Introduction
The introduction and implementation of internet technologies has created new market for
manufacturers and service providers and also has provided new arena for innovative
marketing strategies by the professionals. There are various reasons of shifting the customers
buying patterns towards online retail shops. The facility of comparing your product with
competitive products on the basis of price, color, size and quality is one of the biggest
benefits of online shopping. Moreover the product remains at its place even you purchase it.
It looks hilarious but this is also one of the most significant reasons reported by the online
shoppers. The other popular names for online shopping are virtual store, e-shop, webshop,
internet shop, web-store and online storefront etc. These days Mobile commerce or m-
commerce is also one of the popular means of shopping. The facilities of various coupon and
discount scheme are also fascinating the customers in online shopping. In our time, internet is
acknowledged as noteworthy valuable communication channel taxing with the traditional
ones, such as walkie-talkie, magazines, and small screen. From the past few years, on-line
shopping is the prevalent way of doing dealings in the field of E-Business and is
unquestionably going to be the future of shopping in the human race. The increasing
consumer base, principally of youths, is playing a significant role in the online shopping.
Through this means, the shopper can buy the product from wherever he wants.
An online shop evokes the physical analogy of buying products or services at bricks and
mortar retailer or shopping center; the process is called Business –to-Consumer shopping.
English entrepreneur Michael Aldrich invented online shopping in 1979. His system
connected a modified domestic TV to a real time transaction processing computer via
domestic telephone line. He believed that videotex, the modified domestic TV technology
with a simple menu-driven human-computer interface, was a new universally applicable,
participative communication medium- the first since the invention of the telephone. This
enabled closed corporate information systems to be opened to outside correspondents not just
for transaction processing but also for e-messaging and information retrieval. During the
1980’s he designed, manufactured , sold, installed, maintained and supported many online
shopping systems, using videotex technology.
Credit Cards. This has been the dominant form of online payments when
purchasing online.
Virtual Credit Cards. This virtual credit card is an innovation in online creditcards.
Credit card issuer provides a special number that can be used in place ofthe regular
credit card number to make online purchases.
Debit Cards. With the debit card, the money for a purchased item comes directlyout
of the holder’s checking account.
Smart Cards. This card looks like any plastic payment card but it has a
microchip embedded on its face. This can hold more information than ordinarycredit
cards with magnetic strips.
e-Checks. An e-Check is an electronic version or representation of a paper check.It
contains the same information as a paper check and based on the same
legalframework. It works the same as the paper check however they are faster,cheaper
and more secure.
Digital Cash. Digital cash is an example of a digital currency, where it
allowstraditionalbank account: consumers deposit money into their digital cash
accounts to beused in the purchase online. This is often used with other technology
such as digital wallets.
e-Wallets. An e-wallet is a software component that a user downloads to theirdesktop
and in which the user stores credit card numbers and other personalinformation.
Peer-to-Peer Payments. P2P payments are one of the fastest-growing onlinepayment
schemes as they enable the transfer of funds between two individuals.
Issuing Bank – the financial institution that issues a credit card to thecardholder. The
issuing bank establishes and verifies the cardholders’ credit line to see ifhe has
available credit to purchase a product/service and it provides the cardholder withthe
monthly billing statements, etc.
Credit Card Issuer/Association – a financial institution that provides creditcards and
other products for banks who privately brand the products such as VisaInternational or
MasterCard International. Also they often set up programs for merchantsto accept the
cards. Also they are involved in operating and managing the authorizationand
settlement systems worldwide.
Acquiring Bank – an entity that is often referred to as the merchant bank oracquirer.
It is the financial institution that enables merchants to accept credit cardpayments. The
acquiring bank often works with the third-party processor to accept ordecline the
cardholder’s credit card purchase or request, deposits funds
into themerchant’s bank account, provides the merchant with the periodic deposit
statements, etc.
Online shopping is becoming increasingly popular for a variety of reasons. There are certain
outside factors such as increasing gas prices, difficulty getting to traditional stores and the
hassles often associated with shopping in malls and other traditional stores may contribute to
the increased interest in online shopping. However, there are also many benefits which make
online shopping an excellent option for many busy shoppers. Some of these benefits include
convenience, comparison shopping capabilities and express shipping options and this article
will discuss each of these benefits in further detail.
The Convenience of Online Shopping
One of the most obvious benefits of online shopping which cannot be overlooked is
convenience. One of the most enjoyable conveniences of online shopping which is enjoyed
by many is the ability to shop for products or services at a time which is convenient for the
consumer. Online retailers accept orders twenty four hours a day while consumers who wish
to shop at traditional stores have to be available to visit the store during normal business
hours. This can be a major inconvenience especially for shoppers who work long hours or
shoppers who work odd hours. Online shopping eliminates this concern because shoppers can
simply access online stores from their computer whenever they have free time available.
Another convenience of online shopping is the ability to order products from around the
world. Shoppers are no longer limited to products offered by local retailers because the vast
majority of online retailers offer shipping to many different locations. This can make it easy
for online shoppers to acquire hard to find items or items which are a regional specialty of a
particular area.
Comparison Shopping when Online Shopping
Another great benefit of online shopping is the ability to comparison shop easily. Instead of
running around to several different traditional stores and trying to remember or write down
details such as prices and features, the shopper can simply open two or more
browsers to easilycompare more than one item. Additionally, there are several websites and
online retailers which make comparison shopping even easier. These websites may even
provide charts which compare features for similar products to enable the online shopper to
make an accurate comparison of two or more items before making a purchase.
1.7 The following table gives a glimpse of the top five leading e-commerce sites of 2014
1 Flipkart
2 Jabong
3 Myntra.com
4 Amazon.com
5 Shopify
6 Kaboodle
7 Twingly
8 eBayBonanza
9 Decide.com
10 Giftiki
11 Presentify.me
It makes products easy to find: Finding a product online is much easier than looking
for it in the local store.
Products are often more inexpensive: Products are often cheaper online than they
are in stores.
It saves time and energy: You don't have to waste your time going to stores, dealing
with crowds, and standing in lines.
Shopping online gives you access to a wider range of options: You have great
freedom of choice when you shop online. The Internet provides a far wider range of
products than that you would find in any local store.
It's easier to hunt for a great deal: You will also be able to enjoy the freedom of
price flexibility.
Customers are usually satisfied: Nowadays, shopping online is very reliable. Sellers
are held accountable by user feedback and reviews.
There is buyer protection: Dependable websites like eBay provide buyer protection.
This means that the website will give your money back if any seller fails to deliver the
item or delivers an item that does not match the description.
1.10 Conclusion:
Online shopping is praised for everything it has got. Customers are getting more and
more addicted to online shopping and customers do trust and believe the online
purchase system. The online shopping sites have received a healthy feedback from the
customers for their efficient and effective services rendered to them. Customers have
been observed to be happier with the way online shopping is going further. The online
purchase system is becoming more and more customer oriented after each passing
day, everything the customer has to do is press several buttons and receive a product
at his/her own place.
To know the impact of online shopping on customers.To know why customers choose
online shopping than offline shopping.To know when customers like to do online
shopping.
To know what customers would like to buy through online shopping ( Kitchen
appliances, Accessories).
The study was also conducted with the aim of finding out pitfalls in street shopping.
The study is relevant in following ways:
4. METHODOLOGY OF STUDY
RESEARCHSAMPLE
SAMPLINGPLAN:
Sinceitisnotpossibleto
studywholeuniverse,itbecomesnecessarytotakesamplefromtheuniverseto
knowaboutitscharacteristics.
SampleTechnique:RandomSampling.
ResearchInstrument:Structuredquestionnaires.
Sources of data:
The data were collected through both primary and secondary sources.
Primary data:
Questionnaire:
Secondary data:
The secondary data was collected from
Books( E-Books).
Internet
Web Portals
20
18
16
14
12
10
8
6
4
2
0
Attractice Prices Reliability Mass Variety Popularity
ANALYSIS: From the above table we analyze that 38 percent of the respondents choose
online shopping because of the attractive prices, 20 percent choose because of its reliability,
30 percent choose because of mass variety of products and 12 percent of the respondents
choose online shopping because of its popularity.
Figure 2
35
30
25
20
15
10
0
Once in a week Once in a month Once In six months Once In a year
ANALYSIS: From the above table we analyze that 10 percent of the respondents purchase
once in a week, 60 percent purchase once in a month, 20 percent purchase once in six months
and 10 percent purchase once in year.
Yes 25 50
No 15 30
Can’t say 10 20
Total 50 100
Figure 3
30
25
20
15
10
0
Yes No Can't Say
ANALYSIS: From the above table we analyze that 50 percent of the respondents visit retail
shops before online purchase, 30 percent do not visit retail store before online purchase and
20 percent can’t say.
INTERPRETATION: It is revealed that majority of the respondents visit retail store before
online purchase.
In festival seasons 11 22
When needed 12 24
Total 50 100
Figure 4
16
14
12
10
8
6
4
2
0
In festival seasons Heavy discount time Depend upon mood When needed
ANALYSIS: From the above table we analyze that 22 percent of the respondents purchase in
festival seasons, 30 percent purchase when there is heavy discount, 24 percent purchase
depending upon their mood and 24 percent of the respondents purchase when needed.
5.5 Which age group of people in your family do most online shopping.
25
20
15
10
0
18-25 26-35 36-45 46-65
ANALYSIS : From the above table we analyze that 50 percent of the online shopping is done
by people between age group of 18-25, 30 percent by people between age group of 26-35, 12
percent by customers between the age group of 36-45 and 8 percent of the online shopping is
done by the people between the age group of 46-65.
Figure 6
25
20
15
10
0
Fashion Home Appliances Kitchen Appliances Accessories
ANALYSIS: From the above table we analyze that 44 percent of the respondents purchase
fashion items through online shopping, 24 percent purchase home appliances, 18 percent
purchase kitchen appliances and 14 percent of the respondents purchase accessories through
online shopping.
100% reliable 24 48
50% reliable 15 30
Can’t say 11 22
Total 50 100
Figure 7
30
25
20
15
10
0
100% reliable 50% reliable Can't say
ANALYSIS: From the above table we analyze that 48 percent respondents think it is 100
percent reliable, 30 percent think it is 50 percent reliable and 22 percent respondents think we
can’t say .
Figure 8
30
25
20
15
10
0
100% satisfied 50% satisfied Dissatisfied Can't say
ANALYSIS: From the above table we analyze that 26 percent respondents are 100 percent
satisfied with online shopping, 52 percent respondents are 50 percent satisfied with online
shopping, 12 percent of the respondents are dissatisfied with online shopping and 10 percent
respondents can’t say.
Yes 31 62
No 10 20
Can’t say 9 18
Total 50 100
Figure 9
35
30
25
20
15
10
0
Yes No Can't say
ANALYSIS: From the above table we analyze that 62 percent respondents would like to
continue online shopping, 20 percent respondents would not like to continue online shopping
and 18 percent can’t say.
Yes 36 72
No 14 28
Total 50 100
Figure 10
40
35
30
25
20
15
10
0
Yes No
ANALYSIS: From the above table we analyze that 72 percent respondents trust on online
shopping and 28 percent respondents do not trust on online shopping.
5.11 Which of the following services will you use to settle the payment for online shopping.
Cash on delivery 15 30
Internet banking 12 24
Total 50 100
Figure 11
25
20
15
10
0
Credit/Debit card Cash on Delivery Internet Banking
ANALYSIS: From the above table we analyze that 46 percent of the respondents use
credit/debit card as a mode of payment, 30 percent use cash on delivery and 24 percent of the
respondents use internet banking
Amazon 10 20
Flipkart 27 54
Other 13 26
Total 50 100
Figure 12
30
25
20
15
10
0
Amazon Flipkart Other
ANALYSIS: From the above table we analyze that 20 percent of the respondents prefer
Amazon, 54 percent prefer Flipkart and 26 percent of the respondents prefer other e-retailers.
On time 28 56
Sometimes late 20 40
Always late 2 4
Total 50 100
Figure 13
30
25
20
15
10
0
On time Sometimes late Always late
ANALYSIS: From the above table we analyze that 56 percent of the respondents receive
purchase on time, 40 percent respondents receive their purchases sometimes late and 4
percent receive always late.
5.14 If the product has the same price both in shops and on online, where do you prefer to
buy it.
Internet 25 50
Total 50 100
Figure 14
30
25
20
15
10
0
High Street Retailer Internet I don’t really care
ANALYSIS: From the above table we analyze that If the product has the same price both in
shops and on internet, 36 percent of the respondents will prefer high street retailer, 50 percent
will prefer Internet and 14 percent of the respondents don’t care.
Yes 25 50
No 15 30
Can’t say 10 20
Total 50 100
30
25
20
15
10
0
Yes No Can't Say
ANALYSIS: From the above table we analyze that 50 percent of the respondents visit retail
shops before online purchase, 30 percent do not visit retail store before online purchase and
20 percent can’t say.
INTERPRETATION: It is revealed that majority of the respondents visit retail store before
online purchase.
Figure 16
25
20
15
10
0
Fashion Home Appliances Kitchen Appliances Accessories
ANALYSIS: From the above table we analyze that 44 percent of the respondents purchase
fashion items through online shopping, 24 percent purchase home appliances, 18 percent
purchase kitchen appliances and 14 percent of the respondents purchase accessories through
online shopping.
6.1Findings
i) The customers are more dependent on the online shopping. Out of total sample
size of 50, 24 respondents are fully dependent on online shopping, 15 respondents
are to some extent dependent on online shopping.
iii) The purchasing power of customers has grown in response of the high discount
rates provided by Filpkart, Amazon and other online shopping sites.
iv) The customers are impressed by the follow up response from online marketing
sites.
v) Customers prefer purchasing online when there is same price for the product at
any retail shop.
vi) Majority of the customers receive their ordered products on time which has
emerged as a major cause to the customers to prefer online shopping.
vii) About 80% of the customers trust online shopping. Out of the selected sample size
, 76 percent of the respondents trust online shopping and 24 percent of the
respondents don’t trust online shopping.
viii) Customers use online shopping mostly for purchasing fashion related products. 44
percent of the respondents buy fashion items through online shopping.
x) Most online shopping is done by the people who fall in the age group of 18-25.
6.2.Conclusion.
The current study is descriptive in nature and it has made anattempt to understand the
behavior of Indian consumers towardsonline shopping. Although statistical significance of
variousparameters has not been examined but the generalized resultsobtained through data
analysis has given clear indication ofincreasing significance of online stores in the life of
Indian people.The e-stores are frequently visited by the shoppers. The ease andconvenience
provided by these stores for 24x7 has made veryeasy shopping for consumers worldwide. The
analysis discussedin the above section has documented that the Indian customers
are also getting addicted to the online shopping and they do likevarious features of online
shopping as by rest of the world. Butthe statistics available has shown that Indian market is
still not afully developed market for e-retail stores. There is huge scope ofweb-stores in
various areas and in almost all the segments. Theyoung population is the biggest attraction of
this industry and theymay contribute substantially to the growth of online shopping inIndia.
The majority of internet users are youngsters, the majorityof goods and services demanded
are related to only this segment.Travel planning is one of the biggest services used by Indian
online shoppers.
Online shopping has become one of the major sources for customer satisfaction, as the days
go by the reach of online shopping is elevated 10 times more than the previous day. Most of
the customers purchase product with the help of internet for its timely delivery of products
and availability of better choices to the customers. Online shopping provides a huge discount
rate which has proved to be enough to catch more and more customers.
7. RECOMMENDATIONSAND SUGGESTIONS:
In order to attract the customers, allow heavy discount on products.
Try to reduce the delivery time. This will definitely enhance the customer satisfaction.
It was a great experience to meet different customer to know the impact of online
shopping on their daily banking activities.
Got more knowledge about the different strategies which e-retailers implement to
attract and retain customers.
It was really a good experience to get the customer feedback regarding electronic
banking that they use while making their payments online, it was experienced that
most of the customers are satisfied with electronic banking to purchase products
online.
I also came to know about different modes of making payment such as Cash on
Delivery (COD), payment via Credit Card, Pay Pal, Debit Cards, Internet Banking
etc.
It was a good experience to know how e-retailing is convenience satisfies customers.
APPENDIX I
Questionnaire
4. When did you like to do online shopping? On which occasion you would like to
prefer online shopping
(a) In festival seasons
(b) Heavy discount time periods
(c) Depend upon mood/desire
(d) When needed
5. Which age group of people in your family does most online shopping?
(a) 18-25
(b) 26-35
(c) 36-45
(d) 46-65
(a) Yes
(b) No
11. Do you think it is important for the high street retailer to have an online shopping
facility?
(a) Yes
(b) No
12. If the product has the same price both in shops and on internet, where do you prefer
to buy it?
(b) internet
(a) Yes
(b) No
14. Have you purchased anything through online or use of online banking?
(a) Yes
(b) No
15. Which of the following services will you use to settle the payment for online
shopping?
(a) On time
(a) Amazon
(b) Flipkart
(c) Other
(d) Rarely
19. When did you like to do online shopping? On which occasion you would like to prefer
online shopping
(e) In festival seasons
(f) Heavy discount time periods
(g) Depend upon mood/desire
(h) When needed
Bibliography:
Books:
The E-tail by Chris Anderson
Marketing Management by Philip Kottler
Marketing Management by K.Ashwathappa
Websites
Amazon.in
Flipkart.com
Managementstudy.com
Nykka.com
Shopclues.com