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COMPREHENSIVE PROJECT REPORT
A STUDY
ON
“CONSUMER BEHAVIOR TOWARDS ONLINE
SHOPPING IN JAMNAGAR CITY”
Prepared by:
Heeral Brijlani (Enrollment Number: 147700592026)
Darshana Chauhan (Enrollment Number: 147700592074)
MBA Batch 2014-16
Under the guidance of
Prof. (Dr.) Ajay Shah
ACADEMIC YEAR: 2015-16
Submitted To
Jaysukhlal Vadhar Institute of Management Studies (JVIMS)
Jamnagar
Affiliated To
Gujarat Technological University (GTU)
Ahmedabad
Page | 2
COMPREHENSIVE PROJECT REPORT
A STUDY
ON
“CONSUMER BEHAVIOR TOWARDS ONLINE
SHOPPING IN JAMNAGAR CITY”
Prepared by:
Heeral Brijlani (Enrollment Number: 147700592026)
Darshana Chauhan (Enrollment Number: 147700592074)
MBA Batch 2014-16
Under the guidance of
Prof. (Dr.) Ajay Shah
ACADEMIC YEAR: 2015-16
Submitted To
Jaysukhlal Vadhar Institute of Management Studies (JVIMS)
Jamnagar
Affiliated To
Gujarat Technological University (GTU)
Ahmedabad
Page | 3
DECLARATION
We undersigned, HEERAL BRIJLANI and DARSHANA CHAUHAN
students of MBA SEM IV, hereby declare that the project report on
“CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING IN
JAMNNAGAR CITY” submitted by us to Shri Jaysukhlal Vadhar Institute Of
Management Studies (JVIMS), Jamnagar towards partial fulfillment of degree
of Masters of Business Administration.
This project is our original work. This work is not submitted to any other
University for the award of any other Degree.
SIGNATURE:
_____________________
HEERAL BRIJLANI
(147700592026)
______________________
DARSHANA CHAUHAN
(147700592074)
Page | 4
ACKNOWLEDGEMENT
To acknowledge is a very great way to show your gratitude towards the persons who has
contributed in your success in one or other way. Any accomplishment requires the effort
of many people.
So it is our prime duty to acknowledge the person who directly or indirectly helped us
during completion of this Comprehensive Project Report. So we take opportunity to
heartily thank our project in charge respected PROF (DR.) AJAY SHAH for his valuable
guidance and touch of inspiration and motivation throughout the project work without
whose help the work would not have been in the shape what it is.
We would like to express our acknowledgement to DR. AJAY SHAH (DIRECTOR) OF
JVIMS for the invaluable guidance provided by them throughout the project.
Last but not the least, we all would like to thank our college, SHRI JAYSUKHLAL
VADHAR INSTITUTE OF MANAGEMENT STUDIES (JVIMS) & BIPIN T.
VADHAR COLLEGE OF MANAGEMENT to give us an opportunity to do this project
as a part of academic curriculum, so that we are able to improve our work ability and
confidence for future professional career.
Page | 5
PREFACE
In today’s dynamic world, we find that practical knowledge is also important as theoretical
knowledge. So many times’ there may occur a gap between the practical and theoretical
knowledge while going through the field by experiences.
M.B.A. is a professional in the field of management. Practical study is an important task
which plays a vital role in the individual’s growth. We, the student of JVIMS (Shri
Jaysukhlal Vadhar Institute of Management Studies) have undergone a Research Project
as an INDUSTRY DEFINED PROJECT on “CONSUMER BEHAVIOR TOWARDS
ONLINE SHOPPING IN JAMNNAGAR CITY”
As use of internet is increasing day by day online shopping is also increasing. People tend
to buy online as it is convenient, time saving, having services 24x7. So, customers buy
more and more goods from online sellers.
Talking about the Indian E-commerce market there are many online retailers who sell
goods online. Major players of Indian E-commerce are Irctc, Flipkart, Amazon, Myntra,
EBay, Jabong, Shopclues, and Snapdeal etc.
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Table of Contents
No. Particulars Page No.
1 EXECUTIVE SUMMARY 1
2 INTRODUCTION 2
INTRODUCTION TO E COMMERCE 3
INTRODUCTION TO ONLINE SHOPPING 4
CONSUMER BEHAVIOR TOWARDS ONLINE
SHOPPING
9
3 REVIEW OF LITERATURE 11
4 RESEARCH METHODOLOGY 24
INTRODUCTION TO RESEARCH 25
RATIONALE OF STUDY 25
SIGNIFICANCE OF PROBLEM 26
STATEMENT OF THE PROBLEM 27
OBJECTIVES OF RESEARCH 28
RESEARCH DESIGN 28
COLLECTION OF DATA 30
SCOPE OF THE STUDY 31
LIMITATIONS OF STUDY 31
5 ANALYSIS & INTERPRETATION 32
ANALYSIS & INTERPRETATION 33
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6 HYPOTHESIS TESTING 83
11. After receiving the product what do you? 84
20. How do you make payments mostly when
shopping on the Internet?(As per Age)
86
20. How do you make payments mostly when
shopping on the Internet?(As per Income)
88
23. How much amount did you spent on purchased
last time?
90
7 FINDINGS 92
8 SUGGESTIONS 95
9 CONLCLUSION 97
10 BIBLIOGRAPHY 99
11 ANNEXURE 101
QUESTIONNAIRE 102
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LIST OF TABLES
No. Particulars Page No.
1. Table 1: Glimpse of top 9 leading online shopping sites 2015
based on traffic
8
2. Table 2: When was the last time you purchased something
online?
33
3. Table 3: What did you purchase last time online? 34
4. Table 4: Which website do you prefer for this product/service? 36
5. Table 5: Main Reason for online Shopping? 38
6. Table 6: Do you go to a retail store first before making your final
purchase online?
39
7. Table 7: Approximately how many times did you shop over
internet during the year?
40
8. Table 8: How did you get the idea of buying specific brand
through an online store?
41
9. Table 9: How do you find the specific to your own needs? 42
10. Table 10: Do you visit different online stores before the actual
purchase, how many stores on average do you visit before
purchasing it?
43
11. Table 11: What are the crucial factors which affect your decision
making in the final selection of the product?
44
12. Table 12: After receiving the product what do you? 46
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13. Table 13: What are the main barriers which keep you away from
shopping online?
47
14. Table 14: Which medium do you prefer for online Shopping? 49
15. Table 15: What do you prefer to use when shopping online from
your device?
50
16. Table 16: Why do you use more web browsers or Applications? 51
17. Table 17: What kind of applications do you use the most? 53
18. Table 18: Have you faced problems with a mobile app within the
last 6 months? If so, what types?
55
19. Table 19: How quickly should a mobile app launch? 56
20. Table 20: Shopping on internet saves time. 57
21. Table 21: It is a great advantage to be able to shop at any time of
day
58
22. Table 22: I prefer traditional/conventional shopping to online
shopping
59
23. Table 23: Online shopping is risky 60
24. Table 24: Online shopping will supersede traditional shopping 61
25. Table 25: Detailed information available 62
26. Table 26: On time delivery of product 63
27. Table 27: It makes comparison easy 64
28. Table 28: Website design makes easy shopping 65
29. Table 29: I feel safe and secure while shopping online 66
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30. Table 30: Because of cash back policy 67
31. Table 31: While shopping online I hesitate to give credit card no 68
32. Table 32: Relevance of brand identity & Company name 69
33. Table 33: Better customer service 70
34. Table 34: I am happy by shopping online 71
35. Table 35: How do you make payments mostly when shopping on
the Internet?
72
36. Table 36: What was the main reason why you started using
online payment?
73
37. Table 37: Security is one of your top concerns with online
payments; which one of these are you most concerned with?
74
38. Table 38: How much amount did you spent on purchased last
time?
76
39. Table 39: Do you receive any push message regarding online
promotional scheme?
77
40. Table 40: How much effective push message is? 78
41. Table 41: Have you received coupon / gifts / discount from
online shopping?
79
42. Table 42: Gender of respondents 80
43. Table 43: Income of respondents 81
44. Table 44: Age of respondents 81
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LIST OF CHARTS
No. Particulars Page No.
1. Chart 1 When was the last time you purchased something
online?
33
2. Chart 2 What did you purchase last time online? 35
3. Chart 3 Which website do you prefer for this product/service? 37
4. Chart 4 Main Reason for online Shopping? 38
5. Chart 5 Do you go to a retail store first before making your
final purchase online?
39
6. Chart 6 Approximately how many times did you shop over
internet during the year?
40
7. Chart 7 How did you get the idea of buying specific brand
through an online store?
41
8. Chart 8 How do you find the specific to your own needs? 42
9. Chart 9 Do you visit different online stores before the actual
purchase, how many stores on average do you visit before
purchasing it?
43
10. Chart 10 What are the crucial factors which affect your decision
making in the final selection of the product?
44
11. Chart 11 After receiving the product what do you? 46
12. Chart 12 What are the main barriers which keep you away from
shopping online?
47
13. Chart 13 Which medium do you prefer for online Shopping? 49
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14. Chart 14 What do you prefer to use when shopping online from
your device
50
15. Chart 15 Why do you use more web browsers or Applications? 52
16. Chart 16 What kind of applications do you use the most? 53
17. Chart 17 Have you faced problems with a mobile app within the
last 6 months? If so, what types?
55
18. Chart 18 How quickly should a mobile app launch? 56
19. Chart 19 Shopping on internet saves time 57
20. Chart 20 It is a great advantage to be able to shop at any time of
day
58
21. Chart 21 I prefer traditional/conventional shopping to online
shopping
59
22. Chart 22 Online shopping is risky 60
23. Chart 23 Online shopping will supersede traditional shopping 61
24. Chart 24 Detailed information available 62
25. Chart 25 On time delivery of product 63
26. Chart 26 It makes comparison easy 64
27. Chart 27 Website design makes easy shopping 65
28. Chart 28 I feel safe and secure while shopping online 66
29. Chart 29 Because of cash back policy 67
30. Chart 30 While shopping online I hesitate to give credit card no 68
31. Chart 31 Relevance of brand identity & Company name 69
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32. Chart 32 Better customer service 70
33. Chart 33 I am happy by shopping online 71
34. Chart 34 How do you make payments mostly when shopping on
the Internet?
72
35. Chart 35 What was the main reason why you started using
online payment?
73
36. Chart 36 Security is one of your top concerns with online
payments; which one of these are you most concerned with?
74
37. Chart 37 How much amount did you spent on purchased last
time?
76
38. Chart 38 Do you receive any push message regarding online
promotional scheme?
77
39. Chart 39 How much effective push message is? 78
40. Chart 40 Have you received coupon / gifts / discount from
online shopping?
79
41. Chart 41 Gender of respondents 80
42. Chart 42 Income of respondents 81
43. Chart 43 Age of respondents 82
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EXECUTIVE SUMMARY
The main aim of research is to find out consumer behavior towards online shopping that
what is buying behavior of people of Jamnagar city to buy goods online and which mode
of payment is more preferred. The objective of this research is to make investigation and
analysis for consumer behavior towards online shopping in Jamnagar city. The purpose of
research is to discover answers through the application of scientific Procedures regarding
online shopping and mode of payment.
Here in this research study exploratory research design is selected with convenience
sampling method with 50 sample size. Data is collected through primary data collection
(through questionnaire) and secondary data collection methods (books, journals, old
research reports).
Major findings made from this research study shows that respondents are accessing online
shopping websites through their mobile phone only and respondents prefer applications of
online shopping from their device. Respondents prefer to buy from Amazon, Makemytrip,
Flipkart and Bookmyshow. Nobody prefer to buy from Infibeam and Craftsvilla.
Limitations of the study are: People were not ready to fill in the questionnaire. Many of the
surveyed people did not reply all the questions. The time period given for study was very
limited. The sample size was very small which is may not represent the entire population
of Jamnagar Region. Area covered for this research is only urban area where people are
using internet frequently. Rural area is not covered.
Conclusions made through this research study are post purchase activity is not dependent
on gender of customers. There is relationship between mode of payment and income of
customers. Mode of payment is not dependent on age of customers. Maximum respondents
from Jamnagar city prefer to buy from Amazon. Customers expects faster delivery of goods
ordered online. There is no relationship between gender and amount spent on last purchase.
Page | 15
INTRODUCTION
Page | 16
INTRODUCTION TO E COMMERCE
The internet is being developed rapidly since last two decades, and with relevant digital
economy that is driven by information technology also being developed worldwide. After
a long term development of internet, which rapidly increased web users and highly speed
internet connection, and some new technology also have been developed and used for web
developing, those lead to firms can promote and enhance images of product and services
through web site. [1]
The Internet has transformed the way consumers transact for their daily needs be it
ordering food, booking movie tickets or even booking a cab. Online shopping is one
category which has witnessed unprecedented growth in the last two years. This revolution
is largely led by innovations which in many ways are unique to India as compared to rest
of the world. [2]
Lack of credit card penetration, poor infrastructure, etc. for many years hindered the growth
of this category. Cash on delivery as a concept is unheard of in many markets and has been
a big driver for trial. Also, instead of investing in building in house delivery team, brands
have been working on tie-ups with grocery stores, India post etc. to increase their delivery
reach. There are many more such examples of innovation and customer centricity which is
driving success for online shopping sites and apps in India. [3]
As the recent researches have indicated that, the internet shopping particularly in business
to consumer (B2C) has risen and online shopping become more popular to many people.
For instance, the Dell computer company have reached 18 million dollars sales through the
internet during the first quarter of 1999. As a result, about 30% of its 5.5 billion dollars
total sales were achieved through the internet (Moon, 2004). Therefore, to understand
internet shopping and its impact on consumer behaviour could help companies making use
of it as a form of doing e-business. [4]
Source:[1]http://www.academia.edu/24284430/A_STUDY_OF_FACTORS_AFFECTING_ONLINE_BUYING_BEH
AVIOR_A_CONCEPTUAL_MODEL; [2] What Clicks With The Online Shopper? Nielson Insights 16-10-2015; [3]
What Clicks With The Online Shopper? Nielson Insights 16-10-2015; [4] Global Journal of Management and Business
Studies. ISSN 2248-9878 Volume 3, Number 2 (2013),by E-commerce: It’s Impact on consumer Behavior Arjun Mittal
Page | 17
INTRODUCTION TO ONLINE SHOPPING
There are many reasons for such a rapid developing of internet shopping, which mainly
due to the benefits that internet provides. First of all, the internet offers different kind of
convenience to consumers. Obviously, consumers do not need go out looking for product
information as the internet can help them to search from online sites, and it also helps
evaluate between each sites to get the cheapest price for purchase. Furthermore, the internet
can enhance consumer use product more efficiently and effectively than other channels to
satisfy their needs. Through the different search engines, consumers save time to access to
the consumption related information, and which information with mixture of images,
sound, and very detailed text description to help consumer learning and choosing the most
suitable product. [5]
However, internet shopping has potential risks for the customers, such as payment safety,
and after service. Due to the internet technology developed, internet payment recently
becomes prevalent way for purchasing goods from the internet. Internet payment increase
consumptive efficiency, at the same time, as its virtual property reduced internet security.
After service is another way to stop customer shopping online. It is not like traditional
retail, customer has risk that some after service should face to face serve, and especially in
some complicated goods. [6]
In last two years many e-commerce websites have come up and competing one another
with striking deals like free shipping, coupons, free gifts, easy return policy, and many
others. The latest data reveals that Flipkart, Amazon, Snapdeal, Paytm, Myntra, eBay,
Jabong, Shopclues, Homeshop 18, and Infibeam are the top ten e-commerce websites in
India. Flipkart is one of the biggest Ecommerce giant that arrived as the top among e-
commerce websites in India. [7]
Source: [5],[6] http://www.ripublication.com/gjmbs_spl/gjmbsv3n2spl_09.pdf; [7] http://www.blog.finesseim.com/e-
commerce-trend-india/
Page | 18
Advantages of Online Shopping
Online shopping is a form of electronic commerce whereby consumers directly buy goods
or services from a seller over the Internet without an intermediary service.
1. Easy to find:
Finding a product online is much easier than looking for it in the local store. You can search
any product easily by using the search engine feature of an online shopping website.
2. Products can be cheaper:
Sometime a product can be much cheaper in another country than your country. In this case
it would be wise to shop online to save some money.
3. Save time and energy:
You don't have to waste your time in going to store and standing in front of the crowd.
4. Freedom of choice:
Freedom of choice is very high in online than shopping from a nearby store. In online you
can choose the product you are looking, from a vast range of products.
5. Freedom of price flexibility:
You will enjoy the freedom of price flexibility. If you don't like the price of a product from
an online shop, you can switch to other online store to look for cheaper price.
6. High satisfaction percentage:
Now a days shopping online is very reliable. The percentage of satisfaction is very high.
7. Buyer protection:
Dependable websites like Ebay provides buyer protection to motivate people to buy from
their site. This highly trusted websites will give your money back if any seller do not deliver
the item or deliver an item which does not match with the description.
Page | 19
8. Rare product:
Shopping online is very useful in buying rare products.
9. Privacy:
There are some products which you don't want to buy publicly. You can buy any kind of
product from online web store anonymously to maintain your desired privacy
10. E-business:
The progress of online business is actually helping millions of people. Now people can buy
and sell from their home. People who cannot afford to buy or rent a shop, can easily open
an online store and sell items from their home. [8]
Limitations of online shopping:
1. Delay:
The main disadvantage of online shopping is, you cannot receive the product immediately.
Sometime it would be preferable to buy an item instantly if the delivery time is too long.
2. Inferior product:
You don't know about the actual quality of the product. As a result you might end up with
inferior quality product.
3. Delivery Problem:
Delivery risk occurs when the seller fails to deliver the original product or delivers a
damaged (inferior/duplicate) product due to shipping problems.
4. Scam:
This is why a buyer should always buy from trusted websites only because trusted websites
would take care of any fraud to maintain their reputation.[9]
Source:[8],[9] http://www.allresearchjournal.com/archives/2015/vol1issue9/PartD/1-9-4.pdf
Page | 20
The largest of these online retailing corporations are Flipkart, Snap deal, Amazon.com, and
eBay. Retail success is no longer all about physical stores. This is evident because of the
increase in retailers now offering online store interfaces for consumers. With the growth of
online shopping, comes, the concepts of satisfaction and loyalty for website which involved
in providing services on the website and transacting online. Companies before using
effective marketing strategies analyze various factors to convert potential customers into
active ones. The five dominant factors which influence consumer perceptions of online
shopping are Information, Ease of use, Satisfaction, Security/Privacy, Proper
Utilization.[10]
Glimpse of the top 9 leading online shopping sites of 2015 based on traffic: [11]
Ranking Founded Website Services offered
1 2002 www.irctc.co.in Online railway tickets , hotel booking
flights booking , holiday booking etc.
2 2007 www.flipkart.com It is the biggest online megastore in India
which offers wide range of products like
electronics, mobiles, books, clothing,
kitchenware and more.
3 2010 www.snapdeal.com It is an online marketing and shopping
company which is one of
the cheapest online Mobile store.
4 2012 www.jobong.com It has been a front runner among online
shopping websites in India.
5 1995 www.ebay.in It hosts a wide range of products
like electronics, mobiles, apparels,
collectibles, sports equipments etc.
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6 1994 www.amazon .in The store hosts wide range of products like
electronics, mobiles, laptops, books, fashion
jewelry, kitchenware and more.
7 2007 www.myntra.com It sells fashion and lifestyle products like
clothing, footwear, bags and more.
8 2011 www.shopclues.com It offers products like mobile phones,
laptops, tablets, electronics, homdecor,
footwear, apparel, fashion accessories,
books & music etc
9 1997 www.tradus.com Tradus offers products like mobiles,
consumer electronics, appliances, bags,
footwear, Home décor and more
Table 1 Glimps of top 9 leading online shoppingsites 2015 based on traffic
Source: [10] http://altius.ac.in/pdf/29.pdf; [11] thetechgear.com
Page | 22
CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING
Online consumers are always seeking new products, new attractiveness and the most
important thing being price compatibility with their budget. The internet is the best way to
save time and money through purchasing online within their range of budget at home or in
anywhere. Online consumers don’t have limits to online shopping. They also use internet
for comparison of prices of goods and services, news, visit social networks and search
information and so on.
Analyzing consumer behaviour is not a new phenomenon for scholars. Philip Cotler,
marketing expert, have studied on this topic. Theories about consumer behaviour have been
used to develop an effective marketing strategy. Moreover, it is impossible to think
marketing without the Internet in today's world. Online marketing is the topic that have
been researched and made applications many times by researcher from past to nowadays.
Studies on online shopping investigated the factors that influence online shopping as well
as motives for, value of and antecedents of online buying behaviour. As a result, the
academic researchers and the business world started to focus on the consumer side of the
online purchasing behaviour and a lot of researches and articles were prepared to make
guidance for the development of online shopping.
PAYMENT
New payment methods have developed and traditional payment channels have adapted to
online shopping. Payment by credit card continues to predominate worldwide, however
alternative payment methods such as E-Wallets are on the rise, by far outpacing the growth
of credit card use. Mobile payments are also growing rapidly. [12]
An analysis of real time metered smartphone usage data with Nielsen Informate Mobile
Insights reveals how Indian consumers are using mobile payment apps. Overall time spent
on mobile payment apps has increased by nearly 1.5x, with users spending an hour and a
half on mobile payment apps every month.[13]
Source:[12]http://www.prnewswire.com/news-releases/global-b2c-e-commerce-and-online-payment-market-2014-
279067691.html;[13]http://www.nielsen.com/in/en/insights/reports/2016/the-smartphone-becomes-the-mobile-
wallet.html
Page | 23
Findings indicate that even though the penetration of mobile payment apps among users is
similar across towns of all sizes (60% of those in large towns and 58% of small town use
them), usage is higher among small town users, with these consumers spending 109
minutes a month on these apps. But such limitations aside, the ease of use coupled with the
evolution of smartphone users have led to massive growth in popularity of these apps over
a short span of time with users spending as high as one hour per month on them.[14]
Online shoppers generally use a credit card or a PayPal account in order to make payments.
However, some systems enable users to create accounts and pay by alternative means, such
as:
Cash on delivery (C.O.D.)
Debit card / Credit card
E-wallet
The financial part of a transaction may be processed in real time (e.g. letting the consumer
know their credit card was declined before they log off), or may be done later as part of the
fulfillment process.[15]
Source: [14] http://www.nielsen.com/in/en/insights/reports/2016/the-smartphone-becomes-the-mobile-wallet.html;
[15]http://www.worldwidejournals.com/ijar/file.php?val=November_2013_1383226264_b0fa7_92.pdf
Page | 24
REVIEW
OF
LITERATURE
Page | 25
REVIEW OF LITERATURE
Dr. Seema Agarwal, “A STUDY OF FACTORS AFFECTING ONLINE SHOPPING
BEHAVIOUR OF CONSUMERS IN MUMBAI REGION”; Tactful Management
Research Journal, (ISSN: 2319-7943)
The increasing use of internet by the younger generation in India, provides an emerging
prospect for online retailers. If online retailers know the factors affecting Indian consumer's
buying behaviour, the association between these factors and type of online buyers, then
they can further develop their marketing strategies to convert potential customers into
active ones. This study attempts to analyze the features related to the shopping behaviour
of online shoppers. Consumer's shopping behaviour in respect of online shopping was
studied using different socio-economic variables. The data was collected through
questionnaire.
The results of study revealed that online shopping in India is significantly affected by
various demographic factors like age, gender, education and income. Further it also helps
retailers to understand the drivers of consumer's attitude and goal to shop on the internet
and consumer's perceptions regarding ease of use and usefulness. Conclusions derived
from the analysis can be used as useful guide for market orientation. The outcomes of the
study suggest that assessment of consumer's shopping behaviour can contribute to a better
understanding of consumer shopping behaviour in respect of online shopping.
Prof. Sanjeev Kumar & Savita Maan, December 2014, “STATUS AND SCOPE OF
ONLINE SHOPPING: AN INTERACTIVE ANALYSIS THROUGH LITERATURE
REVIEW”; International Journal of Advance Research in Computer Science and
Management Studies (Volume 2, Issue 12, ISSN: 232 7782)
Online Shopping is a current phenomenon which has developed a great importance in the
modern business environment. The evolution of online shopping has opened the door of
opportunity to exploit and provide a competitive advantage over firms. This paper analyzed
the different issue of online shopping. The research aims to provide theoretical contribution
in understanding the present status of online shopping and explores the factors that
affecting the online shopping. The Study provides insights into consumers’ online
Page | 26
shopping behaviors and preferences. Moreover, paper also identify the hurdles that
customers’ face when they want to adopt internet shopping as their main shopping medium.
Present study is a descriptive study based on the detailed review of earlier relevant studies
related to the various concepts of online shopping to explore the concept of online
shopping.
Findings reveled that online shopping brings optimum convenience to the consumers.
Privacy and security risk emerges frequently as a reason for being wary about internet
shopping. Shopping convenience, immediate possession, information seeking, social
interaction, and variety affects the consumer attitude towards online shopping. The
impossibility of product testing, problems with complaints, product return and misuse of
personal data are the main uncertainties regarding on-line shopping.
Zia Ul Haq, “PERCEPTION TOWARDS ONLINE SHOPPING: AN EMPIRICAL
STUDY OF INDIAN CONSUMERS”; National Monthly Refereed Journal Of
Research In Commerce & Management (Volume No.1, Issue No.8, ISSN 2277-1166)
In this study four key dimensions of online shopping as perceived by consumers in India
are identified and the different demographic factors are also studied which are the primary
basis of market segmentation for retailers. It was discovered that overall website quality,
commitment factor, customer service and security are the four key factors which influence
consumers’ perceptions of online shopping. the study revealed that the perception of online
shoppers is independent of their age and gender but not independent of their education &
gender and income & gender Finally, the recommendations presented in this research may
help foster growth of Indian online retailing in future.
The result of our study showed that the perception of online shoppers is independent of
their age and gender but not independent of their qualification & gender and and income
& gender The analytical results of our study further indicate relationships between
consumers’ perceptions of the factors that influence their intention to buy through online.
More specifically, consumers’ perceptions of the customer service, commitment and web
security of online purchasing exhibit significant relationships with their online buying
intention.
Page | 27
Prof. Ashish Bhatt, June 2014, “CONSUMER ATTITUDE TOWARDS ONLINE
SHOPPING IN SELECTED REGIONS OF GUJARAT”; Journal of Marketing
Management, (Volume 2, No. 2, pp. 29-56, ISSN: 2333-6099)
The growing use of Internet in India provides a developing prospect for online shopping.
If E-marketers know the factors affecting online Indian behavior, and the relationships
between these factors and the type of online buyers, then they can further develop their
marketing strategies to convert potential customers into active ones, while retaining
existing online customers. Companies also use the Internet to convey, communicate and
disseminate information, to sell the product, to take feedback and also to conduct
satisfaction surveys with customers. Customers use the Internet not only to buy the product
online, but also to compare prices, product features and after sale service facilities they will
receive if they purchased the product from particular website. This paper focuses on factors
which online Indian buyers keep in mind while shopping online.
Findings states that information; perceived usefulness, perceived enjoyment and
security/privacy are the five dominant factors which influence consumer perceptions on
online purchasing.
Ms. Dipti Jain, Ms. Sonia Goswami, Ms. Shipra Bhutani, Sepember 2014,
“CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING: AN EMPIRICAL
STUDY FROM DELHI”; IOSR Journal of Business and Management (IOSR-JBM)
(Volume 16, Issue 9.Version IV, ISSN: 2278-487X)
In this study four dimensions of online shopping as perceived by consumers in India are
identified and the different demographic factors are also studied which are the primary
basis of market segmentation for retailers. The main objective of this research is to study
the impact of Perceived Risk, Perceived enjoyment, Perceived usefulness and Perceived
ease of use factors on online shopping behavior of consumers in Delhi. The population of
this research consisted of online shoppers from Delhi.
The empirical results revealed that only one factor, namely Perceived Risk significantly
affected online shopping behavior of consumers in Delhi while Perceived enjoyment,
Perceived ease of use and Perceived enjoyment hinders the consumers to shop online so
Page | 28
the researchers suggests that the companies must focus on Perceived risks to develop
consumers trust towards online shopping. The recommendations presented in this research
may help foster growth of Indian online retailing in future. The research findings revealed
that perceived risk negatively impact consumers attitude towards online shopping while
perceived usefulness, perceived ease of use and perceived enjoyment has no impact on
consumers’ attitude towards online shopping.
Dr. M. Rajesh & G. Purushothaman, DECEMBER 2013 “CONSUMER
PERCEPTION TOWARDS ONLINE SHOPPING IN KANCHIPURAM”; GALAXY
International Interdisciplinary Research Journal (Volume 1 (2), ISSN 2347-6915)
This research revealed that consumer buys goods from the online shopping website on the
basis of factors like offers and discounts, variety of product available, free home delivery,
website user friendliness. Analysis showed that most of the respondent would agree to buy
durable goods online rather than shopping of durable goods with the traditional method.
Out of the agreed respondent to buy online durable goods, most of the respondent would
think that it would be beneficial to shop durable goods online on the basis of factors like
easy to order, variety, discounts/ offers, saves time and avoid long queues. With above
analysis we can thus prove the hypothesis to be positive.
Radhe Jha, “CONSUMER’S PERCEPTION ON ONLINE SHOPPING”; A
DISSERTATION REPORT
The growing use of Internet in India provides a developing prospect for online shopping.
If E-marketers know the factors affecting online Indian behavior, and the relationships
between these factors and the type of online buyers, and then they can further develop their
marketing strategies to convert potential customers into active ones, while retaining
existent online customers. This project is a part of study, and focuses on factors which
online Indian buyers keep in mind while shopping online.
This research found that information, perceived usefulness; ease of use; perceived
enjoyment and security/privacy are the five dominant factors, which influence consumer
perceptions of online purchasing. Increased Internet penetration, a hassle free shopping
environment and high levels of Net savviness see more and more Indians shopping online.
Page | 29
Dr. Payal Upadhyay & Jasvinder Kaur, “ANALYSIS OF ONLINE SHOPPING
BEHAVIOR OF CUSTOMER IN KOTA CITY”, International Journal in
Multidisciplinary and Academic Research, (Vol. 2, No. 1, ISSN 2278 – 5973)
If companies analyses the factors affecting consumer behavior towards online shopping
and the relationships between these factors and the type of online buyers, then they can
devise effective marketing strategies to convert potential customers into active ones, while
retaining existing online customers. This project is a part of study, and focuses on factors
which online Indian buyers keep in mind while shopping online.
This research found that information, perceived usefulness, ease of use; perceived
enjoyment and security/privacy are the five dominant factors which influence consumer
perceptions of online purchasing. The most preferred product of online buying is travelling
tickets and clothing remains the least preferred choice of online shoppers. Among the
payment options, Payment on delivery through cash in the safest choice of payment, while
credit card are next preferred choice, online bank transfer is least preference choice. Online
shoppers seek for clear information about product and service, time saving, convenience,
security and delivery on time are all important factor for online shopping. The offers with
punch lines “Attractive offers” do not attract online shoppers. Most of the consumers who
have experienced online shopping are very satisfied.
Dr. Renuka Sharma, Dr. Kiran Mehta, Shashank Sharma , July - Sept 2014
“UNDERSTANDING ONLINE SHOPPING BEHAVIOUR OF INDIAN
SHOPPERS”; INTERNATIONAL JOURNAL OF MANAGEMENT AND
BUSINESS STUDIES(IJMBS), (Vol. 4, Issue 3, ISSN : 2230-9519)
The growth rate of India’s e-commerce industry is fascinating. It was reported as 88% in
2013 which is a clear contrast picture of the slower economic growth of India. The rising
inflation rate in recent years has not slipped away the performance of online shopping
industry in India. Companies are using the internet to put across and commune the
information. Simultaneously it helps the companies to give an idea about their products
and instantly getting the feedback of customer’s fulfillment to get stimulated turnover for
future. The primary objective of the current study is to understand the online buying
Page | 30
behaviour of consumers in India. It has also made an attempt to get information about the
scope of improvement in online shopping website.
Results revealed that there is clear indication of increasing significance of online stores in
the life of Indian people. The e-stores are frequently visited by the shoppers. The ease and
convenience provided by these stores for 24x7 has made very easy shopping for consumers
worldwide. The analysis discussed in the above section has documented that the Indian
customers are also getting addicted to the online shopping and they do like various features
of online shopping as by rest of the world. But the statistics available has shown that Indian
market is still not a fully developed market for e-tail stores. There is huge scope of web-
stores in various areas and in almost all the segments. The young population is the biggest
attraction of this industry and they may contribute substantially to the growth of online
shopping in India. The majority of internet users are youngsters, the majority of goods and
services demanded are related to only this segment.
Md. Mahbubur Rahaman, 2014, “ON-LINE SHOPPING TRENDS, PATTERNS AND
PREFERENCES OF UNIVERSITY UNDERGRADUATE STUDENTS: A SURVEY
STUDY ON SYLHET REGION”; Global Disclosure of Economics and Business,
(Volume 3, No 2, ISSN 2305-9168)
This paper consists of the groundwork with a brief introduction of recent trends in e-
commerce on people of Bangladesh; particularly its impact on university undergraduate
students in Sylhet region. This has been followed by their general perceptions and
preferences of the online shopping including products and website selection. Each of these
e-commerce “characteristic” is compared to information combined from survey questions
and open-ended discussions with a small sample group of university students at
undergraduate level in Sylhet region. It also investigates into positive as well as negative
website characteristics and sum up the favorable elements into a description of an e-
commerce website that would suitable to the group being studied.
Research revealed that people are trying to familiar and habituated with online shopping.
But the internet infrastructure and socio-economic condition of Bangladesh does not allow
the e-tailers as well as the actual and potential customers to remain and become optimistic
Page | 31
about the new business concept of e-commerce. Also, the dependency of students is another
constrain. By looking at what students want and their satisfaction levels some established
e-tailers such as Cell Bazaar and Bikroy.com have been invested significant resources in
this sector. Perhaps it would be useful for Cell Bazaar and Bikroy.com in Bangladeshi
perspective to imitate some of the world‘s established e-tailers such as Amazon, eBay and
others to maintain large numbers of students as their customer.
Ms. Asmatara Khan, March, 2015, “FACTORS AFFECTING ON-LINE SHOPPERS
BEHAVIOR FOR ELECTRONIC GOODS PURCHASING IN MUMBAI: AN
EMPIRICAL STUDY”; International Journal in Management and Social Science,
(Vol.03 Issue-03, ISSN: 2321-1784)
This paper had analyzed factors affecting on online shopping behavior of consumers
that might be one of the most important issues of e-commerce and marketing field.
However, there is very limited knowledge about online consumer behavior because it is a
complicated sociotechnical phenomenon and involves too many factors. This goal has been
followed by using a model examining the impact of perceived risks, motivational factors
and return policy on attitude toward online shopping behavior and subjective norms,
perceived behavioral control, domain specific innovativeness and attitude on online
shopping behavior as the hypotheses of study. This study identifies the following
implications.
The results and findings of this study revealed retail companies should start taking
measures to eliminate risk factor and build trust in this form of retail. The retail managers
should sway consumers through different platforms like social networking sites, ads,
promotions, online only discounts etc. to let people cross the threshold and start buying
because Indian consumers are still comfortable with brick and mortar format as they
appreciate friendly approach of salesman and social element of shopping, which has been
found as important element in shopping .
Ojaswita Shrivastava, 2014, “TO STUDY THE REASONS FOR CUSTOMER
ABANDONING THEIR ON-LINE SHOPPING CART BEFORE PURCHASE
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COMPLETION STAGE”; The International Journal Of Engineering And Science,
(Volume 3 Issue 2, ISSN (e): 2319 – 1813 ISSN)
E-tailers spend enormous amount of time, effort and energy and resources to market and
sell their products and services to their consumers. They engage in activities such as
segmentation, targeting, positioning and use the four Ps to ensure that the consumers select
their products and services from a shelf full of competing products. The perceived
transaction inconvenience is the major predictor of shopping cart abandonment. The other
predictors are perceived risks and perceived waiting time. While marketing literature is
replete with investigations focusing on virtually every aspect of consumer and shopping
behavior, little academic research focus has been directed towards understanding why
consumer abandon a shopping cart towards the end, after they have selected the product.
The study examines the unexplored area of consumer behavior at the final stages of
transaction culmination and hence is an initial step towards filling that gap.
Ajeet Singh Karan Singh Shahazad M.H Khan, Manik Chandra, March 2012, “A
REVIEW: SECURE PAYMENT SYSTEM FOR ELECTRONIC TRANSACTION”;
International Journal of Advanced Research in Computer Science and Software
Engineering, (Volume 2, Issue 3, ISSN: 2277 128X)
Electronic commerce involves the exchange of some form of money for goods and services
over the Internet but today, Internet is an insecure and unreliable media. The asymmetric
key cryptosystem Methodology with help of Security Protocol, secure communication
tunnel techniques can protect conventional transaction data such as account numbers,
amount and other information.
The results of this paper showed that a secure electronic payment system for Internet
transaction. The electronic payment system is to be secure for Internet transaction
participants such as Payment gateway server, Bank sever and Merchant server. The
security architecture of the system is designed by using Many Security Protocols and
techniques, which eliminates the fraud that occurs today with stolen credit card/debit card
payment information and customer information.
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Dr. Shuchi Singhal Shashi Shekhawat, April – June’ 2015, “ONLINE AND OFFLINE
CONSUMER BUYING BEHAVIOUR: A LITERATURE REVIEW”; Pezzottaite
Journals, (Volume 4, Number 2, ISSN (Print):2279-0977)
Consumer buying behaviour is the figure total of a consumer's outlooks, likings, purposes
and decisions at the time of purchasing any product or services. Many researchers have
done various types of studies in online and offline consumer buying behaviour. The
purpose of the paper is to provide a comprehensive review of extensive literature of
previous studies since 1999 till date. The study of various literatures for last fifteen years,
led to the extraction of various factors affecting online purchasing of various products and
services. The most motivating factors have been identified which encourage consumers to
shop online.
The study unveiled the various resisting factors, which act as barrier and divert the
consumers towards traditional buying mechanism. Online shopping involves no travel,
product carrying or restrictions on shopping hours, offering easy accessibility, convenience
and time saving. In contrast, offline shopping permits and allows physical examination of
the products, interpersonal communication but involves high travel and search costs, and
also has restrictions on shopping hours. Consumers may use the two channels differently
resulting the same consumers may exhibit different behaviors when shopping across online
and offline channels. Therefore, it is important to understand how the same consumers
behave at the two channels. This study attempts to provide an exhaustive review of prior
theoretical literature of online vs. offline consumer behavior.
Dr. Abdul Baji1 and N. D Chandra Sekhar, October 2013, “CONSUMER BEHAVIOR
TOWARDS BUYING OF ELECTRONIC GOODS”; International Monthly Refereed
Journal of Research In Management & Technology, (Volume 2, ISSN – 2320-0073)
Despite the basic characteristics of consumers the behavior pattern of consumers are more
or less similar to each other, particularly in the aspects like quality, preference and decision
making. However it is evident that the present approaches to draw the attention of
customers are not adequate.
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Results showed that the consumers are particular about the appropriate system of
distribution and hence there is a great need for change in the distribution system. It may
not be always correct to say that consumers behave in the same way as it much depends on
type of products, quality of the products and price of the products. Therefore the producer
must be paid special attention at least with regard to price and distribution system to cover
the large number of customers. This is mainly because of the fact that the buying capacity
of the consumers may not be equal to the buying capacity.
Upasana Kanchan, Naveen Kumar and Abhishek Gupta, August 2015, “A STUDY
OF ONLINE PURCHASE BEHAVIOUR OF CUSTOMERS IN INDIA”; ICTACT
JOURNAL ON MANAGEMENT STUDIES, (Volume: 01, ISSN: 2395-1664)
The purpose of this study is to understand and analyze the factors effecting online purchase
decisions of Indian customer. The questionnaire contained questions about consumer
demographics, security and privacy concerns, technological familiarity, past online
shopping experiences and intentions to buy various types of products through internet in
future. The findings of the study indicate that customer online purchase intentions are
significantly related to their gender, education, age, security concern, technological
familiarity, and past online purchase frequency. The data was collected through survey of
200 students of graduation and post-graduation courses in Bareilly region of Uttar Pradesh.
The paper identified that the determinants of online purchase intentions of youths in Indian
context. Based on extensive literature review, factors effecting online purchase intentions,
antecedents of service quality and consumer attitudes were identified and a structured-non-
disguised questionnaire was prepared. Consumer buying behavior is also affected by
product type, purchase frequency and expensiveness. Their purchase decisions are also
found to be related with the online retailer’s services like return, refund and delivery
services.
Monisha Singh, Saurab Dhanothia, Ayush Agarwal, Deepa V. Jose, February 2015
“ONLINE SHOPPING BEHAVIOUR: AN EFFECTIVE APPROACH”; International
Journal of Advanced Research in Computer Science and Software Engineering,
(Volume 5, Issue 2, ISSN: 2277 128X)
Page | 35
The online marketing space is in constant shift as new technologies, services, and
marketing tactics gain popularity. Understanding shifts in consumer behaviour gives
insights into the demands of the market. Knowing these things enables marketers to drop
certain products or make strategic changes in pricing that will result in big gains or, at the
very least, limit damage to profits. This paper focuses on one such strategy which can be
implemented to meet the demands of the dynamic market.
The results of this study showed that there are many different segments available for online
stores, which are effected by constant evolutions. To meet the new challenges and
requirements of the market, the business owners need to think and make better decisions.
Having access to statistical information from all areas of online marketing and sales
activities gives an advantage over competitors that do not have this information. To meet
the requirements of the customers, the business strategy always comes up with a new idea.
This is one such idea through which customers can not only buy a new product through
ecommerce websites, but also go for exchanging old products.
Prashant Singh, February 2014, “CONSUMER’S BUYING BEHAVIOUR TOWARDS
ONLINE SHOPPING A CASE STUDY OF FLIPKART.COM USER’S IN LUCKNOW
CITY”; National Monthly Refereed Journal of Research In Commerce &
Management, (Volume 3, ISSN – 2277-1166)
The purpose of this study is to examine and analyse the consumer’s buying behavioural
pattern towards online shopping (specially in case of flipkart.com users in Lucknow city).
Also tried to find out various attitudes of flipkart users of Lucknow city towards the online
shopping. For this study survey was conducted during 1 st Sep. to 28th Oct. 2013. The data
will be collected from respondents through a scheduled containing questions. The study
result concluded that future of e-tailers in India specially in cities looking very bright.
Flipkart.com offering best prices, good products and completely hassle-free shopping
experience for our customers. The success of any e-tailer company in India is depending
upon its popularity, its branding image, its unique & fair policies, and its customer relations
etc.
Pradeep Kumar Tiwari, April 2013, “ONLINE SHOPPING BEHAVIOUR”
Page | 36
This research shows that online shopping is having very bright future in India. Perception
towards online shopping is getting better in India. With the use of internet, consumers can
shop anywhere, anything and anytime with easy and safe payment options. Consumers can
do comparison shopping between products, as well as, online stores. This study is mainly
focus on the factors from the Internet and examines those factors that affect the consumer’s
online shopping behaviours. The research focus on the Internet shopping (include the
nature of Internet shopping, E-commerce website, and online security, privacy, trust and
trustworthiness) and online consumer behaviours (include background, shopping
motivation and decision making process). Those factors were looked at, and examined to
reveal the influence at online consumer behaviours. In addition, the previous researches
were used to help researchers understanding more comprehensively. Moreover, the
customer’s purchase decision making process was also examined to identify the potential
factors. The information search is the most important factor that helps the customers find
the suitable products or services for their needs.
Ruchi Nayyar, S. L Gupta, 2011 “Determinants of Internet Buying Behavior in India”;
Asian Journal of Business Research, (Volume 1 Number 2)
The aim of this research is to provide a view of the various demographic and psychographic factors
influencing consumer’s willingness to purchase online. A new model based on Technology
Acceptance Model (TAM) has been developed for the purpose of this research which incorporates
consumer demographic factors and Perceived risk along with other TAM variables to explain
the consumer acceptance of online shopping.
The findings of this study have revealed a higher number of male internet shoppers than
females. The results are in consistence with the literature review. Men adopt computer
technology much faster than females. In comparison to females, males are more prone to
participate in internet activities predominantly emailing, information search or
downloading and purchasing activities. Females exhibit a higher degree of computer
nervousness and techno stress than males. Age has also been found to have an influence on
internet retailing adoption. Internet usage has not diffused uniformly amongst all age
groups, hence the difference in attitude towards online
Page | 37
RESEARCH
METHODOLOGY
Page | 38
INTRODUCTION TO RESEARCH
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific and systematic investigation. The advanced learner’s
dictionary of current English lays down the meaning of research as “A careful investigation
or inquiry especially through search for new facts in any branch of knowledge”.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
making deductions and reaching conclusions, and at last carefully testing the conclusions
to determine whether they fit the formulating hypothesis.
Research is the most important process for advancing knowledge for promoting progress
and to enable man to relate more effectively to his environment, to accomplish his purpose
and to resolve his conflicts. Although it is not the only way, it is one of the more effective
ways of solving scientific problems.
Research may be defined as a documented prose work. Documented prose work means
organized analysis of the subject based on borrowed materials with suitable
acknowledgement and consultation in the main body of the paper. Research in common
parlance refers to a search for knowledge.
RATIONALE OF STUDY
Online shopping is the buzz, the sensation in the current scenario. The Internet has made a
new generation of consumers who like to shop online. Getting anything by a click of the
mouse right from fashion accessories to jewelry, apparel, electronic items, crockery, home
appliances, personal care products, and more has led to the popularity of the 'online
shopping mall' phenomenon. It is the easiest and fastest way of shopping.
At an online shopping mall, one can catch a glimpse of new product releases, combo deals,
packages, discount offers, seasonal products, etc. and accordingly grab the best deal. Time
is not the constraint; one can shop anytime - the facility is available round the clock.
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Besides saving our time of visiting an offline store and staying away from the hassles
involved, one can gain an additional advantage, i.e., saving a lot on the money factor. The
literature review has revealed that most of the studies have mainly concentrated on trust
and risk independently. There have been hardly any studies which take into account
perceived risk and trust in Internet shopping.
Moreover, on detailed search the researchers have not found any substantial literature
available in the Indian context delving on risk perceptions in internet shopping. From above
literature study, it can be seen that all these studies have been done in non –Indian context.
Through this research, the researchers expect to find the buying behavior of internet
shoppers, in what categories people intend to spend more, why customers prefer internet
shopping, whether trust matters in internet shopping or not in Indian context. Moreover
customer perception about risks in internet shopping will also be studied and their reasons
for not shopping online.
SIGNIFICANCE OF PROBLEM
Research inculcates scientific and inductive thinking and it promotes the development of
logical habits of thinking and organization. The role of research in several fields of applied
economics, whether related to business or to the economy as a whole, has greatly increased
in modern times. Research has its special significance in solving various operational and
planning problems of business and industry. [16]
In this era of internet, it has become important for any ecommerce company to find that
how a consumer shop through online shopping websites. There are so many online sellers
like Flipkart, Amazon, Infibeam, AskmeBazaar, etc. So how consumer behave towards
online shopping is very much important. Knowing consumers’ preferences makes
company do more better business in future.
Source: Research Methodology: Methods and Techniques by C R Kothari
Page | 40
STATEMENT OF THE PROBLEM
A research problem, in general, refers to some difficulty, which a researcher experiences
in the context of either a theoretical or practical situation and wants to obtain a solution for
the same.
Online shopping websites like Irctc.in and Flipkart have become very popular and
commonly used tool for communication, networking and business. People spends hours on
online shopping websites doing searches of particular products and shopping. Sellers are
now becoming active about online shopping that how many people are now shopping
online and through which websites they are surfing and shopping.
As of increasing number of online shopping from websites like Irctc and Flipkart, to look
for increasing trend of online shopping in Jamnagar city, we took this research topic:
“A STUDY ON CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING IN
JAMNAGAR CITY”
OBJECTIVES OF RESEARCH
With an outlook of the every marketing research, it has been conducted for specific
objective. It must have clear cut problem in based on it: the objectives must also be clearly
defined. Therefore, that research gets clear idea about their task. Research objective help
the researcher to achieve his tasks easily. Also after completion of research project the
whole project can be evaluated based on the research objective. Thus, it is at most important
to define the research objective. The purpose of research is to discover answers through the
application of scientific Procedures.
The main aim of research is:
To find out consumer behavior towards online shopping.
The Secondary objectives of the research are:
To identify consumers’ perception towards online purchasing.
To identify consumers’ online buying behavior.
To identify consumers’ preference towards different websites.
To identify consumers’ perception towards mode of payment.
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SCOPE OF THE STUDY
The study was carried out to identify opportunities of online shopping in Jamnagar city.
This research was done to collect the information for goods for online shopping in
Jamnagar region. The objective of this research is to make investigation analysis for
perception of consumer towards online shopping of goods and mode of payment.
This data is very important for study in Jamnagar city as we are exploring opportunities to
offer solutions in online shopping of goods as primary target. The findings and
recommendations from the research would be used to define future strategy for research in
respect of market scope, initial target market and pricing strategy
RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular study.
A research design is the arrangement of conditions for collection and analysis of the
data in a manner that aims to combine relevance to the research purpose with economy
in procedure.
Research design is broadly classified into three types as:
Exploratory Research Design
Descriptive Research Design
Causal Research Design
I have chosen the exploratory research design.
EXPLORATORY RESEARCH DESIGN:
Exploratory research study are also termed as formative research studies. The main
purpose of such study is that of formulating a problem for more precise investigation or
of developing a working hypothesis from an operational point of view. The major
emphasis of such studies is of the developing of discovery of idea and insight.
SAMPLE DESIGN:
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A Sample Design is a definite plan for obtaining a sample from a given population. It refers
to the technique to the procedure adopted in selecting items for the sampling designs are
as below:
SAMPLE SIZE:
The substantial portions of the target customer that are sampled to achieve reliable result
are 150.
SAMPLING METHOD:
Non-probability sampling method : convenience Sampling
SAMPLE TECHNIQUE
Percentage analysis
Tabulation
Graphical
COLLECTION OF DATA
DATA COLLECTION
The study was conducted by the means of personal interview with respondents and the
information given by them were directly recorded on questionnaire.
Data Collection
Primary Data Secondary Data
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For the purpose of analyzing the data it is necessary to collect the vital information. There
are two types of data, this are- Primary Data Secondary data
COLLECTION TECHNIQUE:
Primary Data
Questionnaire method
Secondary Data
Books
Journal
Website
For Satisfaction
1= Strongly Disagree 2=Disagree 3= Neutral 4=Agree 5=Strongly Agree
RESEARCH HYPOTHESIS
The hypothesis is a tentative solution of a problem. The research activities are planned to
verify the hypothesis. It is very important for the researcher to understand the meaning of
the word hypothesis.
Hypothesis is usually considered as the principal instrument in research. Its main function
is to test the available data. In fact, many experiments are carried out with the deliberate
object of testing. Decision makers often face situations wherein they are interested in
testing hypotheses on the basis of available information and then take decisions on the basis
of such testing.
TYPES OF HYPOTHESIS
Null Hypothesis H0:-
If we have to compare method A with method B about its superiority and if we proceed on
the assumption that both methods are equally good, then this assumption is termed as the
Null Hypothesis.
Alternate Hypothesis H1:-
As against null hypothesis, we may think that the method A is superior or the method B is
inferior, then it is termed as Alternate hypothesis.
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CHI-SQUARE TEST
Chi-square is a statistical test commonly used to compare observed data with data we
would expect to obtain according to a specific hypothesis. For example, if, according to
Mendel's laws, you expected 10 of 20 offspring from a cross to be male and the actual
observed number was 8 males, then you might want to know about the "goodness to fit"
between the observed and expected. Were the deviations (differences between observed
and expected) the result of chance, or were they due to other factors. How much deviation
can occur before you, the investigator, must conclude that something other than chance is
at work, causing the observed to differ from the expected. The chi-square test is always
testing what scientists call the null hypothesis, which states that there is no significant
difference between the expected and observed result.
Observed (o)
Expected (e)
Deviation (o - e)
Deviation2 (d2)
d2/e
LIMITATIONS OF STUDY
Limitations of questionnaire method of data collection
Limitation of survey method
The time period given for study was limited.
The sample size was very small which is may not represent the entire population
Of Jamnagar Region.
Area covered for this research is only urban area where people are using internet
frequently. Rural area is not covered.
Page | 45
ANALYSIS
&
INTER-
PRETATION
Page | 46
1. When was the last time you purchased something online?
1. When was the last time you
purchased something online?
%
before last month 42
before 3 months 22
before 6 months 16.7
before 9 months 10
before 1 year 9.3
Table 2 When was the last time you purchased something online?
Interpretation:
42% of the respondents prefer online shopping in the last month and about 9.3% of the
respondents purchased before a year.
42
22
16.7
10 9.3
0
5
10
15
20
25
30
35
40
45
before last month before 3 months before 6 months before 9 months before 1 year
1. When was the last time you purchased
something online?
Chart 1 When was the last time you purchased something online?
Page | 47
2. What did you purchase last time online? (You can select more than 1)
2. What did you purchase last time online?
(You can select more than 1)
%
Books 26.7
Kitchen / Home Appliances 3.3
Clothes 33.3
Music 4
Groceries 4.7
Cosmetics 7.3
Furniture 1.3
Electronic gadgets 45.3
Electrical products 26
Toys 0.7
Cinema ticket 19.3
Food 0
Holidays 9.3
Travel tickets 54
Other 1.3
Table 3 What did you purchase last time online?
Page | 48
Chart 2 What did you purchase last time online?
Interpretation:
54% of the respondents purchased travel tickets online and no respondent prefer
purchasing food online.
26.7
3.3
33.3
4 4.77.3
1.3
45.3
26
0.7
19.3
0
9.3
54
1.3
0
10
20
30
40
50
60
2. What did you purchase last time online?
Page | 49
3. Which website do you prefer for this product/service? (You can select more than
1)
Which website do you prefer for this
product/service? (You can select more
than 1)
%
Flipkart 32.7
Amazon 85.3
Myntra 4
Jabong 4
Junlgee 1.3
Shoppers Stop 0.7
Snapdeal 10.7
Irctc 4.7
Zomato 1.3
Bookmyshow 32.7
Infibeam 0
Craftsvilla 0
EBay 5.3
Goibibo 2
Makemytrip 34.7
Other 2.7
Table 4 Which website do you prefer for this product/service?
Page | 50
Chart 3 Which website do you prefer for this product/service?
Interpretation:
85.3% of the respondents Amazon and no respondents prefer Craftsvilla and Infibeam to
shop online.
32.7
85.3
4 4 1.3 0.7
10.74.7 1.3
32.7
0 05.3 2
34.7
2.7
0
10
20
30
40
50
60
70
80
90
3. Which website do you prefer for this
product/service?
Page | 51
4. Main Reason for online Shopping?(You can select more than 1)
4. Main Reason for online Shopping?(You
can select more than 1)
%
Price 74.5
Convenience & time saving 71.8
Fast Shipping 30.2
Brand conscious 18.8
Friend Referral 5.4
Discount 28.2
Other 0.7
Table 5Main Reason for online Shopping?
Chart 4 Main Reason for online Shopping?
Interpretation:
74% of the respondents are conscious towards price and is the reason they prefer online
shopping and hardly 0.7% of the respondents prefer shopping online for some other
reason.
74.5 71.8
30.2
18.8
5.4
28.2
0.70
10
20
30
40
50
60
70
80
4. Main Reason for online Shopping?
Page | 52
5 Do you go to a retail store first before making your final purchase online?
Do you go to a retail store first before
making your final purchase online?
%
Yes 20.7
No 79.3
Table 6 Do you go to a retail store first before making your final purchase online?
Chart 5 Do you go to a retail store first before making your final purchase online?
Interpretation:
79.3% respondents don’t go to a retail store first before making your final purchase
online while 20.7 % respondents prefer going to a retail store before making a final
purchase.
20.7
79.3
0
100
Yes No
5. Do you go to a retail store first before
making your final purchase online?
Page | 53
6. Approximately how many times did you shop over internet during the year?
6. Approximately how many times did you
shop over internet during the year?
%
At least once 35.3
1 to 3 times 39.3
More than 3 times 25.3
Table 7 Approximately how many times did you shop over internet during the year?
Chart 6 Approximately how many times did you shop over internet during the year?
Interpretation:
39.3% of the respondents shop over 1 to 3 times during a year and about 25.3 % of the
respondents shop more than 3 times a year.
35.3 39.325.3
0
20
40
60
At least once 1 to 3 times More than 3 times
6. Approximately how many times did you shop
over internet during the year?
Page | 54
7. How did you get the idea of buying specific brand through an online store?(You
can select more than 1)
7. How did you get the idea of buying specific brand
through an online store?(You can select more than 1)
%
Referred by friend/family 67.3
Saw an online advertisement 52
Saw an offline advertisement
(TV/Newspapers/Magazine/Hoardings)
30.7
Other 0.7
Table 8 How did you get the idea of buying specific brand through an online store?
Chart 7 How did you get the idea of buying specific brand through an online store?
Interpretation:
67.3% of the respondents buy specific products online through referred by family or
friend and about 0.7% of the respondents buy through other means.
67.3
52
30.7
0.70
1020304050607080
7. How did you get the idea of buying specific
brand through an online store?
Page | 55
8. How do you find the specific to your own needs?(You can select more than 1)
8. How do you find the specific to your own
needs?(You can select more than 1)
%
Product Ratings 29.3
Product reviews 32
Advice from offline store 4.7
Referred by colleague / Friend / Family
member
15.3
Compare description and prices 59.3
New technology/ product in market 34
Referred by website by your search history 2.7
Other 0
Table 9 How do you find the specific to your own needs?
Chart 8 How do you find the specific to your own needs?
Interpretation:
59.3% of the respondents compare description and price before making a final purchase.
29.3 32
4.7
15.3
59.3
34
2.7 00
10
20
30
40
50
60
70
8. How do you find the specific to your own
needs?
Page | 56
9. Do you visit different online stores before the actual purchase, how many stores
on average do you visit before purchasing it?
9. Do you visit different online stores
before the actual purchase, how many
stores on average do you visit before
purchasing it?
%
One to three online stores 26.7
3 to 5 online stores 9.3
More than 5 stores 1.3
Never 62.7
Table 10 Do you visit different online stores before the actual purchase, how many stores on average do you visit
before purchasing it?
Chart 9 Do you visit different online stores before the actual purchase, how many stores on average do you visit before
purchasing it?
Interpretation:
62.7% of the respondents never visit any offline store before making a final purchase and
about 1.3% of the respondents visit an offline store for more than 5 times before making
a final purchase.
26.7
9.3
1.3
62.7
0
10
20
30
40
50
60
70
One to three
online stores
3 to 5 online
stores
More than 5
stores
never
9. Do you visit different online stores before the
actual purchase, how many stores on average do
you visit before purchasing it?
Page | 57
10. What are the crucial factors which affect your decision making in the final
selection of the product (Select all which apply)(You can select more than 1)
10. What are the crucial factors which
affect your decision making in the
final selection of the product (Select
all which apply)(You can select more
than 1)
%
The Best prices(Discount) 82.7
Convenience & Time saving 64.7
Not available in local stores 12.7
Price/Product comparison available 46.7
Product reviews available 6
Value for money 8
Other 0
Table 11 What are the crucial factors which affect your decision making in the final selection of the product?
Chart 10 What are the crucial factors which affect your decision making in the final selection of the product?
Interpretation:
82.7
64.7
12.7
46.7
6 80
0102030405060708090
10. What are the crucial factors which affect your
decision making in the final selection of the
product?
Page | 58
82.7% of the respondents considers the price ( discount) as the major factor before
making a final decision of the product.
Page | 59
11. After receiving the product what do you?
11. After receiving the product what do
you?
%
Discuss with Friends / Family about the
purchased product
87.3
Write a review about the product 10
Contact typically the seller for further
guidance if needed
1.3
Other 1.3
Table 12 After receiving the product what do you?
Chart 11 After receiving the product what do you?
Interpretation:
87.3% of the respondents discuss with friends /family about the purchased product and
about 1.3% of the respondents contact typically the seller for further guidance.
87.3
101.3 1.3
0102030405060708090
100
Discuss with
Friends /
Family about
the purchased
product
Write a review
about the
product
Contact
typically the
seller for
further
guidance if
needed
other
11. After receiving the product what do you?
Page | 60
12. What are the main barriers which keep you away from shopping online?(You
can select more than 1)
12. What are the main barriers which keep
you away from shopping online?(You can
select more than 1)
%
Delivery too slow 65.8
Low trust level of online store 40.3
Security in payment 51
High Shipping Cost 45.6
Privacy Policy 7.4
Claims 5.4
Other 2.7
Table 13 What are the main barriers which keep you away from shopping online?
Chart 12 What are the main barriers which keep you away from shopping online?
Interpretation:
65.8
40.3
51
45.6
7.45.4
2.7
0
10
20
30
40
50
60
70
Delivery
too slow
Low trust
level of
online
store
Security
in
payment
High
Shipping
Cost
Privacy
Policy
Claims Other
12. What are the main barriers which keep you away from
shopping online?
Page | 61
65.8% of the respondents believe that delivery of a good is slow as a major barrier in
online shopping.
Page | 62
13. Which medium do you prefer for online Shopping?(You can select more than 1)
13. Which medium do you prefer for
online Shopping?(You can select more
than 1)
%
Personal computer 29.3
Tablet 8
Cell Phone 74.7
Other 1.3
Table 14 Which medium do you prefer for online Shopping?
Chart 13 Which medium do you prefer for online Shopping?
Interpretation:
74.7% of the respondents prefer online shopping through cell phone.
29.3
8
74.7
1.3
0
10
20
30
40
50
60
70
80
Personal
computer
Tablet Cell Phone Other
13. Which medium do you prefer for online
Shopping?
Page | 63
14. What do you prefer to use when shopping online from your device?(You can
select more than 1)
14. What do you prefer to use when
shopping online from your device?(You
can select more than 1)
%
Web browsers 27.3
Applications 68.7
No preference 4
Table 15 What do you prefer to use when shopping online from your device?
Chart 14 What do you prefer to use when shopping online from your device
Interpretation:
68.7% of the respondents use application for online shopping and about no preference is
given 4% of the respondents.
27.3
68.7
4
0
10
20
30
40
50
60
70
80
Web browsers Applications No preference
14. What do you prefer to use when shopping
online from your device
Page | 64
15. Why do you use more web browsers or Applications?
15. Why do you use more web browsers or
Applications?
%
More used to web browsers (from
experience)
24.7
Because the application related to the
website I want to visit doesn’t exist or I
cannot find it
1.3
I don’t want to install applications for
random use
5.3
The applications from some websites are
not functional, don’t work well
2.7
Usually I search for a general term, rather
than needing a specific application.
3.3
Applications are better use, tailored to
mobile phone
26
Applications are faster (In terms of
opening it)
28
Applications are easier to find, straight on
my main screen, application list
8.7
Other 0
Table 16 Why do you use more web browsers or Applications?
Page | 65
Chart 15 Why do you use more web browsers or Applications?
Interpretation:
28% of the respondents believe that applications are faster to use.
24.7
1.3
5.32.7 3.3
2628
8.7
00
5
10
15
20
25
30
15. Why do you use more web browsers or
Applications?
Page | 66
16. What kind of applications do you use the most?(You can select more than 1)
16. What kind of applications do you use
the most?(You can select more than 1)
%
Utilities Apps (e.g. paytm) 27.3
Entertainment Apps (e.g. you tube) 35.3
Productivity Apps (e.g. Time mgt) 6.7
Sports Apps 2.7
Games Apps 7.3
Search Tool Apps(e.g. Google) 76
Travel Apps, maps(GPS) 8.7
News Apps 9.3
Social Networking Apps(Facebook) 80.7
Weather Apps 4
Chat Apps (WhatsApp) 82
Other 1.3
Table 17 What kind of applications do you use the most?
Chart 16 What kind of applications do you use the most?
27.335.3
6.7 2.7 7.3
76
8.7 9.3
80.7
4
0102030405060708090
16. What kind of applications do you use the
most?
Page | 67
Interpretation:
82% of the respondents Whatsapp application the most and about 1.3% of the
respondents use some other application.
Page | 68
17. Have you faced problems with a mobile app within the last 6 months? If so, what
types? (You can select more than 1)
17. Have you faced problems with a mobile
app within the last 6 months? If so, what
types? (You can select more than 1)
%
Crash/freeze/error 47.3
slow launch times 40
App didn’t worked as expected 16
Table 18 Have you faced problems with a mobile app within the last 6 months? If so, what types?
Chart 17 Have you faced problems with a mobile app within the last 6 months? If so, what types?
Interpretation:
47.3% of the respondents believe that application crash/freeze or face error faster and
about 16% of the respondents believe that applications didn’t work as expected.
47.3
40
16
0
5
10
15
20
25
30
35
40
45
50
Crash/freeze/error slow launch times App didn’t worked as expected
17. Have you faced problems with a mobile app
within the last 6 months? If so, what types?
Page | 69
18. How quickly should a mobile app launch?
18. How quickly should a mobile app
launch?
%
Less than 1 second 4
1 second 10.7
2 seconds 13.3
3 seconds 22.7
4 or more seconds 49.3
Table 19 How quickly should a mobile app launch?
Chart 18 How quickly should a mobile app launch?
Interpretation:
49.3% of the respondents believe that application opens in about 4 or more seconds and
about 4% of the respondents believe that application takes 1 second to open.
4
10.713.3
22.7
49.3
0
10
20
30
40
50
60
Less
than 1
second
1 second 2
seconds
3
seconds
4 or
more
seconds
18. How quickly should a mobile app launch?
Page | 70
19.1.Shopping on internet saves time.
19.1 Shopping on internet saves time. %
Strongly disagree 2.7
Disagree 2.7
Neutral 4.7
Agree 23.3
Strongly agree 66.7
Table 20 Shopping on internet saves time.
Chart 19 Shopping on internet saves time.
Interpretation:
66.7% of the respondents believe that internet saves time and about 2.7% of the
respondents strongly disagree that internet saves time.
2.7 2.7 4.7
23.3
66.7
0
10
20
30
40
50
60
70
80
Strongly
disagree
disagree neutral agree Strongly
agree
19.1. Shopping on internet saves time.
Page | 71
19.2.It is a great advantage to be able to shop at any time of day
19.2.It is a great advantage to be able to
shop at any time of day
%
Strongly disagree 1.3
Disagree 4
Neutral 8
Agree 24
Strongly agree 62.7
Table 21 It is a great advantage to be able to shop at any time of day
Chart 20 It is a great advantage to be able to shop at any time of day
Interpretation:
62.7% of the respondents strongly agree that is a great advantage to be able to shop at any
time of day and about 1.3% of the respondents strongly disagree with it.
1.34
8
24
62.7
0
10
20
30
40
50
60
70
Strongly
disagree
disagree neutral agree Strongly
agree
19.2. It is a great advantage to be able to shop at
any time of day
Page | 72
19.3.I prefer traditional/conventional shopping to online shopping
19.3.I prefer traditional/conventional
shopping to online shopping
%
Strongly disagree 5.3
Disagree 10
Neutral 21.3
Agree 25.3
Strongly agree 38
Table 22 I prefer traditional/conventional shopping to online shopping
Chart 21 I prefer traditional/conventional shopping to online shopping
Interpretation:
38% of the respondents prefer traditional/conventional shopping to online shopping and
about 5.3% of the respondents strongly disagree with the same.
5.3
10
21.3
25.3
38
0
5
10
15
20
25
30
35
40
Strongly
disagree
disagree neutral agree Strongly
agree
19.3. I prefer traditional/conventional shopping to
online shopping
Page | 73
19.4.Online shopping is risky
19.4.Online shopping is risky %
Strongly disagree 12.7
Disagree 28.7
Neutral 24
Agree 20
Strongly agree 14.7
Table 23 Online shopping is risky
Chart 22 Online shopping is risky
Interpretation:
28.7% of the respondents strongly disagree with the statement that online shopping is
risky.
12.7
28.7
24
20
14.7
0
5
10
15
20
25
30
35
Strongly
disagree
disagree neutral agree Strongly
agree
19.4. Online shopping is risky
Page | 74
19.5. Online shopping will supersede traditional shopping
19.5. Online shopping will supersede
traditional shopping
%
Strongly disagree 16.7
Disagree 19.3
Neutral 28.7
Agree 20.7
Strongly agree 14.7
Table 24 Online shopping will supersede traditional shopping
Chart 23 Online shopping will supersede traditional shopping
Interpretation:
28.7% of the respondents are neutral with the statement that online shopping will
supersede traditional shopping and about 14.7% of the respondents strongly agree with
the given statement.
16.719.3
28.7
20.7
14.7
0
10
20
30
40
Strongly
disagree
disagree neutral agree Strongly
agree
19.5. Online shopping will supersede traditional
shopping
Page | 75
19.6. Detailed information available
19.6.Detailed information available %
Strongly disagree 12
Disagree 22
Neutral 17.3
Agree 30.7
Strongly agree 18
Table 25 Detailed information available
Chart 24 Detailed information available
Interpretation:
30.7% of the respondents strongly agree that detailed information available about the
products whereas 12% of the respondents strongly disagree with this statement.
12
22
17.3
30.7
18
0
5
10
15
20
25
30
35
Strongly
disagree
disagree neutral agree Strongly
agree
19.6. Detailed information available
Page | 76
19.7 On time delivery of product
19.7 On time delivery of product %
Strongly disagree 9.3
Disagree 15.3
Neutral 20.7
Agree 30
Strongly agree 24.7
Table 26 On time delivery of product
Chart 25 On time delivery of product
Interpretation:
30% of the respondents strongly disagree that they get on time delivery of product and
about 9.3% of the respondents strongly agree with the same statement.
9.3
15.3
20.7
30
24.7
0
5
10
15
20
25
30
35
Strongly
disagree
disagree neutral agree Strongly
agree
19.7 On time delivery of product
Page | 77
19.8. It makes comparison easy
19.8. It makes comparison easy %
Strongly disagree 2
Disagree 6
Neutral 17.3
Agree 37.3
Strongly agree 37.3
Table 27 It makes comparison easy
Chart 26 It makes comparison easy
Interpretation:
37.3% of the respondents strongly agree that online shopping makes comparison easy
and about 2% of the respondents strongly disagree with this statement.
26
17.3
37.3 37.3
0
10
20
30
40
Strongly
disagree
disagree neutral agree Strongly
agree
19.8. It makes comparison easy
Page | 78
19.9 Website design makes easy shopping
19.9 Website design makes easy shopping %
Strongly disagree 3.3
Disagree 6
Neutral 13.3
Agree 37.3
Strongly agree 40
Table 28 Website design makes easy shopping
Chart 27 Website design makes easy shopping
Interpretation:
40% of the respondents strongly agree that website design makes easy shopping and
about 3.3% of the respondents strongly disagree with it.
3.36
13.3
37.340
0
5
10
15
20
25
30
35
40
45
Strongly
disagree
disagree neutral agree Strongly
agree
19.9 Website design makes easy shopping
Page | 79
19.10.I feel safe and secure while shopping online
19.10.I feel safe and secure while
shopping online
%
Strongly disagree 4
Disagree 12.7
Neutral 12.7
Agree 34.7
Strongly agree 36
Table 29 I feel safe and secure while shopping online
Chart 28 I feel safe and secure while shopping online
Interpretation:
36% of the respondents strongly agree that they feel safe and secure while shopping
online and about 4% of the respondents strongly disagree with it.
4
12.7 12.7
34.7 36
0
5
10
15
20
25
30
35
40
Strongly
disagree
disagree neutral agree Strongly
agree
19.10. I feel safe and secure while shopping
online
Page | 80
19.11.Because of cash back policy
19.11. Because of cash back policy %
Strongly disagree 1.3
Disagree 6.7
Neutral 14.7
Agree 35.3
Strongly agree 42
Table 30 Because of cash back policy
Chart 29 Because of cash back policy
Interpretation:
42% of the respondents strongly agree that they don’t shop online because of cash back
policy and about 1.3% of the respondents strongly disagree with it.
1.36.7
14.7
35.3
42
0
10
20
30
40
50
Strongly
disagree
disagree neutral agree Strongly
agree
19.11. Because of cash back policy
Page | 81
19.12. While shopping online I hesitate to give credit card number.
19.12. While shopping online I hesitate to
give credit card number.
%
Strongly disagree 2.7
Disagree 7.3
Neutral 11.3
Agree 29.3
Strongly agree 49.3
Table 31 While shopping online I hesitate to give credit card no.
Chart 30 While shopping online I hesitate to give credit card no.
Interpretation:
49.3% of the respondents strongly agree that while shopping online they hesitate to give
credit card no. and about 2.7% of the respondents strongly disagree with the same.
2.77.3
11.3
29.3
49.3
0
10
20
30
40
50
60
Strongly
disagree
disagree neutral agree Strongly
agree
19.12. While shopping online I hesitate to give
creditcard no.
Page | 82
19.13. Relevance of brand identity & Company name
19.13. Relevance of brand identity &
Company name
%
Strongly disagree 4.7
Disagree 4
Neutral 10.7
Agree 32.2
Strongly agree 48.3
Table 32 Relevance of brand identity & Company name
Chart 31 Relevance of brand identity & Company name
Interpretation:
48.3% of the respondents strongly agree that they prefer relevance of brand identity &
company name and about 4% of the respondents strongly disagree with the same.
4.7 4
10.7
32.2
48.3
0
10
20
30
40
50
60
Strongly
disagree
disagree neutral agree Strongly
agree
19.13. Relevance of brand identity & Company
name
Page | 83
19.14. Better customer service
19.14. Better customer service %
Strongly disagree 1.3
Disagree 5.3
Neutral 11.3
Agree 30
Strongly agree 52
Table 33 Better customer service
Chart 32 Better customer service
Interpretation:
52% of the respondents strongly agree that they prefer better customer service and about
1.3% of the respondents strongly disagree with it.
1.35.3
11.3
30
52
0
10
20
30
40
50
60
Strongly
disagree
disagree neutral agree Strongly
agree
19.14. Better customer service
Page | 84
19.15.I am happy by shopping online
19.15.I am happy by shopping online %
Strongly disagree 1.3
Disagree 2
Neutral 10.7
Agree 32.7
Strongly agree 53.3
Table 34 I am happy by shopping online
Chart 33 I am happy by shopping online
Interpretation:
53.3% of the respondents are happy by shopping online and about 1.3% of the
respondents strongly disagree with it.
1.3 2
10.7
32.7
53.3
0
10
20
30
40
50
60
Strongly
disagree
disagree neutral agree Strongly
agree
19.15. I am happy by shopping online
Page | 85
20.How do you make payments mostly when shopping on the Internet?
20.How do you make payments mostly when shopping on the
Internet?
%
Credit Card / Debit card 16
Internet banking 3.3
Cash on delivery 76
E wallet 4.7
Other 0
Table 35 How do you make payments mostly when shopping on the Internet?
Chart 34 How do you make payments mostly when shopping on the Internet?
Interpretation:
76% of the respondents prefer cash payment and about 3.3% of the respondents prefer
payment through internet banking.
16
3.3
76
4.70
0
10
20
30
40
50
60
70
80
Credit Card
/ Debit card
Internet
banking
Cash on
delivery
E wallet Other
20. How do you make payments mostly when
shopping on the Internet?
Page | 86
21. What was the main reason why you started using online payment?(You can
select more than 1)
21. What was the main reason why you started using online
payment?(You can select more than 1)
%
I don’t use online payment 74.7
My bank started offering the service 6.7
There is no bank branch or ATM near my home or work 1.3
I became comfortable with the security of mobile banking 11.3
I liked the convenience of mobile banking 10
To receive fraud alerts or check my account for fraudulent transactions 2.7
Other 0.7
Table 36 What was the main reason why you started using online payment?
Chart 35 What was the main reason why you started using online payment?
Interpretation:
74.7% of the respondents say that they don’t make online payment and about 0.3% of the
respondents prefer other ways
74.7
6.71.3
11.3 10
2.7 0.7
0
10
20
30
40
50
60
70
80
I don’t use online paymentMy bank started offering the serviceThere is no bank branch or ATM near my
home or work
I became comfortable with the security of
mobile banking
I liked the convenience of mobile bankingTo receive fraud alerts or check my account
for fraudulent transactions
Other
21. What was the main reason why you started using online
payment?
Page | 87
22. Security is one of your top concerns with online payments; which one of these
are you most concerned with?(You can select more than 1)
22. Security is one of your top concerns with online payments; which
one of these are you most concerned with?(You can select more than
1)
%
My phone getting hacked 63.3
someone intercepting my payment information 17.3
Losing my phone or having my phone stolen 8.7
Malware or viruses being installed on my phone 12
Companies misusing my personal information 14
Other 0
Table 37 Security is one of your top concerns with online payments; which one of these are you most concerned with?
Chart 36 Security is one of your top concerns with online payments; which one of these are you most concerned with?
63.3
17.3
8.7
1214
00
10
20
30
40
50
60
70
My phone getting hackedsomeone intercepting my payment informationLosing my phone or having my phone stolenMalware or viruses being installed on my phoneCompanies misusing my personal informationOther
22. Security is one of your top concerns with online payments;
which one of these are you most concerned with?
Page | 88
Interpretation:
63.3% of the respondents complains about phone getting hacked and about 12% of the
respondents have fear of malware and virus being installed in there phone.
Page | 89
23. How much amount did you spent on purchased last time?
23. How much amount did you spent on
purchased last time?
%
less than 500 10
500 to 1000 22.7
1000 to 5000 51.3
more than 5000 16
Table 38 How much amount did you spent on purchased last time?
Chart 37 How much amount did you spent on purchased last time?
Interpretation:
51.3% of the respondents shop between 1000 to 5000 and about 10% of the respondents
shop less than 500.
10
22.7
51.3
16
0
10
20
30
40
50
60
less than 500 500 to 1000 1000 to 5000 more than
5000
23. How much amount did you spent on
purchased last time?
Page | 90
24. Do you receive any push message regarding online promotional scheme?
24. Do you receive any push message
regarding online promotional scheme?
%
Yes 0
No 100
Table 39 Do you receive any push message regarding online promotional scheme?
Chart 38 Do you receive any push message regarding online promotional scheme?
Interpretation:
100% of the respondents receive push message while shopping online.
100
00
20
40
60
80
100
120
Yes No
24. Do you receive any push message regarding
online promotional scheme?
Page | 91
25. How much effective push message is?
25. How much effective push message is? %
Least effective 22.7
More effective 8
Troubling 26.7
Not received 42.7
Table 40 How much effective push message is?
Interpretation:
42.7% of the respondents have not received any push message and about 8% of the
respondents find it more effective.
22.7
8
26.7
42.7
0
10
20
30
40
50
Least effective More effective Troubling Not received
25. How much effective push message is?
Chart 39 How much effective push message is?
Page | 92
26. Have you received coupon / gifts / discount from online shopping?
26. Have you received coupon / gifts /
discount from online shopping?
%
Yes 0
No 100
Table 41 Have you received coupon / gifts / discount from online shopping?
Chart 40 Have you received coupon / gifts / discount from online shopping?
Interpretation:
100% of the respondents have not received coupon / gifts / discount from online
shopping.
0
100
0
20
40
60
80
100
120
Yes No
26. Have you received coupon / gifts / discount
from online shopping?
Page | 93
Demographic Details
Gender:
Gender %
Female 47
Male 53
Table 42 Gender of respondents
Chart 41 Gender of respondents
Interpretation:
53% respondents are male and 47% respondents are female.
Income:
Income %
less than 10000 47
10k - 20k 46
20k - 30k 7
30k - 40k 0
more than 40k 0
47
53
44
45
46
47
48
49
50
51
52
53
54
Female Male
Gender
Page | 94
Table 43 Income of respondents
Chart 42 Income of respondents
Interpretation:
47% respondents have less than 10,000 income and 7% respondents have 20,000 to
30,000 income.
Age
Age %
less than 20 0
20 - 30 99
30 - 40 1
more than 40 0
Table 44 Age of respondents
47 46
7
0 00
5
10
15
20
25
30
35
40
45
50
less than 10000 10k - 20k 20k - 30k 30k - 40k more than 40k
Income
Page | 95
Chart 43 Age of respondents
Interpretation:
99% respondents are of age between 20 – 30 years and 1% respondents are of age
between 30 – 40.
0
99
1 00
20
40
60
80
100
120
less than 20 20 - 30 30 - 40 more than 40
Age
Page | 96
HYPOTHESIS
TESTING
Page | 97
11. After receiving the product what do you?
H0: There is no relationship between gender and post purchase activity.
H1: There is relationship between gender and post purchase activity.
Calculation:
Observed Frequency
Discuss with
Friends /
Family about
the purchased
product
Write a
review
about the
product
Contact
typically the
seller for
further
guidance if
needed
other Total
M 67 10 1 1 79
F 64 5 1 1 71
Total 131 15 2 2 150
Expected Frequency
Discuss with
Friends /
Family about
the purchased
product
Write a
review
about the
product
Contact
typically the
seller for
further
guidance if
needed
Other Total
M 68.99333 7.9 1.053333 1.053333 79
F 62.00667 7.1 0.946667 0.946667 71
Page | 98
Total 131 15 2 2 150
Observed Expected (O-E)2 (O-E)2/E
67 69 4 0.057971
64 62 4 0.064516
10 7.9 4.41 0.558228
5 7.1 4.41 0.621127
1 1.05 0.0025 0.002381
1 0.95 0.0025 0.002632
1 1.05 0.0025 0.002381
1 0.95 0.0025 0.002632
1.311867
Calculated Value: 1.311867
Tabulated Value: 7.8147
Here, calculated value is less than tabulated value. So null hypothesis is accepted.
Page | 99
20. How do you make payments mostly when shopping on the Internet?
(Option 1: As per age)
H0: There is no relationship between mode of payment and age.
H1: There is relationship between mode of payment and age.
Observed Frequency
Age
Credit Card
/ Debit card
Internet
banking
Cash on
delivery E wallet Other Total
less than
20 - - - - - 0
20 - 30 24 5 112 7 - 148
30 - 40 - - 2 - - 2
more than
40 - - - - - 0
Total 24 5 114 7 0 150
Expected Frequency
Age
Credit Card
/ Debit card
Internet
banking
Cash on
delivery E wallet Other Total
less than
20 - - - - - 0
20 - 30 23.68 4.933333333 112.48 6.906666667 - 148
30 - 40 - - 1.52 - - 2
more than
40 - - - - - 0
Total 24 5 114 7 0 150
Page | 100
Observed Expected (O-E)2 (O-E)2/E
24 23.68 0.1024 0.004324
5 4.93 0.0049 0.000994
112 112.48 0.2304 0.002048
2 1.52 0.2304 0.151579
7 6.9 0.01 0.001449
0.160395
Calculated: 0.160395
Tabulated: 21.026
Here, calculated value is less than tabulated value. So null hypothesis is accepted.
Page | 101
(Option 2: As per income)
H0: There is no relationship between mode of payment and Income.
H1: There is relationship between mode of payment and Income.
Observed Frequency
Credit Card
/ Debit card
Internet
banking
Cash on
delivery E wallet Other Total
less than
10000 11 3 53 3 0 70
10k - 20k 13 2 54 0 0 69
20k - 30k 0 0 7 4 0 11
30k - 40k 0 0 0 0 0 0
more than 40k 0 0 0 0 0 0
Total 24 5 114 7 0 150
Expected Frequency
Credit Card /
Debit card
Internet
banking
Cash on
delivery E wallet Other Total
less than
10000 11.2 2.333333333 53.2 3.266667 0 70
10k - 20k 11.04 2.3 52.44 3.22 0 69
20k - 30k 1.76 0.366666667 8.36 0.513333 0 11
30k - 40k 0 0 0 0 0 0
more than 40k 0 0 0 0 0 0
Total 24 5 114 7 0 150
Page | 102
Observed Expected (O-E)2 (O-E)2/E
11 11.2 0.04 0.003571
13 11.04 3.8416 0.347971
0 1.76 3.0976 1.76
3 2.33 0.4489 0.192661
2 2.3 0.09 0.03913
0 0.36 0.1296 0.36
53 53.2 0.04 0.000752
54 52.44 2.4336 0.046407
7 8.36 1.8496 0.221244
3 3.26 0.0676 0.020736
0 3.22 10.3684 3.22
4 0.51 12.1801 23.88255
30.09502
Calculated: 30.09502
Tabulated: 26.296
Here, calculated value is more than tabulated value. So null hypothesis is rejected.
Page | 103
Q 23. How much amount did you spent on purchased last time?
H0: There is no relationship between amount spent on purchase and gender.
H1: There is relationship between amount spent on purchase and gender.
Observed Frequency
less than
500 500 to 1000 1000 to 5000
more than
5000 Total
M 4 20 41 14 79
F 11 14 36 10 71
Total 15 34 77 24 150
Expected Frequency
less than
500 500 to 1000 1000 to 5000
more than
5000 Total
M 7.9 17.90667 40.553333 12.64 79
F 7.1 16.09333 36.446667 11.36 71
Total 15 34 77 24 150
Page | 104
Observed Expected (O-E)2 (O-E)2/E
4 7.9 15.21 1.925316
11 7.1 15.21 2.142254
20 17.9 4.41 0.246369
14 16.09 4.3681 0.271479
41 40.55 0.2025 0.004994
36 36.44 0.1936 0.005313
14 12.64 1.8496 0.146329
10 11.36 1.8496 0.162817
4.904871
Calculated: 4.904871
Tabulated: 7.815
Here, calculated value is less than tabulated value. So null hypothesis is accepted.
Page | 105
FINDINGS
Page | 106
FINDINGS
1. 42% of the respondents prefer online shopping during last one month
2. 54% of the respondents purchased travel tickets online and no respondent prefer
purchasing food online.
3. 85.3% of the respondents preferred Amazon
4. 74% of the respondents are conscious towards price and is the reason they prefer
online shopping
5. 79.3% respondents don’t go to a retail store first before making your final purchase
online
6. 39.3% of the respondents shop over 1 to 3 times during a year
7. 67.3% of the respondents buy specific products online through referred by family
or friend
8. 59.3% of the respondents compare description and price before making a final
purchase.
9. 62.7% of the respondents never visit any offline store before making a final
purchase
10. 82.7% of the respondents considers the price (discount) as the major factor before
making a final decision of the product.
11. 87.3% of the respondents discuss with friends /family about the purchased product
12. 65.8% of the respondents believe that delivery of a good is slow as a major barrier
in online shopping.
13. 74.7% of the respondents prefer online shopping through cell phone.
14. 68.7% of the respondents use application for online shopping
15. 28% of the respondents believe that applications are faster to use.
16. 82% of the respondents use Whatsapp application the most
17. 47.3% of the respondents believe that application crash/freeze or face error faster
18. 49.3% of the respondents believe that application opens in about 4 or more seconds
19. 66.7% of the respondents believe that internet saves time
20. 62.7% of the respondents strongly agree that is a great advantage to be able to shop
at any time of day
21. 38% of the respondents prefer traditional/conventional shopping to online shopping
Page | 107
22. 28.7% of the respondents strongly disagree with the statement that online shopping
is risky.
23. 28.7% of the respondents are neutral with the statement that online shopping will
supersede traditional shopping
24. 30.7% of the respondents strongly agree that detailed information available about
the products
25. 30% of the respondents strongly disagree that they get on time delivery of product
26. 37.3% of the respondents strongly agree that online shopping makes comparison
easy
27. 40% of the respondents strongly agree that website design makes easy shopping
28. 36% of the respondents strongly agree that they feel safe and secure while shopping
online
29. 42% of the respondents strongly agree that they don’t shop online because of cash
back policy
30. 49.3% of the respondents strongly agree that while shopping online they hesitate to
give credit card no.
31. 48.3% of the respondents strongly agree that they prefer relevance of brand identity
& company name
32. 52% of the respondents strongly agree that they prefer better customer service
33. 53.3% of the respondents are happy by shopping online
34. 76% of the respondents prefer cash payment
35. 74.7% of the respondents say that they don’t make online payment
36. 63.3% of the respondents complains about phone getting hacked
37. 51.3% of the respondents shop between 1000 to 5000
38. 100% of the respondents receive push message while shopping online.
39. 42.7% of the respondents have not received any push message
40. 100% of the respondents have not received coupon / gifts / discount from online
shopping.
Page | 108
SUGGESTIONS
Page | 109
SUGGESTIONS
Many retail store should develop a smart phone application for online shopping.
Online sellers should consider post purchase activity that helps customer to
purchase products online.
Customers are now using so many social networking websites so online sellers
should advertise their products in social networking websites.
Risk perception for online shopping should be reduced.
Online sellers should track history of customers so that they can provide
personalized offers to individual.
Sellers should provide brief description of products so that customers can order
accordingly.
To make online shopping more preferable, online sellers should make design of
website more attractive.
As the preference for shopping from application is more, company should focus
more on application based shopping then on web based shopping.
As discount offers are more influential factor in purchase decision, promotional
efforts by company should be more on discount offers.
As the lower price in online shopping is main reason, attracting consumers for
online shopping, the price should be featured properly in advertisement by the
company.
Page | 110
CONLCLUSION
Page | 111
CONCLUSION
On the basis of the present study concludes that online customers are satisfied. This research
explicitly indicates that online shopping is effective. Study shows that post purchase activity that
a customer does after receiving product is not dependent on gender of customers.
There is relationship between mode of payment and income of customers.
Mode of payment is not dependent on age of customers. Respondents who has income less
than rs 10000 do payment through cash on delivery. Respondents having income more than
10000 do payment through 20000 pays money through e-wallet.
Maximum respondents from Jamnagar city prefer to buy from Amazon. People like to buy
from Amazon as compared to Flipkart.
Customers expects faster delivery of goods ordered online. As faster delivery of goods is
important from customers’ point of view because more time is consumed in delivery of
goods.
Gender does not matter in money spent in online shopping.
Website design matters a lot in attracting customers more for online shopping. Because
customers prefer easy navigation for online shopping.
Discount offers effects more to customers in online shopping.
Customers prefer to but through application in their smart phone for shopping goods online.
Discount coupons effect more in online shopping.
Page | 112
BIBLIOGRAPHY
Page | 113
BIBLIOGRAPHY
http://www.academia.edu/24284430/A_STUDY_OF_FACTORS_AFFECTING_
ONLINE_BUYING_BEHAVIOR_A_CONCEPTUAL_MODEL
What Clicks With The Online Shopper? Nielson Insights 16-10-2015
Arjun Mittal, “E-commerce: It’s Impact on consumer Behavior”; Global Journal
of Management and Business Studies, ISSN 2248-9878 Volume 3, Number 2
(2013)
http://www.ripublication.com/gjmbs_spl/gjmbsv3n2spl_09.pdf
http://www.blog.finesseim.com/e-commerce-trend-india/
http://www.allresearchjournal.com/archives/2015/vol1issue9/PartD/1-9-4.pdf
http://altius.ac.in/pdf/29.pdf
Dr. Seema agarwal “A study of factors affecting online shopping behaviour of
consumers in mumbai region”; Tactful Management Research Journal, ISSN:
2319-7943
http://www.prnewswire.com/news-releases/global-b2c-e-commerce-and-online-
payment-market-2014-79067691.html
http://www.nielsen.com/in/en/insights/reports/2016/the-smartphone-becomes-the-
mobile-wallet.html
http://www.worldwidejournals.com/ijar/file.php?val=November_2013_13832262
64_b0fa7_92.pdf Source: 16 India Online 2011 Report
C R Kothari, Research Methodology: Methods & Techniques, ISBN (13) : 978-81-
224-2488-1
Page | 114
ANNEXURE
Page | 115
QUESTIONNAIRE
Consumer Behavior towards online shopping in Jamnagar
Name:_______________________________________________________________
Gender:
Female Male
Your education:
a. Graduation b. Post-graduation c. PhD
Your occupation:________________________________________________________
1. When was the last time you purchased something online?
a. before last month b. before 3 months c. before 6 months
d. before 9 months e. before 1 year
2. What did you purchase last time online? (You can select more than 1)
a. Books b. Furniture c. Music d. Cinema
ticket
e. Kitchen /
Home
appliances
f. Electronic
gadgets
g. Groceries h. Toys
i. Clothes j. Electrical
products
k. Cosmetics
l. Travel
tickets
m. Holidays n. food
Other (Please
Specify)_________________________________________________________
Page | 116
3. Which website do you prefer for this product/service? (You can select more than 1
a) Flipkart b) Amazon c) Irctc d) Infibeam e) Shoppers
Stop
f) Myntra g) Jabong h) Bookmyshow i) Zomato j) Snapdeal
k) Junlgee l) Makemytrip m) Craftsvilla n) EBay o) Goibibo
Other:___________________________________________________________________
4. Main Reason for online Shopping? (You can select more than 1 )
a. Price c. Fast Shipping e. Friend Referral
b. Convenience & time saving d.Brand conscious f. Discount
Other:______________________________________________________________________
5. Do you go to a retail store first before making your final purchase online?
a. Yes b. No
6. Approximately how many times did you shop over internet during the year?
a. At least once b. 1 to 3 times c. More than 3 times
7. How did you get the idea of buying specific brand through an online store? (You can
select more than 1)
a. Referred by friend/family b. Saw an online advertisement
c. Saw an offline advertisement (TV/Newspapers/Magazine/Hoardings)
d. I was just waiting for launch of this product since long
Other:________________________________________________________________
8. How do you find the specific to your own needs? (You can select more than 1)
Page | 117
a. Product Ratings b. Product reviews
c. Advice from offline store d. Referred by Friend / Family member
e. Compare description and prices f. New technology/ product in market
g. Referred by website by your search history
Other:________________________________________________________________
9. Do you visit different online stores before the actual purchase, how many stores on
average do you visit before purchasing it?
a. One to three online stores b. 3 to 5 online stores
c. More than 5 stores d. never
10. What are the crucial factors which affect your decision making in the final
selection of the product (Select all which apply) (You can select more than 1)
a. The Best prices(Discount) d. Price/Product comparison available
b. Convenience & Time saving e. Product reviews available
c. Not available in local stores f. Value for money
11. After receiving the product what do you?
a. Discuss with Friends / Family about the purchased b. Write a review about
product
c. Contact typically the seller for further guidance if needed
d. Others specify
___________________________________________________________
12. What are the main barriers which keep you away from shopping online? (You can
select more than 1)
a. Delivery too slow b. Low trust level of online
store
c. Security in payment
Page | 118
d. High Shipping Cost e. Privacy Policy f. Claims
Others reasons (please specify) __________________________________________
13. Which medium do you prefer for online Shopping? (You can select more than 1)
a. Personal computer b. Tablet c. Cell Phone
14. What do you prefer to use when shopping online from your device? (You can select
more than 1)
a. Web browsers b. Applications c. No preference
15. Why do you use more web browsers or Applications?
a. More used to it (from experience)
b. Because the application related to the website I want to visit doesn’t exist or I cannot
find it
c. I don’t want to install applications for random use
d. The applications from some websites are not functional, don’t work well
e. Usually I search for a general term, rather than needing a specific application.
f. Applications are better use, tailored to mobile phone
g. Applications are faster (In terms of opening it)
h. Applications are easier to find, straight on my main screen, application list
i. Other, please specify:
16. What kind of applications do you use the most? (You can select more than 1)
a. Utilities Apps (e.g. paytm) b. Entertainment Apps(you
tube) c. Productivity Apps (Time mgt)
d. Sports Apps e. Games Apps f. Search Tool Apps(Google)
g. Travel Apps, maps(GPS) h. News Apps i. Social Networking Apps(Facebook)
j. Weather Apps k. Chat Apps (WhatsApp) l.
Page | 119
m. Other, please specify:
17. Have you faced problems with a mobile app within the last 6 months? If so, what
types? (You can select more than 1)
a. Crash/freeze/error b. slow launch times c. App didn’t worked as
expected
18. How quickly should a mobile app launch?
a. Less than 1 second b. 1 second c. 2 seconds d. 3 seconds
e. 4 or more seconds
19. Please select your level of agreement to the following questions
SD- Strongly disagree D- disagree N-neutral A- Agree SA-strongly agree
No. Question SD D N A SA
1. Shopping on internet saves time.
2. It is a great advantage to be able to shop at any
time of the day.
3. I prefer traditional/conventional shopping to
online shopping.
4. Online shopping is risky
5. Online shopping will eventually supersede
traditional shopping.
6. Detailed information available
7. On time delivery of product
8. It makes comparison easy
Page | 120
9. Website design makes easy shopping
10 I feel safe and secure while shopping online
11 Because of cash back policy
12 While shopping online I hesitate to give my credit
card number
13 Relevance of brand identity & Company name
14 Better customer service
15 I am happy by shopping online
20.How do you make payments mostly when shopping on the Internet?
a. Credit Card / Debit card b. Internet banking
c.Cash on delivery d.E wallet
Other:__________________________________________________
21. What was the main reason why you started using online payment? (You can select
more than 1)
a. I don’t use online payment
b. My bank started offering the service
c. There is no bank branch or ATM near my home or work
d. I became comfortable with the security of mobile banking
e. I liked the convenience of mobile banking
f. To receive fraud alerts or check my account for fraudulent transactions
g. Other (please specify): _____________
Page | 121
22. Security is one of your top concerns with mobile payments; which one of these are
you most concerned with? (You can select more than 1)
a. My phone getting hacked b. someone intercepting my payment
information
c. Losing my phone or having my phone stolen d. Malware or viruses being
installed on my phone
e. Companies misusing my personal information
Other (please specify): ________________________________
23. How much amount did you spent on purchased last time?
a. <500
b. 500-1000
c. 1000-5000
d. >5000
Tell us your suggestions:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
______________THANK YOU FOR SPENDING YOUR PRECIOUS TIME
