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Research Paper on
Submitted To
Mushtaque Ahmed
Associate Professor
Institute of Business Administration
University of Dhaka
Submitted By
Nusrat Jahan Roll: 01
Raihan Ul Islam Shezan Roll: 11
Olid Bin Islam Roll: 20
Abir Mohammad Roll: 23
S. M. Sakkam Roll: 48
Group 3 MBA 58 D
Every business requires a good marketing mix to introduce, grow, and sustain in this highly
competitive market economy. Before marketers were rarely looking at online based marketing
efforts, instead, they were just relying on conventional marketing mix. With the presence of
highly growing internet users, relative low cost and easy going strategies, ‘online marketing’
is now-a-days becoming so crucial for every business hub. It is a form of electronic commerce
which allows consumer to directly use goods/services from a seller over the Internet using of a
web browser. By getting the balance of offline and online advertising right, marketing mix will
help provide everything firms need to gain leads, increase sales, improve customer retention,
and rocket the company profits.
Online shopping is quite familiar in the developed countries. But in developing countries like
Bangladesh, though the buying pattern of the consumer is changing, its growth is still not
aligned with the global market. The potential growth of online shopping in Bangladesh has
inspired us to conduct a study on online shopping in Bangladesh. The impact of different
factors of consumer’s behavior on online shopping on a demographic profile is focused on this
study.
The research methodology used in this study was of qualitative methods. Structured
questionnaire was administered in electronic form to collect data. The sample size was 301 and
the chosen to get the respondents was purposive random sampling method. The data was
analyzed using SPSS statistical software and the findings presented in frequencies and
percentages which was used for hypothesis testing. This report summarizes the statistical
modeling and analysis result associating with customer’s satisfaction and important relevant
factors. The study recommends that further longitudinal research is needed to study the
behaviors of consumers towards online shopping to assess their frequency of goods or service
purchase and amount spent over a period of time.
Table of Contents
1. Introduction ....................................................................................................................... 1
2. Objective of the Study ....................................................................................................... 1
4. Overview of Online Shopping in Bangladesh..................................................................... 3
4.1. Customer Satisfaction................................................................................................. 3
4.2. Online Consumer Behavior ......................................................................................... 4
4.3. Price of the Product .................................................................................................... 4
4.4. Product Variety ........................................................................................................... 4
4.5. Travel Necessity ......................................................................................................... 4
5. Data Analysis .................................................................................................................... 5
5.1. Univariate Analysis ..................................................................................................... 5
5.1.1. Whether Respondent Has Ever Done Online Shopping ....................................... 5
5.1.2. Respondent’s Gender .......................................................................................... 6
5.1.3. Age Group of Respondents .................................................................................. 7
5.1.4. Educational Qualification of Respondents ............................................................ 8
5.1.5. Income of Respondents ....................................................................................... 9
5.1.6. Online Shopping Frequency of Respondents ..................................................... 10
5.1.8. Preferred Mode of Payment for Online Shopping ............................................... 12
5.1.9. Recommendation to Others ............................................................................... 13
5.2. Hypothesis Testing ................................................................................................... 16
5.2.1. Chi-Square Tests ............................................................................................... 16
Hypothesis 1: Relation between Customer Satisfaction and Educational Qualification . 16
Hypothesis 2: Relation between Customer Satisfaction and Service of Internet
Connection................................................................................................................... 16
Hypothesis 3: Relation between Customer Satisfaction and Kinds of Problems Faced 17
Hypothesis 4: Relation between Customer Satisfaction and Reason for Preferring
Online Shopping .......................................................................................................... 18
Hypothesis 5: Relation between Customer Satisfaction and Preferred Mode of Payment
.................................................................................................................................... 18
Hypothesis 6: Relation between Expenditure on Online Shopping and Risk of Personal
Information Compromised with Third Party .................................................................. 19
Hypothesis 7: Relation between Recommending Online Shopping to Others (Users) and
Feeling of Being Overcharged...................................................................................... 19
5.2.2. Independent Sample T-test ................................................................................ 20
Hypothesis 8: Relation between Mean Expenditure of People of Different Genders..... 20
5.2.3. ANOVA .............................................................................................................. 22
Hypothesis 9: Relation between Mean Expenditures of People of Different Age Groups
.................................................................................................................................... 22
Hypothesis 10: Relation between Mean Expenditures of People Having Different
Highest levels of education .......................................................................................... 24
6. Summary of the Findings ................................................................................................ 26
7. Conclusion & Recommendations .................................................................................... 27
8. References ..................................................................................................................... 28
9. Online Survey Questionnaire .......................................................................................... 28
List of Figures
The introduction and transmission of the Internet phenomenon into the business arena is
guiding the marketing discipline to various changes and strong challenges. Since the revolution
of online based market marketing practice has been busy with integrating the potential of
information and communication technologies through the utilization of databases and online
marketing. A highly demanding lifestyle is compelling consumers to adopt online shopping as
an alternative to traditional retailing worldwide. In order to save time and money, people are
being motivated to purchase products and services online. Companies are investing intensely
on technology to make best use of internet as the shopping channel. There is hardly any product,
service or commodity which is not being sold through internet. Online shopping is unanimously
accepted and recognized as a cost-effective, profitable and accessible medium to shop.
Therefore, it becomes essential for online retailers to study online consumerism and how it is
taking shape in today's era of rapid globalization.
The main objective of this study is to identify the factors affecting online shopping behavior
with emphasis on satisfaction with online shopping. This broad objective is broken down to
the following specific ones:
1. To identify the determinants that influences the perception level of the customers.
2. To identify the factors that refrain people from online shopping.
3. To check whether there is any association between the types of buyers and their
satisfaction level.
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4. To test whether there is any statistical relationship between perceived risk and attitude
towards online shopping.
5. To detect the recent changes in consumers shopping behavior.
6. To depict the point of view of the customers towards online shopping.
7. To find out whether these activities differs from the difference in their occupation, age,
gender.
3. Methodology
Methodology in conducting any research work needs a very careful consideration. Methods
should be such that it would enable the researcher to collect valid and reliable information and
to analyze the data to arrive at a correct decision.
A questionnaire has been prepared for this study and the report is prepared based on primary
data collected through online questionnaire survey. The research findings are interpreted
predominantly from SPSS analysis. The survey was conducted for 10 days and 301 people have
responded to this survey. So these 301 survey respondents are under our target group and their
replies have been included for further analysis. The survey was conducted through the Google
Forms’ online survey tools.
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4. Overview of Online Shopping in Bangladesh
The popularity of Online shopping in Bangladesh has been increased due to the easy access to
the vast ocean of web and proliferation of technology among the customers if new generations.
Shoppers can easily visit web stores staying their homes and shop as they sit in front of the
computers. The recent establishment of 4G mobile internet boosted the online retail industry
significantly.
According to Prothom Alo in 2014, about 1.5 to 2 million people shopped online every year,
and the market was growing by 15% to 20%. According to MetrixLab, internet users in
Bangladesh had 1 billion used goods in their stocks worth BDT 147 billion in 2014. The
Bangladesh Bank states that around 1 million clients accessed mobile banking, and over 100
crore transactions were made through mobile banking accounts by 2014. The E-Commerce
Association of Bangladesh (e-CAB) conducted a research on the extent of online shopping in
Bangladesh. According to them, transactions worth about Tk. 1,000 crore have been made
annually through e-commerce by 2017. The country delivers approximately 30,000 parcels
daily and about 2,00,000 orders have been placed daily through e-commerce. On an average,
products worth about Tk. 3-4 crore are sold every day through e-commerce websites. Of these,
85 per cent are done by cash-on-delivery.
There is a strong link between customer satisfaction, customer retention and profitability.
Customer satisfaction is a measure of how an organization's total product performs in relation
to a set of customer expectations. As per Armstrong & Kotler, customer satisfaction is, "The
extent to which a product's perceived performance matches a buyer's expectations". If the
performance match the customer’s expectation, they are satisfied and if, performance exceeds
the customer's expectation then customers are highly satisfied or delighted. The drivers of
customer satisfaction are perceived value, company image, customer expectation, product
quality and service quality.
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4.2. Online Consumer Behavior
Online consumer behavior has direct relationship with elements such as e-stores, logistics
support, product characteristics, websites’ technological characteristics, information
characteristic and home page presentation. According to a study by J. Johnson, those people
who have wired lifestyles and who have time constrained, they spend less time to buy things
online. Turban has defined a model on consumer behavior online. In this model, electronic
environment consist of three variables such as independent variable (which is also called
personal Characteristics and environment characteristics), intervening or moderating variables
(it is under vendor’s control) and the decision making process (effected by independent and
intervening variables).
People wants variety of products while buying but traditional shopping cannot offer so much
variety as that of online. Every customer’s wants are not same; everybody has their own
preferences so if the marketers are not able to arrange varieties of product then the customers
will not be attracted. So product variety plays an important role in determining the customer
satisfaction.
In case of online shopping a person does not need to travel from one place to another place. As
a result it can be considered as a big determinant for customer satisfaction and adds an extra
value for online shopping. This is even truer in the context of Bangladesh, where traffic jam
has been a huge clog in people’s lifestyle.
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5. Data Analysis
For the purpose of analyzing the primary data collected for this report, several hypothesis has
been developed and tested using different statistical approaches with the help of SPSS software
system. Apart from the hypothesis analysis, other necessary mean and ranking has been
developed with info graphic charts to help understand the data collected from the target
customer group.
The following table shows the frequency of online shopping of the participants of this survey
along with their percentage of participation which is followed by a frequency pie chart.
5
From the pie chart above, we can see that among the respondents 86% have done online
shopping before and only 14% have never done it. So we can say that majority of the consumers
are acquainted with online shopping.
The following table shows the frequency of male and female respondents of all the participants
of this survey along with their percentage of participation which is followed by a frequency pie
chart.
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From the above pie chart, we can see that among the respondents who had done online shopping
before, 76.83% are male and 21.17% are female. So we can say that majority of the online
shopping customers are male.
The following table shows the frequency of age of all the participants of this survey along with
their percentage of participation which is followed by a frequency pie chart.
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From the pie chart above, we see that respondents of the age group 20-25 (46.33%) have high
percentage for conducting online shopping.
The following table shows the frequency of all the participants of this survey having a
maximum of higher secondary, Undergraduate or Graduate and above educational qualification
along with their percentage of participation which is followed by a frequency bar diagram.
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From the bar chart analysis we see that most of the people who have done online shopping are
graduates or above (126) in education level. So it can be assumed that most of the people who
have done online shopping are highly educated.
The following table shows the frequency of income of all the participants of this survey within
certain income range along with the percentage of participants within each income range which
is followed by a frequency bar diagram.
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Figure 5: Frequency of Income of Respondents
From the bar chart analysis, the responders have low amount of allowance or income. One of
the possible reasons may be that, most of the responders are students.
The following table shows the frequency of online shopping of all the participants of this survey
along with the percentage of participants which is followed by a frequency pie chart.
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Figure 6: Pie Chart of Online Shopping Frequency of Respondents
From the pie chart analysis, it is seen that most of the responders very rarely (30.9%) or rarely
(29%) buy things online.
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Figure 7: Pie Chart of Satisfaction Level of Online Shopping
From the pie chart analysis, it is seen that most of the respondents are indifferent (44.4%) in
satisfaction level towards online shopping. Among others however, people are mostly satisfied
(33.2%) with their experience.
The following table shows the frequency of level of satisfaction in shopping online of the
participants of this survey along with the percentage of satisfaction of the participants which is
followed by a frequency pie chart.
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Figure 8: Pie Chart of Preferred Mode of Payment for Online Shopping
As seen from the pie chart, people still consider cash on delivery (57.92%) as the most preferred
mode of payment in case of online shopping).
The following two tables show the frequency by which both users and non-users of online
shopping recommend others to shop online along with the percentage of recommendation
which is followed by two frequency pie charts.
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Figure 9: Pie Chart of Recommendation to Others (By Users)
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Figure 10: Pie Chart of Recommendation to Others (By Non-Users)
As seen from the pie charts, most of the respondents who have done online shopping before,
are confused about recommending online shopping to someone else. The same trend follows
for non-users as well. However, among other users, most of them (38.2%) would recommend
online shopping to others. But on the other hand, most of the non-users (38.1%) would not
recommend online shopping to others.
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5.2. Hypothesis Testing
Here, we will use chi-square test to assess various relationships among different data sets
collected through the survey.
Here, we want to measure whether there is any relationship between customer satisfaction and
his educational qualification. The hypothesis can be defined as:
H₀: There is no relationship between consumer satisfaction and educational qualification.
H₁: There is relationship between consumer satisfaction and educational qualification.
Conclusion: From the chi-square table we see that p-value is .841 which is greater than 0.05
(level of significance) and that implies the null hypothesis cannot be rejected. We can conclude
from here that there exists no relationship between customer satisfaction and their educational
qualification.
Here, we want to measure if there is any association between customer’s satisfaction and
internet connection service. The hypothesis can be defined as:
H₀: There is no relationship between customer satisfaction and service of internet connection.
H₁: There is relationship between customer’ satisfaction and service of internet connection.
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Table 12: Chi-Square Test Output for Hypothesis 2
Conclusion: From the chi-square table, the p-value is .000 which is less than .05 (level of
significance), so we can reject the null hypothesis and conclude that there exists significant
relationship between customer satisfaction and service of internet connection.
Here we want to know if there is any relationship between customer satisfaction and kinds of
problem faced. The hypothesis can be defined as
H₀: There is no relationship between customer satisfaction and kinds of problem faced.
H₁: There is relationship between customer satisfaction and kinds of problem faced.
Conclusion: From the Chi-square table, the Pearson Chi-square p-value is .000 which is less
than 0.05 (level of significance). So we can reject the null hypothesis and conclude that there
is significant relationship between customer satisfaction and kinds of problem faced.
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Hypothesis 4: Relation between Customer Satisfaction and Reason for Preferring
Online Shopping
Conclusion: From the chi-square table, the p-value from Pearson chi-square is .000 which is
less than .05 (level of significance). So we can reject the null hypothesis and conclude that
there is a significant relationship between customer satisfaction and their reason for preferring
to shop online.
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Conclusion: From the table, we can see that the Pearson Chi-square p-value is .084 which is
greater than .05 (level of significance). So we cannot reject the null hypothesis and conclude
that there is a no significant relationship between customer satisfaction and preferred mode of
payment.
Conclusion: From the chi-square table we see that p-value is .302 which is greater than 0.05
(level of significance) and that implies the null hypothesis cannot be rejected. We can conclude
from here that there exists no significant relationship between expenditure on online shopping
and risk of personal information compromised with third party.
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Table 17: Chi-Square Test Output for Hypothesis 7
Conclusion: From the chi-square table we see that p-value is .003 which is less than 0.05 (level
of significance) and that implies the null hypothesis is rejected. We can conclude from here
that there exists significant relationship between recommending online shopping to others
(users) and feeling of being overcharged.
H₀: There is no difference between mean expenditure on online shopping of male and female
customers.
H₁: There is difference between mean expenditure on online shopping of male and female
customers.
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Table 19: Independent Samples Test for Hypothesis 8
Conclusion: Since the p-value is .128 for Levene’s test which is greater than .05 (level of
significance), equal variances are assumed. So, we will use the t-statistics -.912 and
corresponding p-value .363, which is greater than .05 (level of significance). Thus we can
conclude that the null hypothesis cannot be rejected. That is, there is no significant difference
between the expenditure of male and female customers.
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5.2.3. ANOVA
Table 21: ANOVA test for Money spent on online shopping in last 12 months
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Table 22: Multiple Comparison of Money spent on online shopping in last 12 months -
LSD
Conclusion: As the significance level from ANOVA is almost zero For F value 5.751 and for
1% significance level we reject the null hypothesis, at least one of the age group has different
online expenditure from the rest. Also from the multiple comparison table:
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Table 23: ANOVA Conclusion for Hypothesis 9
From the table it is evident that People of age group ‘above 35’ has the highest online
expenditure in last 12 months.
H₀: There is no difference between mean expenditure of people of different levels of education
HA: At least one group’s expenditure is different
Dependent variable: Money spent on online shopping in last 12 months (Expenditure)
Factor: Respondent's highest level of education: Higher secondary : µ1
Undergraduate : µ2
Graduate and above : µ3
µ is the mean expenditure
Table 24: Mean Money spent on online shopping in last 12 months
Highest level of education of Mean N Std. Deviation
respondent
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Table 25: ANOVA test for Money spent on online shopping in last 12 months
Sum of df Mean Square F Sig.
Squares
Between Groups 3.823E8 2 1.911E8
Within Groups 2.675E10 256 1.045E8 1.830 .163
Total 2.713E10 258
Table 26: Multiple Comparisons of Money spent on online shopping in last 12 months -
LSD
Conclusion: As the significance from ANOVA is 16.3% For F value 1.830 and for 10%
significance level we do not reject the null hypothesis, so people of different educational level
have had the same mean expenditure in the last 12 months.
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6. Summary of the Findings
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7. Conclusion & Recommendations
From this study on general consumer behavior towards online shopping, we can conclude that
the overall scenario of online shopping in Bangladesh is quite impressive. People gradually
understand the usefulness and convenience of online shopping and getting involved in
shopping through online, from books to day to day grocery items. Thus we can say online
business sector is emerging in Bangladesh.
To increase and improve the buyer involvement in online shopping, the following
recommendations are given on the basis of study findings:
● If a new person or company wants to start online business, they should launch products
and services consumer are preferring most and also upgrade the services with better
technology so that the consumers are satisfied.
● To make the buyers regular shoppers of online, problems faced by them while online
shopping such as delay on delivery, damaged products or any other trust issues should
be resolved. Also the purchase process should be user friendly to reach maximum level
of customers.
● Since the findings indicate that most of the customer doesn’t do online shopping due to
the lack of idea about it, vast and effective advertisement highlighting the convenience,
product quality and other positive features should be done to create interest among
customers.
● Encouraging customers who shops online to recommend it to others can be a good
marketing technique.
● Findings indicate that the feeling of being overcharged can be a reason for not
recommending online shopping to others by the customers who does online shopping.
So, the price and commodity quality should keep complimenting each other to increase
more involvement of customers.
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8. References
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General Consumer Behavior towards Online Shopping
* Required
1. Your Gender *
o Male
o Female
2. Your Age *
o Below 20
o 20-25
o 26-30
o 31-35
o Above 35
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6. Have you ever had online shopping *
o Yes Automatically skip to question 9
o No Automatically Skip to question 7 and end at question 8
10. What type of commodity do you usually purchase through online? (Choose more than one
if applicable) *
o Clothes/Shoes
o Books
o Smartphone/Electric gadgets/Computer accessories
o Cosmetics/Jewelry
o Toys
o Video games
o Grocery items
o Household Furniture
o Sports equipment
o Tickets
o Other:
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11. What is your preferred mode of payment for online shopping? *
o Credit card/ Debit card
o Mobile Banking (bKash, Rocket, UCash, mCash etc.)
o Cash on delivery
o Other:
12. In the last 12 months, how much money have you approximately spent shopping online
for goods/services? (In BDT) *
Your Answer:
13. On a scale of 1 to 5, do you feel that your personal info given for the transaction to the
retailer may be compromised to a 3rd party? *
1 2 3 4 5
Strongly Agree Strongly Disagree
14. On a scale of 1 to 5, do you feel that you get overcharged in online shopping? *
1 2 3 4 5
Strongly Agree Strongly Disagree
15. On a scale of 1 to 5, how much do you consider your overall online shopping
satisfaction? *
1 2 3 4 5
Very dissatisfied Very satisfied
16. What kind of problems you have faced from online shopping? *
o No problem
o Delay on delivery
o Cheap quality of the product
o Product Damage
o Other:
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17. Why do you prefer online shopping to traditional shopping? (Choose more than one if
applicable) *
o Price
o Convenience and time saving
o Fast shipping
o Trust
o Brand consciousness
o Variety of choices
o Availability of reviews
o Ease of returning product
o Other:
Form Link:
https://docs.google.com/forms/d/e/1FAIpQLSdPPHaMpr3xGC9vLB6Wq2KzWJLT9U9KN
NURQHBb0G5AMehz1A/viewform
32