Chapter 1 Introduction and Research Methodology 1.

1 Introduction
Online shopping is the purchase of products and services on the Internet. Online shopping has become increasingly popular, due to convenience (and often lower prices). Especially in the holiday season, online shopping saves an individual the hassle of searching several stores and then waiting in long queues to buy a particular item. The internet is a medium that is soaring in polarity in almost every facet of the world and is used for a numerous of causes by persons, governments, universities and businesses. Nowadays, the term Internet is as a business tool for companies and individuals. Internet became a new mediator between companies and their customers. Today, the Internet is a public, cooperative and self-sustaining facility accessible to hundreds of millions of individuals worldwide. Nowadays; Internet accepted as s significant effective communications channel challenging with the traditional ones, such as Radio, Magazines, and TV. The Internet shop offers dissimilar ways of online communications with communication differences tools that need a better decision of their effect on customer communications. Although more and more firms are realizing the importance of leveraging on the Internet to conduct their businesses, corporate leaders are finding it difficult to keep up with fast moving markets and the customer conditions that are the hallmark of the Internet. There are many sites are available for online shopping. Recently Amazon.com is much successful site as compared to other online shopping sites. Amazon has ''Earth's biggest selection,'' says Chief Executive Jeffrey P. Bezos. Amazon has added music, video, gifts, and greeting cards to the books it offers some 8.4 million customers--plus links to drugstore goods, pet supplies.

The Best E-Commerce Sites

Top 5 Largest Online Retailers

1.

Amazon.Com Inc

Online Sales: $48,080,000,000 2011 Growth: 40.60% The company was founded in 1994 by Jeff Bezos and Amazon.com went online in 1995, way before any of the other companies in this list were. Amazon was one of the few companies to exit the 1997-2000 dot-com bubble still intact. It would take another year after that for the company to turn a profit in 2001 Amazon had its first profitable quarter $5 million in profit on revenues of over $1 billion. Not very much but it proved its model.

2. Staples Inc
Online Sales: $10,600,000,000 2011 Growth: 3.90%
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The first company in this list to cross the $10 billion in online sales threshold is Staples, the largest office supply chain in the world. Staples has more than 2000 stores in 26 countries but it plans to slash its brick and mortar space by 15% and focus on online sales. The first store was opened in 1986, when the company was funded by certain private equity firms, including Bain Capital, co-founded by Mitt Romney(yeah, that Mitt Romney) who stayed on board for the next 15 years to help with the company strategy.
3.

Apple Inc.
Online Sales: $6,660,000,000 2011 Growth: 27.40% The whole online store was based at that moment on NeXTs Web Objects technology. This allowed fast implementation (1 year was needed to implement the whole online store) and a great online experience. As Steve Jobs declared at the time, $12 million worth of sales were generated using the online store, in the first month. The Apple Store started as a Store-within-Store experience when Steve Jobs stopped retail contracts with most retailers, except CompUSA. In exchange for being the exclusive Apple Dealer, CompUSA agreed to offer Apple a 15% area of all stores, and the right to have its own sales-person on-site.

4. Walmart.Com
Online sales: $4,900,000,000 2011 Growth: + 19.70% Wal-Mart is big. Really big. It operates more than10.000 retail units in 27 countries. Its net sales in 2012 increased 5.9% to 443.9 billion dollars. Big as it might be, Walmart did miss the start and thats one of the reasons its only no.4 on our list. But worry not the company expands its operations online as aggressively as it does with its brick and mortar stores and soon it will be fighting for the top position.

5. Dell Inc.
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Online sales: $4,609,728,000 2011 Growth: 4% Dell is the only company in this top to have a negative growth. The decrease in sales is a direct result of global PC sales contraction in 2011. If your company is not named Apple and your business has something to do with PCs, than 2011 was probably one of the worst years for you. In fact Dells PCs shipments declined 8% throughout the year so that makes dell. coms sales 200% better than the overall company performance.

1.2 Objective of the Study

The purpose of this study is to analyze factors affecting on online shopping behavior of consumers that might be one of the most important issues of e-commerce and marketing field. However, there is very limited knowledge about online consumer behavior because it is a complicated socio-technical phenomenon and involves too many factors. One of the objectives of this study is covering the shortcomings of previous studies that didn't examine main factors that influence on online shopping behavior. This goal has been followed by using a model examining the impact of perceived risks, infrastructural variables and return policy on attitude toward online shopping behavior and subjective norms, perceived behavioral control, domain specific innovativeness and attitude on online shopping behavior as the hypotheses of study. To investigate these hypotheses 200 questionnaires dispersed among online stores of Iran. Respondents to the questionnaire were consumers of online stores in Iran which randomly selected. Finally regression analysis was used on data in order to test hypothesizes of study. This study can be considered as an applied research from purpose perspective and descriptive-survey with regard to the nature and method. The study identified that financial risks and non-delivery risk negatively affected attitude toward online shopping. Results also indicated that domain specific innovativeness and subjective norms positively affect online shopping behavior. Furthermore, attitude toward online shopping positively affected online shopping behavior of consumer

1.3 Scope of the study

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Various studies have used some known theories to explain the online shopping behavior. Prior research has shown that there are many factors that affect online consumer behavior, but a complete coverage of all potential factors in one research model is almost impossible. Most studies focused on a few major factors. For example, Koufaris (2002) tested factors which come from information systems (technology acceptance model), marketing(Consumer Behavior), and psychology (Flow and Environmental Psychology) in one model; Pavlou (2003) studied interrelationships between consumer acceptance of ecommerce and trust, risk, perceived usefulness, and perceived ease of use. Pavlou and Fygenson (2006) examined consumers adoption of e-commerce with the extended theory of planned behavior (TPB) (Ajzen, 1991). In their research model, consumer behavior was separately examined in terms of getting information behavior and purchasing behavior, both of which were influenced by trust and perceived risk, consumers attitude, social influence, personal online skills, and technology-oriented factors including perceived usefulness, perceived ease of use and web site features. Also, previous researches have revealed that online buying behavior is affected by demographics, channel knowledge, perceived channel utility and shopping orientations (e.g., Li, Cheng, and Russell, 1999; Weiss, 2001). Results indicate that compared with brick-and-mortar shoppers, online consumers tend to be older (Bellman et al., 1999; Donthu and Garcia, 1999; Weiss, 2001), better educated (Bellman et al., 1999; Li et al., 1999; Swinwyard and Smith, 2003), have higher income (Bellman et al., 1999; Li et al., 1999; Donthu and Garcia, 1999; Swinwyard and Smith, 2003), and more technologically savvy (Li et al., 1999; Swinwyard and Smith, 2003). Men are more likely to purchase products and/or services from the Internet than women (Garbarino and Strahilevitz, 2004; Korgaonkar and Wolin, 1999; Slyke et al., 2002). Reasons for shopping online have been cited for time efficiency, avoidance of crowds, and 24 hour shopping availability (Karayanni, 2003).

1.4 Review of Litrture

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Online Shopping and Online Stores Compared to physical stores, online stores have many advantages: They are convenient and time saving and no more traveling and waiting in lines is needed. They are open in all time and they are accessible anytime and anywhere. These stores provide consumers with free and rich information about products and services. They also have some online tools to help consumers compare and make purchase decisions among various products and services. Hoffman and Novak (1996) indicated that interactivity is the key distinguishing feature between marketing communication on the Internet and traditional mass media. Today online consumers have more control and bargaining power than consumers of physical stores because the Internet offers more interactivities between consumers and product/service providers as well as greater availability of information about products and services. Geissler and Zinkhan (1998) claimed that the Internet shifted the balance of power in favor of consumers as it became very easy for them to make shopping comparisons and evaluate alternatives without being pressured by salespeople. Online stores reduce transaction costs and have advantage for both consumers and vendors. However, online stores also have disadvantages compare to brick-and-mortar stores. In online stores customers cant have any sense about the product they see in the internet as they search for and purchase products. In online stores, consumers may develop low trust and perceive elevated risk highly because of the lack of face-to-face communication. Although this difficulty can be reduced by using certain software tools such as the online recommendation agent and the online negotiation agent. Perceived Risks Perceived risk refers to the nature and amount of risk perceived by a consumer in contemplating a particular purchase decision. Before purchasing a product, a consumer considers the various risks associated with the purchase. The different types of risks are referred to as perceived or anticipated risks. Research suggests that consumers generally prefer to use electronic commerce for purchasing products that do not require physical inspection. The higher the perceived experience risk, the consumer may shift to brick-andmortar retailer for the purchase of the product. Whereas, the lower the perceived risk, the higher the propensity for online shopping (Tan, 1999). Risks perceived or real, exist due to
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technology failure (e.g., breaches in the system) or human error (e.g., data entry mistakes). The most frequently cited risks associated with online shopping include financial risk (e.g., is my credit card information safe?), product risk (e.g., is the product the same quality as viewed on the screen?), convenience (e.g., Will I understand how to order and return the merchandise?), and non-delivery risk (e.g., What if the product is not delivered?) The level of uncertainty surrounding the online purchasing process influences consumers perceptions regarding the Perceived risks.

1.5Research Methodology 1.5.1 Formation of problem

An increasing number and variety of firms and organizations are exploiting and creating business opportunities on the Internet With this emerging field of shopping the interest of marketers is also increasing in studying what actually motivates consumers to shop online. Fierce competitions among online sellers have forced them to gain the competitive edge in the field of virtual shopping. In order to gain competitive edge in the market, marketers need to know the consumer behavior in the field of online shopping. So it is important to analyze and identify the factors which influence consumers to shop online in order to capture the demands of consumers. Other than the factors which influence consumers to shop online, online shoppers demography in terms of Age, gender, income and education is equally important to define their strategies accordingly. As online shopping is a new medium so the consumer behavior in the field of online shopping is also pretty diverse in nature compare to traditional consumer behavior, so it is equally important for one to identify what factors influence consumers to shop online. In order to reach towards purchase decision, it consists of several factors which influence consumers to shop online. These factors are important for retailers to compete in the market and to make their product more compatible

1.5.2 Hypothesis
1. The risk of losing money and financial details will have negative effect on attitude toward online shopping.
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2. The product risk will have negative effect on attitude towards online shopping. 3. Having a friendly website and good service to better help the customers for shopping, will have positive influence on attitude towards shopping online.

4. Fear of non-delivery of order will have negative influence on attitude towards shopping online.

1.5.3 Methods of Collection of data

When it comes to data collection there are two methods in general used by researchers to collect data, primary and secondary method. If we talk about primary data it includes observation method, Interview/questionnaire method, case study method, projective techniques and sociometery. Whereas, secondary data is one which is already collected by some other researcher not for the reason for particular study or research.

Primary Data
1. Questionnaire 2. Survey 3. Observation 4. Experimental

Secondary Data
1. Sales records 2. Marketing activities 3. Cost information 4. Feedback

1.5.4 Research Instrument

There are two types of Research instruments: Qualitative
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 Quantitative

1.5.5 Sampling Plan

Research was in order to collect primary data and reach the objective of the Dissertation. The main purpose of the survey was to collect data about Online Consumer Behavior and the significance of the established factors, Price, Trust, and Convenience In order to be able to find and establish Online Consumer Segments, Consumer Traits and Online Behavior had to be identified. The segments were used in order to further identify what impact the factors Price, Trust, and Convenience have on Online Consumer Segments.

1.5.6 Research Limitation

Limitation of the study is the selection of the existing studies. Owing to time limitation, I only searched a few number of journals. This may leave some other prominent empirical studies out. In addition, owing to the multidisciplinary nature of online shopping, it would be very interesting to compare IS literature to other disciplines that study online shopping attitudes and behavior.

Chapter 2 Online Shopping 2.1 What is online shopping?

The process of buying good online through the medium of internet rather than going to a brick and mortar store, omitting the in-between sales men and long queues is called online shopping. This has gained a lot of popularity over the years mainly because of the great bargains and the other enticing factors that these sites have to offer. You can buy almost everything from these stores, starting from Lifestyle, Fragrances, jewelry and latest technology devices to even a house. Online shopping has become an important part of our lives. Todays everyone relies on internet for everything either its big or small. There are virtual stores that allow you to shop comfortable even without stepping out of the house and keep you away from expenses of traveling and dealing with salesmen. Online shopping is another mode of shopping and it can provide customers with new experience. Therefore, the Internet shopping has its special nature to difference with traditional shopping. According to Miller (2000), the product and services for Internet shopping could be influenced easily by their type, and he also indicated four sources that could explain the nature of Internet shopping. In this section, the nature of Internet shopping will be discussed below with three main parts: convenience, technology, and product and price.

Convenience
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Internet provides a big convenience for shopper as the main reason for they shopping online has been agreed by most of researcher and customers (Wolhandler, 1999). Due to the feature of Internet, it allows customer to shopping online anytime and any where, which means customer, can browse and shopping online 24-hours a day, 7 days a week from home or office, which attracts some time-starved shoppers come to Internet for save time to searching products in physical store. Additionally, Internet offers some good ways to save money and time. For example, shoppers do not need go out to the physical store and thus there is no transportation cost. Compare with the traditional shopping, there is no waiting line for shoppers on the Internet, and some shoppers reported that they feel pressure from the sales people sometimes, but Internet offers them more enjoyable while shopping online (Wolhandler, 1999; GVUs WWW 9th User Surveys, 1998)

Time saving
Time savings is one of most influencing factors of online shopping. Browse or search an online catalogue can save time and patience. People can save time and can reduce effort by shopping online. According to Rohm and Swaminathans (2004), one possible explanation that online shopping saves time during the purchasing of goods and it can eliminate the traveling time required to go to the traditional store. On the other side, some respondent think that it is also time taken for delivery of goods or services over online shopping.

Website design/features
Website design and online shopping activity is one of the vital influencing factors of online shopping. Website design, website reliability/fulfillment, website customer service and website security/privacy are the most attractive features which influence the perception of the consumer of online buying Shergill & Chen (2005). Kamariah and Salwani (2005) claims the higher website quality, the higher consumer intends to shop from internet. Web design quality has important impacts on consumer choice of electronic stores, stated by Liang and Lai (2000). Website design one of the important factor motivating consumers for online shopping. Almost 100,000 on-line shoppers surveyed by (Reibstein, 2000) shows that web site design was rated as important factor for online shopping. Another study conducted by Zhang, Dran,
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Small, and Barcellos (1999, 2000), and Zhang and Dran (2000) indicated that website design features of the website are important and influencing factors that leads consumers satisfaction and dissatisfaction with a specific website

Security
Security is another dominant factor which affects consumers to shop online. However many internet users avoid online shopping because of credit card fraud, privacy factors, non delivery risk, post purchase service and so on. But transaction security on the online shopping has received attention. Safe and secured transaction of money and credit card information increases trust and decreases transaction risk. In 1995, UK has introduced Fraud free electronic shopping and later on Europe and Singapore introduced secured electronic transaction (SET). According to Bhatnagar and Ghose (2004) Security is one of the attribute which limits buying on the web as they claim that there is a large segment of internet shoppers who dont like to buy online because of their thinking about the security of their sensitive information. Cuneyt and Gautam (2004) claims trust in the internet shopping with advanced technology, and frequent online shopping to the internet being secured as a trustworthy shopping channel.

Technology
The convenience based on Internet is mainly according to the technology development, and which plays a key role during the development of Internet shopping. In the last decade, organisations have realized that the new technology could impact on Internet shopping deeply, and thus there are many important technologies like virtual reality and3D techniques have adopted to gain big competitive advantages (Clark, 1989).Information technology has used in the form of the Internet improved better quality of product information, which help shoppers decision making (White, 1997). Through the wide range of surveys about the Internet use, the growth of Internet and the rate of growth of Internet usage have been rapid increased in the last decade. According to the BMRB International (2004) and GVUs WWW 9th User Surveys (1998), the number of Internet users in Great Britain has increased to 22.7 million among 48.4% of the adult population, and about 53% of Internet users have reported that shopping is a primary use of the Web.
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Moreover, a statistical report on the Internet Development in China from CNNIC (China Internet Network Information Centre) have released in July2006. From this report, in the aspect of Internet shopping, there are 30 million users often shopping online, and near 1/4 Internet users have online shopping experience. Both surveys shows that more and more Internet users prefer online payment while they shopping, thus the security of online payment certainly will become a significant factor to influence the Internet shopping. The provision of the security is becomes the highest or almost the highest budget in the service development of Internet retailer. As this kind of technology is quite complexity and costly for Internet retailer develop by them own, therefore, they usually ask for professional security service provider to check their E-commerce web site, and get the verify or certificates from the provider like VeriSign, in order to let shopper knows that shopping on Internet is very safely. Another Internet technology has adopted for improving the Internet environment is developing a virtual community. As Yoo W., Suh K. and Lee M. (2002) mentioned in his report, personal interactions with other customers and service providers play a very important role while shopping online. Because of the feature of Internet, customers can not check the products and service carefully, almost all of trade between sellers and buyers are through a virtual world, and people cannot meet each other directly, therefore, the Internet retailers offering not just products or services but also a nice and efficient interface for interactions with customers, and which could increase the happiness of customer to shopping online and let them gain new shopping experience.

Product and Price

The Internet allows consumers to browse products or services extensively, search the newest products or services information, check and compare prices among all of the offers, and make/change orders instantly and easily. These allowable activities offer another way of convenience to consumers. For browsing the products/services, consumers only need to do is open a browser and exploring the shopping sites, which gives them more pleasure to seeking out the new information about the products and services than searching in physical stores, even some of them did not actually buying anything, but they still gain a new kind of shopping experience (Punj and Steelin, 1983).

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Moreover, the web based contexts can easily and flexibility show the inventory of some niche products, and thus shoppers could looking for it by search through a large scale of product database. For some products, such as books and CDs, which shoppers are already known the quality, and that means the less quality concern for shoppers purchase it from online. Therefore, if the brand name and equity of products or services have embedded in shoppers mind, that means this products or services are more amenable to web based marketing. According to the research by Bulkely and Carlton (2000), the majority of Internet shopping behaviors consist of one-time purchases, which is mainly according to consumers different shopping motivations, such as convenience. Therefore, the Ecommerce shopping websites need improve their services or reduce the cost of products in order to motivating these one-time purchase shoppers to become loyal and regular consumers. In the aspect of costs, the E-commerce shopping websites have their strength than physical store, as they can remove the middle marketers (brokers, distributors), and that the lower warehousing cost and distribution expense can be added to online retailing channels for reducing the marketing price, which could greatly attract the price-sensitive shoppers come and purchase

2.2 Benefits, Disadvantage and limitations of Online Shopping 1

1.

Benefits of Online Shopping

Better Prices

Another thing which fascinates me is the cheap deals and better prices I get from online stores because products come to you direct from the manufacturer or seller without middlemen involved. Many online shops offer discount coupons and rebates. Apart from this, the Online Store is only required to collect sales tax if they have a physical location in our state even if we buy from a store across the world. 2. Variety

The choices you can get for products are amazing. One can get several brands and products from different sellers at one place. You can get in on the latest international trends without spending money on airfare. When you shop online, you can shop from retailers in other parts of the country or even the world without being limited by geographic area. These stores offer a far greater selection of colors and sizes than you will
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find locally. Apart from that, How many times have it happened that you spend your money reaching a local shop only to find that the product you need is out of stock? Some online shops have a provision to accept orders without stock and ship it across to you when the stock becomes available. You also have the option of taking your business to another online store where the product is available. 3. Send Gifts

Online Shopping makes sending gifts to relatives and friends easy, no matter where ever they stay. Now there is no need of making distance an excuse for not sending a gift on occasions like Birthday, Wedding Anniversary, Marriage, Valentines Day, Mothers Day etc. 4. Fewer Expenses

Many times when we go for conventional shopping we tend to spend a lot more than the required shopping expenses on things like eating out, traveling, impulsive shopping etc.

5.

Comparison of Prices

Online shops make comparison and research of products and prices possible. Online stores also give you the ability to share information and reviews with other shoppers who have firsthand experience with a product or retailer. 6. Crowds

If you are like me, you would like to avoid the crowds when you do the shopping. Especially during Festivals and Special events the crowds can really give a head ache. Crowds force us to do a hurried shopping most of the time. For me grumpy or irritating people and those who smell bad are a huge turn off. Crowds also create a problem when it comes to finding a parking place nearby where you want to shop and going back to your vehicle later loaded with shopping bags. 7. Compulsive Shopping

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Many times when we go out on Shopping we end up buying things which we do not require because of the shop keepers up selling skills. Sometimes we even compromise on our choices because of the lack of choices in those shops. 8. Buying Old or unused Stuff at low prices

Online Shops make it possible for us to buy old or unused stuff at rock bottom prices. If we want to buy antiques there is no better options than online stores. 9. Discreet Purchases

Some things are better done in privacy. Online shops are also best for discreet purchases like adult toys, sexy lingerie and so on. Online Shops enable me to purchase under garments and lingerie without the embarrassment that there are several people watching me and my choices.

Disadvantage of online shopping

Online shopping is a great way to shop for items over the internet for almost anything such as clothes, gift items, food, home improvement materials, medicines, and many more. Online shopping allows you to shop conveniently without hassle on hours of finding the items that you are looking for. You would not even stand in long lines at the cashier to pay your bills. The Internet also allows you to read first consumer reviews on the product you wish to buy and the store where you want to buy the product. You can compare prices on different online stores and see whether you are getting the best item at its lowest price. The greatest thing about online shopping is that you get to have a lot of deals and packages and buy the item at a very low price. This is called daily deals. Daily deals sites provide buyers to purchase items on any category. They also offer large discounts to eat at fancy restaurants, get a massage experience, travel to any places inside and outside the country, etc. Online shopping is very easy, you only have to use your computer to search and pay for the item and you can do it even while in a pajama and still in bed. The item/s will then be delivered at your door step in a few days that you and the seller have negotiated on. Despite the fact that online shopping can be very convenient to the buyer, it also has its drawbacks. You are not allowed to check the item personally to see if it is described
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perfectly by the seller. Online shopping doesnt permit you to touch the product, try it on yourself, and take the item the same day youve purchased it. You will still wait until it gets delivered by local couriers. There is also a great possibility that you get scammed by fraud sellers who makes online stores for the purpose of stealing money from online consumers. These frauds would promise you things about the item, give you testimonials of how reliable they are, and by time you purchase the item, you will not hear from them anymore and you dont get to have the so-called item you bought. Another reason why some consumer refused to buy online is the risk the uncertain payment method online and the fear of being a victim of identity theft. The usual method to pay for your items online is by using credit or debit card. You are required to provide your credit card information to process the payment. Fraudulent sellers would put you at risk by stealing your account and personal information together with your credit card details and then making their own account using your contact information. Sometimes, sellers would let you pay for an overpriced shipping costs that far exceeded the original shipping rate. These scrooge sellers would offer freebies enclosed with the item you purchase, but would hike up the cost of shipping even though they already gained profit from the sale. Online shopping is fun, only if you know how to gauge legitimate online sellers.

Limitations of online shopping

Physical and photos of the gap is too big Net purchase only is seen pictures of goods, to really get your hands, you will feel and the objects are not the same as. This is not in the mall to buy the rest assured. Do not try Online shopping is just to see pictures and articles on the simple introduction, like clothes or shoes and the like, you can directly see the suitable for you, and if in the mall to buy, you can try it on, his body, immediately buy, not so much to consider, however, online shopping is more trouble. Online payment security Can be peeping, stolen passwords. Online shopping is most worried about is that he needs to use a bank account, some friends of the computer there is pilfer date trojan, can cause some
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serious account loss occurs, so everyone in the shopping time try not to choose the Internet cafes and other public places, your computer must also ensure the antivirus software can be installed network transaction. Good faith question Is the owners credit, if encountered poor service quality of the owner, asked a few questions appear impatient. Also in the online shopping appearance deceived happens. The speed of delivery problem Online purchases, but also after the distribution of the link, the fast one or two days, would slow to a week or more, sometimes, there are still some problems in the process of distribution, and, if the goods are not satisfied with, and through distribution link, change the items, so much trouble; while in the mall, see you want, just get, if not satisfied, instead of directly.

Return the problem of inconvenient Although the reality of shopping return requires a complex procedure, and even on the product to be protected, but the net return is relatively more difficult. Even proposed various unreasonable request refused to return and buck. Net development Along with the Internet users on the network shopping 's acceptance of the third party payment tool to improve, the rapid development of China's online shopping market, development speed is accelerated apparently, thousands of shopping website emerge as the times require. Numerous shopping net let consumer lost the direction, thereby allowing the comparison shopping network, in comparison shopping site, you can all the shopping network to find the cheap goods. One of the common there is bargain net, Antu net purchase of love, etc..

2.3 Need and Easy way of shopping Online Need For Online Shopping
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Everyone indulges in shopping online these days, but there is a marked lack of shopping information available. Online shopping saves the people the drudgery of hopping from one shop to another to buy the items they require. However, with so many online retailers selling a large variety of products, it becomes impossible for even online shoppers to decide what to buy, and from where. There is an urgent need of one-stop shopping information centers from where you can receive all relevant information on the products and services available. There are some sites online that offer reports on various products and services. These reports are based on information received from online purchasers.

Making Shopping Easy

Shopping can be made easy for online shoppers if they receive inexhaustible information from online sources. These days a lot of shopping information can be received through various micro-blogging sites, as well. These sites carry a lot of product information that is helpful and, based on real life experiences; members post their comments on the products and services. Shoppers gather relevant information from such sites that enables them to decide what to shop and from where. They get reports and reviews on products and services recommended by these sites. These are reviews posted by fellow shoppers. Many shopping information centers sound like they are doing you a great favor by providing such information. This is a complete put off. What online shoppers need is a source of information that treats them like royalty and provides information on bargain buys from genuine sources. There are information centers that treat your complaints seriously about the products and service you have bought based on their recommendations. They give you a royal treatment and take appropriate action. They openly publish all the negative feedbacks they receive, along with the positive responses. You will find many information centers with dedicated sections for various products and services they recommend. In addition, they provide a plethora of reviews that include sponsored reviews as well. You will find press releases on new products along with links to relevant sites.
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Hassle Free Shopping

Information through these sites allows for the best ways to shop. No visiting five different shops to pick up five different items of use. You can do all your shopping online which has been made easy through information available from various sites. This is totally hassle free and just requires a few clicks of the mouse from the comfort of your home. Dishonest online sellers, receiving wrong products and identity thefts are real issues involved with online shopping. Hence you should shop through information centers that recommend products from genuine sources. You can do your bit for your fellow online shoppers by adding your reviews and personal experiences in using products and services through the many micro-blogging sites. Your shared information will help other online shoppers, just as their reviews may help you. This is what shopping information is all about; putting forward your views and gathering information from other fellow shopper.

2.4 How Online Shopping Work

How Online shopping Work

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Internet has created a huge change in the living of people. Everything they want can be brought to their home just by sitting at home and order using internet. Internet has made the people lives more comfortable. Online shopping is possible as the seller displays the products they have online and the users can order them and pay cash so that they get it in their product at their door-step. Online shopping websites have the shopping cart in which you can add as many items you want just like you do in a conventional shopping. When you have completed the shopping you have to check out the balance in your credit/debit or pay-pal account then have to pay the money and have to give your shipping address for delivery. You can also send the product you purchased as gift to the person you wish. This shopping can done from anywhere so it is time and resources saving

Chapter 3 Consumer Behavior 3.1 What Is Consumer Behavior

Consumer behavior is the study of individuals, groups, or organizations and the Processes they use to select, secure, and dispose of products, services, Experiences, or ideas to satisfy needs and the impacts that these processes have On the consumer and society. Consumer behavior of every individual is different from other depending on buying choices which is influenced by buying habits and Choices that are turn tampered by psychological and social drivers that affect Purchase decision process. Consumer behavior about decision making is difficult to define and is a system of short cuts and rule of thumb which is unpredictable. The short Cuts in decision making vary from person to person and focusing on the past Experience of consumers; we can predict the future trends by bringing profitable Products and services into the market. In this modern world, the popularity of Interactive media like the World Wide Web is increasing day by day
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with rapid Pace. With reference to marketing it is continuously realized that the main two Factors observed due to WWW are 1) Most of the companies are doing their business online and make their website as showroom of their product and Services. 2) Fast increment of consumer segments due to increase needs and Demand including online shopping as well.

Consumers Online Shopping Attitudes and Behaviours There are many studies of online consumer behaviours in recent years, most of them focus on the factors influencing the online consumer behaviours, and the researchers seems to find different factors in different way. Moreover, there is a variety of studies which focus on comparisons between online and offline consumer behavior in relation to different products has been presented. Consumer behavior difference within online and offline shopping are mainly because of consumers attitude and interest. Now that consumers have both online and offline hopping choices. For Example when buying books, some consumers using offline store as dating venues, and then buying from the online sites; or, on the other hand, some consumers prefer go to the physical bookstore as their perceptions of books and the environment in the bookstore.
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Consumers often use the Internet search for product information before buying from online or offline stores. According to Anfusos research (2004), the online research drives the offline sales. The study shows that the Internet plays a role as a consumer productin formation utility more than its role as a direct selling medium. Consumers use online product research, and then spending in the offline. Thus, the study found that Internet influenced offline spending is now growing faster than direct online spending, in other words, consumer still prefer shopping in offline store than buying from the Internet. Compare with convenience of the Internet provided, online consumers could easily go for research products. However, for offline consumers they may go into a store simply to research products, but not over and over. Moreover, many online visitors window shop more than impulse buy. The research shows that the internet has become a useful tool for comparison shopping and users often click around various sites to view and compare products, proceed to leave the site altogether, and then, possibly, return days later to purchase a product, or they might buy locally (Degeratu, Rangaswamy and Wu, 2000). Furthermore, online consumer might do this repeatedly, but the offline shoppers would beless likely to do research products very often. Therefore, the Internet shopping allows consumers more freedom to continuously visit and purchase products, even they leave without a purchase.

Privacy
Privacy in a communications system or network is defined as a protection given to information to conceal it from others access by the system or network (Komiak&Benbasat, 2004). Privacy concerns were the most frequent reason cited by consumers for not making online purchases (Byford, 1998; Furger, 1999; George, 2002; Milne, 2000; Miyazaki & Fernadez, 2001; Miyazaki & Krishnamurthy, 2002; Udo, 2001). The majority of studies suggested that respondents were concerned that information might be used to send them unwanted offers by this or other companies or accessed by a third party for non authorized activity

Security
Security is defined as that which secures or makes safe; protection; guard; defense (Komiak, &Benbasat, 2004). In this study, the term security was used in terms of financial
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security while privacy was the protection of personal information (Bhianmani, 1996; Burroughs & Sabherwal, 2002; Komiak&Benbasat, 2004; Moda, 1997; Salisbury, Pearson, Pearson & Miller, 2001; Udo, 2001). Online retailing has greater perceived security risks by consumers than does traditional brick and mortar retailing. Research suggested that most consumers fear the risk of misused credit card information. To increase online shopping, merchants need to take the proactive steps to minimize the consumers feeling of risk (Houston, 1998; Salisbury et al., 2001). One method of doing that includes building of consumers trust in the online store (Cheskin Research, 1999; Komiak&Benbasat, 2004 Quelch& Klein, 1996). In the area of financial security, this meant proving the merchants ability to safeguard personal data (Cheskin Research, 1999; Jarvenpaa, Tractinsky, & Vitale, 2000; Quelch& Klein, 1996; Singh & Sirdeshmukh, 2000).Garbarino and Johnson (1999) have proposed a satisfaction-trust-commitmentrepurchase intention model and found that consumers satisfaction would build trust which led him or her to repeat the purchases.

Time
Becker (1965) noted that the efficient use of time was a critical issue for the modern timescarce consumer. Internet shopping can be viewed as a time saver for the shopper and the buyer (Alreck& Settle, 1995; Lohse, Bellman, & Johnson, 2000; Then & DeLong, 1999). As such, time positively influences Internet shopping as it can eliminate trips to the store and the long lines and delays when at the store.

3.2 Online Buying Behaviour

Online shopping consumer behavior is also called online buying behavior and internet shopping/ buying behavior. Online shopping behavior has direct relationship with these five elements such as e-stores, logistics support, product characteristics, websites technological characteristics, information characteristic and home page presentation. According to studies, those people who have wired lifestyles and who have time constrained, they spend less time to buy things online. Different authors define consumer behavior characteristics differently. Researches on online consumer behavior and characteristics have been done by so many market researchers and authors. The research on online consumer behavior is important because it helps to
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understand when and how online consumer prepares themselves for purchasing. 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 and the decision making process.

Consumer mind set model in online shopping

The concept of consumer mind set is introduced by Wurtzberg motivational psychologist. A mind set refers to a specific cognitive orientation. According to this theory, every consumer mind set is composed of different thought, modes of emotions and different information processing (Yoram Wind, Digital marketing: global strategies from the world's leading experts. Propensity to shopping is affected by consumer mind set. Online consumers are goal oriented rather than experimental if they chose online shopping. Consumer mind set two types of determinants one is goal oriented and second one is experimental (Robert W. Proctor, 2005, p. 597). According to Association of motivations with shopping outlet, Toy retailer found that experimental mind set consumer buy toys more as compare to goal oriented mind set consumer as they prefer buy through online channels (Bidgoli, 2004, p. 272). Dholakia and Bagozzi also contributed their efforts in mind set formation and influence (MSFI) model. They introduce most relevant factors contributing mind set on consumer. According to this MSFI model, consumer search behavior depends on website selection, length of website visit and information obtained has influence on ones minds Mindset has a string influence on key cognitive, effective and behavioral aspects of consumers activities in online shopping. Mind set gives concepts to reach cognitive orientation through experimental and goal oriented. Mindset has ability to overcome external environment. This is the strong point of mind set to help managerial point of view since it provides actionable insight. Through mind set research in the consumer behaviors helps to increase more opportunity in market (Yoram Wind, Digital marketing, 2001, p. 171). Below are discussed about mind set categories such as goal oriented mind set and experimental mind set.
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Mindset Consumer behavior model

Factor predicting online shopping

Researches tell us that online consumers have ability to bargain and purchasing power to buy goods. Consumer lifestyle plays a main role in the process of online purchasing on electronics goods. Consumer Lifestyle should have compatibility which have effect with positive attitudes towards technology, have ability to accept multiple kinds of new technologies, online skills, knowledge and remain online experience. All these factors have a strong effect on Consumer lifestyle. purchasing is very dependent on these factors. It is well established theory of social psychology applied to customer behavior. TRM includes intention proceed behavior, behavior towards individuals to individual and also bring light into social determinants and its influence. TRM helps to construct trust on online shopping through the extensive use of technology, impersonal nature of online business, the vulnerability of furnished by different parties and the uncertainty of using new business increase consumer easiness and attract more towards online shopping The formation of online consumer strongly influenced by its personal experience, influence of its social network, direct marketing, mass media and the Internet. From researches it is shown that direct experience (e.g. product usage) is moreattractive
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towards online shopping rather than direct experience (e.g. reading a print ad) (Schiffman, 2009, p. 258). Its very important for a market manager to understand consumer behavior and its attribute which factors influence them to change. Consumer behavior understanding helps in online market to focus and make target to customer by segmentation and predict customer purchasing behavior and generate more profit through online channels (Bidgoli, 2004, p. 272). From the analysis path, it is clearly shown that attitude makes attributes or factors predicting online shopping and afterwards, these factors influence consumer behavior towards online shopping of electronic goods. When independent variable gives high beta coefficient, it means that variable have highly important in contributing to the predicting factor for online shopping.

Factors influence online consumer behavior

There are so many factors involve that have influence on online consumer behavior while he would do online shopping, in simple word, it is a complex mixtures of so many factors such as social, culture, education, race, personality, environment and resources availability. It involve many variables some are controllable and some are uncontrollable such as environment and consumer personality are uncontrollable variable which always prevail in every online transaction but some are in our span of control such as medium of exchange, medium of goods information, products or services characteristics, merchant or inventory characteristics. There are other factors as well like building trust factor, confidence, appealing website, proper and full information about goods and services by this purchasing decision would be more encouraged.

Cultural Factors:
Culture Culture is the most fundamental determinant of a persons wants and behavior like set of values, perceptions, preferences and behaviors through his or her family member. Subculture

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social classes are relatively homogeneous and enduring divisions in a society which are hierarchically ordered and whose members shares similar Values, interest and behavior and social classes includes upper class, middleclass and lower class.

Social Factors:
A persons reference groups consist of all the groups that have a direct (face to face) are indirect influence on the persons altitude or behavior. This group to which the person, belongs and interacts.

Personal Factors:
A consumer decision also influenced by personal characteristics notably the buyers age & life cycle stage, occupation, economic circumstances, life style and personality and self concept.

Psychological Factors:
Motivation A person has many needs at any given time. Some needs are biogenic. They arise from psychological states of tension such as hunger, try stand discomfort. Perception Perception is defined as the process by which an individual selects, organizes, intercepts, information, inputs to create a meaningful picture of the world.

Consumer Factor:
The consumer factor was suggested as important to online shopping and items included were privacy, security, time saving, ease of use, convenience, enjoyment, previous experience, company reputation and tactility.

3.3 Online purchase intention

Online shopping reveals three main dimensions or studies in the process of online purchasing, those three studies are Human computer interaction (HCI), behavioral and consumerist orientations.

Human Computer Interaction (HCI)

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HCI is mainly concerned with website design, interaction, display, users easiness to learn, efficient and pleasant that substantially effect consumer behavior. This investigated the website related characteristics such as information available on website, visual effects and attractiveness, quality of content, ease of navigation, less time consuming, not long and difficult form to fill to process transaction and overall presence of website with security assurance.

Customer concerns in online shopping (CCOS)

The second group of study is Customer concern in online shopping (CCOS), which investigate the human behavior and its attributes that influencing online shopping decision. The primary factor in online shopping is trust factor between consumer and online seller, it is the most important factor which motivate consumer to process the transaction for online shopping. To increase trust factor three elements includes Safety and privacy of information, security and delivery and return on time.

Consumer Characteristics
The third studies focused on consumer personal traits means this study investigate specifically individual characteristics such as demographics, personality, his tradition and culture and profile play a larger role in process of online shopping. Online consumer characteristic also depend on other variables as technology awareness, computer literacy, his comfort level in online shopping and past experience also effect on future online purchasing behavior.

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Online Purchase Intention Model

Issues from the theories influencing online consumer behavior

By first analysis online consumer behavior theories name as dependent, independent variable, online shopping decision making process, Technology acceptance model (TAM), Theory of reasoned action model (TRM), Path analysis, Goal and Experimental consumer mindset theories, Human computer interaction (HCI), Customer concern in online shopping theory and in last consumer characteristics. These studies have been applied to gain understanding of the online consumer behavior especially in purchasing of goods and experimental consumer mindset. In empirical study the theoretical background is mostly provided through: TRM, TAM, goal

Goal oriented online shopping behavior:

Goal oriented consumer behavior is known as utilitarian shopping behavior. It is deliberatively, efficiently and preplanned with decision making purposes Goal oriented online consumer are task oriented, specific directed, rational and efficient in decision making.
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They are always seeking to complete their task quickly without delay because they are focused and determinant about their purpose of shopping. As aspect to online consumer, they always are goal oriented. The reason behind is that easiness attract them to buy electronic goods online. It is shown by research that goal oriented online shoppers prefer online shopping because it is convenient. Goal oriented online consumers have characteristic that they have value convenience and they are likely to buy electronic goods over the internet

Chapter 4
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E-Commerce
4.1 What is E-Commerce? Internet makes life simple and innovative. People are doing business online and Trade has become more easy and fast due to this. Internet provides new ways to Promote business. Website becomes the essence of online business as to show Their services and products. Internet gathers all competitors and consumers in one Place. It brings new lane to promote, advertise products and services in market Total global E-commerce sale in 2011 have grown to Euro 690 billion (USD 961 Billion) and recorded an increase of 20 % with an estimation of increase in the Coming years and to cross the 1 trillion Euro mark in 2013. Asia pacific region is leading in terms of growth as compared to mature markets like US, UK, Japan and European countries. Asia Pacific recorded 130 % growth specially China in 2011. The online retailing is becoming an integral part of an economy and country and Worldwide increasingly seeing trust and confidence in purchasing online. Online consumers are always seeking new products, new attractiveness and the ppopmost important thing being price compatibility with their budget. The internet is the best way to save time and money through purchasing online within their range of budget at home or in anywhere. Online consumers dont have limits to online shopping. They also use internet for comparison of prices of goods and services, news, visit social networks and search information and so on. E-commerce is benefiting from several positive trends, including the continued rollout of broadband, increasing user comfort shopping online and the decline of certain brick-and-mortar retailers, Electronic commerce is the sharing of business information, maintaining business relationships and conducting business transactions by means of telecommunications networks. For doing business, the Internet provides a lot of technologies to enhance the Ecommerce. For example, for the aspect of the sharing of business information, the Internet provides shared databases (such as the databases of books have been shared among all of the publishing company in the US); email, web based forum, electronic data interchange (EDI)

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and other software could increase the interactions with customers and business partners, and also conducting business transactions much easier and more efficiently. The Internet mad the world become smaller and closer, and it becomes very popular in the peoples life. From the firms view, as the Internet makes much easier to running an online business for firms, and the associated costs will be decreased in some ways, thus that strength of the Internet attracts firms to enter this new marketplace. On the other hand, actually there are some problems are exist in the international market, and some of this are not fully solved, such as the currency, taxes and tariffs. Despite those problems, the adoption of E-commerce for Business Company could gain more advantages than disadvantages. There are three components in the E-commerce processing: sellers & buyers, products &services, and E-commerce web site. Each component plays a key role in the Internet shopping. The advantages of E-commerce could be divided into four sides: cost reduction, revenue expansion, time reduction, and relationship enhancement (Swahney and Zabin,2001). The E-commerce can be essential complementarities for the firms as the store rents and the cost of for sales staff can be greatly reduced by transferring physical store to online, beside this big cost for traditional firm, the Internet also provides many applications (e.g. email) to reduce the costs, such as printing and mailing cost, and web based advertising can lead to small expenditure. By the reduction of costs, the firm can provides much cheaper products and services to attract more customers, and thus it can helps firm increase the revenue expansion. For the time reduction side, as the traditional store have difficult and very costly to update the products information, but the online information is all the time updated, and the interaction between service staff and customers and instant feedback to customers could be mad possible, in other words, these activities improve the relationship with customers indirectly, and also the enhanced interfaces and operational functions. There are two types of E-commerce web sites: Business to Business Electronic Commerce (B2B) and Business to Customer Electronic Commerce (B2C). B2B is commerce where business activities between companies through web site channel. B2C is commerce where the purchase and sale transactions between the consumers and sellers(Lee H., Cho D. and Lee S., 2002).

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The Internet retailers can both have B2B commerce and B2C commerce as they can use B2B commerce to link directly to their suppliers and use B2C commerce to sell products and services to individual consumer through Ecommerce web site. The B2B commerce and B2C commerce have some similarities, such as they both use electronic payment systems, and facing the lack of trustiness between both sides. Even there are some challenges exist for doing E-commerce, but it is the trend that the E-commerce is an indispensable constitutes for firms while they are doing business.

4.2 Shopping Motivation

It is true that the E-commerce is increasingly adopted by business organizations, and there also have many evidences to prove that the online shoppers become much more active than before. Through the E-commerce web sites provide superior products and services and interactive communication with online retailers, customers feel more about values, and thus these beneficial offers from the Internet may turn into motivation for customers active or arouse their needs. Pittman (1998) defines a motivation as the activation of internal desires, need and concerns which energize behavior and send the organism in a particular direction aimed at satisfaction of the motivational issues that gave rise to the increased energy (Mallalieu,2000). According to Perners research, there are several perspectives on behavior as away to understand what motivates the consumers: 1. the hard core behavioral perspective is based on learning theories like operant and classical conditioning; 2. the social learning perspective, which allows for vicarious learning;

4.3 Online Security, Privacy, Trust and Trustworthiness

Compare with the in-store shopping, the internet shopping has much higher risks during the purchasing process. As internet shopping is one of the non-store shopping formats, others such as mail order (Spence, 1970), telephone shopping (Cox and Rich, 1964),catalogue (Reynolds, 1974) and so on, which have proved by recent studies shown that consumers perceive a higher level of risk. Even though the internet provides many functional advantages, but it still have some disadvantages, such as in the sections of security, privacy, trust and trustworthiness.
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Security
Due to the characteristics of internet, the information across the web could be lost or stolen quite easily, especially the customers personal information and monetary details. In B2C E-commerce area, there are many web merchants are offering third-party privacy and security protection, such as encryption and password protections. The web merchants like TRUSTe provide a third-party verification program for their customers, once a Internet retailer joining the program, there will be a seal offered by TRUSTe shows that their commitment to security. Therefore, because of the third party verification, the customers considered this seal could make them more confident to provide their information to the site. Even some websites have secured certified by professional organization, but still have some customers lost their money through internet every year. These financial risks are mostly caused by customers themselves. The reasons could be widely, some customers have apparent sense of using credit card online in the insecurity way, such as public credit card details to unknown people or website, leave credit card in the public place where other people can easily reach, and internet shopping on the computer with virus. In the Maignan and Lukass research (1997) shows that the financial risks have been citedas a main reason to stop internet shopping, and security has become a major concern both in online transaction relationships (Rowley, 1999). The security treats can be made through the network and data transaction, and also through unauthorized use. Thus, the Internet retailers have responsibility to keep monetary and personal details of customers safety during the process of online shopping. To improve the effectiveness of the Internet shopping environment could benefit both sellers and buyers and make much convince to the customers.

Privacy
Another type of risk that consumer will faced is psychological risk, such as disappointment and frustration of shopping online, which is mainly caused by the privacy information lost. On the Internet, the privacy information could be tracked and collected, and then it can be used to sharing with third parties, in order to send spam mails or emails. The Federal Trade Commission (FTC) has statutory authority to prohibit the web site to acquire information by unfair and deceptive trade practices (Earp and Baumer, 2001); however, it does not have ability to comprehensively control every activity among the Internet.
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According to Earp and Baumers research, because of the lack of legal remedies, this implies electronic customers should be aware of privacy risk and it could affect customers obstacle to shopping on the Internet. Moreover, it also leads to customers more carefully to decide what kind of information will be revealed online, and to which web site. From the survey results, most of customers willing to reveal their gender and ages, and 18% of respondents willing to provide credit card details to well-known website while only 3% of respondents indicated willingness to provide the same information to lesser-known web sites. Moreover, web site that has privacy statement and third-party verification could reduce some customer concerns, but the evidence is not strong. Overall, customers are being very carefully to reveal their personal information since the legal environment of Internet is uncertain.

Trust and Trustworthiness

Mayer, Davis, and Schoolman (1995) defined trust as, the willingness of a party to be vulnerable to the actions of another party based on the expectation that the other will perform a particular action important to the trustor, irrespective of the ability to monitor or control that other party (p.712) (Cheung and Lee, 2006). This definition is widely recognized and the most frequently cited (Rousseau, Sitkin, Burt, & Camerer, 1998). People purchase products and services are the most based on their level of trust in this product or services, and sellers either in the physical store or online shops. Online trust is the basic and essential element for building a relationship with customers. A present research shows that online trust is lower level than the face-to-face interactions in the physical store (Cassell and Bickmore, 2000), and the result from Cheung and Lee (2006)shows that trustworthiness of Internet merchant (perceived integrity, perceived competence, and perceived security control) and external environment (third-party recognition and legal framework) have considerable impact on consumer trust in Internet shopping . The trustworthiness of E-commerce web site is very relying on the how much privacy security can be provided. For example, a highly technical competence can be a factor to influence the trustworthiness (Singh and Sirdeshmukh, 2000). As mentioned above that the web merchant can provide third-party verification to E-commerce web site, and while this privacy and security strategies are used, customers will think their E-commerce transactions through Internet are secure and thus the site is more reliable to them. Beside this point, if the E36

commerce web site can provide the information about their customer services, location of the office, contact telephone number, and a help button on the web site, customers could also increase their trustiness as they can feel that the online retailers is truly exist (Lohse and Spiller, 1998).

An Integrative Model of Consumer Trust in Internet Shopping

4.4 Online shoppers in terms of demography

Online shoppers in terms of demography are another important aspect. We would like to study demography in terms of age, gender, income and education as are there any differences while consumers shop online, differences within the age groups such as does online shopping attracts elder people or younger people. Studies have shown that online shoppers mainly consist of people with Higher education and income and working in middle to senior management or professionals (Kehoe et al., 1998; Hoffman et al., 1996). Locally, a report in the Business Times and an online survey showed that demographically, a typical Net shopper is mainly male, aged between 18 and 40, had
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attended at least secondary school and belongs to a family with average income of at least $5000. The online survey also showed that cyber-buyers were also mainly Chinese below 36 years old with diplomas or degrees and drawing a monthly salary of less than $3500. Another study by Miller (1996) claims cyberspace is the domain of young people Bhatnagar and Ghose (2004). Sim and Koi, (2002) states as main discriminating factors appeared to be gender and income. Customer segmentation is important for electronic commerce success, Berry (1999). Miller (1996) has focused on demographics to show the profile of Internet users, Bhatnagar and Ghose (2004).

Chapter 5 Changes In Online Shopping 5.1 Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph, it is getting doubled year by year. The usage of internet in India is only 4% of the total population. This is
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also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. Wi-Fi & Wimax system has also started in India. This will increase the usage as it goes more on wireless internet. Indians are proving every 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.

Few Factors That Boost Online Shopping in India

Rapid growth of cybercafs across India Access to Information The increase in number of computer users Reach to net services through broadband Middle-class population with spending power is growing. There are about 200 million of middle-class population good spending powers. These people have very little time to spend for shopping. Many of them have started to depend on internet to satisfy their shopping desires

Few Facts about Online Shopping

The internet users in India will grow to 200 million by 2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35 year range. 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. In line with global trends finally India has also started shopping online these days. online shopping in India has rose from $11million in 1999-2000 to $522 million in 2007 and it is expected to rise above $700 million by end March 2010.

5.2 Changing Attitude towards Online Shopping

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Awareness, Future Demand Focus for Emerging Markets & Current Issues Malls springing up everywhere and yet people are E-shopping! And not in small numbers either. Consumers are more rational nowadays and have ability to get the choices from the market. Awareness among the consumers is spread through internet. The number of internet users is increasing day by day which attracts people who have an option to buy online. 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? In India there are some segments of people who have not yet tried purchasing over internet.

How did online shopping start?

Online shopping became popular during the Internet boom in 1999-2000. Amazon.com, the online bookstore founded by Jeff Bezos, created history by becoming the first bookstore with a presence only on the Internet. Following the success of Amazon, many bookstores with a physical presence also created an online presence on the Internet. Later, portals such as Yahoo.com and MSN.com also started online shopping channels where people could buy more than just books. Closer home, portals such as Indiatimes.com and Rediff.com came up with similar options for the Indian consumer.

What can we buy online?

You can purchase almost anything online starting with groceries and greeting cards to cell phones and ringtones for the cell phones, everything can be purchased online. While most people still find it convenient to buy their groceries from the neighborhood shop, many people are purchasing rail and air tickets over the Internet. In addition, people and corporates as well, are also purchasing a variety of services online such as a broking service or job search service.

What are the advantages of shopping online?

It is convenient, faster and sometimes also cheaper. For instance, rather than standing in a long queue and waiting for your turn to purchase a ticket, people are finding it simpler to log on to a website and buy it. In some instances, you may have to pay a premium for an online purchase but it is still preferred because the convenience factor is higher.
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For instance, if you want to buy movie tickets online you may have to shell out a small premium over the actual price of the ticket but because of its convenience, people are opting for it. Buying or placing an order online is also useful when you need to send a gift to a friend who is staying in a different city or country. For instance, you can order flowers to your friend in New York on her birthday by placing an order for it on the Internet from your home.

Types of internet users: Shoppers v/s browsers:

As Forsythe and Shi (2003) mention internet users can be categorized in to two Internet Shoppers and Internet Browsers, Internet shoppers are the people who shop online whereas internet browsers are the people who just browse the internet other than shopping purpose.

5.3 Non Web Shopper

Non-web shoppers were those consumers who reported that they never shopped online. While scoring the lowest in their consumer and marketing attitudes, this group did have fairly high intentions to use the Internet for shopping, scoring higher than web-store visitors. They therefore represent a group that the e-tailer must consider in his or her marketing plans.Previous studies have indicated that the non-web shopper did not feel comfortable using the Internet (Balabanis & Reynolds, 2001; Burroughs & Sabherwal, 2002; Citrin, Sprott, Silverman & Stem, Jr., 2000; Lohse, et al., 2000; Salisbury, et al., 1998). In this case the respondents had Internet experience, but not Internet buying experience. One model that might encourage this person to make that first purchase is a model similar to the Gaps experiments. Gap Inc. currently offers visitors to its physical store a discount coupon to try online shopping and an additional 10 % discount coupon of entire purchase for the first time shopper if the customer is willing to give his or her email address. Taking this one step further, merchants could install computers in the store and have sales persons trained to help familiarize the user with the online shopping experience. While training, the clerk could provide information regarding that companys Internet shoppings security protection. These services would let the non-web shopper experience the convenience, speed, simplicity of the process, availability of detailed product information and, hopefully, enjoyment the surfing experience and realize the ease of buying online instead of waiting at the checkout line at the traditional retail store.
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Web-Store Visitors
Web-store visitors were the consumers who browsed Internet stores but had no specific intention to purchase products on the Internet. The web-store visitors major Internet use (68%) was for communication and entertainment such as email, chatting, sending cards, playing games, and/or listening to music. Visiting online stores for shopping was a secondary use. While the consumer and marketing attitudes toward Internet shopping of the web store visitor were higher than that of the non-web shopper, this group may be the most difficult to convert into an online buyer. They showed the lowest intention of making future online purchases. This might mean that the web-store visitors do not intend to change his or her current shopping venue whether it be brick and mortar stores or other non-store retail channels. To move this group into being an Internet buyer, the e-tailer might want to focus on what this group does like to do online, communicate, surf, and find entertainment. The idea that follows was discussed by Jarvebpaa and Tractinsky (1999) and Komiak and Benbasat (2004) of building trust. The e-tailer can first form a relationship with the consumer. This can be done by providing good product information plus highlighting upcoming events and sales occurring in its traditional stores plus they can send general product information and highlight product availability. They can also open a communication site and/or an entertainment site in order to first attract the web store visitors to visit their online site for a purpose other than shopping. The idea is to build awareness and a long-term relationship.

5.4 Internet Browser and Buyer Internet Browsers

Internet browsers were the consumers who shopped through the Internet With an intention to purchase a product but had not yet completed an online transaction. Internet browsers and buyers presented similar characteristics and attitudes toward Internet shopping. Both groups had the intention of buying, a key behavior predictor according to the Shim, et al. (2001), but this group had so far failed to act on that intention. Internet browsers had the second highest intention score and also the second highest factor scores on both their attitude towards the consumer issues and their attitude towards the marketing issues of the Internet. Yet they have never completed an online purchase thus suggesting there are some issues that need to be overcome.
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Because Internet browsers have positive attitudes toward the use of the Internet as an alternative shopping tool, there may be several things the e-tailer can try. First the e-tailer can build trust. Trust develops over time and becomes an antecedent to commitment, the initial step in converting an online shopper into a buyer (Quelch & Klein, 1996; Singh & Sirdeshmukh, 2000). Based on the finding that respondents who stayed longer online were more likely to make a purchase. The merchant might also find ways to encourage the browser to stay longer for searching and shopping on the Internet. This may mean making the online store entertaining and dynamic. If the web site can encourage people to stay around, one might expect to see more browsers become buyers. It also may be that, even though the literature suggests that Internet browsers agree with the relative advantages of Internet shopping, they still prefer to make the purchase at the brick and mortar stores or they couldnt finalize the transaction. For the first reason, a substantial discount for buying online may encourage them to make that first purchase. The second reason could be a result of several technology issues. If this is the case, the merchant must first obtain more data regarding the problem. Setting up an easy email site to report such technology problems might be a good first step. The browsers might also hesitate to purchase products online because of their financial security concern (Udo, 2001). Continued marketing around this issue might be the answer. Another reason could be the tactility-related, or the ability to examine by see and touch a product before purchasing (Bhatnagar, et al., 2000; Komiak & Benbasat, 2004). Perhaps this issue can be overcome with liberal return policies. Such return, and the corresponding delivery problems, might be overcome by incentives, building an alliance with a delivery service company, shortening the shipping time and lowering or eliminating both the delivery and return shipping charges or to set a certain amount of purchase for free delivery thus also bolstering the e-tailers sales.

Internet Buyers
The goal of marketing is to increase sales and profits. Marketing professionals know that the ability to increase sales is often most easily done by focusing on the current buyers. It is the analyzing and understanding of the current buyers purchasing behaviors where marketers and e-tailers should perhaps make their first move towards the development of a more fully integrated marketing and communication plan. The Internet buyers were the consumers who had purchased a product through the Internet.
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Based on these findings, the Internet buyers were mostly single with some income and lived off-campus. They had a computer and Internet access, considered their Internet skills as good, and had more years of Internet using experience as opposed to any of the groups who had not made an online purchase. Internet buyers had a positive attitude toward the consumer and marketing factors of Internet purchasing and they also showed a higher intention for future online shopping than Internet non buyers. They already see Internet shopping as a convenient, easy to use, and a time and effort saving activity. Internet buyers considered Internet shopping safe with privacy protection and secure financial payment processing. They trusted the merchants thus minimizing the tactility issue and believed Internet shopping has reasonable delivery and return policies. To encourage this group to buy more may be as simple as encouraging them to spend more time at the store web site based on the connection between length of time that consumers spent on the computer and the likelihood of being a buyer. Marketers and e-tailers should try to make their online stores more entertaining by using up-to-date technology, such as 3-D, animation, or video clips. By doing so consumers may spend more time surfing the store, thus staying at the site longer and perhaps leading to more purchases. The merchant could consider discounts for online buying and may tie the discounts to the amount of goods already purchased online. As both Internet buyers and non buyers used the Internet for communication, marketers and e-tailers should also be in regular communication with the buyers through such things as promotional emails advertising their specials or a buyers chat room where previous buyers can discuss topics related to the store. It also may be possible to offer the online buyer special or unique services.

Stratified Internet Buyers: Experience Goods Buyers vs. Search Goods Buyers
For the respondents who were Internet buyers, the study offers additional information based on the most commonly purchased item, experience goods or search goods. These two groups of buyers were similar in their demographic backgrounds including age, ethnic profile, marital status, self-support, and residence; however, gender was significant between the two groups. This phenomenon was consistent with the previous studies (Liang & Huang, 1998; Vijayasarathy, 2002). Female respondents were more likely to purchase experience goods than search goods. This gender preference is reflected in the categories of experience

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goods which are apparel, beauty products, and accessory items. Male consumers were more likely to buy search goods such as CDs According to the findings of the current study, experience goods buyers have purchased significantly more items than search goods buyer from e-stores even though there was an absence of sensory examination of the product before purchase. Experience goods buyers had more years of online experience and spent a longer time searching for information and shopping online than search goods buyers. This suggests that e-tailers need to offer full and complete product descriptions and pictures to increase the experience goods buyers The attitudes of the experience goods and search goods buyers toward online buying were similar to each other. However, their Internet purchasing experiences were somewhat different. Search goods buyers were more likely to spend more than 11 hours a week on the Internet as opposed to experience goods buyers. However, their use was for communication and entertainment, not shopping. They had spent less time in actually making their last purchase as opposed to experience good buyers. For search goods buyers, e-tailer should make their web-store fast and clear so that these buyers can rapidly make their purchases.

Do we need a credit card to make online purchases?

In most cases, yes. Although online players in India are coming up with innovative ways to make payments, credit cards are still the most widely accepted form of making payments over the Internet. If you have a savings account with a bank, you can opt for Internet banking and use your Internet banking PIN (personal identification number) to make online purchases instead of a credit card. The purchase amount is automatically debited from your savings account, in this case and you don't require a credit card. With the mobile subscriber base in the country growing rapidly, online retailers are also coming up with innovative ways to use the cell phone to make payments instead of the credit card. Rediff.com and Citibank, for instance, are using a mobile payments solution that allows Citibank account holders to pay using their mobile through SMS.Some vendors also allow you to pay by cheque. This is usually true for online purchase of services such an online classifieds listing. In such cases, once the vendor receives the cheque and it is encashed, the service is activated.

Is it safe to pay online?

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It's safe to pay over the internet as the information you send us is encrypted. This means that nobody can read it as it travels across the internet. We will receive your credit details using a secure server. This means the transaction is encrypted between your machine and the authority's server. Traditional website addresses begin "http" - the address for a secure site will always begin with "https". Once your credit/debit card details have been submitted to us and your credit/debit card company has approved the payment, it will be processed. Security standards for online shopping are now well-established, so it is safe to pay online using your credit card. Your credit card details and other information are encrypted and sent over a secure layer over the Internet. Although no system is completely fraud-proof, the large number of people going online bears testimony to the acceptance and safety of online shopping.

5.5 Effects of Internet on Traditional Markets

The Internet is an important focus for marketers, as indicated by Hoffman and Novak (1996), for several reasons. First, consumers and firms are conducting a substantial and rapidly increasing amount of business on the Internet. Second, the market prefers the decentralized, many-to-many Web for electronic commerce to the centralized, closed-access environments provided by the online services. Third, the WWW represents the broader context within which other hypermedia CMEs (Computer-mediated Environments) exist. Fourth, the Web provides an efficient channel for advertising, marketing, and even distribution of certain goods and information services. It is already clear that the Internet is changing the rules by which marketing is conducted and evaluated, and new consumer market structures will emerge as a consequence of the Internet. Levy (1996) believes the Internet would ultimately become the medium by which we keep in constant contact with our families, watch television, dash off a note to a friend, check the traffic, read the new paper, prepare a report for work, make a phone call, buy a book. The volume and tendency of the Internet transactions reflect a more and more important role the Internet is playing. According to Cyberatlas.com (2001c), consumers spent $59.7 billion online in 2000, compared to $30.1 billion in 1999, a 98 percent increase. eMarketer projects B2C global e-commerce revenues will reach $101 billion by year-end 2001, rising to $167 billion in 2002 and $250 billion by 2003.
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According to Gartner, Inc, the value of worldwide B2B Internet commerce sales transactions surpassed $433 billion in 2000, a 189 percent increase over 1999 sales transactions. Worldwide B2B Internet commerce is projected to reach $919 billion in 2001, followed by $1.9 trillion in 2002. In 2003, the market will increase to $3.6 trillion, and at the end of 2004, worldwide B2B Internet sales transactions are forecast to reach $6 trillion.

The Internet and Competition

The emergence of the Internet changes the nature and intensity of competition. The Internet may change the way how existing retail stores compete (Balasubramanian 1998). In the situation in which consumers knowledge about products is high, each retailer competes against its direct Internet channel rather than against the neighboring retailer (Balasubramanian 1998). The crucial point here is that consumers choosing between channels is different from consumers choosing between retailers. Regarding the traditional view that the Internet has the potential to increase competition due to the easier price search online, opposite results have been found in recent studies. Lynch and Ariely (2000) find that for differentiated products like wines, lowering the cost of search for quality information reduced price sensitivity, which makes it easy for consumers to compare across stores and need not intensify price competition. Specifically, Lal and Survey (1999) find that the Internet is likely to decrease the level of price competition when the Internet users reach a high percentage of the whole population, when non-digital attributes are relevant but not dominating, when consumers previously hold a more favorable attitudes toward their currently owned brands, and when the purchase situation can be characterized by destination shopping (i.e. the cost of visiting an additional store is lower than that of undertaking the shopping trip). Similarly, Zettelmeyer (2000) argues that a rise in the reach of the electronic channel relieves some of the competitive pressure by reducing firms total cost of providing information to consumers. Some researchers investigate how the Internet may influence firms competitive marketing strategy. For example, Varadarajan and Yadav (2002) indicate that the Internet has the potential to enhance the effectiveness and the efficiency of all marketing mix elements (e.g., 4P) except the actual distribution of nondigital products. However, Varadarajan and Yadavs (2002) focus is on the shift of the traditional physical marketplace to the hybrid one
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that encompass both physical and electronic marketplace. They do not consider the competitive strategy of pure-Internet firms. Kalyananam and McIntyre (2002) present the emarketing mix as compared to the conventional marketing mix. Besides traditional 4Ps product, price, promotion and place, their e-marketing mix contains seven extra elements thought to be essential for e-marketing, including personalization, privacy, customer service, community, site, security, and sales promotion. They conclude that e-marketing mix has more overlapping elements and the integration of those elements is more common as compared to the traditional one. The Internet also diversifies the pricing mechanism. Such pricing strategies as forward auctions, reverse auctions, dynamic pricing, and name your own price that seem unfeasible traditionally can be effectively implemented on the Internet

The Internet and Intermediaries

Some researchers have examined the effect of the Internet on traditional intermediaries. Peterson, Balasubramanian and Bronnenberg (1997) indicate how the Internet might affect three types of channel intermediaries, namely, distribution channels, transaction channels, and communication channels. They argue that the potential that the Internet offers for efficiency improvements in channel functions will obviously vary across the three types of intermediaries. Specifically, the logistic functions of distribution intermediaries are probably least dependent on the existence of the Internet except for information goods such as software that can be distributed via the Internet; transaction channel intermediaries will probably be more affected by the existence of the Internet because it will be possible for sellers to efficiently interact with individual buyers and potential buyers; communication channel intermediaries will probably be the most affected by the existence of the Internet. Benjamin and Wigand (1995) maintain that the Internet has the capacity to eliminate retailers and wholesalers entirely. Although under certain conditions the Internet will probably cause some degree of disintermediation because of the distribution, transaction, and communication functions it can facilitate for some products and services, on the other hand, the Internet may also lead to more channel intermediaries, such as rating services, automated ordering services, and order consolidation services (Peterson, Balasubramanian and Bronnenberg 1997). Similarly, Sarkar, Bulter and Steinfield (1998) also emphasize the importance of intermediaries in the
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Internet-based markets. They state that cyber mediaries, such as gateways, directories, search services, online retailers, and online publishers, can serve as an efficient mechanism for supporting the diversified commercial exchanges on the Internet.

The Internet and Customer Relationship Management (CRM):

The Internet and its associated communications technology have dramatically enhanced the ability of firms to interact, thereby better serving their consumers as well as other relational partners. Peppers and Rogers (1999) state that relationship marketing has only recently become practical and cost-efficient on a large scale because of database technology and the Internet. The Internet has the ability to profile customer relationships and develop customized offerings due to Internet-based applications, thus making certain customer relationship management strategy possible (Sawhney and Zabin 2002). Online firms can not only sell different product packages to different customer segments, but also provide product offerings individually as some commercial sites have allowed customers to configure their own products (e.g., Dell Incorporation). Based on customers preferences and the Internet-based interactions between firms and consumers, firms can then improve their product and service offerings and thus deepen their relationships with the customers. Along with this process of personalization and customization, customer loyalty will also increase. Sawhney and Zabin (2002) indicate that the Internet can be served as the platform that enables relationship management. In other words, the Internet provides firms with an efficient and effective tool for CRM. Traditional relationship management applications have two problems sequential information flows and lack of application integration that may lead to delayed and inconsistent information delivery.

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Chapter 6 Data Analysis and interpretation and Findings

1. Does it save your time?

When you shop traditionally, you wait for the weekend, go through traffic, deal with crowds, and you are not even sure what you want is going to be there at the price you want. But when you think of online shopping, you can sit in the comfort at your home or in an office, and browse online to see what is available and with the press of a button you can quickly get it.

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2. Is online shopping reduces travelling expences,time and stress? Yes,online shopping helps to reduce travelling expences,time and money because we dont need to go in market to shop a product that we want.so,it reduces travelling time,stress and expences. Many times when we go for conventional shopping we tend to spend a lot more than the required shopping expenses on things like eating out, traveling, impulsive shopping etc.

3. Anywhere anytime we can shop?

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Yes,we can buy the product which we want from anywhere at any time,because an online store has advantages over having a physical storefront there's no rent to pay, and you can reach millions of customers from the comfort at their own home, it is available 24 hours, online shopping only need net connections.

4. It taks long time to delivery of product? Delivey of the product is depends on type of product,Sometimes delivery of the product is takes long time as per customers expectation.

2. Is it take more time to search specific product

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For buying product online sometimes it takes more time to search specific product because of slow internet connection and website from that you are buying product is not so reliable as compared to another online shopping websites.

6. Speed of internet affects your online shoppig? There is no much more problem to buy products online,because of slow internet connection,because there are many benefits to buy product online,because user no need to go that shop and to buy that product he want.as per this problem internet speed problem is not bigger.

7. What motivates to buy products online?

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Some customers feel there is easy way of payment,some feels that online products do not have hidden cost also it saves travelling time,money and stress.This motivates customers to buy products online.

8. What products you buy on internet? There are many products are available on online shopping sites.We can buy books,electronic products,home appliance products,cloths and other.

9.Do you feel that online shopping is better than shopping physically at & mortar shop?

brick

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Yes,most customers belive that online shopping is better than shopping physically brick and mortar shop,because first thing we dont need to go at that shop to buy product which we want;this helps us to saves money time and mental stress.

10.Do you feel that the online marketers are providing competitive prices? You can get products at the cheap deals and better prices from online stores because products come to you direct from the manufacturer or seller without middlemen involved. Many online shops offer discount coupons and rebates. Apart from this, the Online Store is only required to collect sales tax if they have a physical location in our state even if we buy from a store across the world.

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Chapter 7 Conclusion
Increased Internet penetration, a hassle free shopping environment and high levels of Net saviness 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 kiosk, computers and other aids in stores. The goal is not to convert all shoppers to online purchasing, but to show them it is 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. I found that it is a challenge for E-marketers to convert low frequency online buyers into regular buyers through
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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.

Chapter 8 Recommendations
As we came to know after researching on this topic we recommend that, 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 rick shopping of the net, and one more thing is that there should be transaction of money is very slow they have to make it fast so that customer don t have to face much problem to pay for the product, if customer is going to face some problem he is not going to visit our site and buy product . Following implications should be followed Discount prices A transfer and reliable retailer
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 Fast transactions Focus on customer satisfaction

Chapter 9 Annexure Questionnaire

Q1. Name Q2. Age a) b) c) d) 15-20 20-25 25-30 30 above

Q3. Gender a) Male b) Female Q4. What is your occupation? a) Student b) Professional c) Govt. employed d) Self Employed e) Other
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Q5. Do you have your own internet connection? a) Yes b) No Q6. Is it save your time? a) Agree b) Disagree

Q7. Is online shopping reduces travelling expences,time and stress ? a) Agree b) Disagree Q8. Anywhere anytime we can shop? a) Agree b) Disagree

Q9. Is it taks long time to delivery of product? a) Agree b) Disagree

Q10. Is it take more time to search specific product? a) Agree b) Disagree Q11. Speed of internet affects your online shoppig? a) Agree b) Disagree Q12. What motivates to buy products online? a) Easy payment b) No hidden cost c) No travel to shop Q.13. what products you buy on internet? a) Books b) Music CDs c) T-shirt d) Mobile e) laptop f) Other [specify] ___________

Q.14. Do you feel that online shopping is better than shopping physically at brick & mortar shop? a) Agree b) Disagree

Q15. Do you feel that the online marketers are providing competitive prices? a) Yes b) No c) Cant Say

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Chapter 10 Appendix/Glossary
HCI: - Human Computer Interaction CCOS: - Customer concerns in online shopping TAM: - Technology acceptance model TRM: - Theory of reasoned action model B2B:- Business to Business Electronic Commerce B2C:- Business to Customer Electronic Commerce

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Chapter 11 Bibliography
http://edissertations.nottingham.ac.uk http://www.ccp.ucla.edu http://e-commerce.mit.edu http://www.activmediaresearch.com

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