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Project report on

CONSUMER
PERCEPTION
TOWARDS ONLINE
SHOPPING
SUBMITTED IN PARTIAL
FULFILLMENT FOR THE
AWARD OF THE DEGREE
OF BACHELOR OF
BUSINESS
ADMINISTRATION 2014-17
UNDER THE GUIDANCE OF

Mrs. Anju Bharti


SUBMITTED BY:

PRAKRITI KUMAR
Roll no: 04514701714 BBA 3rd
SEM, (A)
MAHARAJA AGRASEN
INSTITUTE OF
MANAGEMENT STUDIES
Affiliated to Guru Gobind Singh
Indraprastha University, Delhi
PSP Area,
Plot No. 1, Sector-22, Rohini,
Delhi-110086

STUDENT UNDERTAKING

This is to certify that I have completed the


Project titled Consumer Perception towards
Online Shopping u n d e r t h e g u i d a n c e o f
Ms.Prakriti

kumar

i n partial

fulfilment of the requirement for the


award of degree of Bachelor of Business
Administration at Maharaja Agrasen Institute
Of Management Studies.
, Delhi. This is an original piece of work &
I have not submitted it earlier elsewhere.

Name of the Student


Prkriti kumar
Roll no 04514701714

CERTIFICATE FROM THE


INSTITUTE

This is to certify that the project titled


Consumer

Perception

Towards

Online

Shopping is an academic work done by


Prakriti Kumar submitted in the partial
fulfilment of the requirement for the award of
the

degree

of

Bachelor

Of

Business

Administration from Maharaja Agrasen Institute


Of Management Studies. Delhi, under my
guidance & direction. To the best of my
knowledge and belief the data & information
presented by him/her in the project has not been
submitted earlier.

Name of the Faculty Guide


Mrs. Anju Bharti

ACKNOWLEDGMENT

Success of my project depends upon two factors


Internal and External factor includes sincere
efforts, dedication to the work and good
potential whereas internal factors includes
cooperation and supports of potential customers
who patiently hears about the schemes and plans
of products and then gives response.
Good guidance and cooperation from others are
such external factors, which
affects the percentage of success. Though in
completing this project I tried my level
best but it could not be possible without proper
guidance of my mentor.
I wants to give my thanks to Mrs. Anju Bharti
for her valuable guidance and
suggestions, which I sincerely value and
appreciate.

Executive Summary

Since the late 1990s, the Internet has attracted


considerable attention from retailers as a
potentially important and lucrative market space
in which their marketing and retail
activities can be conducted both efficiently and
economically.

Considerable

numbers

of

businesses and persons wishing to supply


information or sell goods and services
to the public have been attracted to the Internet,
extending daily activities, including shopping, to
an unlimited virtual world.
Initial predictions were that the combination of
technological sophistication, equipment power,
and ease of

use, in conjunction with the

supporting infrastructure, would make electronic


purchasing widespread in the United States.
However, after a brief spurt, the rate of growth
of Internet retailing declined, with many pureplayers failing and falling out of this new virtual
market space altogether. Internet retailers have
been striving for increased sales and portability
since. Until now, the portability of e-retailers has
not been substantial enough to improve their
stock prices, although Internet shopping is now a
mainstream

activity.

Widespread

and

instrumental adoption of the Internet as a


shopping

medium is the key that will ultimately drive


online sales and portability. However, the
interactive and widely connected web-based
market space enables todays consumers to be
even more demanding. It is far more challenging
to attract and retain customers in the online
environment

than

in

the

traditional

one.

Therefore, there is a growing need for a better


understanding of consumers behaviour in the
commercial online setting.
The research examines consumers adoption of
the Internet as a shopping medium through an
integrated perspective of innovation adoption
and the consumer decision-making process. This
research proposes a conceptual framework
describing the types and degree of consumer
adoption of the Internet as a shopping place and
how interrelated factors impact such adoption.

Index
Table of CONTENTS

Student declaration
Certificate from Guide
Acknowledgement
Executive Summary
Chapter Scheme
CHAPTER- 1
Purpose of the
study
Research
Objectives of the study
Research
Methodology of the study
Research Design
Data Collection
1.3.3 Limitation
CHAPTER -2
About the Organization / Company Profile
CHAPTER -3
Findings and AnalysisCHAPTER -4
Suggestions
CHAPTER -5
Conclusion and Limitation
Bibliography

CHAPTER- 1
INTRODUCTIO
N

1.1 Purpose of the study


If you know where you are going, any road
will take you there

Before the start of any research, it is very


necessary to define the objective of the study i.e.
what we are going to study:

awareness

To check the consumer


&

perception

of

online

shopping in India.

Impact of advertising on

online shopping.

To

study

sales

promotional techniques to boast online


shopping in India.

To find

out

influence

of online advertising on the buying


behaviour of the customer.

Satisfaction

level

at

various components of online shopping.

Internet Usage in India

India stands 4th in the

world with more than 10 crore Internet


users,

more

Internet

users

than

population of Germany, France and U.K.

Out of 3.56 cr Internet

users in Indian metros, Delhi and


Mumbai

covers

35

and

25

lakhs

respectively.

Internet users Growth rate

per Year in India 1500%

Market studies
We launched this fact-finding market study on
29 April 2006, under section 5 of the
Enterprise Act 2002. Market studies2 are a tool
to help identify and address all aspects of market
failure, from competition issues to consumer
detriment

and

the

effect

of

government

regulations. Although many of our studies


explore specific economic markets, they can
also review practices across a range of goods

and services, as well as the channels through


which these products are sold.
Our studies also vary in their focus and purpose.
Some assess well-established concerns, to
identify whether and how an apparent problem
might be resolved while others, such as this one,
seek to explore issues to establish a greater
knowledge base for future policy.

1.2 Research Objectives of the


study
Why we conducted the study
This study reports the findings of our factfinding research, which identified and explored
a broad range of issues raised by the growth of
domestic and cross-border internet shopping.
The growing importance of the internet to the
economy and retailing is, in itself, a key reason
why we chose to undertake the study: to review
whether internet shopping introduces new issues
which we should be considering in our role.
Furthermore, as a sales channel, the internet is
very dynamic with new technology and business
models emerging and evolving all the time (for
instance, the growth of mobile commerce) with
potentially

important

implications

for

the

protection of shoppers.
The regulatory framework is also fast changing,
with new developments such as the
Consumer Protection from Unfair Trading
Regulations (CPRs), which from 2008 could
have important implications for buyer protection
online as well as offline. It was also timely for
us to look at internet shopping, because our

work coincided with the review by the European


Commission of eight Directives for protecting
consumers (known as the consumer acquis),
one of which is the Distance Selling Directive.
Our study has already helped to inform the UKs
position.
Finally, although we did not start this research
with specific concerns in mind, we had
identified some particular issues that we felt
warranted exploration. In particular, we set out
to consider public confidence in the internet as a
retail channel, as well as whether the current
protections for shoppers meet whatever new
challenges might be raised by the development
of internet shopping. This report therefore
addresses:
Attitudes: how confident are individuals and
businesses in the internet as retail
channel, and why? What impacts do attitudes
and confidence have on internet retailing?
Behaviour: how and why do consumers and
businesses use the internet to buy and
sell goods?
Experiences: what do individuals and
businesses experience when buying and selling
online? What problems do they encounter and
how well can they resolve these?

Rights awareness: how well do shoppers


know their rights, and businesses know their
obligations, when using the internet as a retail
channel?
Regulations: to what extent are the current
regulations fit for purpose now, and looking to
the future?
Enforcement: how well can the current
enforcement regime cope with any new
challenges raised by internet shopping?
Self-regulation: what role can initiatives such
as codes of practice play in raising
confidence and providing protection?
Because the potential range and scale of
issues raised by internet shopping is vast and
fast moving, we necessarily restricted our focus
to some key aspects. Therefore, while this report
covers many issues, it is not a comprehensive
review of every conceivable issue that may be
raised by the growth of internet shopping.

The studys remit

Much

attention

is

increasingly

paid

to

addressing the impact of fraud, scams and spam


on the internet in general. While we consider the
impact of these issues on confidence, our main
focus in this report is on Business to Consumer
(B2C) internet shopping. We explore why
consumers and businesses use, or do not use, the
internet to buy and sell products; their
experiences of using the internet as a retail
channel; and what happens when things go
wrong.
Our definition of internet shopping covered
transactions by consumers with businesses that
enabled them to order online (whether or not the
subsequent payment or delivery took place
online).6 We concentrated on legally-sold goods
and services ordered online by UK shoppers
from UK and non-UK businesses, over the
internet.
We did not explore in any detail:
Business to Business (B2B) transactions
Issues that relate to distance selling generally,
such as the nature of the provision and market
for delivery services
The infrastructure of the internet (such as
cabling) or the supply of access to the internet

The management of the internet itself (such as


the oversight of communications
interoperability and address systems), or the
regulation of network operators / Internet
Service Providers (ISPs)
Peoples ease of access to the internet
generally (such as social exclusion and the
digital divide), and ease of use issues (such as
accessibility for users with partial vision, etc)
Criminal activities on the internet (such as sale
of illegal material)
Ethical issues raised by the selling of certain
items (such as animals)
Internet activity involving no direct B2C
purchase of goods or services, such as public
services (for instance e-government); web
communities such as MySpace or YouTube;
user activities such as blogs, podcasts; and free
information provision (such as news sites) We
excluded products or issues where other
regulators typically lead (such as utilities,
financial

products,

food

standards,

communications, broadcasting).
We also excluded the provision of auxiliary
services, such as consumer credit.
In the time available, we focused on consumer
protection issues while remaining aware that

competition can be a factor in these issues. We


did not investigate the role or activities of
particular companies, or assess competition
within specific retail markets. An assessment we
commissioned in 2006, of the economic
literature on internet shopping did not identify
significant new competition concerns arising
that

could

not

be

addressed

under

the

Competition Act 1998. However, the report did


identify the growing importance of new
phenomena prompted by the internet, such as
search intermediaries and online auctions, which
are developments our study has explored.

1.3
RESEARCH METHODOLOGY
Need
The need of this research is to identify and get
insight into what main factors the online
consumer takes into consideration when most he
buy products on internet what affects their
shopping behaviour, basic need of this research
is to find out what are the main factors affect the
online consumer when considering and making a
purchase over Internet.

Data Source
Market research requires two kinds of data, i.e.,
primary data and secondary data.

In dealing

with any real life problem it is often found that


data at hand are inadequate, and hence, it
becomes necessary to collect data that are
appropriate.

Primary data: These are

those data which are collected afresh and


for the first time, and thus happen to be
original in character. I will be using the
structured questioners.

Secondary data: These

are those which have already been


collected by someone else and which
have already been passed through the
statistical process. I will collect it from

the sources like internet, published data


etc.

Objective of the study

To

study

the

online

shopping behaviour of customers

influencing

To

study

online

the

factors

shoppers

and

consumers

To study the customers

level of satisfaction with regard to online


shopping

To

examine

whether

customers prefer online shopping to


physical stores.

1.3.1
Scope of the Study and Methodology
Scope of the study
At any given time there are millions of people
online and each of them is a potential customer
for a company providing online sales. Due to the
rapid

development

of

the

technologies

surrounding the Internet, a company that is


interested in selling products from its web site
will constantly has to search for an edge in the
fierce competition. Since there are so many
potential consumers, it is of the out most
importance to be able to understand what the
consumer wants and needs. The importance of
analyzing and identifying factors that influence
the consumer when he or she decides to
purchase on the Internet is vital. Since the
Internet is a new medium for there have been
new demands set by the consumer. That is why
it is crucial for the online retailers to know what
influences the online consumer. Analyzing
consumer behaviour is not a new phenomenon.
The renowned marketing expert Philip Kotler
has published several works on the topic
of consumer behaviour theories. These theories

have been used for many years not only to


understand the consumer, but also create a
marketing strategy that will attract the consumer
efficiently Hence, understanding and identifying
the consumer is closely related to the directions
a company will take with their marketing
strategy. These theories can also be applied to
identify the online consumer and to create
certain consumer segments. However, some
distinctions must still be made when considering
traditional consumer behaviour and online
consumer behaviour. Since online retailing is a
new retailing medium and online consumer
behaviour is diverse from traditional consumer
behaviour, one must identify what influences the
online consumer. Analyzing the process that the
online consumer goes through when deciding
and making a purchase over the Internet, shows
some factors that consumers consider these
factors need to be identified and taken into
account by online retailers in order to satisfy
consumer demands and compete in the online
market.

Research Methodology
Data for this study was collected by means of a
Survey conducted in the College. The sample
size was 100. .The Questionnaire (shown in
Annexure) was used mainly to test the model
proposed for Attitude towards online shopping.
The type of research was both exploratory as

well as Descriptive. Liker five point scales


ranging from Strongly Agree to strongly
disagree was used as a basis of Questions. We
took around eleven different factors by studying
the existing models of consumer attitudes that
play an important role in online purchase, and
then proposed a model leading to online
shopping. This model was then tested in our
research by the mode of factor analysis in SPSS.

Research Strategy
When collecting data to approach the purpose of
a research there are two ways in which the data
can be collected. In order to acquire a General
knowledge about the topic, secondary data is
primarily used and is one of the ways by which
data can be collected. The second way to collect
data is the primary data collection. Usually when
a study is
Conducted, secondary data is not sufficient
enough and needs to be completed with
primary data which is collected by the
research.

Descriptive Research Method

We will conduct our research in order to


collect primary data and reach the objective
of the Dissertation. We will also be discussing
which different types of Methodologies that
were used. Since our research is of descriptive
character our primary intention was to
collect secondary data and analyze it. By
doing so we found the factors Price, Trust and
Convenience. We then collected primary data
through a survey. The main purpose of the
survey was to collect data about Online
Consumer Behaviour and the significance of
the established factors, Price, Trust, and
Convenience In order to be able to find and
establish

Online

Consumer

Segments,

Consumer Traits and Online Behaviour had


to be identified. The segments were used in
order to further identify what impact the
factors Price, Trust, and Convenience have on
Online Consumer Segments.

Sample Design
The factors that we intended to examine can
be

applied

to

and investigated

at

any

population that uses the Internet and buys


online products Online. Since there are time
and resource restraints, a specific Population
had to be identified in order to generalize and
create relevant segments. We decided that the
sample

size

respondents

should
and

we

contain
collected

over

100

answers

from100 respondents. The populations for


this research are university students at the
College of the University was chosen on a
convenience basis. Convenience sampling
involves using samples that are the easiest to
Obtain and is continued until the sampling
size that is need is reached. We will attempt
to collect as many respondents as possible but
since we will be studying students we assume
that there will be little variation in the
population making it more approved to
generalize the response rates. The sampling
method for students took also place on a
Convenience basis since the students and
faculty that agree to answer the questionnaire
are those that were chosen.

1.3.2 Data Collection


Rather than address every type of market
trading over the internet, we selected some case
study examples of how the internet is being used
to sell specific products. We used these case
studies to target our research and to draw wider,
transferable lessons for the rest of internet
shopping. Findings for these sectors therefore
appear throughout this report, which is not a
study of each sector in its own right. While they
also raised some issues of their own, which we
highlight in this report, our focus was on the
nature of the online transactions for the products
in these sectors.

We used three product sectors for our


case studies:
Domestic electrical goods
Travel (specifically airline tickets with or
without accommodation)
Music (hardcopy sales, such as online sales of
CDs, as well as downloads)
We chose these because together they account
for a large proportion of online trade. We
estimate that, in 2005, around one quarter of
online sales to households were of electrical

items, flights, music and videos. They also


represent a range of different types of goods and
services.
To these three case studies, we added a fourth
online auctions. These electronic
marketplaces raised issues of their own.

1.3.3 Limitations to primary data


One

has

interviews

to

recognise

have

that

limitations

unstructured
such

as

the

possibility of being biased as the interviewer


selects questions to investigate and may inhibit
comparability of responses. Moreover, the
convenient sampling used for this study is
considered to be the least reliable nonprobability sampling technique, because the
respondents are not given zero chance of being
randomly selected. Individuals differ in their
inclinations to respond depending on their
background,

attitudes,

culture,

social

desirability, willingness of subjects to tell us the


researcher what he or she wants to know etc.
Furthermore, the author suggests that individuals
can be aware of the research being conducted
about them and are not therefore purely passive
subjects; they can react to the results of research
and change their behaviour accordingly. Due to
time restrictions of the study it can only focus on
a small target audience. Therefore, this study is
restricted in several ways, e.g. it only focuses on
marketing experts that wrote about endorsement
in a certain area and time span in relation to
marketing

by

the

only

one

mean

of

communication. Besides these limitations, the


personal limitations of the researcher should be
also taken into account. For example, the
personal judgement of researcher could be

biased by systematic tendency towards a lack of


objectivity, fairness, or impartiality, which is
often based on personal preferences and
inclinations. Furthermore, the study could be
distorted by a systematic error in the assessment
instrument

and

procedures,

or

interpretation and evaluation process.

in

the

CHAPTER- 2
ABOUT ONLINE
SHOPPING

About Online Shopping


India has more than 100 million internet users
out of which one half opt for online purchases
and the number is rising sharply every year. The
growth in the number of online shoppers is
greater than the growth in Internet users,
indicating that more Internet users are becoming
comfortable to shop online. The capability of
purchasing without leaving your place is of great
interest to many consumers. Not only does
online shopping offer really good deals, but also
brings optimum convenience to the consumers.
Moreover, the use of Internet tools for price
searching and comparison provides an additional
advantage in consumers final decision, as they
can purchase their desired products in the lowest
available price. This project focuses on the
understanding of perception of online purchase
in India. For this purpose the data from 100
respondents was collected in the form of
questionnaires.
With nearly half of the Indian population being
young and net savvy, there has been an extra
ordinary rise in the numbers of online shoppers.
The recent growth in the mall culture in the
country has in fact made consumers more aware
about different options and encouraged them to
search and eventually purchase online. India has
more than 100 million internet users out of

which one half opt for online purchases and the


number is rising sharply every year. The growth
in the number of online shoppers is greater than
the growth in Internet users, indicating that more
Internet users are becoming comfortable to shop
online. Until recently, the consumers generally
visit online to reserve hotel rooms and buy air,
rail or movie tickets, books and gadgets and
gizmos, but now more and more offline product
like clothes - saris, kurtis, T-shirts - shoes, and
designer lingerie, consumer durables are being
purchased online. At present the market is
estimated at Rs.46000 crore and is growing at
100 percent per year. The two most commonly
cited reasons for online shopping have been
convenience and price. The capability of
purchasing without leaving your place is of great
interest to many consumers. Not only does
online shopping offer really good deals, but also
brings optimum convenience to the consumers.
Moreover, the use of Internet tools for price
searching and comparison provides an additional
advantage in consumers final decision, as they
can purchase their desired products in the lowest
available price .On the contrary, privacy and
security have been the great concerns, resulting
many people to browse the Internet for
informational matters than for buying online.
A process in which images or listings of goods
and services are viewed remotely via electronic

means, e.g., a vendor's Web site, items are


selected for purchase, and the transaction is
completed electronically with a credit card or an
established credit account. Various encryption
schemes may be, and usually are, used to reduce
the risks of sending sensitive information, such
as credit-card numbers, over the Internet or other
telecommunication facility.
IN
A wallet is a small software program used for
online purchase transactions. Many payment
solution companies, such as Cyber Cash, offer
free Wallet software that allows several methods
of payment to be defined within the wallet (for
example, several different credit cards). Here's
how it works: When you order something, the
order

is

sent

to

the

merchant.

The

merchant(actually, the merchant's server) sends


back an invoice and asks the consumer to launch
the Wallet in his computer (or to download it
quickly if the consumer doesn't have it
yet).When the consumer selects "Pay," the
Cyber Cash software on the merchant server
sends a message back to the consumer's PC that
activates the "Wallet" software. The consumer
selects one of the cards defined in the Wallet and
clicks. The transaction includes real-time credit
card authorization. Cyber Cash says" Soon we
will incorporate an electronic "Cash" and "Coin"
system

to

use

for transactions

that

are

considered small for credit cards. Online


shopping is the process consumers go through to
purchase products or services over the Internet.
An online shop, e-shopping, e-store, internet
shop, web shop, web, online store, or virtual
store evokes the physical analogy of buying
products

or services

at a bricks-and-

mortar retailer or in a mall. The metaphor of an


online is also used, by analogy with mail
catalogs. All types of stores have retail web
sites, including those that do and do not also
have physical storefronts and paper catalogs.
Online

shopping

of electronic commerce

is
used

type

for business-to-

business (B2B) and business-to-consumer (B2C)


transactions. The term Webshop also refers to a
place of business where web development, web
hosting and other types of web related activities
take place (Web refers to the World Wide Web
and shop" has a colloquial meaning used to
describe the place where one's occupation is
carried out).

Background
The scale and growth of internet shopping is
impressive. In 2005, the most recent year for
which reliable figures are available, sales to
households were over 21bn a fourfold
increase during the previous three years. It is
benefiting millions of people and thousands of

businesses. Over 20 million UK adults shopped


online in 2005, with 56 per cent of internet
shoppers we surveyed having spent over 500
each during the year. In the same year, an
estimated 62,000 UK businesses were selling
online to households. We found that people
shopped online because they find it convenient,
it increases their choice and helps them to hunt
for lower prices. Retailers sell online to reach
more customers, to sell around the clock and in
reaction to competition from rivals.
However, the rapid growth of internet shopping
means it is more important than ever that online
retailers

know

their

obligations

to

their

customers, and that shoppers can feel confident


about addressing any problems. In our factfinding research, we therefore looked at why
people and businesses use, or do not use, the
internet to buy and sell products; their
experiences; and what happens when things go
wrong.
Shoppers need to know, when they buy, that they
have the right to cancel, so that they do not
unnecessarily keep products that on examination
they do not want. However, we found that more
than half (56 per cent) of the internet shoppers
we surveyed online did not know about their
right to cancel and many (29 per cent) also did
not know where to turn to get advice on their
rights.

We also found that a lot of traders had a weak


awareness of the law themselves. For
example, in our survey of UK-based online
traders, 28 per cent said that they were not aware
or only slightly aware of the laws applying to
internet shopping, and two-thirds (66 per cent)
had never sought advice on them. One fifth of
online electrical retailers did not think that
buyers had a right to cancel, and more than half
wrongly thought that they could withhold the
cost of outward delivery when refunding
shoppers.
When we looked at websites, we found that one
in ten (12 per cent) of electrical sites and nearly
four in ten (39 per cent) of music retailers sites
selling CDs did not appear to mention the
cancellation period. Furthermore, there was
evidence that some sites might be trying to
impose conditions that could prevent or at least
deter

consumers

from

exercising

their

cancellation rights. For instance, 59 per cent of


electrical sites stated at least one condition on
consumers rights to cancel and receive a refund
which may have led to a breach of the
regulations. Furthermore, more than one fifth of
sites we looked at may have been breaching the
regulations by not providing an email address.
Businesses told us that guidance on the key legal
requirements should be clearer and have a
higher profile. While many different sources of

advice are currently available, most tend to


address

separate

issues,

such

as

general

consumer rights, distance selling obligations, the


law on privacy or guidance about online threats
and safety. Many organisations said that they
would welcome a single clear dedicated source
or signpost, to cover all the information needs
for internet sellers and shoppers.
We asked internet shoppers if they had
experienced any problems when shopping
online. Nearly a quarter (23 per cent) told us that
they had experienced a problem in one of their
online transactions

in the previous year,

equivalent to an estimated one in 58 purchases.


It was difficult accurately to compare their
responses with the experience of shopping
through other channels, but our data suggest that
the volume of consumer complaints does not
appear unusual when compared to other distance
selling

channels,

and

that

the

types

of

complaints match those for mail order.


Shoppers and online traders told us that delivery
was where most problems cropped up: indeed it
accounted for nearly half (48 per cent) of all the
problems people said they had experienced
(most typically as late or non-delivery). While
we did not explore delivery problems in detail,
because they are common to distance selling
generally, it is clear that they have important
economic implications. The annual economic

detriment from unresolved delivery problems for


online sales could be as much as 25 million to
55 million per year, excluding time and effort
spent

on

resolving

communication

between

problems.

Better

the

parties

main

involved in delivery could be key to addressing


some of the problems experienced. Businesses
told us of measures being put in
place to meet the rapidly increasing demand for
delivery services resulting from the growth
of internet shopping.

The laws protecting online shoppers


The

regulations

additional

rights

giving

online

shoppers

derive

from

European

Directives.
These laws appear broadly fit for purpose at
present. We did, however, identify a number of
areas where they may need to be revised to take
account of how internet shopping is evolving.
We have brought these to the attention of the
European Commission, who are currently
reviewing how they might need to be improved.
We also looked at the role of the key regulations
as they relate to online auctions. These rapidly
growing electronic marketplaces are a valuable
development,

with

millions

of

successful

transactions every year, accounting for spend


using payment cards of 2.8 billion in 2005. But

we found that about half (52 per cent) of the


online survey respondents who had bought items
from an auction site in the last 12 months had
experienced at least one problem in the past
year. Most of these problems mirrored those of
internet shopping generally, although some
buyers perceived that they had been victims of
deceptions (such as counterfeiting or sellers
bidding up their items). While the value of the
items involved was typically low and a high
proportion chose not to complain, of those that
did complain, four in ten (39 per cent) had given
up trying to resolve the problem.
A range of regulations potentially protect users
of online auctions, but consumers face a number
of uncertainties when buying on them. In
particular:
Generally, users of online auctions are
protected in much the same way as other online
purchasers. There is some uncertainty as to
whether the DSRs apply, although the ongoing
EC Review may help to resolve this.
We found that 60 per cent of online survey
respondents who bought items from an
online auction wanted to know whether they
were buying from a business. This affects both
their confidence and their rights. However, it is
not always clear whether sellers are trading as a

business, and buyers tend to use a range of


indicators to try to judge it (some of them less
reliable than others). At the margins, even sellers
may not know if they are operating as a
business.
There are also examples where there can be no
doubt that products are being sold in the course
of a business. While business sellers are required
by the regulations to provide their name and
address, this does not always happen.
Auction platforms are typically not liable to
consumers for problems with products or sellers.
They do not have liability for unlawful activity,
such as sales of illegal goods, unless they have
actual knowledge of illegality. Given this,
consumers need to be aware of the risks
involved in buying on such sites and to take
sensible precautions.

The internet brings challenges for


enforcers
Our

research

suggested

that

enforcement

officers face particular challenges in addressing


online shopping especially in tracing rogue
traders. Traders can sell from any location in the
UK or abroad and quickly set up or shut down
operations. The rapid pace of technological
change, coupled with the range of parties that
may have an involvement in a transaction can
also make it a potentially complex environment
in which to conduct investigations.
There are already good examples of enforcement
agencies and advisory bodies providing advice
to businesses and consumers about online
shoppers rights. We also found some promising
examples of proactive work, for instance to
assess compliance; to liaise with the internet
industry to obtain information on traders; and to
co-ordinate activities with other enforcers to
achieve successful outcomes. However, despite
these efforts, awareness of and compliance with
consumer protection laws specific to distance
selling could be better. We see potential for
greater co-operation between enforcers to ensure
greater consistency in how enforcers assess and
deal with problems related to internet traders.

Good practice should be spread across the whole


country.
There is currently no national risk-based
approach to identifying problems and aligning
the most appropriate response. This needs to be
considered within the broader context of other
current initiatives which form part of the
governments better regulation agenda that will
have an impact on local enforcement in general.
This includes the establishment of the Local
Better Regulation Office (LBRO) with its aim to
improve the effectiveness and consistency of
local authority regulatory services.
We

also

considered

the

enforcement

implications of international internet trade.


Online cross border trade is not as substantial as
some might think accounting for seven per
cent of the online sales of the UK businesses we
surveyed, and less than one-tenth of UK
shoppers online spend. Furthermore, most
cross-border

internet

purchases

are

from

European countries and the buyers are therefore


covered by a common framework of protections.
However, outside Europe, the protections for
consumers are less well established. Some
international agreements and networks exist,
although these have tended to address general
threats to internet users, such as spam and
scams. For instance OFTs Scam Busters Group
has been working closely with international

enforcement partners to combat mass marketing


scams. These partnerships could provide a
valuable basis on which to focus more attention
on protecting consumers rights when buying
from online traders abroad.

Shoppers have significant fears


about security and privacy
Although internet sales have been increasing for
years, this does not necessarily mean that they
are growing as much as they might. The latest
reliable figures, from 2005, suggest that online
sales were still only three per cent of all retail
sales, and only six per cent of businesses were
selling online to households. We found that there
are many reasons why businesses and shoppers
might not want to use the internet to buy and
sell, including lack of internet access, products
not being appropriate, or simply no desire to use
it. However, some were being deterred by
concerns about using the internet to buy, and
although many people were willing to shop
online, most had fears about doing so.
Confidence and trust are important to the

success of internet shopping. Forty-two per cent


of businesses not selling online told us that
increased consumer confidence would make
them more likely to. Furthermore, 79 per cent of
internet users we surveyed were very concerned
about the risks to the security of their payment
details from online shopping. Indeed we
estimate that 3.4 million people were prepared to
use the internet, but not willing to shop online
because of a lack of trust or fears about personal
security. Their missed savings could amount to
between
175 million and 350 million each year.
Although

online

shoppers

seem

to

gain

confidence over time, even experienced ones


remained worried about their financial security
and privacy.
People told us that their fears stemmed from
stories in the media or spread by word of
mouth, their receipt of spam and phishing
emails, as well as advisory campaigns and
advertising. The organisations we spoke to told
us that the publics fears about internet shopping
were

understandable,

given

the

relatively

unfamiliar and fast evolving nature of the


internet, and were likely to be influenced by
regular stories about new threats. However,
many also thought that shoppers worries about
buying online were excessively high.

There is a lack of reliable data on the prevalence


and significance of the risks from internet
shopping itself. However, some of the dangers
commonly associated with internet shopping
may be more a result of data lost offline or
through general internet usage, rather than the
result of having shopped online.
Nevertheless, there are risks attached to using
the internet, and to selling and shopping online,
which need to be taken seriously. To guard
against risks to their businesses and to address
consumers concerns (which put some off
shopping online altogether), it is in traders best
interests to consider the range of technical and
other protective measures they can take.
Likewise, online shoppers can reduce risks by
taking precautions and watching for warning
signs. Provided they do so, it seems unlikely, at
the time of writing, that they will be at
substantially more risk than if they use other
means of buying at a distance. Even if online
shoppers experience the fraudulent use of their
payment card details, they have regulatory
protections which mean that they are unlikely to
have to pay anything.
However, public awareness of these precautions
and

protections

remains

weak,

despite

campaigns and numerous sources of advice. One


in five (19 per cent) internet users we surveyed

never checked the security of a site and 34 per


cent only do sometimes. Many people also do
not recognise that they need to take some
responsibility

for

their

protection

online,

believing that this is solely the role of businesses


and other organisations. Awareness campaigns,
as well as commercial advertising may also be
scaring people away from shopping online as
much as they are informing them. Some level of
concern may helpfully encourage people to be
vigilant, but campaigns need to be balanced, so
that shoppers know how to protect themselves,
without having excessive fears about online
shopping.

Shoppers

need

to

search

effectively
The internet has enabled businesses to establish
a new means of selling by setting up their own
websites, and adopting new business models to
widen their reach. However, the vast range of
retailers and offers available to shoppers can
make it hard for them to locate and differentiate
between competitors. We identified some large
differences in prices being charged for similar
goods online for instance, by an average of 30

to 60 per cent of the lowest price for the music


and electrical items we looked at. Fortunately,
provided they are used well, tools such as search
engines

and

price

comparators

can

help

consumers to make informed choices and save


money.
However, we found that some consumers could
benefit from searching more effectively online,
particularly given limits to the numbers and
range of traders listed by some price comparison
sites. For instance, if a shopper used only one of
ten price comparison sites we looked at, they
had a 50 per cent chance of finding one of the
lowest prices. We estimate that online shoppers
who misunderstand how search tools work and
therefore limit their search, could miss out on
potential savings of 150 million to 240
million per year. We also found that shoppers
often experienced charges added to the initial
price. For instance, for 47 per cent of the flights
we looked at, the final check-out price was
higher than the initial price. For these, the
median price increase was 19 per cent, but many
increases were much more. For online sales as a
whole, we estimate that 1.2 million internet
shoppers were unaware of these charges during
the buying process, but still went on with their
purchase and paid 60 million to 100 million
each year as a result.

In just a few years, the internet has had a


profound impact on UK retailing, enabling
businesses to sell and shoppers to buy products
from anywhere in the world at any time. Internet
shopping is bringing huge benefits to millions of
consumers and thousands of businesses.
Our fact-finding study, however, also identified
some areas where more could be done to ensure
people get the most from buying online, and can
feel confident and protected when doing so.
Our findings include:
Awareness of online shoppers rights is low
for

businesses

and

consumers.

Many

businesses are not fully complying with laws to


protect shoppers. In part, this reflects a need for
higher profile guidance. There are many
advisory

services,

but

no

single

overall

dedicated source especially to help businesses


to be aware of all they need to know when
selling online.
The anonymity, speed of change and
borderless nature of the internet, can pose
particular challenges for the enforcers of
shoppers rights. However, new developments
in the powers, roles and relationships between
enforcers provide an opportunity to bring more
co-ordination to how they can overcome these

problems. In some areas, the laws that protect


online shoppers also need some modernising.
Shoppers have significant fears about
security and privacy, which put some off
buying online altogether. Internet users who
are too worried to buy online could be missing
savings of 175m to 350m each year. There are
risks from using the internet generally, but it is
not apparent that such high levels of fear about
shopping

online

shoppers

and

are

warranted,

businesses

take

provided
sensible

precautions. However, awareness of these


precautions, as well as the remedies available if
something goes wrong, remains weak. Advice to
shoppers needs to inform without scaring them.
By searching more effectively, shoppers can
find big savings. We estimate these could
amount to 150m to 240m each year. But they
may also be hindered by unexpected additional
charges which are sometimes added in the latter
stages of a purchase. These charges annoy
shoppers, and lead to some paying more than
they might. We estimate that shoppers pay 60m
to 100m a year in unexpected additional
charges. The backdrop to internet shopping is
changing at a dizzying pace, with developments
such as mobile phone commerce, targeted
advertising, digital delivery, Web 2.0 and virtual
worlds.

Furthermore, the law and its enforcement are


evolving with the recent implementation of the
Consumer Protection Co-operation Regulation
(CPC), the introduction of the Consumer
Protection from Unfair Trading Regulations
2007 (CPRs); as well as the establishment of
the Local Better Regulation Office (LBRO), and
possible future changes from the review of
European consumer protection legislation by the
European Commission.
In a little more than a decade, the internet has
revolutionised the lives of millions of its users.
Our study explores one aspect of this revolution:
its growing use by businesses and individuals as
a retail channel.
In 1995, someone wanting to buy an old
Betamax video recorder could spend weeks
scouring specialist shops and markets, placing
adverts in collectors magazines or calling
individual dealers. If they wanted to buy a flight,
they could visit or call their local travel agents
and wait to receive the tickets in the post or
collect them in person. If they wanted to buy a
former hit song, they could travel to the nearest
record shops and hunt for it, or order it and pick
it up some time later. They could then drive to a
local car boot sale, to trawl through the items on
offer from other individuals, before driving
home with some bargains.

A decade later, without moving from their seat,


the same person might find and buy the video
recorder in minutes, possibly in another country.
Within the same hour they could have compared
flight prices and times from many providers,
bought and already received their electronic
tickets. They could then click on a music
download site and be listening to their favourite
song in the same time that it would have taken to
get ready to go to the shops.
Finally, they might take delivery of the bargain
they bought at an online auction and leave some
comments on the site, to let other shoppers know
whether they were satisfied with the transaction.
The scale and growth of internet shopping is
impressive. In 2005, sales over the internet by
UK non-financial businesses to households were
over 21bn a fourfold increase in only three
years.1 But it also raises new questions about
risks and shoppers confidence when buying at a
distance,

as

well

as

the

relevance

and

effectiveness of the laws protecting them, many


of them developed before the recent growth in
internet shopping. As a public authority, whose
role is to make markets work well for
consumers, the Office of Fair Trading needs to
consider these issues. This report helps to meet
that need.

ONLINE SHOPPING WEBSITES


Some important online shopping websites.

www.fabmart.com

www.skumars.com

www.indiagifts.com

www.indiastores.com

www.indbazaar.com

www.indiashop.com

www.malamall.com

www.chennaibazaar.com

www.futurebazaar.com

www.indianpurchase.com

www.buy.com

www.ebay.com

www.americangreetings.com

www.amazon.com

www.mypoints.com

www.egreetings.com

www.coolsavings.com

www.bargainsbazaar.com

www.rediffshopping.com

ABOUT THE COMPANIES


shopping.Rediff.com
ReviewCORPORATE PROFILE
Rediff.com (NASDAQ: REDF) is one of the
premier

worldwide

online

providers

of

news,information, communication, entertainmen


t and shopping services.Rediff.com provides a
platform for Indians worldwide to connect with
one another online.Rediff.com is committed to
offering a personalized and a secure surfing and
shoppingenvironmentRediff.com

additionally

offers the Indian American community one of


the oldest and largest Indian weekly newspapers,
India Abroad Founded in 1996, Rediff.com is
headquartered in Mumbai, India with offices in
New Delhi, Bangalore, Chennai, Hyderabad and
New York, USA.
Mission in the Internet Space:
To provide world-class online consumer service
offerings to Indians worldwide.
PRODUCT AND SERVICE OFFERINGS
INDIA ONLINE BUSINESS:


website

The

Rediff.com

consists

of

India

information,

communication and content services,


free and paid community features and
products, including e-commerce and
mobile services.
Information and Content:

channels

Information and content


currently

business, movies,
several

include
cricket/sports

other

topics

interest.Rediff.com
offers

the

news,
and
of

additionally

Indian

American

community one of the oldest and


largest Indian weekly newspapers, India
Abroad.
Rediff.com

Founded
is

in

1996,

headquartered

in

Mumbai, India with offices in New


Delhi, Bangalore, Chennai, Hyderabad
and New York, USA.
News content
Includes:
Current affairs and breaking news:
Rediff provides breaking news focused on
events of interest to Indians, including feature
news stories, interviews and online chats with
leading Indian personalities.30

Business:
This channel covers the happenings of corporate
India, stock market quotes and analysis, regular
columns and feature stories, as well as personal
portfolio tracker.
Movies and Entertainment:
For latest news and trends from Bollywood and
Hollywood. Box office information, regular
columns, feature stories, interviews with movie
personalities, movie reviews and slide shows.
Sports and Cricket:
Provides coverage of Indian and global sporting
news. There is in-depth coverage of cricket news
from India and around the globe, with statistics,
scores and schedules, regular columns, feature
stories and interviews.
Community Features and ProductsA key focus for Rediff.com is using world-class
technology

to

Through

drive

community

single

login

building.
facility,

Rediff.com provides a combination of free and


paid community features and products to
consumers and businesses. These include e-mail,
instant messaging, Search, Chat, Blogs, Message
Boards, Social Networking, Mobile services,
online shopping and auctions.
Rediffmail:

Rediffmail is the flagship product of Rediff.com.


It

is

one

of

the

most popular web email service used by Indians


worldwide. Rediffmail offers users acomplete ou
tlook desktop experience with

features

like unlimited storage, instant mail preview,


quick attachments of up to 10 MB, Drag & Drop
facility to manage your folders and auto address
completion. It supports eleven Indian languages
and also comes with the integrated webmessenger allowing all Rediff mail users to chat
in real-time with all their Rediff (Instant
Messenger) users within their inbox.
Job Search
is vertical search product which allows users to
search for jobs across various job sites in India
under several categories and locations in India.
Rediff Product Search
allows users to compare products across brands,
features, price points, user ratings and check
availability of the products in their city at local
stores with complete contact details. The service
covers

more

than

16

product

categories

under electronics and also covers Cars and Bikes


as new categories.

E-COMMERCE
Rediff Shopping
It is an online marketplace where users can
purchase products and services from various
merchants. Users can avail of a variety of
payment options such as Cash on delivery
(COD), Internet banking, credit card and
cheques.
Rediff Auctions
Is an e-commerce platform, which enables
sellers to sell their products at dynamic prices,
based on supply and demand. This gives buyers
a chance to buy their desired products at
competitive prices.
Rediff Books
is one of the biggest online book stores offering
users the biggest catalogue of books. Users can
choose from over 2 million books or search for
books from over 4000.

FutureBazaar.comAbout the Future Group


Future Group, led by its founder and Group
CEO, Mr. Kishore Biyani, is one of Indias
leading

business

houses

with

multiple

businesses spanning across the consumption

space. While retail forms the core business


activity of Future Group, group subsidiaries are
present in consumer finance, capital, insurance,
leisure and entertainment, brand development,
retail real-estate development, retail media and
logistics.

Led

by

its

flagship

enterprise,

Pantaloon, the group operates over 11 million


square feet of retail space in over 63 cities and
towns and 65 rural locations across India.
Pantaloon Retail was awarded the International
Retailer of the Year - 2007, by the US-based
National Retail Federation, the largest retail
trade association and the Emerging Market
Retailer of the Year 2007 at the World Retail
Congress in Barcelona. Future Group believes in
developing strong insights on Indian consumers
and building businesses based on Indian ideas,
as espoused in the groups core value of
'Indianness'. The groups corporate credo is,
'Rewrite rules, Retain values'.
FutureBazaar.com is owned and operated by
Future Bazaar India Ltd. (FBIL). FBIL is a part
of the Future Group, Indias largest retail
conglomerate. FBIL is the e-commerce arm of
the

Future

Group.

The

company

was

incorporated in 2006 and began business in


2007.As part of Indias largest retail chain, we
enjoy the benefits of buying in bulk for the
entire group. Our aim is to get you a great range
of products at great prices.

Core Competency of the businesswhat


makes us different from others!

A choice of more than

20,000 products.

Delivery across more than

1500 cities and towns in India covering


around 16,000 pin codes.

Fast deliveries tie ups

with world leaders in logistics &


transportation services.

dedicated

Customer

Care helpline for any queries.

Always offering

Manufacturers
as opposed to Sellers

guarantee
guarantee, which

most of the other online shopping sites


offer.
Aggressive Prices

benefit

FutureBazaar.com has the


of

leveraging

the

sourcing

network of the Future Groups retail


chains. This sourcing network straddles a
wide range of product requirements, thus
being able to offer us economies of scale
thereby-

unbelievable

prices

to

its

customers.
Unmatched Selection of Products and Brands
We have more than 20,000 products
which create the flexibility to offer a large range

of choices to

customers.

We

also

have

partnerships with most of the brands available in


the country, which allows us to get the latest in
the range to our customers. We have been able
to create some major popularity ripples with our
corporate clients with products like mobiles,
electronics, laptops, MP3 players, T-shirts, Gift
Vouchers and so on.
Seamless end-to-end Logistics Solution

We

pride

ourselves

in

having

built logistics solution; right from stocki


ng, dispatching, and delivery
confirmation up to post-sales support.
Our back-end infrastructure enables us to
service around 15000 pin codes across
India.
The FutureBazaar.com PromiseManufacturers warranties on all products
Future Bazaar sells only original products from
authorized dealers; so all applicable products
carry the original manufacturers warranty.
Customers can visit any of the authorized
service enters of the manufacturer if required.
The invoice accompanying the product is your
warranty document, so please preserve it.
Guaranteed Delivery:

Future bazaar guarantees to deliver the exact


product you selected, without defects. In case
you have received a different product, or if the
product was damaged in transit, please let us
know and we will ensure that we replace the
product or ensure that your money is refunded.
Please note that delivery times vary according to
products. 95% of our deliveries take place
within the committed time period. For the
occasional delays, we will contact you and
update you about the status.
Secure Payments

ensuring

We
that

no

are

committed

payment

to

misuse

happens, so we work with banks


and payment gateways to ensure that
your information is protected. Payments
are protected both buys and by the
policies of your bank, and the chances of
fraud in these channels are actually very
low. We also have a Risk Management
team that scrutinises all payments to
ensure that there are no fraudulent
transactions. Our office address is also
available for anyone who wishes to
contact us in person. Moreover, being
part of Indias largest retail company
with a presence all over India, we are
omnipresent!

Prompt Customer Support


Our Customer Care is manned by dedicated
personnel, who can take decisions and resolve
your problems. They are empowered to solve
your problems and are aware of the processes
and means to handle them. In case they cannot
solve the problem at their end, they will trigger
the required action on your behalf or advise you
the best possible method to a successful
fulfilment all your queries/issues. Be assured
that when you call us, your call is being taken
seriously.
Amazon
Founded -1994Founder- Jeffery p.Bezos (CEO)
Headquarter

USAArea

Industry-Retail

served-Worldwide

(Amazon.com,

A9.com)

Advertising Web banners and video

Amazon.com, Inc.
( NASDAQ:AMZN) is an American electronic
commerce (e-commerce) company in Seattle,
Washington. It is America's largest online, with
nearly three times the internet sales revenue of
runner up Staples, Inc. Jeff Bezos founded
Amazon.com, Inc. in 1994 and launched it
online in 1995. It started as an on-line bookstore

but soon diversified to product lines of VHS,


DVD, music CDs and MP3s, software, video,
electronics, apparel, furniture, food, toys, etc.
Amazon

has established separate websites

in

Canada, the United Kingdom, Germany, France,


China, and Japan. It also provides international
shipping to certain countries for some of its
products. On January 15, 2009, a survey
published by Verdict found that Amazon was the
UK's favourite music and video retailer, and
came third in overall retail rankings. Amazon
was founded in 1994, spurred by what Bezos
called "regret minimization framework, his
effort to fend off regret for not staking a claim in
the Internet. While company lore says Bezos
wrote the business plan while he and his wife
drove from New York to Seattle. The company
began

as

an

online

bookstore

named

"Cadabra.com", a name quickly abandoned for


sounding like "cadaver "; while the largest brickand-mortar bookstores and mail catalogs for
books might offer 200,000 titles, an on-line
bookstore could offer more. Bezos renamed the
company "Amazon" after the world's biggest
river. Since 2000, Amazon's logotype is an
arrow leading from A to Z, representing
customer satisfaction (as it forms a smile) and
the goal to have every product in the alphabet.
Amazons initial business was unusual: the
company did not expect a profit for four to five
years; the strategy was effective. Amazon grew

steadily in the late 1990s while other Internet


companies grew blindingly fast. Amazon's
"slow"

growth

provoked

stockholder

complaints: that the company was not reaching


profitability fast enough. When the dot burst,
and many e-companies went out of business.
The company remains profitable: 2003income
was $35.3 million, $588.50 million in 2004;
$359Amazon has announced plans to move its
headquarters to the South neighbourhood of
Seattle beginning in mid-2010, with full
occupancy by 2011. This move will consolidate
all Seattle employees onto the new 11-building
campus.
Product lines:

Amazon

has

steadily

branched into retail sales of music CDs,


videotapes

and

DVDs,

software,

consumer electronics, kitchen items,


tools, lawn and garden items, toys &
games,

baby products,

sporting

apparel,

goods,

gourmet

food, jewellery, watches, health and


personal-care items, beauty products,
musical instruments, clothing, industrial
& scientific supplies, groceries and
more.

The

company

launched

Amazon.com Auctions, its own Web


auctions

service,

in

March

1999.However it failed to chip away at

industry

pioneer eBay's

growth.

Amazon

juggernaut

Auctions

was

followed by the launch of a fixedprice marketplace business called


zShops in September 1999, and a failed
Sotheby's/Amazon

partnership

called

sothebys.amazon.com in November. The


list

of

products

registered

for

coverage by the trademark grew to


include items such as paints, carpets,
wallpaper, hair accessories, clothing,
footwear, headgear, cleaning products,
and jewellery.

CHAPTER -3
FINDINGS AND
ANALYSIS

DATA ANALYSIS

AND

INTERPRETATION
Q1. TO KNOW THE AGE OF THE
RESPONDENTS?
Age

No of respondent

15-20

% of respondents

31

31
20-25

48

48
25-30

14

30 and above 7

14
7

Figure 1
INTERPRETATION
The above diagram shows us the percentage in
the age of respondents. As it shows that from
age 15-20 the number of respondents are 31 %
and from age of 20-25 it is 48 % and from 25-30
it is 14% this is the above data which is shown
by the this pie chart.

Q2 TO KNOW THE GENDER OF THE


RESPONDENTS?
Gender

Respondent

Male

86

Female

14

Figure 2

INTERPRETATION
As our respondents are mostly from the hostel of
College and the campus of university itself, we
use to get more data from males as they were
ready to give their experiences, it this graph
itself is showing more percentage of males
rather than females, the percentage of male
respondents is 86% and percentage of female
respondents is only 14%.

Q3

TO

KNOW THE

DEMOGRAPHY

WHETER RESPONDENT LIVE IN RURAL


OR URBAN AREA?
Address

Respondent

rural

76

urban

24

Figure 3
INTERPRETATION
The above diagram is showing the percentage of
demography of respondents and what is the
percentage of respondents who lives in rural or
urban region, the above diagram is showing that
76% of the respondents are from urban areas and
24% of the respondents are from urban area.

Q4 TO KNOW THE OCCUPATION OF


THE RESPONDENTS?
Occupation
Student

No. Of Respondent
90

Professional

Govt. Employee

Self employed

Others

Figure 4
INTERPRETATION
This graph help us to know the occupation of the
respondents, this is to know that which segment
of people are buying more products on the
internet whether they are the segment of
students

government

employees

or

professional, the above graph shows that the


segment of the students i.e. 90% of the students
are using internet and use to buy online
products.

Q5. TO KNOW THE MONTHLY INCOME


OF THE REPONDENTS?
Income of Respondents
% of Respondents
Less than 10000
94
10000-20000
3
20000-30000
3
30000-40000
0
40000 Above
0
Figure 5
INTERPRETATION
This above graph shows the percentage of
monthly income of the different respondents,
and it show that less than 10000 income
respondents have bought more online products
because most of them are students and they use
to buy music Cds, gadgets, laptops.

Q6 TO KNOW WHETHER RESPONDENTS


HAVE

THEIR

OWN

INTERNET

CONNECTION?
Internet Connection
% respondents having internet connection
Yes
65
No
35

Figure 6

INTERPRETATION
This

graph

show

us

the

percentage

of

respondents who have their own internet


connections, its shows that 65% of respondents
have their own internet connections and
35% people dont have their internet connection.

Q7

TO

KNOW

WHAT

MOTIVATES

PEOPLE TO DO ONLINE SHOPPING.


What Motivates You To Buy Online
% of Respondents
Easy Payment
37
No Hidden Cost
5
Wide Range Of Products
10
No Travel to Shop
46-47
Figure 7
INTERPRETATION
This graph shows us what motivates the people
to buy internet, as from above result we found
out that no travel to shop is the main thing which
motivates the people to buy products online.

Q8 TO KNOW WHETHER CONSUMERS


ARE GETTING COMPETITIVE PRICE.
Do you feel that the online marketers are
providing competitive prices?
% of Respondents
Yes
67
No
27
Cant Say
6
Figure 8
INTERPRETATION
This diagram shows us that whether online
marketers are giving competitive price or not
and result which is came is that most of the
people thought that online marketers are
providing competitive prices than physical
stores. And result shows 67% of people say that
it provides competitive prices and only 27%
people says no.

Q9 WHAT PRODUCTS DO YOU BUY


ONLINE?
What products you buy on internet?
% of Respondents
Books
24
Music
25
T-Shirts
12
Mobile
23
Laptop
20

Figure 9
INTERPRETATION
The above graphs gives result that most of time
people use to buy books25% but the margin with
other things is very less as music Cds have
percentage of 20 and mobile23%So this graph
shows us this useful data .

Q10 DO YOU FEEL THAT ONLINE


SHOPPING IS BETTER THAN SHOPPING
AT PHYSICAL STORE?
Do you feel that online shopping is better
than shopping at physical brick mortar store?
% of Respondents
Yes
45
No
28
Cant Say
12
Figure 10
INTERPRETATION
After analyzing the above graph shows that the
people are in favour of that online shopping is
better than physical store, the percentage of
people who says online shopping is better is
45% and the people who say it not good is 38 %.
Still the percentage of people who says yes is
more than other who says no.

Q11

WHICH

OF

THE

FOLLOWING

STORES HAVE YOU VISITED?


Which of the following stores have you visited
online?
% of Respondents
e-Bay
35
Yahoo Shopping
16
Amazon
40
Best buy
10
Others
4
Figure 11
INTERPRETATION
This graph shows that 35% people use to visit ebay for online shopping,40% use to go
atamazon.com because % of people who buys
books is more than any other products so people
mostly visits amazon.com, 16 % people do at
yahoo shopping and for other people use to visit
at Best Buy and others.

12. WHAT FACTORS HELP YOU TO


DECIDE WHICH SITE TO USE FOR
ONLINE SHOPPING?

What factors help you to decide which site is


use for online shopping?
% of Respondents
Search Engine
18
Personal Recommendation
10
Special offers on site
20
Online advertising
32
TV advertising
17
Others
3
Figure 12
INTERPRETATION
This diagram shows us what affects people to
buy products on internet and it shows that 32%
people came to know about shopping sites
through

online

advertisements.

And

they

attracted towards it and start getting products


from there. And 20% people decision disaffected
by special offers by the offers and the discounts
given by the sites.

Q13 HOW YOU MAKE YOUR


PAYMETS ON THE INTERNET?
How do you make your payments online?
% of Respondents
Credit card/ Debit card
78
Bank transfer
5
Pay pal
15
Any other
2

Figure 13
INTERPRETATION
This diagram shows that mostly people uses
credit card to pay their payments 78%people use
to pay by credit/debit card and 5% through bank
transfer and 15% through PayPal and 2 from
PayPal.

Q14 HAVE YOU FACE ANY PROBLEMS


WHILE SHOPPING ONLINE?
Have you face any problems while shopping
online?
% of Respondents
Yes
48
No
28
Cant say
14

Figure 14
INTERPRETATION
This graph shows that whether people faces any
problem while doing online shopping or not and
the result shows that 48% people says that they have
faced problem while buying online and 28%
people says that they dont face any problem and
14 says that we cant say.

FINDINGS
The three segments that were found show a
significant difference in the primary factor of
concern. The general distribution showed that
the factor price was the primary factor forth
entire population sample, and that second factor
was trust was closely followed by convenience
When we segmenting the respondents through
the different variables we found that segment
one were mainly trust oriented and the
respondents had a high positive attitude towards
purchasing books online. Other segment was
mainly price and convenience oriented therefore
took the most consideration to the opinions and
experiences of the Reference groups. As they
low disposable income and were somewhat
convenience

oriented

when

acquiring

information about low prices, we chose to label


them price easers. We found that most of the
time youngster who are from the age of 20-25
shops a lot on the net rather than other age
limits. People used to do online shopping
because of its convenience rather than its
pricing, but the main thing which is very
common in the most of the people about online
shopping is its risk of privacy i.e. hacking of
account number getting passwords and all.

CHAPTER -4
SUGGESTIONS

SUGGESTIONS

Providing quality service

at affordable prices and having different


types of products for different income
customers is another advantage.

Online

portals

have

endorsed very famous personalities


which

has

attracted

lot

of customers.

This has

resulted

in increase of sale and the outdoor


advertising techniques

have

also

helped the online portals.

Considering the fact that

there are a lot middle class families in


India, online portals hashed a huge
impact on the middle class section
of India, the prices, quality and
sales strategy has helped in getting the
middle income groups getting attracted
towards online shopping.

Yet another concern is

about online security. If you are


shopping online, you have to take
additional care

about

your credit cards so that to protect


from unauthorized usage. So various
online shopping portals has to provide
the security on payment procedure.

Online shopping lacks

the real world shopping experience


that we get shopping with relatives
and friends offline. Even though online
shopping has several disadvantages, the
advantages outnumber the disadvantages
and thus more and more people started
buying online.

Delay in delivery and

lower quality leads to dissatisfaction of


customers. Due to factors mentioned
above

online

always

shoppers

satisfied,

this

are
is

not

not

positive for the shopping portals.

People

are

loyal

towards brand as they are highly


satisfied with the quality and they
have an assurance from the brand for
their

continued

products.

supply

of

quality

CHAPTER -5
CONCLUSION
& LIMITATION

CONCLUSION AND
LIMITATION
Conclusion
Online shopping is a different experience and
you can make the shopping creative over the
internet as you get used to it. There can be lot of
apprehensions about online shopping when you
get in to it for the first time.
As you experience more and more of it those
apprehensions

get

disappeared

slowly.

Remember that if you stick to the basics, online


shopping become more enjoyable and easier
than real-world shopping.
In the conclusion part of my project, all people
whom I have surveyed were interested in
shopping but, most of the people were having
preference to shop offline and very few were
interested to go online for shopping. My survey
indicates that the maximum consumer make the
purchase

offline

awareness

because

towards

of

online

the

lack of

shopping

and

shopping portals. On the basis of survey the


major drawback of the online shopping is lack of
the security in the shopping payment through
credit/Debit card. Most of the people preferred
online

shopping

because

it

is

time

saving process. WYSWYG (what you see is


what you get)approach is not being followed
whole heartedly by online web portal as most of
the people opined that the product purchase
through online portals differs significantly from
its original form .The images of the product are
mostly inflated which affects the perception of
consumers towards online shopping.
Increased Internet penetration, a hassle free
shopping environment and high levels of Net
savings see more and more Indians shopping
online. But at the same time the companies need
to reduce the risks related to consumer
incompetence by tactics such as making
purchase websites easier to navigate, and
introducing Internet kiosk, computers and other
aids in stores.
The goal is not to convert all shoppers to online
purchasing, but to show them its an option. In
addition to above, efforts need to be taken to
educate the online
65 buyers on the steps that need to be
undertaken while making an online purchase.
Moreover, the feedback of an online buyer
should be captured to identify flaws in service
delivery. This can be done through online
communities and blogs that serve as advertising
and marketing tools and a source of feedback for
enterprises. I found that it is a challenge for E-

marketers to convert low frequency online


buyers into regular buyers through successful
website design and by addressing concerns
about reliable performance. Thus, the online
retailing raises more issues than the benefits it
currently offers. The quality of products offered
online and procedures for service delivery are
yet to be standardized. Till the same is done, the
buyer is at a higher risk of frauds.

LIMITATION OF THE STUDY


And necessary data to complete the project may
not gather in proper manner. The limitations
which we observe were as follows:
With respect to actual population the sample
size was too small. This might be effect the final
result.
Since the responses were only from some
people of college, the report cannot be
generalized for whole Delhi.
Respondents may have given bias information.
The time limit for the research was small to
collect adequate information for inference for
the consumer buying behaviour.
In the fast changing world the data collected
soon

become

historic

and

research

findings based on them irrelevant.


Some customers problems dont lead to valid
research conclusion.
Limitation of the study is the selection of the
existing studies. Owing to time limitation, I only
searched a few number of journals. This may
leave some other prominent empirical studies
out. In addition, owing to the multidisciplinary
nature of online shopping, it would be very
interesting to compare IS literature to other
disciplines that study online shopping attitudes
and behaviour.

Indian E-Comm. Report Finds Heavy Spenders


Driving Sales By Devin Comiskey August 16,
2007
A Survey by Indian research organization
Juxtconsult found that more and more Indian
Internet users are opening their wallets online.
While such hurdles as limited broadband access
and security concerns remain, the report finds
there are currently more than 10million shoppers
online in India. While current trends point to
increased e-commerce growth in India, the
online marketplace in the country of more than 1
billion

people

is

still

relatively

small.

Juxtconsult's survey found that 40 percent of all


urban Internet users buy online, while 42 percent
of the sales originate through just five percent of
consumers. The survey was conducted in April
2007 and sampled more than 30,000 users."This
section of buyers spends 5,000 rupees or more
per month on the net," states the report. "It is
interesting to note that two out of every three
heavy spenders are also 'netholics', those who
are on the net for more than three hours per
day...Of all those who buy online, only 25
percent are spending more than 1,000 rupees per
month while the(remaining) 75 percent bill less
than 1,000 rupees per month." (1,000 Indian
rupees are currently equal to approximately $23
US.)The report also found that buying and
search patterns among Indians differ between
genders. "While 43 percent of male users buy

online, only 31 percent of urban female users are


consumers as well. Women tend to search more.
Defying their more common attitude towards
shopping, women are more guarded when it
comes

to

the

online

market,

says

Juxtconsult.Depending on the product type,


nine percent to 25 percent are buying online,
whereas 33 to 47 percent are searching the net
for product information," it says.

RECOMMENDATIONS
As we came to know after researching on this
topic we recommend that, the online sellers have
to make their payment transparent, and as people
are coming on their sites and they are buying
their products, so retailers have to give more
discounts to their customers so that they can
visit again and again to their site, and it also
helps to make people more aware about the low
rick shopping of the net, and one more thing is
that there should be
Transaction of money is very slow they have to
make it fast so that customer dont have to
Face much problem to pay for the product, if
customer is going to face some problem heist
not going to visit our site and buy product
.Following implications should be followed

Discount prices

A transfer and reliable

Fast transactions

Focus on customer

retailer

satisfaction

BIBLIOGRAPHY
Books:
Kotler, Philip; Keller, Kelvin Lane; Koshay,
Abraham; and Jha, Mithileshwar;
MARKETING MANAGEMENT A SOUTH
ASIAN PERSPECTIVE, 13th Edition.
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QUESTIONNAIRE
Q1. Name ___________________
Q2. Age
1) 15-20
2) 20-25
3) 25-30
4) 30 above
Q3. Gender
1) Male
2) Female
Q4. Address
1) Rural
2) Urban
Q5. What is your occupation?
a) Student
b) Professional
c) Govt.employed
d) Self Employed
e) Other
Q6. What is your monthly income?
a) Less than 10000
b) 10000 to 20000
c) 20000 to 30000
d) 30000 to 40000

e) More than 40000


Q7. Do you have your own internet connection?
a) Yes
b) No
Q8. How frequently do you purchase online?
a) Once a week
b) More than once a week
c) Once a month
d) more than once in a month
Q9. What motivates to buy products online?
a) Easy payment
b) No hidden cost
c) No travel to shop
d) Wide range of products
e) Other [Please specify] ____________
Q10.Do you feel that the online marketers are
providing competitive prices?
a) Yes
b) No
c) Cant Say
Q11. What products you buy on internet?
a) Books
b) Music CDs
c) T-shirt
d) Mobile
e) Laptop
f) Other [specify] ___________

Q12. Do you feel that online shopping is better


than shopping at physical brick & mortar store?
a) Yes
b) No
c) Cant say
Q13.Which of the following stores have you
ever visited for shopping online?
a) e-bay
b) Yahoo shopping
c) Amazon
d) Best buy
e) Other [please specify]
Q14. What factors help you to decide which site
to use for online shopping?
a) Search engine
b) Personal recommendation
c) Special offers on sites
d) Online advertising
e) TV advertising
f) Other_________
Q15.How do you make your payments on
internet?
a) Credit card/Debit card
b) Bank transfer
c) PayPal
d) Any other______