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Submitted by,
AKASAM SAI ANIRUDH
Regd.No. : 1214415102
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I, the undersigned, hereby declare that, the dissertation entitled A STUDY ON
CONSUMER ATTITUDE TOWARDS ONLINE SHOPPING,
VISAKHAPATNAM submitted to the requirement for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION (BUSINESS ANALYTICS)
is the record of the original work done by me, under the guidance of Dr.
U.V.Adinarayana Rao, GITAM Institute of Management. The empirical findings in
this report are based on the data collected by me. It was not copied from any other
project. This was not submitted to any organization.
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CERTIFICATE
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ACKNOWLEDGEMENT
I am thankful to Vijaya Geeta, Program Coordinator and project guide who helped
me and guided me in completing this project.
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CONTEXT Pg. No.
CHAPTER 1: INTRODUCTION
RESEARCH PROBLEM
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
RESEARCH DESIGN
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
SUGGESTIONS
BIBILOGRAPHY
ANNEXURE
5
Lists Of Tables:
Lists of Tables:
GRAPH PAGE
NUMBER GRAPH NAME NUMBER
1 Respondents Gender 19
2 Respondents Age 20
3 Respondents Occupation 21
4 Respondents Monthly Income 22
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CHAPTER I
INTRODUCTION
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INTRODUCTION TO ONLINE SHOPPING
Online shopping is the process whereby consumers directly buy goods or services
from a seller in real-time, without an intermediary service, over the Internet. It is a
form of electronic commerce. The sale or purchase transaction is completed
electronically and interactively in real-time such as in Amazon.com for new books.
However in some cases, an intermediary may be present in a sale or purchase
transaction such as the transactions on eBay.com. An online shop, e-shop, e-store,
internet shop, web shop, web store, online store, or virtual store evokes the
physical analogy of buying products or services at a bricks-and-mortar retailer or
in a shopping centre. The process is called Business-to-Consumer (B2C) online
shopping. This is the type of electronic commerce conducted by companies such as
Amazon.com. When a business buys from another business it is called Business-to-
Business (B2B) online shopping.
A large percentage of electronic commerce is conducted entirely in electronic form
for virtual items such as access to premium content on a website, but mostly
electronic commerce involves the transportation of physical items in some way.
Online retailers are sometimes known as e-tailors and online retail is sometimes
known as e-tail. Almost all big retailers are now electronically present on the
World Wide Web.
Online marketplaces such as eBay and Amazon Marketplace have significantly
reduced financial and reputational barriers to entry for SMEs wishing to trade
online. These marketplaces provide web presence, marketing and payment services
and, in the case of Amazon, fulfillment. This allows SMEs to focus on their core
competencies e.g. managing supplier relationships. Moreover, SMEs have choices
online, as these marketplaces compete with each other (some retailers sell across
several marketplaces) and retailers own websites. They also compete with paid
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search providers and others in providing marketing to SMEs. Customer ratings are
a key element of the marketplaces, enabling SMEs to build a reputation at low cost
relative to the offline environment. This element of reputation may be achieved
quickly (just one piece of feedback generates a rating) and is tied to particular
platforms (i.e. ratings are non-transferable).
In 1990, Tim Berners-Lee created the first World Wide Web server and browser in
UK.1 It opened for commercial use in 1991. In 1994 other advances took place,
such as online banking and the opening of an online pizza shop by Pizza Hut.1
During that same year, Netscape introduced SSL encryption of data transferred
online, which has become essential for secure online shopping. Also in 1994, the
German company Inter shop introduced its first online shopping system. In 1995,
Amazon launched its online shopping site, and in 1996, eBay appeared.
Originally, electronic commerce was identified as the facilitation of commercial
transactions electronically, using technology such as Electronic Data Interchange
(EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late
1970s, allowing businesses to send commercial documents like purchase orders or
invoices electronically. The growth and acceptance of credit cards, automated teller
machines (ATM) and telephone banking in the 1980s were also forms of electronic
commerce. Another form of e-commerce was the airline reservation system
typified by Sabre in the USA and Travicom in the UK. From the 1990s onwards,
electronic commerce would additionally include enterprise resource planning
systems (ERP), data mining and data warehousing.
In 1990, Tim Berners-Lee invented the World Wide Web browser and transformed
an academic telecommunication network into a worldwide everyman everyday
communication system called internet/www. Commercial enterprise on the Internet
was strictly prohibited by NSF until 1995.2 Although the Internet became popular
worldwide around 1994 with the adoption of Mosaic web browser, it took about
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five years to introduce security protocols and DSL allowing continual connection
to the Internet. By the end of 2000, many European and American business
companies offered their services through the World Wide Web. Since then people
began to associate a word "ecommerce" with the ability of purchasing various
goods through the Internet using secure protocols and electronic payment services.
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E COMMERCE:
What is E-Commerce? There are many different definitions and understanding
about E-Commerce.
According to Frederick J. Riggins and Hyeun-Suk Rhee, a recent pilot survey
shows that some practitioners and managers view E-Commerce buying and selling
goods and products over internet.
However, researchers believe the E-Commerce practice should include a wide
variety of presale and post-sale activities.
Applegate et al. identify three classes of e-commerce applications:
-Customer-to-business
- Business-to business
-Intra organzational.
- The Scope of Electronic Commerce Electronic Commerce encompasses one or
more of the following:
EDI
EDI on the Internet
E-mail on the Internet
Shopping on the World Wide Web
Product sales and services on the Web
Electronic banking or funds transfer
Outsourced customer and employee care operations
Electronic Commerce: - Automates the conduct of business among enterprises,
their customers, suppliers and employees - anytime, anywhere.
- Creates interdependencies between your companys value chain and those of
your suppliers and customers. Your company can create competitive advantage by
optimizing and re-engineering those value chain links to the outside.
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- Differences between Electronic Commerce and traditional commerce
- The major difference is the way information is exchanged and processed:
Traditional commerce:
face-to-face, telephone lines, or mail systems
manual processing of traditional business transactions
E-Commerce:
using Internet or other network communication technology
automated processing of business transactions
individual involved in all stages of transactions
pulls together all activities of business transactions, marketing and advertising as
well as service and customer support.
- Characteristics of Electronic Commerce :
The tools are electronic but the application is commerce.
- Commerce is not accounting or decision support or any other internally focuses
function.
- Commerce is externally focused on those with whom you do business. -
Commerce is doing business, not reporting on it or sending messages about it.
Special characteristics of electronic commerce and Web commerce:
- information exchanged and processed by a communications network and
computers, as well as e-commerce software.
- most transactions are processed automatically.
- pulls together a gamut of business support services, such as
- inter-organizational e-mail, on-line directories
- trading support systems for commodities
- products, and customized products - custom-built goods and services
- ordering and logistic support system supports
- management and statistical reporting systems
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- Capabilities Required for Internet/Web Commerce?
- Enable buyers to:
- inquire about products
- review product and service information
- place orders, authorize payment
- receive both goods and services on-line
- Enable sellers to:
- advertise products
- receive orders
- collect payments
- deliver goods electronically
- provide ongoing customer support
- Enable financial organizations:
- to server as intermediates that accept payment authorization
- make
- Enable sellers to notify logistics organization
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CHAPTER-2
METHODOLOGY
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RESEARCH PROBLEM:
The prime purpose of the research is to identify and analyze the factors influencing
the consumers to shop online. To know how the attitude towards shopping has
changed from traditional shopping to online shopping. To know the factors
influencing towards online shopping and to know why people prefer online
shopping rather than traditional shopping and also to know the success features of
online shopping. To know which age group prefers online shopping among public
and also to know the amount spent by users every year for online shopping.
OBJECTIVES:
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RESEARCH DESIGN:-
SAMPLE AREA:- GITAM UNIVERSITY
The increasing reach of the Internet and internet savvies among customers has
resulted in more and more retailers providing online avenues for customers to
make purchases at the click of the mouse. Customers not only use the internet to
make purchases but also to search for information about the product or service
being purchased. Internet has changed the way of conducting business. Many
businesses have started building up their strategies around the internet. If E-
Marketers analyze and understand the factors influencing Indian customers online
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behavior, they can further fine-tune their business strategies towards customer
preferences. This study deals with the customers perceptions towards the
following aspects of online shopping and how the presence or lack of these aspects
in an online shopping environment affects customer satisfaction.
Product categories that customers purchase online
Quality & availability of the product
Mode and Speed of delivery of the product
Product price / Offers provided for online shoppers
Payment options available for the customers
Shipping, Return and Exchange policies
Features of the shopping website such as
Design
Information provided
Accessibility
Ease of use
1. The biasness of the respondents may affect the result of the study so for as
primary data is concerned. Because of the biases of the respondents the
result of the study may not be the same for all places.
2. The survey has conducted in Gitam university only it may not reflect public
opinion at large
3. The sample size has been small (150) which may not reflect broader
pictures.
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CHAPTER-3
ANALYSIS OF THE DATA
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Demographic Profile Of Respondents
90 85
80
70 65
60
50
40
30
20
10
0
1 2
19
Graph no 2:- Respondents age
120
100
100
80
60
50
40
20
0
1 2
20
Graph No 3: - Respondents Occupation
80 75
70
60
50
50
40
30 25
20
10
0
1 2 3
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Graph No 4: - Monthly Income
35
30
30
25
20
20
15
10
0
4 5
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Table No 1:- GENDER * SELECT YOUR FAVOURITE WEBSITE Cross tabulation
Count
INTERPRETATION:
The above table represents the perceptions of respondents on favourite
website
From the sample size taken,85 are men and the remaining 65 are female
Among men, 25 prefer flipkart( 29.4%), 41 prefer amazon (48.2%), 12
23
Table No 2:-OCCUPATION * WHICH OF THE FOLLOWING PURCHASES WOULD YOU
MAKE MOST ONLINE? Cross tabulation
Count
Tota
WHICH OF THE FOLLOWING PURCHASES WOULD YOU MAKE MOST ONLINE? l
HOTE
L
FUR RESE
COSMETICS/ CDS/B CLOTHES/ NIT MOVI ELECTR RVATI COMP
JEWELRY OOKS SHOES URE TOYS ES ONICS ON UTERS
INTERPRETATION:
The above table represents the perceptions of respondents on purchases that
faculty .
In those 75, 3(4%) purchase cosmetics/jewelry,7 (9.3%) purchase
cds/books,30(40%) purchase clothes/shoes,15 (20%) purchase movies,
11(14.6%) purchase electronics,2(2.6%) purchase hotel reservation, 5
(6.6%)purchase computers.
In those 25, 6(24%) purchase cosmetics/jewelry,3(12%) purchase
cds/books,4(16%) purchase clothes/shoes,7(28%) purchase movies, 5
(20%) purchase electronics.
In those 50, 5(10) purchase cosmetics/jewelry,4 (8%) purchase
cds/books,20( 40%) purchase clothes/shoes,2(4%) purchase toys,9(18%)
purchase movies, 9 (18%) purchase electronics, 3(6%) purchase computers
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Table No 3:-GENDER * HAVE YOU FELT A PROBLEM
PURCHASING ONLINE? Cross tabulation
Count
YES NO Total
CHEAP
DELAY IN QUALITY OF PRODUCT NON
PRODUCT PRODUCT DAMAGE DELIVERY OTHERS Total
INTERPRETATION:
The above table represents the perceptions of respondents on problems
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damage ,3(12.5%) have problem on non-delivery, 1 (4.1%) have problem on
others .
CREDIT
CASH ON CARD/DEBIT
DELIVERY CARD Total
INTERPRETATION:
The above table represents the perceptions of respondents on mode of
payment.
From the sample size taken , 20 belongs to 10000-40000 monthly income
and 30 belongs to more than 40000.
In those 20, 15 (75%) prefer cash on delivery and 5 (25%) prefer credit card.
In those 30 ,14(46.6%) prefer cash on delivery and 16(53.3%) prefer credit
card.
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Table No 5:-GENDER * MAX AMOUNT SPENT IN YEAR Cross tabulation
Count
LESS THAN
2000 2000-4000 4000-7000 7000-10000 Total
INTERPRETATION:
7000- The above table represents the perceptions of respondents on
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Table No 6:-GENDER * RATE FOR FLIPKART
Cross tabulation
Count
INTERPRETATION:
The above table represents the perceptions of respondents on rating of
flipkart .
From the sample size taken, 85 are men and the remaining 65 are female.
In those 85,20 (23.5%) rated average and 65 (76.4%) rated good.
In those 65, 22(33.8%) rated average and 43(61.5%) rated good.
INTERPRETATION:
The above table represents the perceptions of respondents on rating of
amazon
From the sample size taken, 85 are men and the remaining 65 are female.
In those 85, 11 (12.9%) rated average and 74 (87%) rated good.
In those 65, 16(24.6%) rated average and 49(75.3%) rated good.
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Table No 8:-GENDER * RATE FOR SNAP DEAL
Cross tabulation
Count
INTERPRETATION:
The above table represents the perceptions of respondents on rating of snap
deal
From the sample size taken, 85 are men and the remaining 65 are female.
In those 85, 4(4.7%) rated poor , 30(35.2%) rated average and 51(60%)
rated good.
In those 65, 3(4.6%) rated poor, 24 (36.9%) rated average and 38(58.4%)
rated good.
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Table No 9:-GENDER * RATE FOR MYNTRA Cross tabulation
Count
INTERPRETATION:
The above table represents the perceptions of respondents on rating of
myntra
From the sample size taken, 85 are men and the remaining 65 are female.
In those 85, 10(11.7%) rated poor , 32(37.6%) rated average and 43(50.5%)
rated good.
In those 65, 5(7.6%) rated poor, 24 (36.9%) rated average and 36(55.3%)
rated good.
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CHAPTER-4
31
OBSERVATIONS:-
From this research I came to know about the important conclusion regarding
the customer attitude towards online shopping.
Many students have positive attitude towards online shopping as they feel
that it saves their time and they can also shop at any point of the day but
sometimes they also feel that it is risky.
Employees also feel that they can save their time by online shopping as they
can drop at any hour of the day.
Most of the male and female respondents prefer to buy clothes online and
the next preferred category is gadgets.
Most of the respondents prefer cash on delivery than payment via
credit/debit card.
More than 50% of the people prefer sites like Flipkart and Amazon.
Online shopping is mostly popular among youth & working professionals.
Word of mouth is major source of spreading of online shopping popularity.
It has been concluded that most of the users found Amazon as the favourite
website followed by Flipkart and Snapdeal.
SUGGESTIONS:
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They should make their site attractive.
They should offer free shipping.
They should ensure that the delivery of the goods should be faster.
Include customer reviews.
There main motive should be service oriented not profit motive in order
to improve the brand image
The company should provide offers and discounts to attract the
customers
the return policy of the company should be flexible in order to motivate
the customers to try the product
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CONCLUSION:-
This research shows that online shopping is having a very bright future
in India. Perception towards online shopping is getting better. With the use of
internet, consumers can shop anywhere, anytime and anything with easy and
safe payment options. Consumers can compare the products on different sites.
This study mainly focuses on the consumer attitudes towards online shopping.
The information search is the most important aspects that helps the customer to
find suitable products for their needs. The online retailers have to enhance and
improve the information supporting system by providing detailed information
about the products.
For the evaluation stage, customers more think a lot of reputation from
the e-commerce website and the payment security for the purchase stage. At the
post purchase stage, the factor of after services is the most concerned matter.
Therefore all the factors that are influence or prevent the people from using online
shopping need to be carefully taken and care and all the online
BIBLIOGRAPHY
Books:-
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J.K. Sachdeva , Business Research Methodology, NEW DELHI
ANNEXURE:
1. Name: .
2. Gender
A. Male B. Female
3. Age
A. Less than 24 B. More than 24
4. Occupation
A.Under graduate B.Post graduate C.Faculty
5. Monthly Income
A. Less than 2000 B.2000-5000 C.5000-10000
D. 10000-40000 E. More than 40000
6.Have you ever done Online shopping?
A.Yes B.No
7. How many times did you shop in a year?
A. Less than 10 B. 10-20 C. 20-30
D.30-40 E.40-50 F. More than 50
8. Have you felt problem while purchasing online?
A. Yes B.No
9. If Yes, what kind of problem.
A. Delay in product B. cheap quality of product
C. product damage D. Non-delivery E. Others
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10. Which of the following purchases would you make most online ?
A. Cosmetics/Jewelry B. Cds/Books C. Clothes/Shoes
D. Furniture E. Toys F. Movies
G. Electronics H. Hotel reservations I. Computers
11. How often do you use internet everyday?
A. less than 1 hour B.1-2 hours C. 2-3 hours
D. 3-4 hours E. more than 4 hours
12. How would you describe your proficiency on the internet?
A. Novice B. Intermediate C. Advanced
13. How often do you use online shopping?
A. very often B. Often C. Sometimes
D. rarely E. never
14. Do you use internet prior to a purchase for collecting information?
A. Yes B. No
15. If yes, How often
A. very often B. Often C. Sometimes
D. rarely E. never
16. Is Online shopping risky
A. Yes B. No
17. Is Online shopping saves times
A. Yes B. No
18. Mode of payment
A. Cash on delivery B. debit card/credit card
19. Is credit card or debit card transaction risky.
A. Yes B. No
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20. In general, you prefer to do your shopping of following commodities.
Items over the internet retail store
A. Groceries
B. Cosmetics
C. Books/cds
D. Clothes
E. Furniture
F. Electronic gadgets
G. Computer products
H. Toys
I. Cinema ticket
J. Airline/railway ticket
21. Select an appropriate amount you would spend on single purchase
A. Less than 1000 B.2000-5000 C. 5000-10000 D. More than 10000
22. Max amount spent in a year
A. less than 2000 B.2000-4000 C.4000-7000
D.7000-10000
23. Select your favourite Website
A. Flipkart B. Amazon C. Snapdeal D. Myntra
24. Rate for Flipkart
A. poor B. average C. good
25. Rate for Amazon
A. poor B. average C. good
26. Rate for Snapdeal
A. poor B. average C. good
27. Rate for Myntra
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A. poor B. average C. good
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