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Enroll. No.-1103102183
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CERTIFICATE
This is to certify that Project Report entitled ONLINE SHOPPING BEHAVIOUR which is
submitted by Pradeep Kumar Tiwari in partial fulfillment of the requirement for the award of
degree MBA in Department of School of Business from Galgotias University, is a record of
the candidate own work carried out by him under my supervision. The matter embodied in
this thesis is original and has not been submitted for the award of any other degree.
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ACKNOWLEDGEMENT
This research is the final dissertation for MBA at the University of Galgotias
University,during the the winter term of 2013.
Firstly, I would like to thank Dr. Hemraj Verma for her invaluable support, guidance and
availability throughout the course of this project.
In addition, I would like to thank all the participants for sparing the time to take part in the
questionnaire.
Finally, I would like to express my love and appreciation to my parents. I also do not like to
miss the opportunity to acknowledge the contribution of all faculty members of the
department for their kind assistance and cooperation during the development of my project.
Last but not the least, we acknowledge our friends for their contribution in the completion of
the project.
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DECLARATION
I, Pradeep Kumar Tiwari, Enroll. No.-1103102183, student of MBA of School of Business,
Galgotias University, Greater Noida, hereby declare that the project report on ONLINE
SHOPPING BEHAVIOUR is an original and authenticated work done by me. The project
was completed between 01.02.2013 to 15.04.2013.
I further declare that it has not been submitted elsewhere by any other person in any of the
institutes for the award of any degree or diploma.
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TABLE OF CONTENT
CHAPTER
NO
1
2
TOPIC
PAGE NO
INTRODUCTION
6
9
LITERATURE REVIEW
3
RESEARCH OBJECTIVES
13
15
HYPOTHESIS
16
16
RESEARCH METHODOLOGY
17
18
RESEARCH METHODS
18
METHOD SELECTION
18
QUESTIONNAIRE DESIGN
19
20
HYPOTHESIS
26
33
34
CONCLUSION
34
RECOMMENDATION
35
BIBLIOGRAPHY
36
APPENDIX
38
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CHAPTER ONE
INTRODUCTION
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INTRODUCTION
The internet is being developed rapidly since last two decades, and with relevant digital
economy that is driven by information technology also being developed worldwide. After a
long term development of internet, which rapidly increased web users and highly speed
internet connection, and some new technology also have been developed and used for web
developing, those lead to firms can promote and enhance images of product and services
through web site. Therefore, detailed product information and improved service attracts more
and more people changed their consumer behaviour from the traditional mode to more rely on
the internet shopping. On the other hand, more companies have realized that the consumer
behaviour transformation is unavoidable trend, and thus change their marketing strategy. As
the recent researches have indicated that, the internet shopping particularly in business to
consumer (B2C) has risen and online shopping become more popular to many people.
According to the report, The Emerging Digital Economy II, published by the US Department
of Commerce, in some companies, the weight of e-commerce in total sales is quite high. For
instance, the Dell computer company have reached 18 million dollars sales through the
internet during the first quarter of 1999. As a result, about 30% of its 5.5 billion dollars total
sales were achieved through the internet (Moon, 2004). Therefore, to understand internet
shopping and its impact on consumer behaviour could help companies making use of it as a
form of doing e-business.
There are many reasons for such a rapid developing of internet shopping, which mainly due
to the benefits that internet provides. First of all, the internet offers different kind of
convenience to consumers. Obviously, consumers do not need go out looking for product
information as the internet can help them to search from online sites, and it also helps
evaluate between each sites to get the cheapest price for purchase. Furthermore, the internet
can enhance consumer use product more efficiently and effectively than other channels to
satisfy their needs. Through the different search engines, consumers save time to access to the
consumption related information, and which information with mixture of images, sound, and
very detailed text description to help consumer learning and choosing the most suitable
product (Moon, 2004). However, internet shopping has potential risks for the customers, such
as payment safety, and after service. Due to the internet technology developed, internet
payment recently becomes prevalent way for purchasing goods from the internet. Internet
payment increase consumptive efficiency, at the same time, as its virtual property reduced
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internet security. After service is another way to stop customer shopping online. It is not like
traditional retail, customer has risk that some after service should face to face serve, and
especially in some complicated goods.
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CHAPTER TWO
LITERATURE REVIEW
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LITERATURE REVIEW
E-Business probably began with electronic data interchange in the 1960s (Zwass, 1996).
However, (Melao, 2008) suggests that it was only in the 1990s, primarily via the Internet, that
e-Business has emerged as a core feature of many organizations. In his opinion, the hope was
that e-Business would revolutionize the ways in which organizations interact with customers,
employees, suppliers and partners. Some saw e- Business as part of a recipe to stay
competitive in the global economy.
Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan, Moez
Limayem,(2002) The topic of online consumer behavior has been examined under various
contexts over the years. Although researchers from a variety of business disciplines have
made significant progress over the past few years, the scope of these studies is rather broad,
the studies appear relatively fragmented and no unifying theoretical model is found in this
research area. In view of this, provide an exhaustive review of the literature and propose a
research framework with three key building blocks (intention, adoption, and continuance) so
as to analyze the online consumer behavior in a systematic way. This proposed framework
not only provides us with a cohesive view of online consumer behavior, but also serves as a
salient guideline for researchers in this area.
Burke, R.R. (2002), Trust is a key factor that determines the success of Business to
Consumer (B2C) e-commerce transactions. Previous researchers have identified several
critical factors that influence trust in the context of online shopping. This research focuses on
available security measures which assure online shoppers safety and great sales promotions
and online deals which stimulate customers to shop online.
Abel Stephen (2003) in his paper represents the findings of research studies that address ecommerce design and associated consumer behavior. The innovation of e-commerce has
affected not only the marketplace through the facilitation of the exchange of goods and
services, but also human behavior in response to the mechanisms of online services.
Researchers have identified and hypothesized on relevant subject matters ranging from Web
usability, marketing channels and other factors influencing online buying behavior. Though
researchers have focused on what appear different aspects of online buying behavior, their
studies may be shown to be interrelated and interdependent, even to the extent of revealing
constructs upon which e-commerce, in terms of future design and research, could be built.
Balasubramanian, S., Konana, P. and Menon, N.M. (2003), In this environment, some
traditional service quality dimensions that determine customer satisfaction, such as the
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This chapter will begin with the briefly talk about the traditional landscape of shopping, and
following the principles of consumer shopping behaviour. Through indicated that, the essence
of internet shopping consumer behaviour will be indicated in the second section.
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CHAPTER THREE
RESEARCH OBJECTIVES
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RESEARCH OBJECTIVES
AIMS AND OBJECTIVES
It is clear from the overview of internet and internet shopping development that ecommerce
is being used in many corporations due to the dramatic development of technology and
competitive advantages of web selling. Moreover, the expansions of the usage by individuals
also become main contributors to the development of internet shopping.
Relatively few studies have investigated in the internet shopping and impact on consumer
behaviour. The previous studies are more focus on the markers point of view, such as how to
establish a more efficient marketing channel online rather than the traditional offline channel.
Therefore, this research will combines with previous studies from literature reviews, and
focus on the impact of the internet shopping on consumer behaviours to find out a
comprehensive analytical framework which showing the essential ingredient of marketing
and business to satisfying the consumers needs, and a deeply understanding of online
consumer behaviour as a reference for any e-commerce company to make marketing
strategies.
By carry out this work, the following research questions will be answered:
1) Recent status related to internet shopping in the INDIA.
2) The impacts of factor of Internet shopping influence online consumer behaviours.
3) Through analyze data collected from the questionnaire survey to indicate the current online
consumer behaviours.
4) Examine the business strategies affect online consumer behaviour in conclusion, and
applications and recommendations for future research.
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CHAPTER FOUR
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CHAPTER FIVE
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
PARTICIPANTS & APPARATUS
The survey was taken in INDIA, by sending questionnaire as many as possible. Only those
participants who have completed the questionnaire will be accounted as valid survey. There
are 55 participants who have completed the questionnaire.
Computers with facilities for internet access, Google Drive were used to perform the survey,
and use SPSS software and Microsoft Office Excel to do statistic and data analysis.
RESEARCH METHODS
The research method of this study is a survey research, which collect information from
participant through a questionnaire. The purpose of this research is to analyse the current
And future behaviours from consumers to help marketing manager making strategies
according feedback from participants. These behaviours include attitudes, believes, attribute,
motivation and behaviour of sampled participants, and that will be taken on a series of
measurements based on specific research point. After questionnaires sent out, and later
collected data from feedbacks, the quantitative research method will be used in this research.
Researchers then use SPSS and excel programmes help to analyse the outcome from the
samples and generalize the conclusion in whole points of view of consumer behaviour. In
addition to the collected data, some other data such as it from official reports of governments
or organizations will also be used to assist complementarities of research.
METHOD SELECTION
This section is dedicated to selection of research method in this paper. The research methods
can be classified in many ways, but the most common difference is between qualitative and
quantitative approaches. Qualitative research method can be broadly defined as any kind of
research that produces findings not arrived at by means of statistical procedures or other
means of quantification (Strauss and Corbin, 1990). It also can be simply says that this
research method is non quantitative. In contrast, quantitative research method deal with
measurable characteristics by using structured questions (e.g. questionnaire) and a formalised
procedure of data collection.
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QUESTIONNAIRE DESIGN
The design of questionnaire is very rely on what data need to be collected and how to analyze
the data, and the questions asked in the questionnaire are need to be defined prior to data
collection. According to the aims and objectives of this study, the questionnaire was
conducted to collect data about the impacts of Internet shopping on consumer behaviors
within the summarized framework in associated with the respondents online shopping
experience. From this survey, there are following information will be gathered,the
respondents experience of Internet use, the purpose of using Internet, the product categories
which consumers purchased online, attitudes to Internet shopping, and feedback for Ecommerce web sites. In addition, some demographic data will also collect from the
respondents, such as gender, ages, and employment details. In the respect of how it is going
to be administered, all of the questionnaires are sent by Google Drive and thus these
questionnaires are completed by the respondents themselves, and the answering process is
totally without any of intervention from the researcher. After the questionnaire sent out, the
return of such questionnaires are very accordingly. Moreover, there are some factors of doing
questionnaires in this research. For example, the questionnaire have to taking a long time to
collect, and the time available to complete the data collection and entry is quite limited.
After the survey finished and all the data gathered, some of the questionnaires may not
acceptable for research due to the lack of answers for the important questions. In the most
cases it can enable researchers to reduce the amount of data needed to collect in order to keep
the result reliable. The complete questionnaire is given at the end (Appendix).
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CHAPTER SIX
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Yes 55 100%
No 0 0%
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0 0%
2 4%
2 4%
24 44%
27 49%
How often do you use the Internet for the following purpose? [Search product info]
Very often
Often
Occasionally
Never
36 65%
12 22%
7 13%
0 0%
How often do you use the Internet for the following purpose? [Surfing (e.g. read
news/articles)]
Very often
Often
Occasionally
Never
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34 62%
20 36%
0 0%
1 2%
How often do you use the Internet for the following purpose? [Chatting (e.g. MSN / ICQ)]
Very often
Often
Occasionally
Never
25 45%
16 29%
12 22%
2 4%
How often do you use the Internet for the following purpose? [Research a topic]
Very often
Often
Occasionally
Never
19 35%
22 40%
14 25%
0 0%
How often do you use the Internet for the following purpose? [Looking for a job]
Very often
Often
Occasionally
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14 25%
21 38%
19 35%
Never
1 2%
How often do you use the Internet for the following purpose? [Internet shopping]
Very often
Often
Occasionally
Never
7 13%
27 49%
19 35%
2 4%
How often do you use the Internet for the following purpose? [Other (Please Specify):]
Very often
Often
Occasionally
Never
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0 0%
40 73%
8 15%
7 13%
Books
Toys
Gifts
Computer (Components)
CD/Video
Tickets
Consumer electronics
House wares
Flowers
Software
Other
15 9%
2 1%
15 9%
38 22%
3 2%
48 28%
20 12%
5 3%
1 1%
25 14%
1 1%
Strongly Agree
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13 24%
Agree
Neutral
Disagree
Strongly Disagree
29 53%
5 9%
8 15%
0 0%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
6 11%
40 73%
8 15%
1 2%
0 0%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
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6 11%
20 36%
21 38%
4 7%
4 7%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
13 24%
19 35%
13 24%
5 9%
5 9%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
5 9%
31 56%
11 20%
8 15%
0 0%
PC
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50 49%
Tablet
Ipad
Cell Phone
Other
15 15%
15 15%
21 20%
2 2%
Credit Card
Personal Cheque
Third party (e.g. Paypal / WorldPay)
Bank transfer
cash on delivery
Other
12 12%
2 2%
14 14%
2 2%
43 43%
26 26%
Yes 51 93%
No 4 7%
Do you intend to continue purchasing products from the Internet in the near Future?
Yes 54 98%
No 1 2%
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1 2%
38 69%
9 16%
7 13%
Gender
Male
Female
Under 18 years
18-30 years
31-39 years
40-49 years
50-59 years
Over 60 years
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1 2%
40 73%
14 25%
0 0%
0 0%
0 0%
39 71%
16 29%
Are you?
Full-time employment
Part-time employment
Student
Unemployed
Housewife/husband
Retired
26 46%
0 0%
28 50%
1 2%
1 2%
0 0%
HYPOTHESIS ANALYSIS
HYPOTHESIS
ACCORDING TO GENDER
Group Statistics
gender
intention male
secure
Mean
Std.
Deviation
Std. Error
Mean
39
.97
.160
.026
female
16
1.00
.000
.000
male
39
.08
.270
.043
female
16
.06
.250
.062
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Levene's
Test for
Equality of
Variances
F
intention Equal
variances
assumed
Sig.
Equal
variances
assumed
df
Equal
variances
not
assumed
secure
53
.527
-.026
.040
-.106
.055
38.000
1.000
.324
-.026
.026
-.078
.026
53
.855
.014
.079
-.143
.172
.190 30.067
.851
.014
.076
-.141
.170
Equal
variances
not
assumed
95%
Confidence
Interval of the
Sig.
(2Mean
Std. Error Difference
tailed) Difference Difference Lower Upper
From the T-Test analysis we can conclude that the hypothesis was accepted because
significance difference is more than the confidence level (.05).that means perception of male
and female is same regarding the secure transaction through online and also they have shown
same intention to shop through online in future.
ACCORDING TO AGE GROUP
Group Statistics
age
intention
secure
Mean
Std. Deviation
18-30
40
.98
.158
.025
31-39
14
1.00
.000
.000
18-30
40
.10
.304
.048
31-39
14
.00
.000
.000
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Sig.
df
Sig. (2-
Mean
Std. Error
tailed)
Difference
Difference
Difference
Lower
Upper
intention Equal
variances
1.456
.233 -.588
52
.559
-.025
.043
-.110
.060
39.000
.323
-.025
.025
-.076
.026
52
.227
.100
.082
-.064
.264
2.082 39.000
.044
.100
.048
.003
.197
assumed
Equal
variances not
1.000
assumed
secure
Equal
variances
7.583
.008 1.224
assumed
Equal
variances not
assumed
From the T-Test analysis we can conclude that the hypothesis was accepted because
significance difference is more than the confidence level (.05). that means perception of
different age group is same regarding the secure transaction through online and also they
have shown same intention to shop through online in future.
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CHAPTER SEVEN
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CONCLUSION
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 consumers online shopping behaviours. The research focus on the Internet
shopping (include the nature of Internet shopping, E-commerce website, and 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 customers 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
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RECOMMENDATION
1) People should buy the product through online because we can have all the detail of the
product and we can also compare with other product.
2) We can save money through buying online.
3) We can also save money.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1)Ramaswami & Namakumari, Marketing Management-Planning, Implementation and
Control, MacMillan India Ltd, New Delhi
2)Bhatnagar, A, Misra, S., and Rao, H. R., Online risk, convenience, and Internet shopping
behavior, Communications of the ACM 2000
3)Alexandru M. Degeratu, Arvind Rangaswamy and Jianan Wu (2000) Consumer Choice
Behaviour in Online and Traditional Supermarkets: The Effects of Brand Name, Price,
and other Search Attributes, International Journal of Research in Marketing, Vol. 17, No.
1, p. 55-78. Available at:
http://www.smeal.psu.edu/ebrc/publications/res_papers/1999_03.pdf
4)Aron M. Levin, Irwin P. Levin, and C. Edward Heath (2003) PRODUCT CATEGORY
DEPENDENT CONSUMER PREFERENCES FOR ONLINE AND OFFLINE
SHOPPING FEATURES AND THEIR INFLUENCE ON MULTI-CHANNEL RETAIL
ALLIANCES, Journal of Electronic Commerce Research, VOL. 4, No. 3. Available at:
http://www.csulb.edu/web/journals/jecr/issues/20033/paper1.pdf
5)Ali S S, Models in Consumer Buying Behaviour, Deep & Deep Publications.
6)Kothari C. R., Research Methodology Methods and Techniques, Wishwa Prakashan, New
Delhi.
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APPENDIX
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APPENDIX
QUESTIONNAIRE FOR ONLINE BUYING BEHAVIOR
Do you have Internet access? *
Yes
No
From how long you are using the Internet? *
1 2 years
2 4 years
How often do you use the Internet for the following purpose? *
Very often
Search product
info
Surfing (e.g.
read
news/articles)
Chatting (e.g.
MSN / ICQ)
Research a
topic
Looking for a
job
Internet
shopping
Other (Please
Specify):
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Often
Occasionally
Never
Books
Toys
Gifts
Computer (Components)
CD/Video
Tickets
Consumer electronics
House wares
Flowers
Software
Other:
Agree
Neutral
Saves time
Saves money
More relaxing
shopping
Much easier
shopping
More efficient
PC
Tablet
Ipad
Cell Phone
Other:
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Disagree
Strongly
Disagree
Credit Card
Personal Cheque
Bank transfer
cash on delivery
Other:
Yes
No
Do you intend to continue purchasing products from the Internet in the near Future? *
Yes
No
Not Satisfied
Satisfied
Can't Say
Gender *
Male
Female
Under 18 years
18-30 years
31-39 years
40-49 years
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50-59 years
Over 60 years
Are you? *
Full-time employment
Part-time employment
Student
Unemployed
Housewife/husband
Retired
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