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A successful research involves stages where people are involved in converting a
research plan into a pragmatic report.

Hereby, we take this opportunity to express our deep gratitude to all those who
have contributed to the successful completion of this research project ³study of
online buying behavior among youth.´ Each contribution has been priceless as it
has enabled to us learn and made us to get an insight on the research problem.

We would like to express our sincere gratitude to Sinhgad Institute of


Management and its management to present us with an opportunity to undertake
this research.

We are sincerely great full to all our professors and our Director, who made us
worthy of being able to pursue such a challenging to successful completion.

Thanking You

Nimish Narayan

PankajKumarsoni

PawanKumar

Pradeepsangwan

Pritam Kumar pritam

Rahul Kumar

Raj kewlani

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Executive Theory 4-5
  
 6-10
Theoretical Foundation 6-7
Online Shopping In India 8
Rising Connectivity 8
Few Factors That Boost Online Shopping 8-9
Objective 10
Scope Of The Result 11
  
Literature Review 12-22
  
Hypothesis 23
  
   24-31
Research Strategy 24
Descriptive Research Method 24
Sample Design 25
Secondary Research 26
Primary Research 27
Sample Questionnaire 29
  
Data Analysis 32-38
  
Findings of the research 39-40
   
Conclusion 41-42
Bibliography 43
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The growing use of Internet in India provides a developing prospect for online
shopping. If E-marketers know the factors affecting online Indian behavior, and
the relationships between these factors and the type of online buyers, then they
can further develop their marketing strategies to convert potential customers
into active ones, while retaining existing online customers.

This project is a part of study, and focuses on factors which online Indian
buyers keep in mind while shopping online. This research found that
information, perceived usefulness, ease of use; perceived enjoyment and
security/privacy are the five dominant factors which influence consumer
perceptions of Online purchasing.
Consumer behavior is said to be an applied discipline as some decisions are
significantly affected by their behavior or expected actions. The two
perspectives that seek application of its knowledge are micro and societal
perspectives.
The online purchasing behavior of online shoppers and factor influencing online
shopping behavior and its future perspective. Internet is changing the way
consumers shop and buy goods and services, and has rapi dly evolved into a
global phenomenon. Many companies have started using the Internet with the
aim of cutting marketing costs, thereby reducing the price of their products and
services in order to stay ahead in highly competitive markets.
Companies also use the Internet to convey, communicate and disseminate
information, to sell the product, to take feedback and also to conduct
satisfaction surveys with customers. Customers use the Internet not only to buy


the product online, but also to compare prices, product features and after sale
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service facilities they will receive if they purchase the product from a particular
store. Many experts are optimistic about the prospect of online business.

In addition to the tremendous potential of the E -commerce market, the


Internet provides a unique opportunity for companies to more efficiently reach
existing and potential customers. Although most of the revenue of online
transactions comes from business-to-business commerce, the practitioners of
business-to-consumer commerce should not lose confidence. It has been more
than a decade since business-to- consumer E-commerce first evolved. Scholars
and practitioners of electronic commerce constantly strive to gain an improved
insight into consumer behavior in cyberspace. Along with the development of
E-retailing, researchers continue to explain E - consumers behavior from
different perspectives. Many of their studies have factors or assumptions which
are based on the traditional models of consumer behavior, and then examine
their validity in the Internet context.


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Internet is changing the way consumers shop and buy goods and services, and
has rapidly evolved into a global phenomenon. Many companies have started
using the Internet with the aim of cutting marketing costs, thereby reducing the
price of their products and services in order to stay ahead in highly competitive
markets. Companies also use the Internet to convey communicates and
disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not
only to buy the product online, but also to compare prices, product features and
after sale service facilities the will receive if they purchase the product from a
particular store. Many experts are optimistic about the prospect of online
business.
In addition to the tremendous potential of the E -commerce market, the Internet
provides a unique opportunity for companies to more efficiently reach existing
and potential customers. Although most of the revenue of online transactions
comes from business-to- business commerce, the practitioners of business -to-
consumer commerce should not lose confidence .It has been more than a decade
since business-to-consumer E-commerce first evolved. Scho lars and
practitioners of electronic commerce constantly strive to gain an improved
insight into consumer behavior in cyberspace. Along with the development of
E-retailing, researchers continue to explain E -consumersÄ behavior from
different perspectives. Many of their studies have posited new emergent factors
or assumptions which are based on the traditional models of consumer behavior,
and then examine their validity in the Internet context.
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The internet is relatively a new medium for communication and the information
exchange that has present in everyday life. The number of internet user is


constantly increasing which is also signifies that online purchasing is


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increasing. The rapid increasing is explained by the Internet has developed an


into a new distribution channel and online transaction are rapidly increasing.
This has created a need to under how the consumers perceive online purchasing.
Price, Trust and Convenience were identified as important factors. Price was
considered as to be a most important factor for a majority of the students. The
internet has created a paradigm shift of the traditional way people shop. A
consumer is no longer bound to opening a times or specific location. So he can
become active at virtually any time any place and purchase the products or
services.
The internet is considered a mass medium that provides the consumers with
purchase characteristics as no other me dium. Certain characteristics are making
it more convenient for the consumer compared to the traditional way of
shopping, such as the ability to any time view and purchase products visualize
the needs with products and discuss products with other consumers . Online
shopping is the process of consumer go through the when they decide the shop
on the internet. The internet has developed into a new distribution channel and
the evaluation of this channel. E-commerce has now identified. Using the
internet to shop online has become one of the primary reasons to use the internet
combined with searching for products and finding the information about them.
Therefore internet develop the h Companies also use the Internet to convey,
communicate and disseminate informatio n, to sell the product, to take feedback
and also to conduct satisfaction surveys with customers. Customers use the
Internet not only to buy the product online, but also to compare prices, product
features and after sale service facilities they will receive if they purchase the
product from a particular store. Many experts are optimistic about the prospect
of online business.
Due to the rapid development of the technologies surrounding the Internet, a
company that is interested in selling products from its web site will constantly
has to search for an edge in the fierce competition. Since there are so many
potential consumers, it is of the out most importance to be able to understand


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It is a fact that a great online shopping revolution is expected in India in the
coming years. There is a huge purchasing power of a youth population aged 18 -
40 in the urban area.
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If we observe the growth of Internet Subscribers from the above graph, it is
getting doubled year by year. The usage of internet in India is only 4% of the
total population. This is also getting increased day by day as the costs of
computers are decreasing and net penetration is increasing. The cost of internet
usage is also getting lower, with good competition among the providers. Wi -Fi
&Wimax system has also started in India. This will increase the usage as it goes
more on wireless internet. Indians are proving every 15 time that they can beat
the world when it comes to figures of online shopping. More and more Indians
are going to online shopping and the frequency of India¶s online buying
iscrossing the overall global averages.
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â Rapid growth of cybercafés across India

â Access to Information

â The increase in number of computer user¶s

â Reach to net services through broadband

â Middle-class population with spending power is growing. There are about

20million of middle-class population good spending powers. These people have

very little time to spend for shopping. Many of them have started to depend on

internet to satisfy their shopping desires


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±c The figures from IAMAI show that the internet users in India will grow
to 200million by 2010. Around 25% of regular shoppers in India are in
the 18-25 age groups, and 46% are in the 26-35 year range.
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±c Indian online matrimonial sector is worth around $230 millio n


±c Worldwide E-commerce is only growing at the rate of 28%, since India
being a younger market, the growth of e -commerce is expected at 51% in
the coming years.

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The management wants to study the effects of the individualism minus
collectives and uncertainty avoidance on internet shopping. Management
wants to know how this problem can be addressed and online shopping can be
promoted among masses. Management want s to find out the factors that hinder
the development of the online shopping in the eastern block of the world, the
intensity or degree of influence on the internet shopping. The management
also is interested to find out the ways and means which through these factors
affect the internet shopping in the negative manner. They also desired to study
the interrelation of these factors with each other and the combined effects of
these factors on internet shopping. The management also intends to isolate the
common factors that are not having any significant effect and to find the
reasons for the deviations in people¶s behavior with the same factors. The
management wants gather the data and analysis the trends in the indirect
shopping thus providing the base for future research.

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±cTo study the online shopping behavior of customers
±cTo study the factors influencing online shoppers and consumers
±cTo study the customer¶s level of satisfaction with regard to online
shopping
±cTo examine whether customers prefer online shopping to physical stores
±cWorldwide E-commerce is only growing at the rate of 28%, since India
being a younger market, the growth of e-commerce is expected at 51% in
the coming years.



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At any given time there are millions of people online and each of them is a
potential customer for a company providing online sales. Due to the rapid
development of the technologies surrounding the Internet, a company that is
interested in selling products from its web site will constantly has to search for
an edge in the fierce competition. Since there are so many potential consumers,
it is of the out most importance to be able to understand what the consumer
wants and needs. The importance of analyzing an d identifying factors that
influence the consumer when he or she decides to purchase on the Internet is
vital. Since the Internet is a new medium for there have been new demands set
by the consumer. That is why it is crucial for the online retailers to kno w what
influences the online consumer. Analyzing consumer behavior is not a new
phenomenon. The renowned marketing expert Philip Kotler has published
several works on the topic of consumer behavior theories. These theories have
been used for many years not only to understand the consumer, but also create a
marketing strategy that will attract the consumer efficiently Hence,
understanding and identifying the consumer is closely related to the directions a
company will take with their marketing strategy. Thes e theories can also be
applied to identify the online consumer and to create certain consumer
segments. However, some distinctions must still be made when considering
traditional consumer behavior and online consumer behavior.

Since online retailing is a new retailing medium and online consumer behavior
is diverse from traditional consumer behavior, one must identify what
influences the online consumer. Analyzing the process that the online consumer
goes through when deciding and making a purchase over the Internet, shows
some factors that consumers consider these factors need to be identified and
taken into account by online retailers in order to satisfy consumer demands and
compete in the online market.

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In his study on Analysis of consumer behavior online explainedthat the most


relevant behavioral characteristics of online consumers and examine the ways
they find, compare and evaluate product information. Comparison of the newly
collected survey data with the existing consumer behavior theory resulted in
detection of a number of issues related to a specific consumer group. The
purpose of this report is to translate these findings into a set of implementation
activities on strategic and technological level. Execution of these
recommendations will result in better conversion of visitors into customers and
encourage customer loyalty and referrals. The focus group of this study will be
young adults aged between eighteen and thirty -four interested in buying a
mobile phone or a related product

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In their study showed that there are product types, which are more likely to be
sold online such as software, books, electronics and music. Reason for this is
that when purchasing these types of products, one does not require personal
inspection and most, if not all features, can be outlined in the product
description and images. Most products in the mobile phone family belong to
this category. According to the recent research on consumer behavior on the
Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006), there are four
distinct consumer groups with different inte ntions and motivations 

Exploration
Entertainment
Shopping
Information

Music Videos, Lyrics - Daily updated collection of music videos and lyrics.
Majority of young adults interviewed for purpose of this research tend to be
active information seekers. A high level of technological confidence within this
group tends to be an encouraging factor when it comes to product information
research online. The following analysis presents both, focus group results and


behavioral theory in a parallel fashion divide d into two main research topics:
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Information Retrieval and Search Patterns Perception of Product Information


Online These two areas is mutually dependent and particularly important in a
market where consumers have the power to choose the right

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In their study The World Wide Web can change human behavior and human
interactions to a very large extent. Web based shopping behavior is one major
example to point out the trends in this direction. This study is of a very
exploratory nature and it intends to establish the differences between several
web- based shoppers from different parts of the world. Several critical factors
associated with online shopping behavior will be explored. A cross cultural data
set will be collected and an illustrative description of the shoppers will be
provided. As a final step the cross cultural differences between several shoppers
will be explored. One question which will run as a theme throughout the course
of this paper is, ³Will the traditional consumerbehavior theory and research be
altered by the advent of web based shopping?´

There is a huge difference between a physical store and its electronic


counterpart. A help button on the home page of the web -shopping site replaces
the sales clerks friendly advice and service. The familiar layout of the
physical store becomes a maze of pull down menus, product indices and search
features. Now more than ever, the promise of electronic commerce and online
shopping will depend to a great extent upon the interfa ce and how people
interact with the computer. At the same time, there are some inherent
difficulties in maintaining an online inventory. In a regular store, the managers
can pull out a product from the shelf if they feel that it is not fast moving or has
no demand. This is a privilege that cannot be extended to the online retail store. 

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In her study E-tailing is the practice of selling retail goods on the internet. It is
the abbreviated version of ³electronic retailing´ which essentially constitutes
business to consumer transaction. While the concept of online retailing or e -
tailing is no longer in its nascent stage; it continues to evolve, as advanced e -
commerce applications act as a potent catalyst in the development of e -tailing.
The idea of online retailing or e -tailing which almost every net-savvy individual


is familiar with; offers a convenient mode of shopping online and the consumer
gets to choose from a diverse range of products and services as opposed to the
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analogous physical shopping experience. Furthermore, online retailers or e -


retailers get to expose and sell their products to a global audience through their
e-stores. (Also termed as online stores, internet shops, web shops etc.)
The E-commerce industry plays a vital role in its growth and development. The
consumer or buyer is usually provided with detailed information and description
of the product which helps them make a judicious choice before making an
online purchase. For consumers who face a paucity of time or want a diverse
range of products to choose from, e-tailing proves to be an ideal option. Every
e-retailer wants his/her share of domain amidst the vast World Wide Web
galaxy. Due to the intense competitor quotient involved, every e -retailer out
there wants to offer their customer/buyer a smooth and pleasant shopping
experience. Therefore, e-tailing is just not restricted to putting up products for
sale for consumers to buy. As consumers today are well-informed, it is
understood that they would make a well informed decision as well. This
involves a fair amount of product research, price comparison and checking the
credibility of the e-store product from a number of competing suppliers. Well-
structured product information that cannot be found easily online is as much of
a problem as is having easily accessible information that does not meet the
consumer's expectations.

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In their study they showed that developed into a new distribution channel and
onlinetransactions are rapidly increasing. This has created a need to understand
how the consumer perceives online purchase s. The purpose of this dissertation
was to examine if there are any particular factors that influence the online
consumer. Primary data was collected through a survey that was conducted on
students at the University of Kristiansand.Price, Trust and Convenience were
identified as important factors. Price was considered to be the most important
factor for a majority of the students. Furthermore, three segments were
identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments we found a variation of the different factors importance and
established implications for online book stores .

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In their study of online customer experience. The survey found that online
customer experience reached an inflection point in 2009. The percent of
consumers who have experienced problems when conducting transactions
online showed its first substantial decrease in five years -- from approximately
87% in all previous Tealeaf surveys to 80% in 2009. While the percent of
consumers experiencing online transaction problems, at 80%, remains high (the
potential online shopping dollars impacted by transaction problems rings up at
$47.6 billion), this improvement points to a growing business focus on
delivering better customer experiences. The survey sheds light on forces driving
this accelerated online customer experience focus, including the down economy
and increased consumer power due to experience -sharing via social media. It
also examines consumer behavior when transacting online, call center behavior
related to online issues and mobile commerce. Verticals represented in the
findings include retail, insurance, travel and financial services
San Francisco, CA 6th October 2009 - the leader in online Customer
Experience Management software (CEM), today announced the results of the
5th annual survey of online consumer behavior, commissioned by Tealeaf and
conducted by Harris Interactive® [results available at www.te aleaf.com/Harris].
The survey found that 48% of U.S. online adults say that they are now
conducting more online transactions than they did in the past given the current
economic climate. However, 80% of adults who have conducted an online
transaction in the past year experience problems when doing so in 2009.
Previous Tealeaf surveys have consistently shown that approximately 87% were
affected.
This improvement over prior years may be attributed to a growing business
focus on delivering better online custo mer experiences. While this reported
decline in online transaction issues is good news, online customer experience is
still very much a work in progress. The percentage of consumers affected by
issues such as error messages (38%), endless loops (19%) and login problems
(28%) is still extremely high.1 Further, the resulting business impact is
significant, as 32% of those who experience issues when conducting
transactions online would simply take their business elsewhere (to either an
online or offline competitor) or abandon the transaction entirely. In 2009, $47.6
billion will potentially be impacted by online transaction problems, on U.S.


shopping websites
Alone.
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In their study on Online shopping is an innovative option of distribution


available in the hands of marketers. It is innovative and creative because
marketers can experiment with it in form, content, visibility and availability. In
India online shopping is considered as a relevant alternative channel for
retailing and it is now an important part of the retail experience. This research
study is an empirical study to find out the motivators and decisional influencers
of online shopping. The sample has been selected from the youth population as
this group of people actually use internet to buy online. The study highlights
that reliability; accessibility and convenience are the major motivator factors
which motivate the Indian consumer to buy online. Similarly, reluctance and
preference are the two decisional factors which influen ce the decision.

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In their study Internet retail sales represent a new andincreasingly vital


commercial milieu. E-commerce or electronic commerce saw sales revenues
grow 12.1 percent in 2001 to $31.4 billion a figure expected to reach $81.1
billion by 2006 (Kamali&Loker, 2002). While it is clear that many more
consumers are electing to shop online than in the past a shift in behavior that
may be due to the sense that online shopping is safer and more secure than it
was initially and to the adoption of alternative shopping avenues. This essay
will examine these issues, arguing that browsers become buyers in cyberspace
as perception of safety, product quality, and retailer reliability increase an idea
also advanced by Li, Luo, Lepkowaska-White and Russell .
Atanasov (2001) in their study it is anticipated that the worldwide market for
business- to-business and business-to-consumer e-commerce will total $3.1
trillion in 2004 as compared to $350.4 billion in fiscal 2000 -2001. Among the
most profitable products and services sold online are consumer goods such as
books, videos, music, computers and other tech products, and travel
(Schmerken, 2001). Other profitable sectors include investment transactions,
which Schmerken (2001) considers to have generated a wave of corporate
spending on e-commerce. The Internet and its myriad e -commerce or marketing
sites, represents what researchers believe to be the security concerns of online
shoppers and potential shoppers. These researchers and others reported that
online buyers are also concerned about security issues when making online
purchases. Though many consumer concerns regarding the inherent safety of
financial transactions online have been resolved through the development of


sophisticated encryption programs, many 25 consumers require additional


assurance that their financial data will be held in confidence. Other security
issues that were identified by Mauldin and Arunachalam (2002) focus on
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retailer disclosures, information risk, product risk, and familiarity with the
retailer and the product. Generally, Mauldin and Arunachalam (2002) found that
intent to purchase rather than merely browsing online increases in direct
association with a sense of security and comfort. Retailers who offer their
products online are therefore advised to emphasize product disclosure and
retailer disclosure and reduced information risk in their e -commerce sites.
Though most online retailers do provide clear descriptions of security
procedures, some Internet shoppers still avoid using credit cards online.
Overcoming resistance to this fear is one of the key tasks that must be under
taken.

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In their study they evaluates women's attitude as an overall inclination towards


apparel shopping online via e-mail questionnaire. Its findings suggest that
women generally show positive attitudes towards shopping online for apparel.
Women who shop for apparel online are aware of some of the discouraging
features of online shopping, but these features do not deter them from buying
online. The implication for online retailers is that they should focus on making
the experience of online shopping more accommodating and more user -friendly.
This is important because the positive features of online shopping
('convenience', 'usefulness', 'ease of use', and 'efficiency') appear to be more
important than the negative features ('lack of security', 'privacy of information'
and 'online fraud').


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In their research it provides a useful framework tohelp business marketers


identify the effect of consumer online purchase costs on firm performances in
online and traditional channel competition. A game theory model is developed
to determine the optimal strategies for online and tradi tional retailers. We
demonstrate that consumer online purchase costs always have a valuable impact
on firm profits, and further show that consumer online purchase costs always
have a much more valuable impact on firm profits whenever the traditional
retail transaction costs and the product web -fit change. We also find that
consumer online purchase costs have a greater impact on the retailer's profits in
a Stackel berg competitive system than in a Bertrand competitive system. Based
on our results, managerial implications are discussed and probable paths of
future research are identified.

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In their research paper they discuss online shopping in context of diffusion of


innovation theory. It proposes that online shopping is a discontinuous
innovation whose adoption rate is influenced by several of Rogers' (2004)
diffusion deterrents. A new 12-item 'Computer Competence Index' (CC I) is
proposed and tested using data from an internet- administered US probability
study of 1800 online users. EShoppers are profiled using a tactile split of the
CCI. Each turtle¶s demographics, computer activities, computer - oriented
lifestyles, and online purchase activities are reported. Evidence is presented that
Concepts related to the diffusion of innovation may explain resistance in the
growth of online shopping.

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In their research paper aims to identify the impact of demographics on


consumer buying behavior towards online purchase of different products based
on the involvement and investment (High, Medium and Low). It attempts to
unearth the impact of the demographi cs on online purchase which is at present
relatively limited. It would help the marketers to identify the demographic
profile of consumers which is otherwise not known due to the intangible nature
of internet. The findings would help the marketers to desig n their offerings
based on the demographic profile of online consumers and would help the
online marketers to identify and segment the online consumers which will
enhance their focus and eventually leads to financial growth.

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In their study in traditional auctions, it is often assumed that bidders are a


homogenous group. However, since most online bidders are average consumers
instead of professional bidders, we suspect that online bidders are a
heterogeneous group. The purpo se of this paper is to explore the types of online
bidders based on their real biddingbehavior in the context of consumer-to-
consumer online auction market. A cluster analysis is employed and four types
of online bidders are finally identified in a private value auction, namely, goal -
driven bidders, experiential bidders, focused bidders, and opportunistic bidders.
The profile and performance of each group are also discussed.

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In their study to investigate what kind of information contributes to trust


formation in online shopping. Twenty-seven female undergraduate students
were recruited and asked to evaluate the trustworthiness of 20 online shopping
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websites. All the online shopping websites dealt with branded products where
there is greater emphasis on the trustworthiness of online shops or products. The
results show that information described on the websites was classified into two
categories, firstly, information about the shop and its procedures and services.
Secondly, the concrete information necessary for the consumption process, such
as payment information and return information, which heightens the reliability
of these shops. The term ³brand´ originally refers to a ³description or
trademark which indicates a type of product made by a particular company.´
However, in modern Japanese society it refers to those branded products that
are perceived to have a higher quality than other similar products. Thus, the
term ³brand´ authenticates that its products belong to a high -class,and the
people who possess these branded products are regarded as ³exclusive people´
Through the ³basking-in-reflected glory process´ (Cialdini, Borden, Thorne,
Walker.

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The branded products interest female young people and recently they have been
more inclined to purchase them via online shopping. However, they tend to
refrain from purchasing these products via online shopping due to their distrust
of it. Consequently, it becomes more and more important to analyze what kind
of information contributes to trust formation in online shopping. Female
Undergraduate Students Attitudes toward Branded Products First, we
introduce several surveys for determining the attitude toward s, and ownership
of, branded products among female young people, especially female
undergraduate students in Japan, who are the target group of this study. Info
plant (2007) showed that nearly half of all people are interested in some
branded products. Although branded products generally attract the attention of
various kinds of people, young females are especially interested in branded
products. Info plant (2007) revealed that more than 60% of females fewer than
20 years of age and nearly 80% of females in their twenties have purchased
some branded products. Furthermore, the percentage of people who usually buy
new branded products is about 20% among females under 20 years of age and
more than 10% in females in their twenties.
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In their research carried out by a consumer behavior researcher at Henley


Management College has investigated what drives people to search online. The
findings reveal that convenience, time -efficiency and personal control are the
key drivers for consumers to search online, rather than cost. It also shows that
the relationship between traditional and online retailing outlets needs to be more
unified E-shopping has changed the face of retail, and surfers are now looking
for spring sale bargains. This is following a bumper e-Christmas, where Internet
shopping soared almost 50% during the 10 -week run-up to Christmas 2005
(IMRG).
However, the new findings reveal that convenience and personal control are
the key drivers for consumers to search online. Dr Susan Rose, from Henley
Management College, said: ³What motivates online shoppers is the ability to
shop, where, when and how they like. Nowadays people can shop over their
Shred dies in the morning. The research, that analyses data from 304 electrical
goods Internet shoppers, provides businesses with a guide to getting the
information highway buzzing with potential customers. Big -ticket items such as
digital TVs, cameras, or iPods now feature on our e- shopping list. The Internet
provides a rich source of informa tion about brands and retail channels that
enable us to search and find information to help us with our final purchase
decision. For businesses there are some steps to help them embrace the Internet
revolution with success. A key factor driving Internet use for Äonline window
shopping is its usefulness in our personal lives. The Internet frees time and
makes the information search process, Research suggests that people search
online for some goods, yet buy from a traditional high street retailer, or look
around for goods in shops, then take their search online. In turn, it is essential
for retailers who operate both on and off line to ensure that they embrace a
joined up process that appears seamless to the customer. Some retailers have
still to successfully unite the two retailing methods - this is key to contemporary
customer service. Factors such as how much the medium challenges us mentally
and our confidence to navigate and understand the technology can turn us on or
off the idea of browsing online for products. A clear divide is appearing
between the occasional online shopper and the regular experienced user.
Concerns about how easy the system is to use have almost disappeared for
online shopping enthusiasts, but for occasional users e -retailingsites need to be
easy to navigate. Websites must be accessible and operate efficiently. The
research found that the expectation of getting a good financial deal is still a
strong motivator to seek out products online, but this is secondary to the
importance but, many people steer clear of electronic buying because of security
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worries. Only once online retailers can reassure customers about fraud and
privacy, will the online shopping curve really take off. Worries about the risk
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involved, in terms of financial transaction and privacy remain. A move from


big brands to Äbargains may only take place once.

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In their study The World Wide Web can change human behavior and human
interactions to a very large extent. Web based shopping behavior is one major
example to point out the trends in this direction. This study is of a very
exploratory nature and it intends to establish the differences between several
web- based shoppers from different parts of the world. Several critical factors
associated with online shopping behavior will be explored. A cross cultural data
set will be collected and an illustrative description of the shoppers will be
provided. As a final step the cross cultural differences between sev eral shoppers
will be explored. One question which will run as a theme throughout the course
of this paper is, ³Will the traditional consumerbehavior theory and research be
altered by the advent of web based shopping?´
There is a huge difference between a physical store and its electronic
counterpart. A help button on the home page of the web -shopping site replaces
the sales clerks friendly advice and service. The familiar layout of the
physical store becomes a maze of pull down menus, product indices and search
features. Now more than ever, the promise of electronic commerce and online
shopping will depend to a great extent upon the interface and how people
interact with the computer. At the same time, there are some inherent
difficulties in maintaining an online inventory. In a regular store, the managers
can pull out a product from the shelf if they feel that it is not fast moving or has
no demand. This is a privilege that cannot be extended to the online retail store.

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In her study E-tailing is the practice of selling retail goods on the internet. It is
the abbreviated version of ³electronic retailing´ which essentially constitutes
business to consumer transaction. While the concept of online reta iling or e-
tailing is no longer in its nascent stage; it continues to evolve, as advanced e -
commerce applications act as a potent catalyst in the development of e -tailing.
The idea of online retailing or e -tailing which almost every net-savvy individual


is familiar with; offers a convenient mode of shopping online and the consumer
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gets to choose from a diverse range of products and services as opposed to the
analogous physical shopping experience. Furthermore, online retailers or e -
retailers get to expose and sell their products to a global audience through their
e-stores. (Also termed as online stores, internet shops, web shops etc.)
The E-commerce industry plays a vital role in its growth and development. The
consumer or buyer is usually provided with detailed information and description
of the product which helps them make a judicious choice before making an
online purchase. For consumers who face a paucity of time or want a diverse
range of products to choose from, e-tailing proves to be an ideal option. Every
e-retailer wants his/her share of domain amidst the vast World Wide Web
galaxy. Due to the intense competitor quotient involved, every e- retailer out
there wants to offer their customer/buyer a smooth and pleasant shopping
experience. Therefore, e-tailing is just not restricted to putting up products for
sale for consumers to buy. As consumers today are well-informed, it is
understood that they would make a well informed decision as well. This
involves a fair amount of product research, price comparison and checking the
credibility of the e-store


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1.c Internet shopping adoption rates are higher for countries with relatively
lower uncertainty avoidance levels.
2.c Internet shopping adoption rates are higher for individualists than for
collectivist countries.
3.c For countries with relatively high uncertainty avoidance levels,
individualism-collectivism shows little impact on internet shopping rates.
4.c For countries with relatively low uncertainty avoidance level s, the
individualist¶s countries shows higher internet shopping adoption rates
than the collectivist countries.
5.c Internet shopping may be more prevalent in the category of goods with
low risk rates with respect to quality. People who are willing to
experiment may be frequent users of the service.
6.c Their likings and disliking about traditional shopping methods may
define their preferences. Their individual needs define their preference.
7.c Satisfaction levels can be affected by various things like security systems
offered, requirements of the consumers, variety of goods etc«



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Data for this study was collected by means of a Survey conducted in Pune. The
sample size was 500.The Questionnaire was used mainly to test the model
proposed for Attitude towards online shopping. The type of research was both
exploratory as well as Descriptive. We took around fourteen different factors by
studying the existing models of consumer attitudes that play an important role in
online purchase, and then proposed a model leading to online shopping. This
model was then tested in our research by the mode of factor analysis in SPSS.

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

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We will conduct our research in order to collect primary data and


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


Convenience have on Online Consumer Segments.


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The factors that we intended to examine can be applied to and
investigated at any population that uses the Internet and buys online
products Online. Since there are time and resource restraints, a
specific Population had to be identified in order to generalize and
create relevant segments. We decided that the sample size should
contain over 500 respondents and we collected answers from 500
respondents. The populations for this research were at Pune, chosen
on a convenience basis.Convenience sampling involve s using samples
that are the easiest to Obtain and is continued until the sampling size
that is need is reached. We will attempt to collect as many respondents as
possible but since we will be studying students we assume that there will be
little variation in the population making it more approved to generalize the
response rates. The sampling method for students took also place on a
Convenience basis since the students that agree to answer the questionnaire are
those that were chosen.

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Descriptive Research.

Sample Size -500.



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Our secondary research includes:

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Secondary research was undertaken for the project as a summary or collection


of existing data. As the problem was somewhat defined but to reach specific
hypothesis secondary data analysis was also undertaken.

The secondary sources include previous research reports, newspaper, magazine


and journal content, and government and NGO statistics. The secondary
information and data was required in the preliminary stages of research to
determine what is known already and what new data are required, or to inform
research design.

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For the research problem at hand we had studied various secondary sources so
as to define the problem more precisely. There were number of blogging sites
viewed which conveyed that there is still little uncertainty among the users
regarding internet shopping so we decided to test how uncertain the consumer
are towards online shopping through are primary research. News, articles from
variety of sources provided statistical information regarding the growth of
³citizens´ in India. Indians have been now logging in to the internet for several
purposes; internet shopping is surely one of them. Moreover several reports
conducted internationally such as Nielsen, India has emerged as the 3rd biggest
nation when it com to online shopping and using acre dit card online. Drawn by
the facilities offered by the web and the diversity of products available on it,
Indian citizens have emerged as the third biggest credit card users globally for
online purchasing, next only to the turkey and Ireland. But there is also a lot of
research released that suggests websites are failing to persuade people to buy,
and to convert them into customers, due to the lack of information available.
Persuading people to buy online is about being able to answer their questions
and to remove the hurdles blocking the sale.

The statistics and research project had generated our interest to further see the


scope of internet shopping in India through primary research.


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Design to focus group interviews were conducted among consumers with


different degrees of experience with internet shopping. This diversification of
respondents was chosen to capture a broad range of the consumer believes that
predict intentions to buy goods online or not. One group was conducted as a
respondent moderator group and second as a telesession group.

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An important potential limitation of theses research is the choice of focus


groups as research methodology, which can prevent the elicitation of certain
types of beliefs. If important beliefs concern issues of a more sensitive, personal
character they are not likely to be maintain in a focus group. Another limitation
is the explorative nature of the research, which makes it impossible to attach
weights to the importance of the elicited beliefs in predicting internet shopping
behavior.

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The findings could be used to direct attention to consumer beliefs about internet
shopping which have the potential of acting as barriers to this line of e -
commerce.

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We designed aquestionnaire to know about the experiences of the consumers to


get a better insight into their mindset about internet shopping. It covered some
of the basic points which come across hour mind when we think of internet
shopping. We had a sample size of 500 and we got them administered into
waved:-

ßc Personal Contact:-
We personally contacted individuals and got the questionnaires filled up.
ßc Through mail:-
We mailed it to our know contacts and got their replies through mail


itself.
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The questionnaires which were incomplete where ignored. We got around


520 replies in all which were cut down to 500 on basic on completeness.
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à c To evaluate the scope of internet shopping websites and determine
the perceptions of consumer about it. Also determine how much popular
it is in India.

#    c You can select multiple options if not specified.

1.cAge:-

[ ] 15-20 yrs.[ ] 20-25 yrs.[ ] 25-30 yrs.


[ ] 30-40 yrs.[ ] more than 40

2.c Gender:-
[ ] Male [ ] Female

3.c You are living in:-


[ ] Rural [ ] Urban
[ ] Semi Urban [ ] Metro c ity

4. Occupation:-

[ ] Agriculture [ ] Student [ ] Government Employee

[ ] Private company employee [ ] Business

[ ] other

5. Monthly Income:-

[ ] 5,000 to 10,000 [ ] 10,000 to 20,000

[ ] 20,000 to 30,000 [ ] More than 30,000


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6. Do you have your own Internet Connection?

[ ] Yes [ ] No

7. Have you purchased anything online ever?

[ ] Yes [ ] No

8. What motivates you to buy online?

[ ] easy payment [ ] no hidden cost

[ ] wide range of product[ ] no traveling cost

[] if other please specify«««««««««

9. Since how many years are you buying online?

[ ] 0-1 years [ ] 1-3 years [ ] 3-5 years

[ ] more than 5 years

10. Have you purchased product/service for :- [ ] Own use


[ ] for family members

[ ] if other please specify «««««««

11. How much time per week, do you spend in surfing the web?

[ ] 0-5 hours [ ] 5-10 hours [ ] 10-15 hours

[ ] 15-20 hours [ ] more than 20 hours


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12. Did you face any problem while making an online purchase?

[ ] yes [ ] no

If yes please specify««««««««

13. Are you satisfied with your online shopping experience?

[ ] Highly satisfied [ ] Satisfied [ ] neutral

[ ] Dissatisfied [ ] Highly Dissatisfied

14. What type of goods you are purchasing online?

[ ] Books

[ ] Computer Hardware

[ ] Computer Software

[ ] Events Tickets

[ ] CDs/DVDs

[ ] Toys

[ ] Clothing

[ ] Electronics

[ ] Jewelry

[ ] Sporting Goods

[ ] Others

If other please specify«««««««««



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Mc E-selling has immense scope as its potential has not yet been tapped.
Mc Initial curiosity is there as people are willing to experiment an initiative
have to be taken to convert visitors into buyers.
Mc Perceptions are very rigid, 60% of those who don¶t do online shopping
discard the future prospect also.
Mc Risk and possibility of forgery are the main concept of customers.
Mc The customers are attracted most by discounts, value for money.
Mc Various aspects regarding security affect the customer perception the
most.

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Mc The major factors remain the lack of user friendly shopping portals in
India.
Mc Most of the times the business giants tend to forget that the psychology of
Indian shoppers differs from rest of the world. It is not always that the
shopper decides to buy something and log on to the shopping portals.
Mc Indian shoppers like to roam around and if anything particular of interest
catch their attention they think of buying it.
Mc Then there should be option for comparative and group shopping as we
youth like to discuss and talk to friend and relatives about the product
before buying it.
Mc Then there is a ³touch and feel factor´ which never seems to stop playing
at back of mind of the shoppers. These is where the trust factor comes in
as in µwhat if you don¶t get what I see online?¶, µwhat if the product is
defective«.¶,¶can it be exchanged for the good one¶ one cannot rule out
these factors while taking success of E-commerce in India.
Mc Then there is shipping process«.. Most of the sites tend to charge a lot
for shipping the product to your place.
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Mc an unexpected result of the explorative study was the view of the 2
groups consisting of more less experienced internet shoppers varied only
a little in there pool of beliefs (outcome and control beliefs).
Mc Beliefs about internet shopping positive as well as negative were
remarkably congruent across groups. In the minds of consumers, internet
shopping is an advantage compared with conventional shopping in terms
of continence, product range and price.
Mc Disadvantages, which could act as mental barrier, are, for instance, the
risk of receiving inferior quality groceries and the loss of the recreational
aspect of traditional shopping. Internet shoppers are buying from the
internet because it¶s a fastand convenient way to buy.

Internet experience was positively related to the amount of time spent on line.
User with more experience used internet more frequently and had longer
sessions.

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Mc Consumers are not averse to online shopping but have certain security
issues which have to be tackled.
Mc It is a popular as a medium of buying but customers need greater level of
assurance to become habitual to it.
Mc Almost everyone is aware of the benefit of online shopping and most do
visit also but it¶s now time to take steps to convert visitors into buyers.
Mc Satisfaction level varies with the amount of guarantee offered and
features of a particular sites. Satisfactions levels are surely affected by
many things such as security system offered, requirement of the
consumer, variety, authenticity, speed of delivery etc. traditional
shopping methods preferences is dictated by individual needs as well.
What consumer look for in traditional shopping methods has to be there
in internet shopping methods also? Therefore internet shopping methods
is dictated by individual needs as well. Only few goods were seen upon
with trust by those who had already had the experience of the service.
Mc Therefore the hypothesis is proved up to a small degree.


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0$ 
 &(
http://analogik.com/article_analysis_of_consumer_behaviour_online.asp
[27april 2010]
http://www.essays.se/essay/e1fb0c636f/ [13april 2010]
http://www.tealeaf.com/Harris/[12april]
http://inderscience.metapress.com/app/home/contributio n.asp?referrer=parent&
backto=issue,2,6;journal,15,40;linkingpublicationresults,1:110844,1[11april
2010]
http://www.inderscience.com/search/index.php?acti on=record&rec_id=32383&
prevQuery=&ps=10&m=or1m[12 may 2010]
(International Journal of Business Innovation and Research 2010 - Vol. 4, No.3
pp. 195 - 209)
http://www.lotsofessays.com/viewpaper/1693412.html [11april 2010]
http://www.inderscience.com/search/index.php?mainAction=search&action=rec
ord&rec_ id=11032&prevQuery=&PS=10&m=or [22april [11april 2010]
(International Journal of Electronic Marketing and Retailing 2006 - Vol. 1, No.2
pp. 169 - 182)
http://www.inderscience.com/search/index.php?mainAction=search&action=rec
ord&rec_ id=11032&prevQuery=&PS=10&m=or [2 may 2010]
(International Journal of Electronic Marketing and Retailing 2006 - Vol. 1, No.2
pp. 169 - 182)
http://www.inderscience.com/search/index.php?mainAction=search&action=rec
ord&rec_ id=10096&prevQuery=&PS=10&m=or [8 may 2010]
(International Journal of Electronic Marketing and Retailing 2006 - Vol. 1, No.1
pp. 67 - 82)
http://www.inderscience.com/search/index.php?mainAction=search&action=rec
ord&rec_id=19151&prevQuery=&PS=10&m=or
(International Journal of Internet Marketing and Advertising 2008 - Vol. 4, No.4
pp. 302 - 327) [1 may 2010]
http://www.inderscience.com/search/index.php?mainAction=search&action=rec
ord&rec_ id=27851&prevQuery=&PS=10&m=or [2 may 2010]
(International Journal of Electronic Finance 2009 - Vol. 3, No.3 pp. 284 - 296)
http://www.inderscience.com/search/index.php?mainAction=search&action=rec
ord&rec _id=14847&prevQuery=&PS=10&m=or [16 april2010]
(International Journal of Electronic Marketing and Retailing 2007 - Vol. 1, No.4
pp. 322 - 338)
http://www.cyberpsychology.eu/view.php?cisloclanku =2009111002&article=6#
authors[22 may 2010]


http://www.innovationsreport.com/html/reports/social_sciences/report54694.ht
ml 22april 2010]
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