.

Venkatesh et al. (2003) defined social influence as “ the extent to which an

individual perceives that important others believe he or she should apply the
new system”.

According to Van Herpen and Pieters (2002), the way to represent the
targeted products by firms, product attributes and repetition frequency ,and
number of products presented all are key factors predicting the way that
consumer perceive the aspects related to variety.

48
 CHAPTER-3

FINDINGS AND CONCLUSION

49
 FINDINGS

INTRODUCTION:

The research identified significant factors that make up the

buying decision of the product.It also identified eight main factors as those that
affect buyer’s brand preference while making their purchase decision in case of
the online shopping.

Various factors that are identified in journals are as follows

1. Product Availability:
The product view display all of the items that are available at the time of
you visit. Any Sizes that are out of stock will be inactive or will be
highlighted in grey.
2. Security Risk:
A security risk assessment identifies, assesses, and implement key
security controls in applications. It also focuses on preventing application
security defects and vulnerabilities. Carrying out a risk assessment allow
an organization to view the application portfolio holistically- from an
attacker’s perspective .
3. Privacy:
Privacy is the ability of an individuals or group to seclude themselves or
information about themselves and thereby express themselves
selectively. The domain of privacy overlaps with security, which can
include the appropriate use and protection of information. Personal
information which is voluntarily shared but subsequently stolen or
misused can lead to identify theft.

50
4. : Convenience
Convenient procedures, products and services are those intended to
increase ease in accessibility, save resources(such as time, effort, energy)
and decrease frustration. Convenience is a relative concept, and depends
on context.

5.Trust:

Trust is a feeling that somebody or something can be relied upon, or will

turn out to be good. It is the feeling of being sure about something , even
if it cannot be proves.
6.Customer service:
Customer service is the provision of service to customers before, during
and after a purchase . Customer service concerns the priority of an
organization assigns to customer service relative to components such as
innovation and pricing. An organisation that values good customer
service may spend more money in training employees that the average
organisation or may proactively interview customers for feedback.
7. Product variety :
A great challenge facing industry today is managing variety throughout
the entire product life cycle. Drivers of product variety its benefits , pre –
requisites and associated complexity and cost are presented.
8. Online payment system:

An e-commerce payment system facilitates the acceptance of electronic

payment for online transactions. E-commerce payment systems have

51
 become increasingly popular due to the widespread use of the internet –
based shopping and banking.

9.online purchase intention:

Online purchase platforms of fruits are increasingly emerged to advance the e-

commerce development and improve quality of human life. Based on the
technology acceptance model (TAM) and perceived risk theory (PRT), this
research developed an integrated theoretical model to explore the influential
factors underlying consumer’s intention to purchase online.

10. Product quality:

Product quality means to incorporate features that have a capacity to meet

customer needs (wants) and gives customer satisfaction by improving (goods)
and making them free from any deficiencies or defects.

11.Product Guarantee:

A guarantee is an agreement from the manufacturer conforming that they will

repair or replace an item if something goes wrong within a certain amount of
time after you buy. It is similar to an insurance policy and covers the product
beyond the manufacturer’s guarantee period.

12.Privacy Issues:

52
Privacy issues focus on a patients genetic information being disclosed to
employers and health insurance companies. Althrough no federal legislation
concering genetic genetic discrimination in the workplace and in individual
insurance companies has been enacted into law there are some protections in
state satutes and other federal issues.

13.Product Delivery :

A product Delivery is a customer centric approach to defining, building , and

releasing a continuous flow of valuable products and services to customers and
users. It is one of the seven core competencies of the lean enterprise, each of
which is essential to achieving business Agility.

15.Customer Satisfaction:

Customer satisfaction is a term frequently used in marketing. It is a measure of

how products and services supplied by a company meet or surpass customer
expectation. In a competitive marketplace where businesses compete for
customers , customers satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy.

16. Service quality:

Service quality in its contemporary conceptualisation is a comparison of

perceived expectations (E) of a service with perceived performance(P), giving
rise to the equation SQ=P-E. This conceptualisation of service quality has its
origins in the expectancy – disconfirmation paradigm. A business with high
service quality will meet or exceed customer expectations whilst remaining
economically competitive .

17. Purchase intention:

53
Purchase intention is the preference of consumer to buy the product or service.
In another words, purchase intention has another aspect that the consumer will
purchase a product after evaluation.

18.Product demo:

A product demonstration is a promotion where a product is demonstrated to

potential customers. The goal of such a demonstration is to introduce customers
to the product in hopes of getting them to purchase that item.

19.Product characteristics:

Product characteristic can be defined to complete the definition of a product

using variants .product characteristics are attributes that can be added to the
product definition to extend the product.

20.product customization:

Product customization is an activity of customising a product to meet the needs

of a particular customer. The product in question may consist of mechanical
parts, services, and software.

21.Usability :

54
Usability can be described as the capacity of system to provide a condition for
its users to perform the tasks safely, effectively and efficiently while enjoying
the experience.

22.product warranty:

Product warranty is the guarantee a manufacturer of a product gives to the

customer regarding the quality of their product and what compensation will be
given if the product does not perform as advertised.Warranties will generally
have expectations to them that limit a manufacture’s obligations.

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TABLE:1 RANKING THE FACTORS

FACTORS NO.OF. RETITIONS RANK

1. Purchase intention 3 7
2. Security risk 7 2
3. Privacy 4 5
4. Convenience 5 4
5. Product quality 2 6
6. Trust 8 1
7. Delivery 6 3

INTERPREATION:

Out of these findings from various factors influencing consumer buying

behaviour towards Online shopping

 First position – purchase intention.

 Second position – product quality.
 Third position - privacy.
 Fourth position - convenience.
 Fifth position - Delivery.
 Sixth position - security.
 Seven position – Trust.

Customer satisfaction and customer loyalty is based on these factors.

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CONCLUSION :

In earlier times people use to do manual shopping but know as time changed
people are becoming busy and due to which technology has brought a new
revolution.

With the advancement of technology and usage of mobile phones. Create a

drastic change in the behaviour of people in shopping. Online shopping
influence the attitude and buying pattern etc.

The study identified the major factor influencing the buying behaviour are
Product availability, Security risk, Privacy, Convenience, Trust, Product variety,
Customer service, Compatibility ,Ease to use, Perceived usefulness, Online
shopping Intention, Useful, Online transaction system.

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