General Project

On

“TO STUDY THE ROLE OF CONSUMER

TOWARDS ONLINE SHOPPING”
Submitted in partial fulfilment for the award of the degree of

Master of Management Studies

(MMS)

(Universit y of Mumbai)

Submitted by

Dhiraj P Tikam

(Roll No. M-251)

Under the Guidance of

Professor: Dr. Rajesh Chouksey

2016-18

SHEILA RAHEJA SCHOOL OF BUSINESS MANAGEMENT & RESEARCH

 CERTIFICATE

This is to certify t hat project titled “To Study the Role of Consumer
towards Online Shopping ” is successfull y completed by Mr. Dhiraj
Premanand Tikam during the IV semester, in partial fulfilment of the
master’s Degree in Management Studies recognized by the Universit y of
Mumbai for the academic year 2016 -2018 through Sheila Raheja School of
Business Management & Research.

This project work is original & not submitted earlier for the award of any
degree, diploma or associateship of any other universit y/ Institution.

Name: Dr. Rajesh Chouksey ( )

Date: __________________ Signature of the Guide

ii
 DECLARATION

I hereby declare that this project Report submitted by me to the Sheila

Raheja School of Business Management & Research , is a bonafide work
undertaken by me & it is not submitted to any other university or institution
for the award of any degree diploma/ certificate or published any time before.

Name: Dhiraj Premanand Tikam ( )

Roll No. M-251 Signature of the Student

iii
 ACKNOWLEDGEMENT

Getting a project ready requires the work and effort of many people. I would like to pay my
sincere gratitude and thanks to those people who directed me at every step in this project
work. The present report is based on “To Study the Role of Consumer towards
Online Shopping”

I take immense pleasure in extending my sincere thanks to my project guide Dr. Rajesh
Chouksey for providing valuable insights during my project. He was there to guide me
whenever and wherever I needed any help throughout the tenure of my project.

A special gratitude to Dr. Vijay Wagh, Director of Sheila Raheja School of Business
Management and Research (SRBS), for permitting me to undertake this study.

Lastly, I would like to express my profound gratitude to all faculties of “Sheila Raheja School
of Business Management and Research” for giving me this great opportunity.

Dhiraj Premanand Tikam

Roll No: M-251

iv
 Table of Contents

SR.NO PARTICULAR PAGE NO

1 Cover Page I
2 Certificate II
3 Declaration III
4 Acknowledgement IV
5 Table of Content VI-VII
6 Index of Table VII
7 Index of Chart IX
Chapter-1: Introduction
1.1 Introduction 2
1.2 Problem Statement 2
1.3 Research Objectives 2
1.4 Research Hypothesis 3
1.5 Research Design 3
1.5 Limitations 4
Chapter-2: Literature Review
2.1 Introduction 6-7
2.2 Customer Behaviour 8
2.2.1 Consumer Characteristic 9
2.2.2 Online Consumer Characteristic 11
2.3 Specific Consumer Trait Online
2.4 Important influencing factor of shopper towards
online shopping
2.5 Identified factors affecting online consumers
2.6 The influencing factor effect online consumer
segments
2.7 Summary

v
Chapter-3: RESEARCH METHODOLOGY
3.1 Research Design 18
3.2 Data Calculation Tools 18
3.3 Sampling 19
3.4 Sampling Strategies 19
3.5 Sample Size Estimation 19
3.6 Calculation of Sample Size 20
Chapter-4: RESULT
4 Result 29-40

Chapter-5: DISCUSSION
5.1 Findings 33-34
5.2 Hypothesis Testing 35-39

Chapter-6: CONCLUSION
6 Conclusion 41-42

Chapter-7: REFERENCES
7 References 44-47

Chapter-8: APPENDICES
8.1 Questionnaire 49-50

vi
 A) Index of Tables

Table Page
Table Name
No. No.
29
1 Age?

2 Gender? 30

3 How long have you been using internet? 31

4 How often you use internet for to search product information? 32

The information which is given on the site about the product is 33

5
sufficient?
6 Which Medium you preferred for online shopping? 34

7 What is your main motivation for buying through internet? 35

8 What kind of goods do you purchase from the internet? 36

9 Which methods you use for making payments on internet? 37

10 Have you faced any problems while shopping online? 38

11 Which problems do you faced generally while shopping online? 39

12 Are you satisfied with your experience of shopping online? 40

vii
 B) Index of Charts

Table Page
Table Name
No. No.

29
1 Age?

30
2 Gender?

3 How long have you been using internet? 31

4 How often you use internet for to search product information? 32

The information which is given on the site about the product is 33

5
sufficient?

6 Which Medium you preferred for online shopping? 34

7 What is your main motivation for buying through internet? 35

8 What kind of goods do you purchase from the internet? 36

9 Which methods you use for making payments on internet? 37

10 Have you faced any problems while shopping online? 38

11 Which problems do you faced generally while shopping online? 39

12 Are you satisfied with your experience of shopping online? 40

viii
Chapter No-1:

INTRODUCTION

1
 CHAPTER-1: Introduction
1.1 Introduction:

Internet is changing the way purchasers shop and buys products and enterprises and has
quickly advanced into a worldwide marvel. Numerous organizations have begun utilizing
the Internet with the point of cutting promoting costs, along these lines lessening the cost
of their items and administrations so as to remain ahead in exceptionally focused markets.
Organizations likewise utilize the Internet to pass on, impart and disperse data, to offer the
item, to take input and furthermore to lead fulfilment studies with clients. Clients utilize
the Internet to purchase the item on the web, as well as to think about costs, item includes
and after deal benefit offices they will get in the event that they buy the item from a
specific store. Numerous specialists are hopeful about the possibility of online business.
Notwithstanding the huge capability of the E-trade advertise, the Internet gives an
extraordinary chance to organizations to all the more productively achieve existing and
potential clients. It has been over 10 years since business-to-buyer E trade initially
advanced. Researchers and specialists of electronic business always endeavour to pick up
an enhanced knowledge into customer conduct in the internet

1.2 PROBLEM STATEMENT:

To Study the Role of Consumer towards Online Shopping.

2
1.3 RESEARCH OBJECTIVE:

The objective of this research study is to think about the role of consumer towards online
shopping, which thus gives E-advertisers a constructional system for adjusting their E-
organizations' strategies.

The particular objective of this research is:

 To know the consumer awareness about online shopping.

 To know the different elements which motivates a consumer towards online

shopping

 To know the kind of products they buy online.

 To know the issues, they faced during online shopping.

 The findings of this research study will be laid out a simplification for online
retailers with a specific end goal to improve their consumer knowledge and
increase their internet advertising strategy effectively.

 To know how it give product and services and satisfies their consumers.

1.4 RESEARCH HYPOTHESIS:

SET 1:
 H0: Online shopping does not provide sufficient information about the product.
 H1: Online shopping provide sufficient information about the product.

SET 2:
 H0: Shopping online does not face any problem to the consumers.
 H1: Shopping online faces many problems to the consumers.

SET 3:
 H0: The consumers who shop online are not satisfied with their buying experience.
 H1: The consumers who shop online are satisfied with their buying experience.

3
1.5 RESEARCH DESIGN:

The factors were identified by study the current models of shopper that play vital role in
online purchases, at that point a model was proposed leading to online shopping.

The information was gathered just through Questionnaires. The sample size measure was
100. Furthermore, random sampling was done among the internet users.

When gathering information to approach the purpose of a research there are two ways by
which the information can be gathered. Keeping in mind to acquire a general knowledge
about this topic, secondary data is basically utilized and is one of the routes by which
information can be gathered. These Convey to gather information is the primary data
collection. Typically, when the study is directed, secondary data isn't sufficiently adequate
and should be finished with primary data which is gathered from the research.

1.6 LIMITATIONS:

There are various factors impacting the online consumers any case, this examination will
attempt to distinguish the fundamental components affecting the online buyer and will, in
this way, endeavour to restrict these to a couple with a specific end goal to have the
capacity to research the impact on the online buyer.

Inside the field of consumer conduct there are numerous speculations and models that
recognize the buyer. This research will constrain itself to distinguishing the purchaser
through his/her customer qualities and the consumer buying behaviour process.

Shopper conduct varies relying upon what item or administration is purchased.

Subsequently, unique variables are of various significance to shoppers contingent upon the
item or administration.

Subsequently, this exploration will restrict itself to since this is the item that is most
generally purchased on the Internet. This appeared to be the most proper decision thinking
about the limitations in both time and assets.

4
 Chapter No-2:
LITERATURE REVIEW

5
 LITERATURE REVIEW

2.1 Introduction

This exposition goes for discovering factors that influence the online shopper's purchasing
conduct. By perusing writing concerning shopper attributes and online purchaser qualities I
accept to discover suggestions for specific factors that are of significance for the online
customer.

The Internet is an overall open arrangement of PC organizes that transmit information by

bundle exchanging utilizing the standard I Internet Protocol. It is a "system of systems
"that comprises of a large number of littler household, scholastic, business, and
government systems, which together convey different data and administrations, such a
select, record exchange, the interlinked Web Pages and different reports of the World Wide
Web. Initially the Internet was for the most part utilized by scholastics, investigate
researchers and understudies; however, that situation has changed as business associations
have moved to consolidate the World Wide Web into their special battles, and by offering
the office of online buying (Jobber&Fahy,2003). The Internet has advanced into an overall
available commercial center for data trade and online business. The vital significance to be
accessible for shoppers on the World Wide Web, with data and administrations has turned
out to be especially pertinent to firms.

As indicated by Vesterby and Chabert (2001) the Internet can make it simpler for
organizations to have data about their items or administrations accessible to their clients or
potential clients. An organization can fulfill the purchasers' individual need of data
requiring little to no effort in contrast with conveying item leaflets for instance. As the
client can pick data from sites, which infers that the data supplier can accomplish better
comprehension of the client's needs and needs by gathering information. Then again, the
Internet is a place with scarcely any structure or principles: accordingly, extensive
endeavors are required keeping in mind the end goal to demonstrate the shopper where a
particular website is found, and what administrations are accessible on that webpage.
Vesterby and Chabert (2001) guarantee that organizations with no physical nearness must
market themselves significantly, both on the web and disconnected, for the customer to
recall their name.
6
Regardless of whether it is the conventional market or the online market, the advertiser
must comprehend the shopper and how he settles on his choices and obtaining
choices(Hollensen,2004), on the grounds that the customer is under a consistent stream of
boosts from the advertiser’s commercials. The advertiser has the likelihood to choose and
to control the yield that will be sent to the purchasers, however when the commercial
achieves the buyer that control closes. The shopper at that point deciphers the data that has
been conveyed in his own particular manner in light of particular elements for each
purchaser. Thusly advertisers have created diverse hypotheses that can clarify why
purchasers decipher data unquestionably, and there by comprehend certain practices
(Kotler&Armstrong,2007). A few articles have embarked to recognize the qualities of the
online buyer. Some authors also distinguish the online customer to have the accompanying
qualities: more youthful, wealthier, better taught, having a higher "PC education" and are
greater retail spenders.

Donuthouand Garicia (1999) recognize the online consumer as: more seasoned, profit,
accommodation searcher, imaginative, rash, assortment searcher, less hazard mindful, less
brand and cost cognizant, and with a more uplifting mentality towards publicizing and
direct showcasing. Some of these attributes are comparative, while others are the inverse.

Endeavoring to distinguish the online shopper is troublesome since the fast improvement
of online business has additionally prompted an expansion of the two advancements and
distinctive sorts of purchasers. It is additionally realized that the sort of item affects the
online buyer conduct which makes it harder to distinguish purchaser attributes
(Christopher&Huarng,2003). There are still a few qualities that can be distinguished to
indicate the online buyer and the accompanying content will attempt to do as such.

2.2 Customer Behaviour

Donal Rogan (2007) clarifies the connection between customer conduct and showcasing
technique. He expresses that "methodology is tied in with expanding the likelihood and
recurrence of purchaser conduct. Prerequisites for prevailing with regards to doing this are
to know the client and comprehend the shopper's needs and needs."

Chisnall (1995) brings up that human needs and thought processes are inseparably
7
connected and that the connection between them is so shut that it ends up hard to
distinguish the exact distinction which may describe them. Individuals may purchase new
coats since it secures them against the climate, yet the areal fundamental predominant need
might be to take after the most recent form incline. Purchasers' attributes are essential
hypotheses from Kotler and

Armstrong (2007) and it clarifies the way that the customer translates and gets boosts from
ads. The choices of customers are affected by various individual attributes that are
connected to the purchaser's particular needs (Kotler and Armstrong, 2007).

2.2.1 Consumer Characteristics

Consumer qualities are clarified by: Cultural attributes, Social qualities, Personal qualities,
and Psychological Characteristics. These qualities are distinguished, by the advertiser, with
a specific end goal to recognize the consumer and to have the capacity to settle on the
system to what sort of customer to target. Consequently, these attributes are utilized as a
part of request to portion the market and target particular customer gatherings.

2.2.1.1 Cultural Characteristics

The Cultural Characteristics are perceived as the principle influencer of buyer conduct.
These qualities are produced by three highlights under sticking buyer conduct: Culture,
Subculture, and Social Class.

Culture is specified as the most fundamental reason for a man's needs and needs. Kotler
and Armstrong (2007) contends that human conduct is for the most part learned and that I
am presented to various arrangements of qualities and convictions from a youthful age, and
that these qualities impact our conduct and basic leadership. Thus, these qualities are
fascinating for advertisers and vital pointers of certain buyer conduct and taste.

Subcultures are little gathering arrangements with a specific number of individuals that
offer esteems and convictions, for example, nationalities, religions or geographic locales.
A distinguished subculture can fill in as a vital and successful market section which can be
8
focused on.

Social class is perceived by Kotler and Armstrong (2007) as a class structure, comprising
of a blend of components which assemble distinctive kinds of individuals. Some
distinguished components are wage, age, training, and riches

2.2.1.2 Social Characteristics

The Social Characteristics are partitioned into three unique classes, to be specific
Reference Groups, Family and Social Role and Status.

Reference Groups– According to Kotler and Armstrong (2007) the impacts of the
Reference Groups is for the most part in view of the conviction that a man's conduct is
affected by numerous little gatherings. At the point when a gathering has an immediate
impact it is known as a Membership Group, for instance: family, neighbours and
associates. Reference Groups are the gatherings to which the individual frequently needs to
be long to and to be separated of however isn't. These gatherings in a roundabout way and
straightforwardly frame a man's conduct and states of mind. There are three diverse
courses by which these gatherings impact a man's conduct; they may open a man to new
practices and ways of life, impact a man's demeanours and self-ideas and furthermore
make a weight of affirmation by Reference Groups. Another impact of significance is the
conclusion pioneer. A sentiment pioneer is a man that impacts others to take after his
accepts and mentalities towards specific issues, items or regions (Kotler&
Armstrong,2007).

Family– Family individuals affect the purchasing conduct. The association and impact by
various relatives fluctuates, both to which degree yet in addition how. In this manner, it is
essential for advertisers to comprehend which part is played by whom in the family and
direct the promotion towards the principle impacting some portion of the family.

Parts and Status– Each individual has a place with various kinds of gatherings and
furthermore assumes distinctive parts while having diverse positions in the different
gatherings. Parts are distinguished by Kotler and Armstrong (2007) as what exercises
individuals are required to perform from different individuals from the gathering.

9
2.2.1.3 Personal characteristics

The Personal qualities are classified into: Age and Life-Cycle Stage, Occupation,
Economic Situation, Lifestyle, Personality and Self-Concept.

The Age and Life-Cycle Stage These stages clarify diverse periods in life that the customer
encounters as he experiences life. These distinctive stages additionally speak to various
changes that the purchaser may encounter when achieving another stage. As per Kotler and
Armstrong (2007) advertisers, accordingly, characterize their objective markets in terms of
the distinctive stages so as to create suitable promoting plans.

Occupation– The occupation has a tendency to affect the items and administrations
purchased by the customers. This prompts the likelihood of creating diverse kinds of items
or administrations that suits intrigues distinguished to be better than expected inside an
occupation.

The Economic Situation– Wealth will influence a shopper's item decision. A buyer might
be value delicate or not relying upon the level of pay, level of investment funds, level of
financing costs, and furthermore the item or administration itself.

Lifestyle– This is distinguished to be a man's method for living which is perceived by the
exercises, intrigue, or sentiment she or she has and it additionally clarifies the way a
shopper associates on the planet.

Personality– This is principally clarified by the terms self-assurance, predominance,

amiability, independence, protectiveness, flexibility and forcefulness. These mental
elements are an aftereffect of one's condition. Identity can be characterized as a dynamic
and composed arrangement of attributes controlled by a man that particularly impacts his
or her inspirations, and practices in various circumstances (Ryckman,2004).

Self-idea or Self Image– Is the applied understanding that individuals' belonging mirror
their identities. This idea brings a few clashes in the event that individuals may have a
picture that fulfils their identity however does not concur with who they need to be (the
perfect self-concept), the question at that point emerges which one I would need to fulfil.
10
2.2.1.4 Psychological Characteristics

The psychological characteristics are isolated into the accompanying ideas: Motivation,
Perception, Learning, and Beliefs and Attitudes.

Motivation– Motivation alludes to a man needs that must be fulfilled. These requirements
are of various kind; some are organic, for example, yearning, thirst and distress, and some
are mental, for example, the requirement for acknowledgment, regard and having a place.
Needs are not fulfilled until the point that they achieve a specific purpose of power and
turn into a thought process in the shopper to fulfil them. Kotler and Armstrong (2007) talk
about a few inspiration speculations, among them are Freud's and Maslow's hypotheses of
inspiration. Freud contended that a man does not by any stretch of the imagination and
completely comprehend his or her inspirations. Maslow then again needed to comprehend
why a few people set out to fulfil a few needs previously others.

He at that point reached the conclusion that human needs are masterminded in a chain of
importance from the most squeezing to minimal squeezing, as Kotler and Armstrong
(2007) clarifies it. These requirements are recorded as mental needs, wellbeing needs,
social needs, regard needs, and self-completion needs. When one need has been fulfilled, a
man proceeds onward to fulfil the following.

Observation This characteristics in view of the comprehension of how distinctively I see a

similar circumstance or similar boosts. Kotler and Armstrong (2007) clarifies recognition
as the procedure by which individuals select, sort out, and decipher data. There are three
distinct procedures that choose how I decipher certain data. These are Selective Attention,
Selective Distortion, and Selective Retention.

Learning– Learning is, as indicated by Kotler and Armstrong (2007), a demonstration that
progressions individuals' conduct in light of their experience. It happens through drives:
solid inward needs that call for activity, boosts: protest that drives for certain activity,
signs: little jolts that determinate when, where and how the individual will react and
fortification: when the reaction and boosts towards a question is experienced more than
once.

11
Convictions and Attitudes– These are obtained by individuals through learning and
encountering. They impact the purchasing conduct by making up brands and item pictures
in the customer's heads. A conviction is clarified by Kotler and Armstrong (2007) as a
clear considered something and depends on genuine learning, assessments or confidence.
Convictions can likewise be sincerely charged. Dispositions are portrayed as a man's
assessments, emotions, and propensities towards something, yet in addition judgments of
individuals, for example, as and loathes.

2.2.2 Online Consumer Characteristics

More particular distinguishing pieces of proof of the online purchaser should be made
keeping in mind the end goal to comprehend the online buy conduct. The recognized
attributes are some key qualities as to the online shopper. These key attributes were made
so as to recognize online purchasers and to have the capacity to section them.

2.2.2.1 Cultural Online Characteristics

Smith and Rupp (2003) recognize that the distinction in social class makes a distinction in
obtaining Online Behavior. Customers from a higher social class for the most part buy
progressively and have a higher expectation to buy online in light of the fact that there is a
higher likelihood that they have a PC and furthermore have more noteworthy access to the
Internet. Shoppers from bring down social classes would not have similar properties. The
creators likewise call attention to that customers with bring down social class, and there by
not having similar properties, would not have the required PC proficiency to have the
capacity to use a PC.

12
2.2.2.2 Social Online Characteristics

The social impact on the online purchaser originates from new Reference Groups
contrasted with the convention dependably. For the online buyer new Reference Groups
were recognized as virtual groups, comprising of dialog bunches on a site. The buyer can
read about other individuals' encounters and assessments which have appeared to have the
impact of Reference Groups (Christopher &Huarng, 2003). Other Reference Groups,
which are distinguished by Christopher and Huarng (2003), are connections to item related
sites, which energizes item choice and contact data.

2.2.2.3 Individual Online Characteristic

Monsuwé, Dellaert and Ruyter (2004) investigated the individual online buyer attributes
and reasoned that salary has a fundamental part for internet obtaining conduct. The
creators talked about Lohseetal. (2000) who called attention to that customers with higher
house hold pay would have a more uplifting state of mind towards online shopping. This
conclusion was clarified by the way that households with higher pay would have a positive
relationship with the ownership of a PC, Internet get to, and advanced education.

Smith and Rupp (2003) additionally distinguished the age factor as a determinant for
online buy expectations. They contended that more established individuals who had no
incessant cooperation’s with the Internet and the PC would not utilize the Internet as a
medium for buys, while youthful grown-ups would. This was closed by that the youthful
grown-ups utilized the Internet and PCs all the more as often as possible. More youthful
individuals were additionally recognized to have more specialized learning. Monsuwéetal.
(2004) likewise upheld this judgment by presuming that more youthful grown-ups
typically have more prominent enthusiasm for utilizing new innovations to peruse for data
and assess options.

13
2.2.2.4 Psychological Online Characteristics

Smith and Rupp (2003) distinguished the mental qualities of customer conduct as inquiries
the online purchaser would ask himself before making a buy on the web.

Motivation– The buyers is thinking for motivators to participate in a specific conduct. He

may make inquiries like: would it be advisable for me to glance around for better cost? On
the off chance that internet shopping spares personal time, would it be advisable for me to
shop online all the more regularly? What amount do I truly require this item?

Perception- The purchaser is translating obtained data by classing it. Inquiries, for
example, the next may come to fruition: I feel that this site appears to be quite secure. It
appears that this site has a decent item yet how might I make certain?

Personality- The shopper is adjusting to impacts of his perceptions. He may solicit himself,
what composes from Web locales are most appropriate for his own purchasing inclinations.

Attitude- The shopper is working out what his preferences are in regard to a specific
circumstance. He may ask himself: I am truly uncertain about additional expenses, would it
be a good idea for me to truly be purchasing things from the Internet? On the off chance
that I don't purchase the thing on the web, by what other method would i be able to get it?

Emotions- The buyer is without cognizant exertion distinguishing how he is being

influenced by his intellectual decision. He may ask himself: The last time I requested from
the Internet I had an extremely terrible ordeal. Should I take a stab at purchasing on the
web once more? What is the eventual fate of purchasing on the web? In the event that
Websites show signs of improvement would it be a good idea for me to put additional time
in purchasing on the web.

2.3 Specific Consumer Traits and Online

Conduct The online buyer's attributes that I have recognized to be the most vital ones to
affect the online customer, will be alluded to as particular Consumer Traits and how the
shopper utilizes the Internet will be alluded to as Online Behaviour.

14
The online shopper attributes, for example, individual, social, and mental qualities should
be recognized with a specific end goal to comprehend what is imperative for the online
customer. These attributes uncover the buyers' way of life and distinguish who the shopper
is and what states of mind he has towards online shopping.

Consequently, I will utilize the accompanying qualities to section the online buyer, by
breaking down:

The buyer's socioeconomics, as Bergmanetal.(2005).

Life designs concerning Online Behaviour, for example, how much the shopper utilizes the
Internet, webography’s, as Bergmanetal.(2005).

For what purposes, Internet Usage, likewise as Bergmanetal.(2005).

o How much the online purchaser shops on the web, Online Shopping Patterns, can be
utilized as a part of request to discover what affect certain components have on
various sort of buyers (Bergmanetal.2004).

o Prior encounters have additionally been recognized to be applicable for what Beliefs
and Attitudes the buyer has towards online shopping and are in this manner likewise
vital for their search (Monsuwéetal.2004).

o Social impacts affect the customer in the early basic leadership arrange and these were
alluded to as Reference Groups (Christopher&Huarng2003).

These are the customer attributes that are applicable for this examination and should be
recognized with a specific end goal to discover who the online shopper is and what
influences him when shopping on the web. These I will be alluded to as Consumer Traits
and Online Behaviour.

To outline the earlier content and to answer the inquiry what distinguishes an Online
Consumer, one can make the inference that for this exploration the essential buyer
attributes that should be recognized are:

15
1) Consumer Traits

 Demographics

 Attitude and Beliefs

 Impact of Reference Groups

2) Online Behaviour

 web graphics

 Online Shopping Patterns

 Internet Usage

The Online Consumer Segment Subdivisions

16
2.4 Important Influencing Factors of shopper towards online shopping

When handling the past writing keeping in mind the end goal to discover what Specific
Consumer Traits and Online Behaviour that should be distinguished, I picked up
information of which factors that were very critical for the online shopper.

Brengman, Geuenes, Weijters, Smith and Swinyard (2005) fragment online buyers through
first recognizing the Internet utilization way of life of each shopper; they trust that the
Internet encounter is profoundly significant for the distinguishing proof of the online
purchaser. Way of life is, as introduced over, a depicting gathering of buyers' close to
home attributes and is communicated as a man's socioeconomics. These living examples
indicate what feelings and interests a purchaser has for specific items, for what reasons and
which intrigue they have in the Internet, the Internet utilization. The investigation reached
the conclusion that four fragment gatherings could be conceptualized and these would sort
the online purchasers as per their shopping conduct. The distinctive properties, that clarify
these sections, demonstrate that the elements Price, Trust and Convenience are very
important influencers on the online purchaser shopping conduct (Brengmanetal.,2005).

Monsuwéetal. (2004) made a system through their investigation that would help the
comprehension of purchaser's dispositions towards online shopping. States of mind and
convictions are isolated from purchaser's mental qualities and primarily dictated by
learning and related involvements. Further, Bellenger points out that the capacity to direct
value correlations has been referred to as a noteworthy motivation behind why buyers
utilize the Internet (Wallace, 1995). Value sensitives containers are basically worried about
purchasing items at the most minimal cost or getting the best an incentive for the cash they
burn through (Bellenger,1980).

There have been numerous endeavours to recognize and fragment the online customer
through different investigations. By perusing distinctive investigations, I have recognized
certain variables that were continually present in the writing. There are numerous
components that affect the online buy conduct, yet I have recognized Price, Trust and
Convenience to be critical and will put our thoughtfulness regarding these three variables.

17
2.5 Identified Factors affecting Online Consumer Behaviour

Value which is a piece of the advertising blend is a consider utilized request to invigorate
the shopper and is additionally a communicator, deal instrument, and an aggressive
weapon. The shopper can utilize cost as a mean of looking at items, judge relative
incentive for cash, and judge item quality (Brassington&Pettitt,2000).

The factor Trust is thought to be a worry on the passionate premise in the psyches of the
customers. The customers have an attention on their wellbeing needs and need to fulfil
them before making a purchase(Brassington&Pettitt,2000).

The factor Convenience is thought to be an advantage according to the shopper and a

quality got from buying over the Internet. It is along these lines thought to be a motivator
and an advantage to consumers. (Constantinides,2004)

We trust that these variables affect the shopper when acquiring on the web. To additionally
break down the components, I think about hidden traits that speak to what way the
elements influence the customers.

2.5.1 The Factor Price

The Internet has turned into a worldwide commercial center on which shoppers can
assemble and analyze data, for example, item data and costs. The advances and
imaginative business thoughts of the Internet enable dealers to separate amongst
purchasers and purchasers to segregate between merchants. Truly, be that as it may, costs
have been set by arrangements in the wake of having inspected the item (Kotler and Keller,
2006). The Internet encourages the situation that correlations can be accomplished easily,
neglecting a few advanced characteristics (which can be conveyed through the web) and
potential outcomes with a few distinct merchants all the while. On the Internet it is after all
the value correlation prospect that interests value touchy buyers, while another class of
customers centres around discovering one of a kind items with particular highlights that
may be hard to discover disconnected and who, accordingly, maybe considerably think
about the cost as optional.

18
Notwithstanding, when on the web, just computerized characteristics can be assessed by
the customer, while disconnected non-advanced qualities (for which physical investigation
of the item is vital) can be tried (Lal and Sarvary,1999). This could even impact imprudent
customers to end up more mindful about the item as it must be reviewed carefully.
Moreover, when purchasing on the web, extra costs, for example, cargo charges, traditions
or delayed conveyance times can impact the online customer's choice to rethink the
exchange despite the fact that the cost is low. Table3.1 elucidates the way that the factor
cost has two traits, sparing cash and value examination.

The Factor Price and its Attributes

Factor Attributes

Saving Money
Price
Comparing Price

2.5.2 The Factor Trust

Monsuwéetal. (2004) presume that in light of the fact that the Internet is a moderately
better approach for shopping, it is trying for the customers and in this manner saw by the
buyer as dangerous. They additionally distinguish the sales representative to be a quiet
wellspring of trust for the shopper, and that the purchaser is reliant on the business people's
aptitude. In any case, since the sales representative has been expelled in online shopping,
the creators contend that the premise of customer trust has vanished. They additionally
clarify that the customer can't check the nature of a thing, nor is he ready to screen the
wellbeing of the security when uncovering individual information. The creators, along
these lines, presume that if an abnormal state of security and protection is imparted to the
shopper the outcome would positively affect buyer trust and the aim to purchase on the
web.

As indicated by Luhmann (1979) who has a sociological perspective on the hypothesis of

trust, there are three methods of keeping up assumptions about the future, recognition,
certainty and trust. To encounter trust, nature and certainty probably been set up. Be that as

19
it may, trust is just essential when there is a high see disk, for example, amid a buy
exchange or a comparative activity.

The customer's past understanding and trust in the electronic medium is probably going to
influence his measure of trust in internet shopping (Lee and Turban,2001). As per Lee and
Moray (as referred to in Lee and Turban, 2001) human trust in electronic frameworks
relies upon three variables:

• The saw specialized capability of the framework the frameworks clear capacity to
perform allotted undertakings.

• The saw execution level of the framework How quick and solid it appears to bea ble to
complete the errands.

• The human administrators comprehend of the hidden qualities and procedures

representing the framework's conduct.

Past learning likewise influences trust. Luhmann (1993) states that," Practical experience
tends to show us the inverse: the more I know, the better I realize what I don't have the
foggiest idea, and the more intricate our hazard mindfulness moves toward becoming"

Turbanetal. (2001) developed a model that features what trust is constituted from when
acquiring on the Internet. As per figure3.2 which is a scaled rendition in light of "A Trust
Model for Consumer Internet Shopping "by Lee, Matthew K.O, and Efraim Turban (2001),
trust is subject to the six factors

The Factor Trust and its Attributes

Factor Attributes

Perception of safety

Trust in the Internet Retailer

Trust
Trust in the Internet as retail
shopping

20
2.5.3 The Factor Convenience

Accommodation is anything that is planned to spare time and dissatisfaction as indicated

by the Swedish National Encyclopaedia. Facilitate meanings of the idea of comfort are:

• The nature of being reasonable to one’s solace, reason or needs

• Personal solace or preferred standpoint

• Something that expands solace or spares work at a reasonable or pleasant time (Lexico
Publishing Group[LLC],2007)

Online shopping as another medium for retailing makes various diverse preferences. One
of these is that it is thought to be more advantageous to shop online contrasted with the
conventional method for shopping. The comfort properties that internet shopping gives are:

• Less exertion:

• Being ready to shop at home

• Time sparing

• Being ready to shop at whenever of the day

Azjen (as referred to in Kim&Park, 1991) claims that online shopping gives
accommodation to buyers, for example, time reserve funds and inquiry comfort if
contrasted with the customary method for shopping.

Kim and Park (1991) additionally contend that if online shopping is to be seen as helpful
for the shopper, the customer must see a specific measure of easiness s with getting to the
Internet and furthermore with completing the conduct with shopping online. The less
many-sided quality the purchaser sees with getting to the Internet the more consideration
the buyer needs to enter the Internet and scan for data.

The attributes of comfort with internet shopping can be condensed as takes after:
Customers can shop from their homes meaning they don't need to take certain perspectives,
required when shopping in the conventional route, into thought. Online shopping is, in this
21
manner, considered to require less exertion. It is additionally thought to be efficient, the
customer can look at items and costs simple through the created web indexes. Through
GPS beacons a shopper can at whenever check where their bundle is. Some other time part
of online shopping is that it permits

The customer to shop whenever of the day, the shopper does not have to consider if the
stores are open or not.

The Factor Convenience and its Attributes

Factor Attributes

Saving Time

Convenience Less Effort

Shopping at anytime

2.6 The influencing Factor's effect on Online Consumer Segments

We would then be able to comprehend the pertinence and effect of the elements for the
every one of the respondents. By increasing comprehension and having the capacity to
portion online shoppers I can see the significance and effect of specific components for
particular gatherings. Figure3.3 clarifies that Online Consumer Segments will be produced
through how the respondents addressed inquiries that included Consumer Traits and Online
Behaviour. The characterized fragments will be contrasted concurring with how the

22
respondents in each section answers the inquiries including Price, Trust and Convenience.
At last, ramifications for online stores will be drawn from these outcomes.

2.7 Summary

By first examining consumer behaviour theories I have investigated what identifies the
consumer and the processes that the consumer goes through before making a purchase.
This has been applied to gain understanding of the online consumer buying behaviour and
has then been used in order to find which characteristics that are relevant to identify and
segment the online consumer. These have been identified as Consumer Traits and Online
Behaviour and are listed below along with the respective subsegments:

Consumer Traits:

 Demographics

 Attitude and Beliefs

 Impact of Reference Groups

Online Behaviour:

 Webographics

 Online Shopping Patterns

 Internet Usage

Furthermore, I have pointed out certain factors that I believe are important for the online
consumer when shopping online through the literature overview. These factors have been
identified as Price, Trust and Convenience through the literature. In order to comprehend
how the identified factors, influence the online consumer I must first identify the online
consumer. This identification needs to be done mainly through the relevant Consumer
Traits and online consumer behaviour that have been identified earlier.

23
 Chapter No-3:
RESEARCH
METHODOLOGY

24
 RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN:

The factors were identified by study the current models of shopper that play vital role in
online purchases, at that point a model was proposed leading to online shopping.

The information was gathered just through Questionnaires. The sample size measure was
100. Furthermore, random sampling was done among the internet users.

When gathering information to approach the purpose of a research there are two ways by
which the information can be gathered. Keeping in mind to acquire a general knowledge
about this topic, secondary data is basically utilized and is one of the routes by which
information can be gathered. These Convey to gather information is the primary data
collection. Typically, when the study is directed, secondary data isn't sufficiently adequate
and should be finished with primary data which is gathered from the research.

3.2 DATA COLLECTION TOOLS:

Data was collected by using two sources of data Primary and Secondary.

 PRIMARY DATA
 It is original primary data, for particular motivation behind research venture. For this
task, I have to use following normal research instrument or tools

 Primary Data Collection Tool: Questionnaire

 SECONDARY DATA
 Secondary data is the data which is available online and which is already used by people
for some purposes.

 Secondary Data Collection Tool: Internet (Journals, Research Papers, Books and
Newspaper).

25
3.3 SAMPLING:
A sample design is a definite plan for obtaining a sample from a given population.

It refers to the techniques or the procedure the researcher would adopt in selecting items for
the sample.

SAMPLING DETAILS:

Gender: Male and Female

Age: Above 15 years

Profile: For studying the consumer role towards online shopping

Sample Media: The respondents in this sample are reached through online Survey.

3.4 SAMPLING STRATEGIES:

Sampling Methods: Probability Sampling Technique

Sampling Procedure: Simple Random Sampling

Sampling Place: Mumbai

Sample Size: 100

Sample Design: I have this project as Descriptive type, as the objective of the study

3.5 SAMPLE SIZE ESTIMATION

In order to estimate the sample size, we will use the following formula:

n= (ZS/E) *(ZS/E)

Where,

E= Tolerance limit

S= Standard deviation

N= Number of elements (sample)

Z= Accuracy
26
3.6 CALCULATION OF SAMPLE SIZE
E= 5%

S= 0.526%

Z= 95%

n= (ZS/E) *(ZS/E)

n= (0.95*0.526/0.05) * (0.95*0.526/0.05) n=
100

Hence sample size is 100.

27
Chapter No-4:
RESULT

28
 Results
1. Age?
 15-25
 26-35
 36-45
 45-<

29
2. Gender?
 Male
 Female
 Other

30
3. How long have you been using internet?
 Less than 1 year
 1-2 years
 2-4 years
 More than 4 years

31
4. How often you use internet for to search product information?
 Never
 Occasionally
 Often
 Very often

32
5. The information which is given on the site about the product is sufficient?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

33
6. Which Medium you preferred for online shopping?
 Pc
 Tablet
 I-pad
 Mobile
 Others

34
7. What is your main motivation for buying through internet?
 Convenience
 Price
 Saving time
 Super selection/ Availability
 Others.

35
8. What kind of goods do you purchase from the internet?
 Books
 Gifts
 Audio/Video cassettes
 Consumer electronics
 Magazines
 Fashion accessories’
 Others

36
9. Which methods you use for making payments on internet?
 Cash on delivery
 Debit/Credit card
 Internet Banking
 Others

37
10. Have you faced any problems while shopping online?
 Yes
 No

38
11. Which problems do you faced generally while shopping online?
 Delay in Delivery
 Cheap quality of the product
 Product damage
 Others

39
12. Are you satisfied with your experience of shopping online?
 Highly satisfied
 Satisfied
 Neither Satisfied nor Dissatisfied
 Dissatisfied

40
Chapter No-5:
DISCUSSION

41
 Discussions
5.1 FINDINGS:

Findings 1:

From the above survey it shows that 45% of the respondent belongs to 15-25 age group,
30% from 26-25, whereas the age group of 36-45 & 46-< has less respondents which is
18% and 7% respectively.

Findings 2:

This data indicates that from the total respondents the no of male respondents is 72% and
female respondents 28%. There are no others respondent is recorded from the above
survey.

Findings 3:

From the above survey it is interpreted that out of total respondents. 4% respondents use
the internet less than a year. 4% of respondents using internet from the past 1-2 years. 44%
of the respondents are using internet for the past 2-4 years whereas majority of respondents
that is 49% have been using the internet for more than 4 years.

Findings 4:
The result of the survey itself shows that 5% of the respondents use internet
occasionally whereas 27% use often and 68% use internet very often.

Findings 6:

It is interpreted that 35% of the respondents use PC for online shopping, 15%
use tablets, 15% use IPAD, 34% use cellphones whereas 1% use other
mediums for online shopping.

42
Findings 7:
From the above research it has showed that 32% of the shopping had been
done by the regular shopper who think convenience is the main driving force
while 23% of the shopping had been done for whom price was the main
orientation for shopping online. Other motivating forces, which had led to
online shopping, were saves time (26%), product availability and superior
selection (12%), and product comparison (7%).

Findings 8:
It is depicted in the chart that the highest category of goods purchased by the
respondents (27%) is consumer electronics. Whereas the lowest category of goods
purchased online are books and magazines by 8% and 6% of the respondents

Findings 9:
The above chart depicts that majority of the respondents that is 48% use cash
on delivery option for payment, 24% use credit cards or debit cards, 10% use
internet banking, 4% whereas 18% use other methods of payment for online
shopping.

Findings 11:
According to the chart 48% of the respondents felt the delay in delivery as the
problem of online shopping. 28% of the respondents regard cheap quality
product as the problem. 18% of the respondent’s regard product damage to be
one of the problems of online shopping whereas 6% feel that there are other
problems associated with online shopping.

5.2 HYPOTHESIS TESTINGS:

HYPOTHESIS SET-1

 H0: Online shopping does not provide sufficient information about the product.
43
 H1: Online shopping provide sufficient information about the product.

5. The information which is given on the site about the product is

sufficient?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

Findings 5:

According to the research, the survey tells that 10% of the respondents strongly agree that
the information given about the product on the site is sufficient. 60% of the respondents
agree with the statement, 6% are neutral, 20% disagree whereas 4% of the respondents
strongly disagree with the statement.

Interpretation of Data:

According to the data it has interpreted that consumer agrees that online shopping provide
sufficient information about the product.

Therefore, H1 is accepted and H0 is rejected

44
HYPOTHESIS SET-2

 H0: Shopping online does not face any problem to the consumers.
 H1: Shopping online faces many problems to the consumers.

10. Have you faced any problems while shopping online?

 Yes
 No

Findings 10:
The further charts show that 60% of the respondents say that they have no
problem while shopping online, and rest of the respondents have faced many
problems

Interpretation of Data:

The data itself says that the majority of respondents does not face any problem while
shopping online.

Therefore, H0 is accepted and H1 is rejected

45
HYPOTHESIS SET-3

 H0: The consumers who shop online are not satisfied with their buying experience.
 H1: The consumers who shop online are satisfied with their buying experience.

12. Are you satisfied with your experience of shopping online?

 Highly satisfied
 Satisfied
 Neither Satisfied nor Dissatisfied
 Dissatisfied

Findings 12:
The study helped to found out that 84% of the respondents were satisfied with
online shopping, 14% were neither satisfied nor dissatisfied whereas 2% of the
respondents were not satisfied with online shopping.

Interpretation of Data:

Majority of the respondents says they are satisfied with their shopping experience on
internet.

Therefore, H1 is accepted and H0 is rejected

46
Chapter No-6:
CONCLUSION

47
 CHAPTER-7: CONCLUSION

Expanded Internet entrance, a problem free shopping condition and abnormal amounts
of Net savviness see an ever-increasing number of Indians shopping on the internet.
Be that as it may, in the meantime the organizations need to decrease the dangers
identified with shopper inadequacy by strategies, for example, making buy sites less
demanding to explore, and presenting Internet booth, PCs and different guides in
stores. The objective isn't to change over all customers to internet acquiring, yet to
indicate them it’s a choice. Notwithstanding above, endeavors should be taken to
instruct the on the web

purchasers on the means that should be embraced while making an online buy.
Additionally, the criticism of an online purchaser ought to be caught to distinguish
blemishes in benefit conveyance. This should be possible through online groups and
web journals that fill in as publicizing and advertising instruments and a wellspring of
input for endeavors. I found that it is a test for E-advertisers to change over low
recurrence online purchasers into normal purchasers through effective web
composition and by tending to worries about dependable execution. In this way, the
online shopping retailing raises a larger number of issues than the advantages it as of
now offers. The nature of items offered on the web and techniques for benefit
conveyance are yet to be institutionalized. Till the same is done, the purchaser is at a
higher danger of cheats.

This research shows that online shopping is having very bright future in India.
Perception towards online shopping is getting better in India. With the use of internet,
consumers can shop anywhere, anything and anytime with easy and safe payment
options. Consumers can do comparison shopping between products, as well as, online
stores.

This study is mainly focus on the factors from the Internet and examines those factors
that affect the consumer’s online shopping behaviours. The research focus on the
Internet shopping (include the nature of Internet shopping, E-commerce website, and
48
online security, privacy, trust and trustworthiness) and online consumer behaviours
(include background, shopping motivation and decision-making process). Those
factors were looked at and examined to reveal the influence at online consumer
behaviours. In addition, the previous researches were used to help researchers
understanding more comprehensively. Moreover, the customer’s purchase decision
making process was also examined to identify the potential factors. The information
search is the most important factor that helps the customers find the suitable products
or services for their needs. Therefore, the online retailers have to enhance and improve
the information supporting such as provide much detailed product information and use
internal search engine in order to increase the efficient of information search. For the
evaluation stage, customers more think a lot of the reputation from the E-commerce
website, and the payment security for the purchase stage. At the post-purchase stage,
the factor of after services which is the most concerned about. Overall, the factors
from the Internet that influenced or prevented online consumer behaviours need to be
carefully concerned by the online retailers, who can utilize the appropriate marketing
communications to support the customer’s purchase decision making process and
improve their performance.

49
Chapter No-7:
REFERENCES

50
 CHAPTER-7: REFERENCES
Literature:

 Brassington, F. what's more, Pettitt, S. (2000),Principles of Marketing,(2nd

edn),Edinburgh Gate, Pearson Education Limited.

 Chisnall, M. P. (1994)Consumer Behaviour,(3rd edn), Maidenhead, McGrawHill

Companies.

 Christensen, L., Engdahl, N., Grääs, C. what's more, Haglund, L.

(2001)Marknadsundersökning – en handbok, (second edn), Lund, Studentlitteratur.

 Hollensen S. (2004)Global advertising – A Decision Oriented Approach, (3rdedn),

Edinburgh Gate, Pearson Higher Education.

 Jobber, D. what's more, Fahy J. (2006)Foundations of Marketing,(2nd

edn),Maidenhead, McGraw-Hill Education.

 Kotler, P. what's more, Armstrong, G. (2007)Principales of Marketing,(12th

edn),Upper Saddle River, Prentice Hall.

 Kotler, P. what's more, Keller, L. K. (2006),Markating Management,(12th edn),

UpperSaddle River, Prentice Hall.

 Luhmann, N., (1979),Trust and Power, New York, Wiley.

 Luhmann, N., (1993),Risk : a sociological theory,New York, de Gruyter cop.

 Saunders, M., Lewis, P. what's more, Thornhill, A. (2007)Research Methods

forBusiness Students,(4th edn), Edinburgh Gate, Pearson Higher Education.

 Vesterby, T. what's more, Chabert, M. (2001)E-marketing,Viby J, Jyllands-

PostenErhvervsbogklubb.

51
Articles and Reports:

 Allred, R. C., Smith M. S. what's more, Swinyard, R. W(2006), 'E-shopping

loversand dreadful preservationists: a market division
analysis',InternationalJournalof Retail and Distribution Management34: 4/5, 308-
333.

 Brengman, M., Geuenes, M., Weijters, B., Smith, M. S. what's more, Swinyard R.
W.(2005), 'Fragmenting Internet customers situated in their Web-use
relatedlifestyle: crosswise over social validation',Journal of Business Research58,
79 – 88.

 Constantinides, E. (2004) 'Impacting the online buyer's conduct: theWeb

experience',Internet Research14: 2, 111-126.

 Goldsmith, E. R. what's more, Flynn, R. L. (2004) 'Mental and behaviouraldrivers

of web based apparel purchase',Journal of Fashion Marketing andManagement,8:1,
84-95.

Web Sources:

http://dictionary.reference.com/help/ahd4.html, Lexico Publishing Group,LLC,

(2007)(www.larsperner.com/teaching_materials.htm)

Corporate Authors:

Arbeitsgemeinschaft Online-Forschung e.V. [AGO F e.V.], 2007

Citations:

Donal Rogan, FH Joanneum Graz, 28 May – 1 June 2007, InternationalConsumer

Behavior

52
Chapter No-8:
APPENDICES

53
QUESTIONNAIRE
1. Age?
 15-25
 26-35
 36-45
 45-<

2. Gender?
 Male
 Female
 Other

3. How long have you been using internet?

 Less than 1 year
 1-2 years
 2-4 years
 More than 4 years

4. How often you use internet for to search product information?

 Never
 Occasionally
 Often
 Very often

5. The information which is given on the site about the product is sufficient?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

54
6. Which Medium you preferred for online shopping?
 Pc
 Tablet
 I-pad
 Mobile
 Others

7. What is your main motivation for buying through internet?

 Convenience
 Price
 Saving time
 Super selection/ Availability
 Others.

8. What kind of goods do you purchase from the internet?

 Books
 Gifts
 Audio/Video cassettes
 Consumer electronics
 Magazines
 Fashion accessories’
 Others

9. Which methods you use for making payments on internet?

 Cash on delivery
 Debit/Credit card
 Internet Banking
 Others

10. Have you faced any problems while shopping online?

 Yes
 No

55
11. Which problems do you faced generally while shopping online?
 Delay in Delivery
 Cheap quality of the product
 Product damage
 Others

12. Are you satisfied with your experience of shopping online?

 Highly satisfied
 Satisfied
 Neither Satisfied nor Dissatisfied
 Dissatisfied

56