CHAPTER-1

INTRODUCTION TO SUBJECT

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1.1 EXECUTIVE SUMMARY

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 Time, Ease of Use; Convenience, Cash on Delivery Payment Option and Friends/Family Recommendations are the four dominant factors which influence consumer decision of Online Purchasing. This project aims at understanding the online purchasing behavior of online shoppers and various factors influencing online shopping behavior and its future prospective.

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1.2 INTRODUCTION
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.

GROWTH OF INTERNET USERS IN INDIA

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 service facilities they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business.

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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 Eretailing, 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, an d then examine their validity in the Internet context.

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1.3 THEORETICAL FOUNDATION

The Internet has developed into a new distribution channel and online transactions are rapidly increasing. This has created a need to under how the consumers perceive online purchasing.

Time, Payment Method 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 number of internet user is constantly increasing which is also signifies that online purchasing is increasing. The rapid increasing is explained by the consumer behavior. The internet is considered a mass medium that provides the consumers with purchase characteristics as no other medium. 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. Using the internet to shop online has become one of the primary reasons to use the internet combined with searching for products a nd finding the information about them.

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.

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CHAPTER-2
LITERATURE REVIEW

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2. LITERATURE REVIEW
The current literature on consumer online purchasing decisions has mainly concentrated on identifying the factors which affect the willingness of consumers to engage in Internet shopping.

In the domain of consumer behaviour research, there are general models of buying behaviour that depict the process which consumers use in making a purchase decision. These models are very important to marketers as they have the ability to explain and predict consumers purchase behaviour.

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 e-commerce 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.

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Balasubramanian, S., Konana, P. and Menon, N.M. (2003), in this environment, some traditional service quality dimensions that determine customer

satisfaction, such as the physical appearance of facilities, employees, and equipment, and employees responsiveness and empathy are unobservable. In contrast, trust may play a central role here in enhancing cust omer satisfaction. Model trust is an endogenously formed entity that ultimately impacts customer satisfaction and we elucidate the linkages between trust and other factors related to the performance of the online seller.

Rajeev Kamineni (2004) in his study finds that World Wide Web can change human behaviour and human interactions to a very large extent. Web based shopping behaviour 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 behaviour have been explored. A cross cultural data set has been collected and an illustrative description of the shoppers has been provided. As a final step the cross cultural differences between several shoppers explored.

Archana Shrivastava, Ujwal Lanjewar, (2011) in online buying, the rate of diffusion and adoption of the online buying amongst consumers is still relatively low in India. In view of above problem an empirical study of online buying behavior was undertaken. Based on literature review, four predominant psychographic parameters namely attitude, motivation, personality and trust were studied with respect to online buying. The online buying decision process models based on all the four parameters were designed after statistical analysis. These models were integrated with business intelligence, knowledge management and data mining to design Behavioral Business Intell igence framework with a cohesive view of online buyer behavior.

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Research of the Internet shopper has typically included demographic questions of age, education and household income (Fram & Grandy, 1995).

Over time the Internet buyer, once considered the innovator or early adopter, has changed. While once young, professional males with higher educational levels, incomes, tolerance for risk, social status and a lower dependence on the mass media or the need to patronize established retail channels (Ernst & Young, 2001; Mahajan, Muller & Bass, 1990), todays Internet buyer shows a diversity of income and education (U. S. Dept. of Commerce, 2003).

For Internet buyers, gender, marital status, residential location, age, education, and household income were frequently found to be important predictors of Internet purchasing (Fram & Grady, 1997; Kunz, 1997; Mehta & Sivadas, 1995; Sultan & Henrichs, 2000). Sultan and Henrichs (2000) reported that the consumers willingness to and preference for adopting the Internet as his or her shopping medium was also positively related to income, household size, and innovativeness. In 2000, women represented the major online holiday season buyer (Rainne, 2002; Sultan & Henrichs, 2000). According to a report by the Pew Research Center (2001), the number of women (58%) who bought online exceeded the number of men (42%) by 16%. Among the woman who bought, 37% reported enjoying the experience a lot compared to only 17% of male shoppers who enjoyed the experience a lot.

Akhter (2002) indicated that more educated, younger, males, and wealthier people in contrast to less educated, older, females, and less wealthier are more likely to use the Internet for purchasing. With India turning net savvy, online shopping has become the latest fad in India with most of the net surfers recommending internet shopping.

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The study, conducted by Internet and Mobile Association of India (IAMAI, 2006) in collaboration with cross tab marketing services, clearly established the dominance of people-to-people (P2P) reference in online shopping space, with 31% respondents finding such sites through word of mouth. As much as 55% visitors to e-commerce sites have adopted internet as a shopping medium, o ut of which 25% of regular shoppers are in the 18-25 age group, while 46% in the 26-35 age group and 18% in the 35-45 age group.

A survey undertaken by JuxtConsult, (April 2007), a Delhi-based online research firm, on 10,000 households in 31 cities (of population sizes 20,000 plus) revealed some interesting facts about the Internet shopping scenario in India. As per research findings, eBay (excluding online travel websites) is the most preferred site for online shopping followed by Rediff, Google and Yahoo . EBay leads with 34 per cent online shoppers still preferring to visit it the most. Rediff follows at the second spot with 25 per cent online shoppers preferring to visit it. However, both eBay and Rediff have lost usage share on preferred basis in the last one year, while new entrant Futurebazaar along with Google have been the biggest gainers. The top two of the top 10 products bought on the Net by online buyers are train tickets (53 per cent) and air tickets (45 per cent). The research also showed that three-fourth of all regular online Indians (76 per cent) search for products and services online. This has shown a 60 per cent growth in the base of online shoppers in last one year, making it 19.1 million. When it comes to the base of actual online buyers, 43 per cent of all regular online urban Indians have bought online. This means a growth of 76 per cent over the last year, making the online buyer base reach a healthy 10.8 million mark. Despite such tremendous growth in the number of online buyers overa ll, the base of really active online buyers (those who buy online at least once a month) is almost stagnant at 2.2 million (same as last year). However, the fact that online buying is penetrating among the smaller towns and lower section groups do not necessarily mean that the economic profile of the online buyers

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is lowering. The biggest qualitative gain about online shopping is its improved perception on highly important and hardcore market place factors like wider choice and availability of products and better prices and bargains, and not just on the convenience factors like saving of time and efforts, home delivery and flexibility of buying anytime. Yet product quality and delivery concerns may be negating some of the gains made. Though misuse of a credit card is a non-issue among online buyers, the research reveals that lack of a credit card is still a strongly perceived roadblock to growth of online buying.

A survey conducted by MasterCard worldwide, (2008), on 5037 respondents across 10 markets: Australia, China, Hong Kong, India, Japan, Singapore, South Korea, Thailand, UAE and South Africa, revealed that Online shopping in the Asia-Pacific region is accelerating at an annual rate of 23.3 percent to hit U S $168.7 billion by 2011, with the region's new markets such as China and India fuelling this growth. MasterCard Worldwide published its latest Insights Report, Economic Crisis and Preference for Online Shopping in Asia/Pacific, Middle East and Africa, which shows that in India the average frequency of online purchases increased to 2.9 in fourth quarter of 2008, up from 2.6 during the same quarter in 2007. The survey showed that the Asia-Pacific region was found to be an active one for online shopping, where 76 percent of respondents said they intend to make a purchase in the next six months. The survey also highlighted the rise of shoppers in the fast-growing markets of China and India. The rising population of upper-middle income urban elites is likely to boost the online shopping markets in China and India underpinned by a paid pace of urbanization, robust economic expansion and rising spending power.

Study by Vijay, Sai. T. & Balaji, M. S. (2009), revealed that Consumers, all over the world, are increasingly shifting from the crowded stores to the one-click online shopping format. However, in spite of the convenience offered, online shopping is far from being the most preferred form of shopping in India.

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A survey among 150 internet users, including both users and non-users of online shopping, was carried out to understand why some purchase online while others do not. The results suggested that convenience and saving of time drive Indian consumers to shop online; while security and privacy concerns dissuade them from doing so.

A study by ACNielsen (2009), covering 38 markets and over 21,100 respondents across the globe has revealed that more Indians are taking to shopping online. It suggested an upward trend in online shopping across the world. A signi ficant observation of this study was that India beat the global counterparts in number of purchases per month, with a mean of 5.2 purchases against the global average of 4.9. In India, books followed airline reservations closely, with 35% of netizens buying them online. Nearly 24% have bought electronic items and more than 20% have purchased items such as apparel, music and electronic entertainment such as movies, DVDs and games. The most favoured mode of payment for online purchases in India is the use of credit cards followed by cash-on-delivery. Online shopping in India is poised for greater acceleration as more manufacturers and providers integrate the Internet into their sales model. As PC and internet penetration grows, the key to increasing online purchases will remain in the hands of marketers in India.

In nutshell, in the age of shopping mall, many people use the internet for their shopping requirements. Studies on on-line shoppers in India have largely been limited to their demographic and geographic profiles. It has been found in the studies in other countries that shoppers also differ in te rms of their convenience, payment modes, time and spending amount. Therefore, this study attempts to understand the impact of these factors on shoppers that influence their disposition towards on-line shopping in India.

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CHAPTER-3
NEED, OBJECTIVES, SCOPE & METHODOLOGY

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3.1 NEED
The need of this research is to identify and get insight into the main factors that the online consumer takes into consideration while buying products on internet, what affects their shopping behaviour. Basic need of this research is to find out; what are the main factors that affect the online consumer when considering and making a purchase over Internet.

3.2 RESEARCH OBJECTIVES

The objective of this study is to synthesize the representative existing literature on consumer online shopping attitudes and behaviour based on an analytical literature review. The purpose of this research study is to investigate online consumer behaviour, which in turn provides E-marketers with a constructional framework for finetuning their E-businesses strategies.

The specific objectives of this research are: 1. To identify key factors influencing online shopping purchases. 2. To study the online shopping behaviour of customers. 3. To identify the factors that can explain the differences in online buying behaviour among different online buyers. 4. To identify the customer willingness in terms of online shopping expenditure amount.

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3.3 SCOPE OF THE STUDY

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 website 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 importa nce of analyzing and identifying factors that influence the consumer when he or she decides to purchase on the Internet is vital. That is why it is crucial for the online retailers to know 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.

These theories can also be applied to identify the online consumer a nd to create certain consumer segments. However, some distinctions must still be made when considering traditional consumer behavior and online consumer behavior.

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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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3.4 RESEARCH METHODOLOGY

Data for this study was collected by means of a Survey conducted in Mumbai within a period of thirty days. The sample size was 50. Only the people who have shopped online atleast once were chosen as valid respondents for the survey. Questionnaires were filled at various places on respondents

convenience basis in and around Mumbai. The Questionnaire (shown in Annexure) was used mainly to identify the factors influencing customer online shopping.

The type of research was both Exploratory as well as Descriptive.

Around fifteen different factors were taken into consideration for forming the research questionnaire by studying the existing models of online shopping behaviour that play an important role in online purchase, leading to online shopping.

The factors were then analyzed in various contexts on the basis of respondents responses to form various interpretations.

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CHAPTER-4
ONLINE SHOPPING IN INDIA

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4. ONLINE SHOPPING SCENARIO IN INDIA

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.

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 is also getting tested in Bangalore and other cities in India. This will increase the usage as it goes more on wireless internet.

If we observe the table, India having only 4% internet penetration still has a commendable sales figure

according to a report by Forrester. The sales are projected to reach whopping 8.8 billion by 2016.

Indians are proving every 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 Indias online buying is crossing the overall global averages.

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4.1 COMPARISION WITH OTHER COUNTRIES

India currently stands as a strong aspirant in the online shopping sector with 4.1% of its GDP comprising of the Internet, i.e. E-commerce. This is a positive signal to the online retailers as the online shopping market will increase with the increased internet access across the country. While U.K. and South Korea stand at the top, it is interesting to see China and Japan taking over the U.S.

India is not far behind. Japan online shopping sector is nearing saturation owing to its geographical limitations as well as the population. While China at 5.5 % is still an aspiring market with the capacity to expand further. India too has a tremendous scope for growth in the online shopping or e -commerce sector.

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As the below illustration shows, more than half on the people having access to the internet have done online shopping in India. The percentage is higher in other countries. This strongly shows that online shopping in India has starting pacing in the upwards direction and there is lots of room for boom in the sector in coming years.

Source: MasterCard Worldwide Online Shopping Survey 2012*

Note: The Figures are in respect to the people shopping online out of total number of people having internet access OR in ratio to the percentage of internet penetration in the country.

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4.2 FACTORS THAT BOOST ONLINE SHOPPING

Rapid growth of cybercafs across India. Access to Information, Exposure to Internet. The increase in number of computer users. Reach to net services through broadband. Middle-class population with spending power is growing.

There is about 200 million of middle-class population having 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.

4.2.1 FEW FACTS ABOUT ONLINE SHOPPING

The figures from IAMAI (Internet And Mobile Association of India) show that the internet users in India will grow to 400 million by 2012. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35 year range. IAMAI also points out the following facts about online shopping sector, statistics and most popular products and services that are sold across the country. Indian online matrimonial sector is worth around $230 million.

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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In line with global trends finally India has also started shopping online these days. As per the study by IAMAI online shopping in India has steadily rose from $11 million in 1999-2000 to $522 million in 2007 and to above $700 million by March 2010 and is expected to reach around $ 8 billion by 2020.

Indians are also Shopaholics like other Asians. There is a strong booming young adult population in India with good levels of disposable income.

INDIA - Most popular online shopping products include: Books (45%), Electronic Gadgets (42%), Railway Tickets (38%), accessories (35%), Gifts (34%), Computer and Peripherals (32%), Airline Tickets (28%), Music Downloads (21%), Movie Downloads (21%), Hotel Rooms (22%), Magazines (18%), Tools (16%), Home Appliances (16%), Toys (16%), Jewelry (17%), Movie Tickets (15%), Beauty Products (12%), Health and Fitness Products (12%), Apparel Gift Certificates (11%) and Sporting Goods (7%). * Approximate Figures by IAMAI.

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4.2.2 ARTICLE FROM HINDUSTAN TIMES DATED 26-01-2013 ON E-COMMERCE IN INDIA:

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4.3 BARRIERS TO GROWTH OF ONLINE SHOPPING

1. Consumer Bias Consumers often display a bias for brands that they know well and have had a good experience in the past. Thus products of brands with a favorable bias will score over the products of less popular brands. A few would risk to buy expensive jewelry from an unknown jeweler online.

2. Lack of Touch Feel-Try Experience The customer is not sure of the quality of the product unless it is delivered to him and post delivery of the product, it is sometimes a lengthy proce ss to get a faulty or the unsuitable product changed. Thus, unless the deliverables are as per the customers expectations, it is hard to infuse more credibility in the eTailing market.

3. Mounting Competitive Pressures To attract customers, the competing online players are adopting all means to provide products and services at the lowest prices. This has resulted in making the consumers choice-spoilt, who in turn surf various websites to spot the lowest price for the product. Thus, although the number of transactions is increasing, the value of the products sold is continuously falling owning to high competition and leaner margins.

4. Seasonality eTailing Market is faced by seasonal fluctuations. As told by an Industry player, August to February is the peak seasons for sale, while March to July is the dry seasons for sale. During the peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day, New Year, Christmas, Mothers Day, Friendship

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Day etc are. On these occasions younger generations prefers buying and sending gifts online.

5. Credibility in Payment System Online frauds and breach are the biggest barriers to online sales. As a result, prospective buyers prefer staying away from revealing their credit card and bank details.

6. Untimely Delivery of Products It might take a few minutes to search, book and pay for products and services online, but the delivery of the product may take unreasonable time.

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CHAPTER-5
CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

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5.0 CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

Malls springing up everywhere and yet people are e-shopping! And not in small numbers either. E-commerce figures are going through the roof, according to Assocham (Associated Chambers of Commerce & Industry of India). Today (2011-12) the figures are touching Rs. 50,000 crore, but are expected to increase by 150 percent by 2014-15! And two metros - Delhi and Mumbai are driving the growth: It was never thought that Indians would go in for e-shopping in such a big way. Ticketing, travel bookings and even books and movies seem fine to buy online. Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how is it that there are people buying these items online? Well, Assocham says that books are the hottest selling item on the internet. In fact most products bought and sold off online are: books, electronic gadgets and railway tickets. However, people are also buying clothes; gifts, computer and peripherals, and a few are buying home tools and products, home appliances, toys, jewelry, beauty products and health and fitness products.

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Traffic for e-commerce sites is mostly coming from the two metros of Delhi and Mumbai. Here are few reasons for this: 1. Convenience It is the major reason. Both the cities are spread out over a large area and the best stores in both these cities are often concentrated in certain posh areas. In Mumbai for example there are certain items you get only in Crawford market which is at the other end of town in South Mumbai. And demographics show that the population of Mumbai is now concentrated in the suburbs. Of course, huge malls have come up in the suburbs as well, and Indias biggest mall Nirmal Lifestyle is in far-flung Mulund but often you find a better choice of sizes and styles choice in other malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi have transport system, few people like to travel for two hours just to get to a shop at the other end of town. Clearly the transport systems leave much to be desired. In Delhi, safety is also an issue for women traveling alone in the evenings.

2. Literacy Rate and the Cities Internet Savvy Population Most cities in India have a higher literacy rate as compared to the national average of 64.8 percent. In fact Mumbai has a highest literacy even amongst the cities (86 per cent). Delhi too has a high literate population (81.2 per cent). Oddly, although Bangalore has a higher literacy rate than Delhi, at 83 per cent, the citys share of e-commerce is not very high. Kolkata too has a literacy rate (80.8 per cent) and so does Chennai (80.1 percent.) If o ne compares these rates to literacy rates of cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal (73 percent) its clear why its the metros which are going to continue to lead e-shopping.

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3. Home delivery concept In any case, home delivery is a concept that Indians are familiar with and love. The mall craze has started only now. Earlier it was a choice between sweating it out in small crowded markets, or asking a friendly neighbourhood kirana (grocer) to deliver groceries home and this system is still thriving.

4. Increase in the Internet users Increasing penetration of Internet connectivity and PCs has led to an increase in the Internet users across India. The demographic segments that have witnessed maximum growth comprise college going students and young persons. These segments are the users of advanced applications and technologies online and are most likely to be heavy Ecommerce users.

5. Increase in the number of buyers and sellers The success of a marketplace depends on the presence of a large number of buyers and a large number of sellers. In addition to online buyers, many offline stores have begun to sell their products in the online marketplace. The greater the number of sellers and buyers, the faster the market grows. PRODUCT PREFERENCES CITY WISE: Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies, bookings, actually just about everything. Well, Kolkata prefers to buy music and movies online. Mumbai leads in all categories, except jewellery. Delhites seem to prefer buying jewellery online as compared to any other city.

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5.1 PROPOSED MODEL

After examining the 10 empirical studies, a total of eleven interrelated factors for which the empirical evidences show significant relationships were identified. These ten factors are perceived usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security and privacy, quality of internet connection, attitude towards online shopping, intention to shop online, online shopping decision making, online purchasing, and consumer satisfaction.

Six (perceived usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security and privacy, quality of internet connection )are found to be ordinarily independent and five (attitude toward online shopping, intention to shop online, decision making, online purchasing, and consumer satisfaction) are ordinarily dependent variables.

Consumer satisfaction is considered to be a separate factor in this study. It can occur at all possible stages depending on consumers involvement during the online shopping process. The relationships between satisfaction, attitude, intention, decision making and online purchasing are proposed to be two-way relationships due to the reciprocal influences of each on the other.

In addition, three of the antecedents, perceived usefulness, perceived ease of use, perceived enjoyment , have been found to have direct impact on consumer satisfaction.

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5.1.1 INDEPENDENT FACTORS

PERCEIVED USEFULNESS Perceived usefulness is defined as the degree to which a person believes that using a particular system would increase his or her job performance. It is an important factor affecting acceptance of an information system, because the ultimate aim of any person is the superior job performance.

PERCEIVED EASE OF USE This is an important factor that affects the acceptance of a particular information system. It is defined as the degree to which a person believes that using a particular information system would be free of effort. Hence an application perceived to be easier to use would more likely be accepted by the user.

PERCEIVED ENJOYEMENT Enjoyment refers to the extent to which the activity of using a computer is perceived to be enjoyable in its own rights. This is seen as an intrinsic source of motivation to use a particular application.

AMOUNT OF INFORMATION Amount of information is defined as the information which is available for the product which a person wants to buy through online shopping. This factor eases the decision of the user to actually buy the product or not, or which product to buy. This factor becomes even more important in case of High Involvement product.

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SECURITY AND PRIVACY Security and privacy are the main factors which hinder the growth of Online shopping. The user is concerned about his ID and Password which can be stolen by persons with wrong intentions and then misuse it. At the same time they are concerned that their personal information may be sold to the third party which poses a serious threat to their privacy.

QUALITY OF INTERNET CONNECTION Not only is the presence of internet connection necessary but also its Quality is important to shop online. This is an important factor which determines whether the user would shop online or not because presence of internet is a basic neccessity for this mode of shopping.

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5.1.2 DEPENDENT FACTORS

ATTITUDE TOWARDS ONLINE SHOPPING Consumers attitudes toward online shopping have gained a great deal of attention in the empirical literature. It is believed that consumer attitudes will affect intention to shop online and eventually whether a transaction is made. It refers to: 1) The consumers acceptance of the Internet as a shopping channel . 2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers think that shopping at this store is appealing).

INTENTION TO SHOP ONLINE Consumers intention to shop online refers to their willingness to make purchases in an Internet store. Commonly, this factor is measured by consumers willingness to buy and to return for additional purchases. The latter also contributes to customer loyalty. Consumers intention to shop online is positively associated with attitude towards Internet buying, and influences their decision-making and purchasing behavior. In addition, there is evidence of reciprocal influence satisfaction. between intention to shop online and customer

ONLINE SHOPPING DECISION MAKING Online shopping decision-making includes information seeking, comparison of alternatives, and choice making. The results bearing on this factor directly influence consumers purchasing behavior. In addition, there appears to be an impact on users satisfaction. Though it is important, there are only five studies that include it. According to Haubl and Trifts (2000), potential consumers appear to use a two-stage process in reaching purchase decisions. Initially, consumers typically screen a large set of products in order to identify a subset

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of promising alternatives that appears to meet their needs. They then evaluate the subset in greater depth, performing relative comparisons across products based on some desirable attributes and make a purchase decision.

ONLINE PURCHASING This is the most substantial step in online shopping activities, with most empirical research using measures of frequency (or number) of purchases and value of online purchases as measures of online purchasing; other less commonly used measures are unplanned purchases Online purchasing is reported to be strongly associated with the factors of personal characteristics, vendor/service/product characteristics, website quality, attitudes toward online shopping, intention to shop online, and decision making (Andrade 2000; Bellman et al. 1999)

CONSUMER SATISFACTION It can be defined as the extent to which consumers perceptions of the online shopping experience confirm their expectations. Most consumers form expectations of the product, vendor, service, and quality of the website that they patronize before engaging in online shopping activities. These

expectations influence their attitudes and intentions to shop at a certain Internet store, and consequently their decision-making processes and purchasing behavior. If expectations are met, customers achieve a high degree of satisfaction, which influences their online shopping attitudes, intentions, decisions, and purchasing activity positively. In contrast, dissatisfaction is negatively associated with these four variables (Ho and Wu 1999; Jahng et al. 2001; Kim et al. 2001).

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PROPOSED MODEL

As the model indicates, three out of the five dependent variables (consumer attitudes, intentions, and purchasing behavior) and three out of the five independent variables (perceived usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security and privacy, quality of internet connection ) receive the most attention. This seems to constitute the main stream of research in this area.

It is found that personal characteristics such as vender/service/product characteristics and website quality significantly affect online shopping attitudes, intention, and behavior.

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The role of the external environment, demographics, online shopping decision making, and consumer satisfaction are less well represented in the proposed model. Any number of factors, including vender/service/product

characteristics, website quality, attitude towards online shopping, intention to online shopping, online shopping decision making, and online purchasing, may influence consumers satisfaction. More importantly, the extent to which customers are satisfied is directly related to attitudes toward online shopping or toward specific Internet stores. The relative importance of this factor in determining such consumer behavior as repeat purchases suggests that further research on consumer satisfaction with online shopping needs to be conducted.

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CHAPTER-6
TOP 15 ONLINE SHOPPING WEBSITES IN INDIA

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#1. Flipkart

Site Address - http://www.flipkart.com/ About Company:- One of the most consumer friendly site because of their immediate customer support response and delivery guaranteed within 3 working days makes them here at the second level of e-commerce sites you should visit to buy your needs.

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked

for Amazon.com before quitting and founding their own company. Initially they used word of mouth marketing to popularize their company. A few months later, the company sold its first book on flipkart.comJohn Woods Leaving Microsoft to Change the World.

Today, as per Alexa traffic rankings, Flipkart is among the top 30 Indian Web sites and has been credited with being Indias largest online bookseller.

Categories they are serving in:

Books Mobile & Accessories Computers Cameras Home & Kitchen Pens and Stationery Fragrances Movies & T.V Shows Music CDs

Gaming DVDs and Vinyl TV Video & MP3 Player Personal & Health Care

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Payment Options:

Credit Card Debit Card American Express Net Banking E-Gift Voucher Cash On Delivery

Is the Payment Processing is secure by https://? Answer Yes

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#2. EBay India

Site Address - http://www.ebay.in/ About Company: - eBay is the worlds most famous marketplace in the issues of creating a place where buyers and sellers can meet doesnt matter the buyer and seller is the individual or the companies.

The online auction website was founded as AuctionWeb in San Jose, California, on September 5, 1995, by French-born Iranian-American computer

programmer Pierre Omidyar (born June 21, 1967) as part of a larger personal site that included, among other things, Omidyars own tongue-in-cheek tribute to the Ebola virus. One of the first items sold on eBay was a broken laser pointer for $14.83.

Categories they are serving in:EBay is a marketplace for selling and buying almost anything and hence its categories have no end but we still manage to show off its main categories here in the list below.

Clothing & Accessories Shoes & Other Footwear Auto Accessories & Parts Books & Magazines Cameras & Optics Cars & Bikes Charity Coins & Notes Collectibles Consumer Electronics Fitness & Sports

Fun Stuff Home, Decor & Furnishing Jewellery & Diamonds Kitchen & Home Appliances Laptop & Computer Peripherals Memory Cards, Pen Drives & HDD

Mobile Accessories Mobile Phones Movies & Music Musical Instruments

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Perfumes, Cosmetics & Health Services & Real Estate Stamps Tools & Office Supplies Toys, Games & Baby

Travel Video & Computer Games Watches Everything Else

Payment Options:EBay redirects you to pay using PaisaPay a secure and safe transaction platform for Indian users and it allows you to pay using different methods like listed below.

Credit Card Credit card EMI Debit Card Online Bank Transfer Cash on Delivery Cash Cards

Is the Payment Processing is secure by https://? Answer Yes

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#3. SnapDeal

Site Address - http://www.snapdeal.com/ About Company: - Indias fastest growing e-commerce website dealing in daily deals on more than 500 brands, 60000 products and thats all under 200 categories. SnapDeal (SD) have more than 15,000,000 registered users who use to by more than 20,000 products on the daily basis and SD delivers those products in more than 4000 cities and towns with the help of its 1,000 employees whose average age is 26 and their male and female sex ratio is 1:2.

Headquartered in Delhi, Snapdeal.com was launched in February 2010. The company was founded by Kunal Bahl, a Wharton graduate and Rohit Bansal, alumnus of IIT Delhi who are friends since school. They had agreed that after finishing their studies and gaining required work experience, they would start a project of their own.

Categories they are serving in:

Health & Beauty Restaurants Entertainment & Adventure Mixed Bag Mobiles Mens Apparel Womens Apparel Lifestyle Electronics

Computers Perfumes & Beauty Jewellery Books & Movies Footwear Home & Kitchen Kids & Toys and Travel

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Payment Options:

Credit card (Visa/ Master/ Amex/Diners club/ JCB) Debit card (All leading bank debit cards) Netbanking (For all leading banks ) Cash on Delivery (Available on select deals)

Is the Payment Processing is secure by https://? Answer Yes

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#4. HomeShop18

Site Address - http://www.homeshop18.com/ About Company:- HomeShop18 is the online & on-air retail marketing and distribution venture of Network18 Group that was launched as Indias first 24 hour Home Shopping TV channel on April 9, 2008. HomeShop18 offers innovative, differentiated and demonstrative retail experiences on TV and internet and has emerged as the largest multimedia retailer in India with a user base of 2.5 million users and some prestigious awards. HomeShop18 is a venture of the Network18 Group, Indias fastest growing media and entertainment group that operates Indias leading business news television channels like CNN-IBN, CNBC TV18 and CNBC Awaaz.

HomeShop18 has

partnered

with

the

best

brand

owners

in

India

like Apple, Motorola, Philips, Reebok, Whirlpool, Nokia, Glen, VLCC, Fabindia an d many more to provide superlative quality and exceptional value for any customer from the stage of product selection, to placing the order & all the way to the final delivery at your doorstep. We come with the trust and credibility that Network18 has built over the years and we strive to create an experience that you can depend upon!

Categories they are serving in:

Books Cameras & Camcorders Mobiles & Accessories Apparel & Accessories Jewellery & Watches Electronics Home & Kitchen

Toys & Games Gifts & Flowers Computer & Peripherals Kids & Baby Health & Beauty Movies Household Appliances

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Payment Options:-

Debit card Visa/MasterCard/Maestro Credit Card Visa/MasterCard American Express Internet Banking Cash on Delivery (CoD) Cash before Delivery (CBD) Cheque/DD EMIs Gift Certificate Mobile payment (mChek) Cash card (ITZ)

Is the Payment Processing is secure by https://? Answer Yes

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#5. Naaptol Site Address - http://www.naaptol.com/ About Company: - Launched in January 2008, Naaptol has grown to become Indias leading comparison based social shopping portal, the one -stop destination for all shoppers, merchants and market enthusiasts.

Started as a brainchild of two people Naaptol has grown to about 60 odd employees within a span of 1 year. Not only in terms of employees but the organization has grown in other respects too. From nil sellers Naaptol has grown to 500 stores in its portfolio and still counting. And thats not all! There are about 470 brands that are associated with Naaptol which include Indiatimes Shopping, Ferns and Petals, HomeShop 18, J J Mehta and the likes.

This has all been possible due to the dedicated and efficient team of naaptoleers who strive all along to get nothing but the best. Be it sales, operations, technology or marketing, all teams work in unison with each other to reach the top.

Categories they are serving in:

Mobiles Cameras Computers Gadgets Automobiles Home & Kitchen Gifts Fashion Health Home Decor

Toys & Nursing Sports Hobbies & Passion Food & Beverages Media Baby Care & Maternity Books

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Payment Options:-

Net Banking Credit Card PayMate Cash On Delivery Debit Card EMI

Is the Payment Processing is secure by https://? Answer Yes

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#6. LetsBuy

Site Address - http://www.letsbuy.com/ About Company: - One of the largest Internet retailers of branded computer technology and digital lifestyle products with more than 5000 products from top international and domestic brands. Started by entrepreneurs Hitesh Dhingra and Amanpreet Bajaj, LetsBuy.com recently received a round of venture capital funding. LetsBuy.com is Indias leading online retailer with pan-India reach. It offers the widest range in computers, communications and consumer electronic products. It offers gadgets and gizmos at the lowest prices.

Categories they are serving in:

Mobile Phones Computers Digital Cameras Electronics Kitchenware Watches

Home Appliances Stationary Health Care Gaming Toys Sports

Payment Options:

Cash On Delivery (COD) Net Banking Credit Card Debit Card EMI

Is the Payment Processing is secure by https://? Answer Yes

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#7. Yebhi

Site Address - http://www.yebhi.com/ About Company: - Big Shoe Bazaar India Pvt Ltd. is the fastest growing company in lifestyle category in India. It powered the sale of multi brand Footwear online through www.bigshoebazaar.com which transformed

into www.Yebhi.com Enormous success in footwear category inspired us to expand Mobiles. in other categories like Apparels, Accessories, Bags, Jewellery and

Started by Danish Ahmed, a Kanpur based shoe traders/Manufacturers son, after an experiment of selling blocked inventory over Rediff and Ebay, in 2007.

Categories they are serving in:

Shoes Clothing Bags Lifestyle Jewellery & Watches Home and Kitchen Lingerie

Payment Options:

Credit Card Debit Card Net Banking Cheque

Is the Payment Processing is secure by https://? Answer Yes

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#8. Tradus

Site Address: - http://www.tradus.in/ About Company: - Launched in July 2009 to become one of the best book sellers online in India and spreading its reach in many other categories like gadgets on the discounted price to attract youth attention from the country. Initiative of Ashish Kashyap who owned Ibibo and Bixee before making of Tradus to provide his services in online retail market.

Categories they are serving in:

Electronics Home & Living Computers & Tablets Mobiles & MP3 Players Camera & Photography Books, Movies & Music Clothes, Shoes & Accessories Perfumes & Personal Care Gifts & Handicrafts Imported Products

Payment Options:

Credit Card Debit Card Internet Banking DD & Cheque

Is the Payment Processing is secure by https://? Answer Yes

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#9. Bag it today

Site Address - http://www.bagittoday.com/ About Company: - Owned and managed by The India Today Group where anyone can buy premium products from the big brands around the world.

Categories they are serving in:

Sun Glasses Mobile Phones Books T-shirts Watches Jewellery Perfumes

Wallets Bags Shoes Saree Camera LCD Lingerie

Payment Options:

Credit Card Debit Card Cash On Delivery

Is the Payment Processing is secure by https://? Answer Yes

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#10. Indiaplaza

Site Address - http://www.indiaplaza.com/ About Company: - Indias first established online retailer since 1999 under the name of Fabmart and now working as Indiaplaza as Indian electronic commerce company. In June 1999 K. Vaitheeswaran (along with a group of five friends) founded Fabmart.com, Indias first pure-play online. The website Fabmart.com was launched in September 1999 and at the time it offered only music CDs for sale. Between February and October 2000, the website introduced additional categories including books, movies, watches, and groceries. In February 2002, Fabmart.com launched its offline grocery store in Bangalore, India.

Categories they are serving in:

Apparels, Accessories & Furnishing Books & Stationary Baby Products & Toys Cameras Cakes & Cookies, Chocolates, Sweets & Flowers Electronics & Computers Food & Health Gift Articles Handicrafts, Arts & Spirituality Home Appliances, Television & Music System Jewellery & Watches Mobiles Perfumes & Cosmetics Sports & Footwear

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Payment Options:

Credit Card Debit Card Net Banking ZipCash Paymate PayPal Cash On Delivery Is the Payment Processing is secure by https://? Answer Yes

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#11. Junglee

Site Address - http://www.junglee.com/ About Company: - Junglee is an online product comparison and advertising site offered by Amazon which enables customers to find and discover products from online and offline retailers in India and from Amazon.com.

Junglee organizes massive selection and multiple buying options from hundreds of sellers, and leverages Amazons proven technologies and millions of customer reviews to help customers make smart purchase decisions.

Customers can discover over 1.2 crore products and 14,000 brands, and purchase items directly from hundreds of retailers including Homeshop18, UniverCell, Hidesign, Gitanjali, The Bombay Store, Fabindia, Bata India Limited, Dabur Uveda, Microsoft India Store, Reebok, and Amazon.com. Customers can buy products online by following the link to the sellers website or find a sellers physical store if they would rather purchase the product in person or call the seller and place an order by phone.

Categories they are serving in:

Books, Movies & Music Mobiles, Cameras & Computers Home, Entertainment & Video Games Baby, Toys & Games, Sports Clothing, Shoes & Jewellery Health & Beauty Kindle

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Payment Options:-

Junglee does not sell anything directly and hence you have a variety of options to pay varies in the case of different sellers so till now what I mentioned in payment options of the above sites you can count all of them here in case of Junglee. Is the Payment Processing is secure by https://? Answer Yes

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#12. FutureBazaar

Site Address - http://www.futurebazaar.com/ About Company: - FutureBazaar is an online initiative from the Future Group who knows how to retail offline and now attracting Indian buyers online with full safety and guarantee of delivering quality products with the lowest price tag.

Categories they are serving in:

Home & Living Fashion Electronics Essentials Gift & Ideas Gift Vouchers

Payment Options:

Credit Card Debit Card Net Banking EMI Future Money Finance Cash On Delivery Pay Back

Is the Payment Processing is secure by https://? Answer Yes

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#13. Bestylish Site Address - http://www.bestylish.com/ About Company:- Indias largest online shoe retailer offering variety of shoes for men, women and kids from every brand who is known in footwear industry and that is also in the lowest available pricing.

Categories they are serving in:

Mens Footwear Womens Footwear Kids Footwear

Payment Options:

Credit Card Debit Card Cash On Delivery

Is the Payment Processing is secure by https://? Answer Yes

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#14. ShoppersStop Site Address - http://www.shoppersstop.com/ About Company:- With an unparalleled assortment of the leading international and national brands in clothing for men, women, and kids; accessories, fragrances, cosmetics, footwear; home furnishing and decor products, their online and offline stores aim to provide shoppers a truly international shopping destination.

Categories they are serving in:

Men Women Kids Fragrances & Beauty Home & Travel Gift Ideas

Payment Options:

Credit Card Debit Card Maestro Cards American Express Net Banking

Is the Payment Processing is secure by https://? Answer Yes

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#15. Babyoye Site Address - http://www.babyoye.com/ About Company: - Babyoye was conceived to provide the online generation of modern Indian parents with the opportunity to access the best in pregnancy infant-care and mother-care products and services at the click of a button. Founded by Sanjay Nadkarni and Arunima Singhdeo

Categories they are serving in:

Diapers, Wipes & Bags Feeding & Nursing Bath & Skincare Health & Safety Nursing & Home Toys Clothing & Shoes Outdoor & School Gear Books & Music Moms & Maternity

Payment Options:

Credit Card Debit Card Net Banking Cash On Delivery (COD) Imint

Is the Payment Processing is secure by https://? Answer Yes

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CHAPTER-7
IMPACT ON OFFLINE STORES

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7.0 IMPACT OF ONLINE SHOPPING ON LOCAL/OFFLINE/TRADITIONAL STORES

With Internet penetration in India being limited to 4 % till now, the traditional stores are here to stay. There has not been much impact on the offline stores in terms of customer behaviour or sales. As the above diagram indicates, 51% internet savvy population still prefers visiting a store to buy a product. While only 17% visit a store and then purchase online. Although offline stores arent affected yet, some factors have been of concern for the bricks only stores; Increased customer awareness about brands and there prices due to internet websites, customer demands for brands, feeling a lack of privacy in offline stores and less variety as compared to that available on an online shopping website. Offline stores are revving up to tackle these factors to compete the onl ine shopping websites.

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CHAPTER-8
DATA ANALYSIS & INTERPRETATION

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8.0 PRIMARY DATA BASED ON QUESTIONNAIRE

1. GENDER COMPOSITION:

Figure 1.1 Interpretation: The above bar graph shows us the number of male and female respondents of the survey. Out of total 50 respondents, 54% are male shoppers and 46% are female shoppers.

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2. AGE GROUP OF ONLINE SHOPPERS:

Figure 2.2

Interpretation: The above bar graph shows the age group of number of respondents out of total 50 respondents. The highest number of online shoppers are aged between 21 to 30 years of age, i.e. 20 out of 50 respondents (40%) and 16 to 20 years, i.e. 17 out of 50 respondents (34%). The age group of 31 to 40 can be considered as a potential customer bracket for the online retailers with 8 out of 50 respondents (16%). The lowest number of online shoppers are aged between 41 to 50 years, i.e. (6%) and above 51 years of age (2%).

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3. OCCUPATION OF ONLINE SHOPPERS:

Figure 3.3

Interpretation: The above pie chart shows the occupation of the respondents out of total 50 respondents. Surprisingly, Students are most likely to shop online as the results show, i.e. 22 out of 50 online shoppers are students (44%). Over exposure to internet at student level leads to them trying online shopping. Employed people, due to lack of time, prefer shopping online the mos t and the survey results validate this; 20 out of 50 online shoppers are employed individuals (40%). 10% online shoppers are unemployed individuals, while 4% consist of homemakers (housewives) and 2% are retired individuals.

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4. INTERNET MOST USED FOR:

Figure 4.4

Interpretation: The above pie chart shows the internet usage pattern of the respondents out of total 50 respondents. Most online shoppers used internet for social networking and surfing the internet or checking emails, i.e. about 58% online shoppers. Online retailers may effectively advertise on social media and through email newsletters to drive sales. Also, about 36% respondents, i.e. 18 out of 50, claimed to be using internet connection only for the purpose of online shopping. E-banking and online games constitute about 6% internet usage by the respondents.

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5. THINGS MOST PURCHASED ONLINE:

Figure 5.5

Interpretation: The above bar graph shows the things most purchased by the respondents out of the total 50 respondents, 20 out of 50 respondents prefer buying electronics equipment online ( 40%). Books and railway tickets are second most purchased online, i.e. books ( 34%) and railway tickets (32%). Tours and hotel reservation accounts for 18%, i.e. 9 out of 50 respondents. Clothes and Accessories sales are rapidly increasing and it is expected to overtake electronics sales figure in near future. 14% respondents preferred buying clothes and accessories online.

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6. WHY PREFER ONLINE SHOPPING:

Figure 6.6

Interpretation: The above pie chart shows the reasons stated by online shoppers for buying online out of the total 50 respondents. Majority of the respondents shared a common reason to shop online was because it is time saving! 32 out of 50, i.e. 64% shopped online because it is time saving. 19 out of 50, i.e. 38% believed online shopping served them competitive price for products and services and 30% shopped online because it provides a large variety of products to choose from. Increasing rates of fuel encourages people to save on fuel by staying home and shopping on the internet. 14% shopped online as to save on travel. While, 2% shopped online because of the freedom to order anytime.

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7. PREFERED MODE OF PAYMENT:

Figure 7.7

Interpretation: The above par graph shows the most preferred form of payment for online shopping by the 50 respondents. Indian online sector boom is largely because of the concept of Cash on Delivery payment mode. It is still the most preferred form of payment for online shoppers. 33 out of 50, i.e. 66% online shoppers preferred cash on delivery while shopping online. Interestingly, 18 out of 50 respondents (36%) also preferred to use their debit/credit card to shop online. In the past, shoppers were least likely to use their debit/credit card due to fear of fraud by online retailers. This change in the statistic shows that the trust in online retailers and well as the internet as a medium has increased. 8% preferred Netbanking and 2% preferred to pay by the means of vouchers and coupons.

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8. WHY BUY FROM SAME WEBSITE AGAIN:

Figure 8.8

Interpretation: The above pie chart shows the reason for repeat purchase from a website by an online shopper out of the total 50 respondents. A timely delivery of the product would make a customer buy from the same website again and again. 24 out of 50, i.e. 48% respondents would buy back from a website if the delivery time of product is less. Also, ease in finding the desired product or smooth website or convenience while surfing and shopping on the website would ensure repeats. 21 out of 50 respondents, i.e. 42% validate this. 30% respondents would buy again from a site because of lower price or their preferred payment option available on the website.

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9. POSSIBILTY OF PURCHASING AN EXCITING OFFER:

Figure 9.9

Interpretation: The above pie chart shows the possibility of a respondent buying an exciting offer over the internet even if he/she does not need it; out of the total 50 respondents. Only 9 out of 50 respondents, i.e. 18% were very likely to purchase an exciting offer. This explains a very important factor that may influence online shopping behaviour of a customer, i.e. influence by offers or attractive advertisements. If not purchase, then 30% would still recommend it to friends/family etc who they were aware needed the offer product. 15 out of 50, i.e. 30% may or may not make the purchase. 16 out of 50, i.e. 32% denied purchasing getting influenced by an attractive offer.

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10. RELY ON WHOSE RECOMMENDATION WHILE SHOPPING ONLINE:

Figure 10.1

Interpretation: The above bar graph shows the number of respondents relying on the factors for recommendation while making an online purchase out of the total 50 respondents. Most online shoppers are dependent on their friends/family recommendations for making an online purchase. 32 out of 50, i.e. 64% rely on their friends, families etc for suggestions and recommendations before buying online. Online product reviews create a trust in the customer about the product. 15 out of 50, i.e. 30% rely on online reviews available to read other buyers experiences with the product. 22% rely on various forms of advertisements, while 20% rely on search engines to read and gain knowledge about the product before purchasing online.

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11. CONCERNS WHILE SHOPPING ONLINE:

Figure 11.1

Interpretation: The above graph shows the level of concern by the respondents about the various factors that are barriers to online shopping out of the total 50 respondents. Need to touch/feel the product (27 out of 50); product quality (26 out of 50) and inability to bargain online (26 out of 50) were of the most concern for shopping online for a customer. Transaction security when paying online (25 out of 50) and having to wait for delivery of the product (22 out of 50) after buying online also proved to be of some concern to the customer.

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12. MAXIMUM AMOUNT SPENDABLE ON ONLINE PURCHASE:

Figure 12.2

Interpretation: The above pie chart shows the maximum amount a respondent would spend for an online purchase out of the total 50 respondents. 28% respondents would buy anything under Rs. 2000/- while shopping online. 62% would buy anything online under Rs.5000/- out of which only 34% would buy above Rs.2000/-. 28% shoppers dont mind spending anything between Rs. 5000/ - to 10000/while shopping online. Only 10% shoppers were willing to buy products above Rs. 10000/ - while shopping online.

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CHAPTER-9
PERSONAL INTERVIEW

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9.0 INTERVIEW WITH MR. RAVI PATEL, M.D., OVERSEAS PVT LTD

1)

What is propelling such a huge surge in online shopping? What has changed in the online environment that has resulted in this?

Ans: I think customer trust has become much better in the whole medium [internet] itself. E-commerce in the last decade has been suffering from a lack of customers in general which has changed now and I think more and more e-commerce players in the market, better services, product selection, better prices is driving that as well.

2)

Arent low prices the actual driver for sales these days? Because the first category that is put up on most of the website is that of low priced products like books, etc?

Ans: I think low prices is secondary to trustif the customer trust in your service is low, I dont think low prices will help much! We did a lot of research for some websites and most of it showed that the first hurdle for consumers was that of trust and after that the customers think about prices, selection or any other thing. So in order to build that trust, we provide product replacement if there is a problem with your product. We also provide Cash on Delivery so that customers dont have to pay upfront and then worry whether the product will be delivered to them or not. Then the important factor is whether the product is original? So we mention that the product is 100% original and provide warranty on the same. This combined with a smooth shopping experience is leading to growth for our sites.

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3) Give us a sense of the geographic as well as demographic profile or anything that you can share in terms of the psychographic profile of an online shopper. Ans: Majority of our customers are urban, they are office going people, English speaking and they are spending a lot of time on the internet. In terms of city, half of them come from large cities and half from very long distant small cities. Just to give u a sense of that, we have shipped products to each and every part of India!

4) How much does traditional advertising help with the sales and does it help in creating awareness about the brand or is it about creating creditability? Where do you think this is more important to you? Ans: I think when you are creating a new sector itself, you have to be very visible, very accessible for customers. So TV is medium which we found to be a very good medium to build that trust in their minds which blows their apprehensions for buying a service for the first time. In terms of conversions and sales too we have benefited. Apart from TV we use social media effectively to answer a lot of questions on Twitter for example and also we do a lot of promotions on Facebook!

5) How does an online shopping site offer low prices and how do you then ensure good service? How does it work? Ans: First of all, our cost of operations is much lesser than physical stores, which gives us lot of room. Apart from this, we have tie ups with suppliers, we have close relations and work closely with brands and because of the volume we drive we get one of the best deals in market from our suppliers and that is what we pass on to the customers.

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6) The global economy has seen the dot com boom and then burst nearly a decade ago. There is a boom again and people are questioning how credible this current boom is? What would you have to say to this? Ans: We definitely see ecommerce as a very sustainable sector and the business itself; they way we are structured is a very long term approach. We are here in for a long haul and our investors are very long term, say 5 to 7 years atleast and even 10 years! Right now we are focusing on the customers that customers keep coming back and if they make repeat purchases then we know that this is a sustainable business model.

7) To end this, what is the overall growth you are seeing in terms of customer acquisitions, repeats and revenue? Ans: Repeat rate has been high of late and it has been in the upwards of 70%. More than 70% of customers repeat in a year. New customer acquisitions are also accelerating quite rapidly and this month we see sales of around 5 million. We see this figure expanding more in near future.

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CHAPTER-10
SUMMARY, RECOMMENDATION & CONCLUSION

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10.1 SUMMARY OF FINDINGS

1.

Online

Shopping

is

rapidly

increasing in India. Internet has emerged as a new channel of distribution in retail. And the

online shopping sector is set to increase in near future.

2. Online Shoppers increased at a dramatic growth rate of 128% in the year 2012. This trend is seen to continue in 2013 and further years to come.

3. Most of the e-commerce traffic comes from the metros. A half of it comes from metros like Delhi and Mumbai! A shift is expected in this trend with tier II cities increased internet penetration.

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4.

The

apparels

and

accessories market is set to overtake the current leader of most preferred i.e. online

purchases,

electronics.

More people are willing to buy branded clothes at the click of their mouse!

5. Top Reasons for People Shopping Online:

Convenience; Ease of use

Fast Delivery Time

Cash on Delivery

Variety; Assess to Brands

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6. Top Reasons Preventing Online Shopping:

Need to Touch/ feel Product

Have to Wait for Delivery

Security of Transaction

Cannot Bargain Price

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10.2 RECOMMENDTATIONS
The online sellers have to make their payment transparent, and as people are coming on their sites and they are buying their products, so retailers have to give more discounts to their customers so that they can visit again and again to their site, and it also helps to make people more aware about the low risk of shopping online. Also the following pointers would help an online seller an edge over the offline stores:

Following implications should be followed: Faster Website Processing Convenient and easy browsing Provide Cash on Delivery payment option Assured and short delivery time Provide accurate information about product Assurance of product quality and originality Provide warranty to and replacement to gain customer trust Discount prices Fast transactions Focus on customer satisfaction

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10.3 CONCLUSION
Increased Internet penetration, a hassle free shopping environment and high levels of Net savviness see more and more Indians shopping online. But at the same time the companies need to reduce the risks related to consumer incompetence by tactics such as making purchase websites easier to navigate, and introducing Internet kiosks, computers and other aids in stores.

The goal is not to convert all shoppers to online purchasing, bu t to show them its an option. In addition to above, efforts need to be taken to educate the online buyers on the steps that need to be undertaken while making an online purchase. Moreover, the feedback of an online buyer should be captured to identify flaws in service delivery. This can be done through online communities and blogs that serve as advertising and marketing tools and a source of feedback for enterprises. We found that it is a challenge for E-marketers to convert low frequency online buyers into regular buyers through successful website design and by addressing concerns about reliable performance. Thus, the online retailing raises more issues than the benefits it currently offers. The quality of products offered online and procedures for service delivery are yet to be standardized. Till the same is done, the buyer is at a higher risk of frauds.

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ANNEXURE

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REFERENCES
Consumer online shopping attitudes and behavior: an assessment of research, by: Na Li and Ping Zhang, Syracuse University Consumer attitudes toward shopping venues affect marketing strategies .By Susan McGinley The State of E-Commerce: Online Shopping Trends, By James Maguire Journal of Electronic Commerce Research, VOL. 6, NO.2, 2005 Research report by IMNAI & Pinstrom Research report By: Thijs L. J. Broekhuizen, University of Groningen, The Netherlands Framework for consumers intentions to shop online, research by Emerald Research report By: IAMAI

WEBLIOGRAPHY
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/contribution.asp?referrer=paren t&backto=issue,2,6;journal,15,40;linkingpublicationresults,1:110844,1[11april 2010] http://www.inderscience.com/search/index.php?action=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]

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http://www.inderscience.com/search/index.php?mainAction=search&action=re cord&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=re cord&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) __________

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