CHANAKYA NATIONAL LAW UNIVERSITY

A project of MARKETING MANAGEMENT

On

BUYER PROFILES OF CUSTOMERS USING INTERNET TO PURCHASE PRODUCTS

Submitted to:

Mr. Manoj Mishra

Submitted by:

Sonu Shubham

Roll No. 1651

(1st Year BBA.LLB)

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 ACKNOWLEDGEMENT

The work on this project has been an inspiring, often exciting, sometimes challenging, but always an
interesting experience. At the very outset, I wish to thank Prof. Manoj Mishra for giving me the
opportunity to participate in this interesting research project, that helped me gain insights into the
Internet World. He has supported me with his guidance, insights, encouragement and many a fruitful
discussion on Online Marketing. I am grateful to him to have spared his time and showing the
patience to our answer our queries. The kindness shown by him, in spite of him being so busy with
his work, is highly appreciated. I am very thankful to the librarian who provided me several books on
this topic which proved beneficial in completing this project.

This acknowledgment would be incomplete without expressing my sincere appreciation to all my

friends who spent their precious time in filling up the questionnaires which formed the base of this
research. I want to convey a most sincere thanks to my parents for helping me throughout the project.

SONU SHUBHAM

ROLL NO. 1651

2ND SEMESTER

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 CONTENTS

TOPIC PAGE NO.

Acknowledgement 2

Introduction 4
Aims % Objectives
Hypothesis
Research Methodology

Consumer Behavior 7

Characteristics of Online Purchaser 8

Survey 13
questionnaire

Data Analysis 14

Findings & Suggestions 20

Conclusion 21
Bibliography 22

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 INTRODUCTION
The project is about two different aspects of marketing viz. Consumer Behaviour and Online
shopping. In the first half of the project the research will deal with the consumer behaviour part
where the research will explain the concept of consumer behaviour by illustrating a survey
undertaken by the researcher upon the students of Chanakya National Law University, this
illustration will explain difference of choices and preference of different buyers in relation with
marketing context.

The next part of the project will deal with the concept of Online Marketing. The researcher will start
by explain what is online marketing, right from its inception till present day marketing, and how it is
different from conventional marketing. The researcher will further show what are different types of
online marketing and how to do it And at the end the researcher will conclude the project along with
the findings and suggestions.

Consumer behaviour is the key to marketing. Manipulation of peoples thoughts to make them feel
the need to have the offering that an organisation is going to provide is marketing. This consumer is
the end user that is, a person who buys the offering from an organisation for his personal use and not
for anything else is a consumer. There is nothing to be confused about a customer and consumer. It is
said is marketing that every consumer is a customer but not every customer is consumer because
while a consumer is the end user of the offering, the customers may or may not be the end user,
someone who uses the offering for their personal use. The behaviour possessed by these consumers
are the study of marketing researcher. The behaviour of the consumer is the reaction of the consumer
after using the offering or understanding the offering and after research and proper data analysis the
market researcher comes to the conclusion that what is the requirement of the customers and how to
penetrate and position the offerings in the minds of the customer.

While the task of penetration and positioning is not easy, one way of doing this is through Online
Marketing which includes selling as well as advertising. Online marketing is marketing done on the
internet. For any organisation the offering made on the internet can be used to market throughout the
globe. While there is a large scope of consumer behaviour and online marketing this report will be
focused on behaviour of online purchasing, which is the action or activity of buying goods or
services over the Internet.

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AIMS & OBJECTIVES

The researcher will do this research to know about theory of consumer behaviour
The researcher aims to make a thorough study of the these theory prepare a report of online
buyers behaviour.
The researcher will also make a quantitative analysis of data collected through survey to
prepare a better understanding of online purchaser.

HYPOTHESIS

The researcher presumes that unlike the consumer behaviour while doing conventional shopping
there are differences in the buyers behaviour while doing online purchases because of various factor
and risk related with both kinds and buyers are more inclined towards online shopping while
purchasing consumer durable goods.

RESEARCH METHODOLOGY

The researcher will emphasize and use the doctrinal and non-doctrinal method for this project topic.
The researcher has used doctrinal method in his research, that is, extensive use of literary sources and
materials. The researcher mainly uses secondary sources to provide substance to the research
analysis. The researcher has also put down immense effort in order to understand the terms and
concepts related to the subject which enriched the study to a great extent The technical details of the
research are described and detailed. Important issues such as, philosophy of the research, preparation
of the research, the method and procedure of data collection, components of questionnaire, sampling
decision are covered.

The first process is topic selection. The knowledge, observations and interest on a topic help to
finalise the topic. After that, theories and literatures have been searched to support the research.
Next, the problem and the research question has been developed and research method has been
selected. The next step is to collect data with using the methods planned. After the data is collected, I
analyse the data with selected theories. At last, the conclusion is drawn. This research started with
exploratory study however developed into an explanatory study since the first aim was gaining
knowledge about consumer behaviour and following with being able to gain information toward

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online consumer behaviour. After that specific factors have been identified which are the important
during the online purchase. This knowledge is then used to find relationship between these factors.

For the non-doctrinal part of the research the Researcher has done a survey via a questionnaire in
order to address the research aim the participants were selected using a non-probability sampling
method. There are many different types of non-probability sampling methods but the Snowball
sampling is used. This kind of sampling starts with small group of people who are appropriate with
the research topic and these small group identify further members and then they identify further
members and so the sample snowballs. However, the problem with snowball sample is that it is very
unlikely that the sample will represent the whole population.

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 CONSUMER BEHAVIOUR ( An overview)

Consumer behaviour is comparatively a new field of study which evolved just after the Second
World War1. The sellers market has disappeared and buyers market has come up. This led to
paradigm shift of the manufacturers attention from product to consumer and specially focused on
the consumer behaviour. The evaluation of marketing concept from mere selling concept to
consumer oriented marketing has resulted in buyer behaviour becoming an independent discipline.
The growth of consumerism and consumer legislation emphasizes the importance that is given to the
consumer. Consumer behaviour is a study of how individuals make decision to spend their available
resources (time, money and effort) or consumption related aspects (What they buy? When they buy?,
How they buy? etc.). The heterogeneity among people makes understanding consumer behaviour a
challenging task to marketers. Hence marketers felt the need to obtain an in depth knowledge of
consumers buying behaviour. Finally this knowledge acted as an imperative tool in the hands of
marketers to forecast the future buying behaviour of customers and devise four marketing strategies
in order to create long term customer relationship. It is broadly the study of individuals, or
organisations and the processes consumers use to search, select, use and dispose of products,
services, experience, or ideas to satisfy needs and its impact on the consumer and society. So, the
extent of information search depends completely on the level of involvement of customers in the
purchase2. The major source of information for customers, and the sources which influence
consumer buying behaviour heavily are Friends, commercials & advertisements, Public and
experience. Secondly, if the climate changes and the customer is faced with upcoming summers or
winters, then again his purchase decisions will change based on the current situation. In essence, the
customer considers all the alternatives, chooses which factors are most important to him as per the
situation, and then finally makes the purchase decision.

1
Paul Baines, Essentials of Marketing, South Asia edition, New Delhi Oxford University Press, P. 9
2
http://www.marketing91.com

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 CHARACTERISTICS OF ONLINE PURCHASER

PERSONAL CHARACTERISTICS
Characteristics of a person, is an important factor affecting the purchase decision process.
Personal factors include age, gender, occupation, income status, education, life style.
AGE - In online shopping researchers, most of the studies are conducted on young adults
because of their familiarity with ICT (Lester et al., 2005). Kau, et al. stated that (2003;150)
traditional shopping mostly have been chosen by older individuals (40 years old and above).
Researches about young adults are also helpful to predict future consumer behaviour easier.
Young adult generation have more options with respect to other generations and they are
more conscious, give their decision by themselves, they choose what they prefer easily. In
addition, cross-shopping is more intense in this consumer group (Vasquez and Xu, 2009).
Younger individuals usually have interest in using new technologies to search for information
and evaluate alternatives (Mons Uwe, et al., 2004). Internet is perceived as a risky
environment by older individuals since older people have less knowledge about the Internet
and new technology and they also insist to try products before purchasing.
GENDER - Both gender group gets familiar with using the Internet however it is stated by
Rodgers and Harris (2003, cited in Hasan, 2010; 597) that men are more familiar with online
shopping and make online purchases. Men are more familiar with using technology and their
interest is bigger than women. In today's world this gap started to decrease and it has found
that 'an increasing number of women use the Internet' (Hernandez, et al., 2011; 116).
Moreover, they also found that men are claimed to be more pragmatic whereas women are
more anxious by the time they face new things. It has emerged that demographic factors such
as gender are significant factors when people face new things. In this cases, their attitudes
have been driven by their social environment.
INCOME - Furthermore, individuals with lower income tend to approach online shopping
activity more cautious and find this medium as a riskier place since their tolerance for
financial loses are lower with respect to consumers with higher income. However, once users
have an experience their attitude is not affected by their income (Hernandez, et al, 2011;
117). Part of the income are spent mandatory requirements of life and the remaining can be
spent freely. Individuals can only use this remaining part how they want to. Moreover, it is
also concluded by Lohse et al. (2000) that households with higher income would have
positive approach with the possession of the Internet access.

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 PSYCHOLOGICAL CHARACTERISTICS
Online consumers psychologically deal with themselves and they frequently questioning
themselves. Motivation make consumers to ask themselves, should they look a better price or
should they shop online more often and these kind of questions. Perception is one of the
important factor and make consumers examine the security of the web site or the quality of
the product. In this case the seller organisations have to be successful in terms of providing
customers a confidence. Another psychological aspect is personality. The personality factor
may drive consumers to ask themselves what kind of web sites are best suited for their
personal preferences. Personal preferences manage consumers to decide. The fourth one is
attitude and attitudes can change easily, therefore marketers are many interested in these
features. Consumers try to find out what they like or not in respect to a particular situation.
The last factor is emotion, they may consider their last experience. Consumers are affected by
choices and emotions alter with the experience of their choice.

SOCIAL CHARACTERISTICS
The social influence comes from the reference groups. For the online consumers reference
groups are identified as virtual communities, consisting of discussion groups on a web site.
Other peoples experiences, opinions have shown in this medium and affect consumers.
Another one are contact links, web site links related to the product or the service, which make
individuals ensure about the decision. The effects of the Reference Groups are mainly based
on the belief that a persons behaviour is influenced by many small groups. Family is one of
this reference group. There are different ways that reference groups influence an individuals
attitude, they may expose a new behaviour or life style or may create a pressure to accept the
attitude.

CULTURAL CHARACTERISTICS
Different social classes create different behaviours. Consumers from lower social classes
would not have the same properties such as higher intention to buy or higher probability like
higher social classes. Culture set values and beliefs in the early ages therefore persons wants
and needs are driven by this settled features. Almost everything we do; how we give and
receive information, make decisions, lead and manage, working teams, use time is influenced

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 by culture. Hofstede (1991; 5) defined culture as 'the collective mental programming of the
mind which distinguishes the members of one group or category of people from another'.3

CULTURAL CHARACTERISTICS
The culture of the country influence and drive individuals thoughts, moves and decisions.
The culture of the country is a very important factor, and also shapes online shopping
behaviour of the consumer. For instance, different cultures from different countries influence
differently consumers attitude, consumers perceive products and services differently. What
is more, some individuals may trust to some conditions whereas some may not such as to
trust a company since it encourages group decisions, while in another individualistic actions
are more important than it. By definition, culture is a shared set of values that influence
societal perceptions, attitudes, preferences and responses. In terms of the culture, there are
basically five types of cultural differences in literature: power distance, individualism
collectivism, masculinity-feminity, uncertainty avoidance long-term orientation. Hence, it is
demonstrated in many studies that western and eastern cultures are different from each other
in terms of dependence and this leads to different consumer online shopping behaviour in
western and eastern societies4. In other words, in the individualistic societies, people are more
likely to use the internet for personal use such as shopping and information seeking while in
collectivist societies, people are more likely to use the Internet for social communication
purposes.

CUSTOMER LOYALTY
Customer loyalty has been crucial for businesses. 'The success and growth of customer-
centric businesses'5 depends on customer loyalty because it helps to increase the revenue and
profit. Moreover customers should be satisfied to return again the website and purchase
again. In the last century, technological advances leading to very large changes on
marketing. Consequently it offered new opportunities and also led to even greater
competition they are facing. This make businesses to leave classical management mentality
and to adopt new business and market strategies. The internet, which becomes a part of daily
lives, also become a part of everyday shopping. To retain customers, who are just a few
keystrokes away from any web sites without any constraint, has become very difficult. In
3
Adeoye, Blessing; Tomei, Lawrence (2014). Effects of information capitalism and globalisation on teaching and
learning. Pennsylvania: Information Science Reference. Retrieved 2015-10-21.
4
Chau et al. 2002; Huang 2003; Park and Jun 2003; Park, Lee and Ahn, 2004
5
Crosby and Johnson, 2005; cited in Atchariyachanvanich et al., 2006; 49

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 case of any dissatisfaction, these customers would prefer a high number of competitors and
the switching cost is almost absence, thus in online environment, e-stores is to make it even
more important to ensure customer loyalty. Products of technology and informatics start to
change the customers shopping behaviour, as it changes many habits of them. In online
shopping, customers have some expectations from companies before shopping, as in
traditional shopping. To satisfy or dissatisfy this expectations or how extent of satisfaction is
achieved create the perceived value of customers. Satisfaction or dissatisfaction occur as
depends on experiences which exist after online shopping. This situation affects the trust to
company. Customers loyalty or disloyalty depends on how much these factors are achieved.

TRUST
Consumers' trust to a provider or supplier results with becoming committed to the company.
Trust issue is exceed with a few successful transactions, after individuals start feel safe and
believe that this supplier answer their needs and wants. On the other hand provided
information is another issue in terms of online shopping for. Since online shopping is an
activity which related to a computer-system, individuals cannot touch or feel products.
Therefore their decisions based on the information that provided by online retailer.
Information issue not only important in terms of availability situation, it is also important in
convenience and personalisation concept. Web site design, access to information, access time
to information also influence on behaviours of consumers. Without the online purchasing
channel, all those operations would be more costly on the physical effort and time
perspective, and moreover it would not be possible for the customer to reach requisite
information about the product and to compare it with the most of the competitors. As being
advantageous for both firms and customers, online sale technology is accepted by the firms
while not accepted sufficiently by the customers. At this point, users buying behaviour over
internet should be analysed.

RISK
In the online shopping context risk have been the most researched topic6. It is analysed that
risk can be categorizes in two parts which are product and transaction processes. Individuals
who are avoid of shopping online concern about the satisfaction with the purchase. They

6
Chang, et al., 2005

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 mostly think that this activity will not meet with their needs7. The other risk perception is
about transaction. System security can influence shopping intention. the risk perception
differentiation in different cultures. It is argued that collectivist consumers has a higher
perceived risk about online shopping than individualistic consumers but individualistic
consumers do not regard the risk as a crucial factor for determining the decision. social
gender roles are distinct in a masculine society, while in a feminine society these roles
overlap with each other. Due to this fact, it is noted that in a more masculine society, there
is more gender distinction and the shoppers are usually male shoppers. There is mainly two
types of risk have been realised; 'product category risk and financial risk' 8. According to Ko
financial risk also includes private information side. Since the Internet does not provide
examining the goods physically, consumers have to trust or believe the information and
shown pictures.

7
Hogan, 2003; Chang et al., 2005; 554
8
Bhatnagar, et al., 2000; cited in Ko, et al., 2004; 20

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 SURVEY :

Methods of making the questionnaires and spreading :

Since the topic deals with behaviour of online consumers, online questionnaires were used. A
free service website, GOOGLE FORMS used for the survey and allow participants to answer
the questionnaire online. After the online questionnaire have been created, the questionnaire
link was emailed to participants. At the same time, it is also asked them to forward the
questionnaire to their cases. Secondly, the questionnaire distributed through Facebook. The
respondents could easily click on the link which directly lead them to the questionnaire. To
be a participant of this survey, respondents were expected to have minimum one online
shopping experience. This limited participation and lowered response rates; however, this
condition was necessary because of the topic of the study. The results are then recorded into
an excel document by the Google Spreadsheet. The link of the questionnaire have been sent
online between April 3 and April 25, 2017. 36 were responded and within the responded
questionnaires 30 were usable for analysis (six incomplete responses have been eliminated).
The participation to the survey was voluntary and the respondents had a chance to stop and
leave the questionnaire at any stage. The questionnaire did not include required questions,
therefore the respondents did not have to answer any of the questions if they did not want to.

Components of the questionnaire:

The questionnaire was designed online, since the research was an online consumer behaviour
study, online data collection methods were preferred. The questionnaire consists of 13
questions.
Demographic questions were asked to respondents in the first part of the questionnaire,
including which year they are in, gender, age. The questions distributed to individuals who
use the Internet and have at least one online shopping experience therefore respondents were
asked to what kind of products they buy, how much did they spend. In addition to these
questions various statements offered to the respondents regarding their attitudes toward
online shopping and asked to rate them on a strongly disagree strongly agree.

QUESTIONAIRE -

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DATA ANALYSIS :
Quantitative research measures the data using descriptive statistics. The coding process is to
transform the raw data from the results of questionnaires into numerical data. It is then followed by a
calculation for each question by using an GOOGLE SPREADSHEET program. The data are
presented in the form of tables and following a detailed explanation of the figures is offered.
Data :
FOR THE RESPONSES TO QUESTION :
Q1. Respondents
1. SUMIT KUMAR
2. RAJNEESH GUPTA
3. SANJEEV KUMAR
4. HARSHIT GUPTA
5. FAISAL AHMAD
6. MD. AATIF IQBAL
7. ADITYA VIJAY SINGH
8. ANUPAM PANDEY
9. MAYANK RAJ
10. SUJAY KUMAR
11. GAURI ANAND
12. SHREYA SINHA
13. ANUPAMA SOUMYA
14. SHUBHAM MISHRA
15. C. MONICA
16. BHARGAVI
17. ADITI SONI
18. VAIDANI SINGH
19. SNEHA RAI
20. AASTHA RAJPUT
21. RAJ VARDHAN SINGH
22. SAKSHI MOHAN
23. SHREYA KALYANI
24. JAYA VERMA
25. ABHINAV PRASAD
26. SHREYA SINGH
27. SHAMBHAVI PRIYESHI
28. YASH AGARWAL
29. UDIT KAPOOR
30. SUKRITI AGARWAL

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Q2.

Q3.

Q4.

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Q5.

Q6.

Q7.

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Q8.

Q9.

Q10.

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Q11.

Q12.

Q13.

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Analysis :
The respondents all belong to the same age group i.e. 18-25 and all of them are from first year and
the ratio of males and females of the respondents is almost 1:1 because there are 14 female
respondents and 15 male respondents and one respondent has not disclosed about their gender which
can be seen in the pie chart of second question. All The respondents have been shopping for more
than a year now including 16.7% shopping for a year now and 83% shopping for more than a year
now and since they are experienced buyers they are likely to know the advantages and disadvantages
of online shopping.
But on the observation of question no. 6 the researcher found that not all of them are regular buyer,
while 40% of the respondents shop every month with a small segment purchasing every week there
are 20% people who only shop on an interval of every 6 month there is also a small segment of
people wo buy once a year.
Upon asking the respondents how often they find what they need online to this 46.7% of them agreed
to the fact that they always find what they want and 43.3% of them very often find what they want
and only 10% of the people don't always find what they want this 10% people also find what they
want but not very often, rather they rarely find what they are looking for.
Now coming to the next question about what they purchase online to this the researcher found that
the people in the research were only students and they had the income factor since all of them are
unemployed so most of them only bought consumer durable goods including clothing 66.7%,
electronics 20%, books and other stationary 17% and 6.7% also bought furniture and 10% of them
bought jewellery too and there are 30% people who also bought other different product, and since all
the people involved in this research were students they did spend much on shopping because of their
financial condition as 41% of them only spent between rupees 1000 2000 on average in a month
and 31% doesn't even cross 1000 on average a month there are 17.2 % people who spend between
rupees 2000-3000 and only a 10.3% respondents spend between rupees 3000 5000 on average in a
month on online purchase.
Out of these 60% people find better shopping experience online rather than the conventional way of
going to a shop for shopping, and while 26% people are sceptical and they rarely find online
shopping convenient the small segment of 10% people totally disagrees to this fact and they get
better experience in conventional shopping.
There were several reasons as to why these many people find online shopping convenient which
includes shopping at any time of the day supported by 70% of the respondents which is not possible
in conventional shopping then 66% respondents find more brand choices on online shopping there
are several other factors to which 63% respondents agree upon is that it saves time and energy, return
and delivery policy and return and delivery at door step. These were the major advantages which
were felt by the respondents but on further study the researcher found that only 3.3% of the
respondents find it trustworthy and so it shows that the respondent always feel that they are at risk of
being betrayed by the seller while online shopping.
A large amount i.e. 76% people agree that they will keeping shopping online for a long time but 16%
people are neutral and they will do according to the circumstances presented before them and around
14% people say that they wont be shopping online for a long period of time. Among these 30%

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people are not sure of what they will do if the online sellers are not cooperating with them and 70%
people know what to do when the online sellers are not cooperating with them.

FINDINGS & SUGGESTIONS:

The researcher after doing this research finds that on a research where all the subjects undertaken by
the researcher were 1st year students of the university and they were unemployed so their buying
behaviour may differ from a wage or salary earner. The researcher find that these respondents were
not regular online buyers rather some of them makes a purchase once a every six month or a year.
They mostly bought consumer durables that too which requires a small investment ranging from
Rs.1000 to Rs.5000, this further supports my finding that since these respondents are all students the
income factor really affects their purchase capacity and it also revealed that they did not find these
online seller trustworthy enough to purchase products which require heavy investment like laptops,
television, cars, bikes etc. Also in question no. 11 only one person amounting to 3.3% has checked
on the trustworthiness of these online sellers. The researcher also found that many of these
respondents will continue shopping for a long time while some of them dont even know what to do
when they are not cooperating.
After doing this extensive research the researcher found that the online selling companies should
really be focusing on reassuring the customers that customers should trust in them and they can
purchase their offering without any hesitation. One way of doing this is to make them aware of their
rights as to what they (customers) can do if the merchant is not cooperating with them. Then the
online merchants should also do a timely response to complaints and enquiries as it the hard earned
money of their customers which they are charging them and the least they can do is maintain a
proper communication channel that the customers are assured that at least their queries are heard and
will be resolved.

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 CONCLUSION
In the beginning the researcher made a hypothesis that unlike the consumer behaviour while doing
conventional shopping there are differences in the buyers behaviour while doing online purchases
because of various factor and risk related with both kinds and buyers are more inclined towards
online shopping while purchasing consumer durable goods to which the researcher is correct and
have supported it by conducting the survey upon the students of Chanakya National Law University.
The researcher also learned about different theories of consumer behaviour and learnt that risk and
income factor plays a big role in the chances of buyers involvement in online purchasing since the
risk factor alone makes the buyer think twice and thrice before making a purchase online. Since these
buyers cannot see the seller or the offering in real which they are habituated of. They are very
sceptical about putting their hard earned money in hands of someone whom they might never see.
There is a significant and positive relationship between safety of online shopping, price of products
and services, more information, comparison of different choices and accessible of more products
with attitudes of consumers toward online shopping The researcher found that limited no. of people
participating in this survey has hampered the scope of a clearer picture for examining the buyers
behaviour and the fact that they are not employed also affects their decision while shopping online
since their needs and ability to spend both are different.

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 BIBLIOGRAPHY:

PRIMARY DATA:

Survey In order to collect data from viewpoint of consumers, the strategy of the research is the
survey. To investigate consumer behaviours and purchasing decisions, a quantitative approach is
used to analyse the results from the survey. Survey in the form of questionnaire is chosen for this
research. Surveys are a kind of research which are more rigid than interviews. They are usually used
to gather ideas from a large population. Each respondent is asked to respond to the same set of
questions, it provides an efficient way of collecting responses from a large sample prior to
quantitative analysis. The questionnaire were prepared as self-administered and published
electronically using the Internet, Internet-mediated questionnaires. Since the nature of the
questionnaire help to reach a large population but the research is done on 1st YEAR STUDENTS of
CHANAKYA NATIONAL LAW UNIVERSITY, Internet-mediated questionnaire makes that one
step further and it was possible to reach more respondents. After finalising the questionnaire, before
the distribution of them, the questionnaire presented to three participants to test it this test provided
to receive suggestions from respondents to enhance the questionnaire.

SECONDARY DATA :

BOOKS:

1. Principles of Management, by Anil Bhat (Oxford University Press)

2. Marketing Management by Philip Kotler (Pearson)
3. Marketing Research by Willism G. Zikmund (Thomson)

WEBSITES:

www.marketing91.com

www.marketingteacher.com

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