A Project Proposal on

Online Buying Behaviour

Product: Laptop

At

Submitted By, Submitted To,

Nair Deepa Dr. Neelima Ruparel

Shah Purva Professor,

Shaikh Hannan BKSBM.

Yadav Paramjit
1. INTRODUCTION

2. THEORETICAL FOUNDATION

3. NEEDS

4. OBJECTIVES

5. SCOPE OF WORK

6. QUESTIONNAIRE
INTRODUCTION
Many companies have started using the Internet with the aim of cutting marketing costs,
thereby reducing the price of their products and services in order to stay ahead in highly
competitive markets. Companies also use the Internet to convey communicates and
disseminate information, to sell the product, to take feedback and also to conduct satisfaction
surveys with customers. Customers use the Internet not only to buy the product online, but
also to compare prices, product features and after sale service facilities they will receive if
they purchase the product from a particular store. This study serves to find out the factors
behind the increasing trust in consumers, taking the Indian population in mind, which
generally buy a product only after experiencing it on a primary level.

In addition to the tremendous potential of the E-commerce market, the Internet provides a
unique opportunity for companies to more efficiently reach existing and potential customers.
Scholars and practitioners of electronic commerce constantly strive to gain an improved
insight into consumer behaviour in cyberspace. Researchers try to understand the traditional
consumer behaviour theories in internet context. As rapidly as the world of internet is
growing in India, with latest addition of JIO, shopping online is a daily part of consumers,
what behaviour underlies this uproar and to what extent the theories are applicable is the
main concern of this study.
THEORETICAL FOUNDATION

India has an internet user base of about 354 million as of June 2015.Despite being the
second-largest user base in world, only behind China (650 million, 48% of population),
the penetration of e-commerce is low compared to markets like the United States (266
million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding
around 6 million new entrants every month. The industry consensus is that growth is at an
inflection point.

In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-
retail activities. Demand for international consumer products is growing much faster than in-
country supply from authorized distributors and e-commerce offerings.

E-commerce has been around in India for more than a decade but has become main stream
only in the last few years. Largest e-commerce companies in India
are Flipkart, Snapdeal, Paytm.

India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion
in 2013. About 70% of India's e-commerce market is travel related. According to Google
India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100
million mark by end of year 2016.CAGR vis--vis a global growth rate of 810%.

Electronics and Apparel are the biggest categories in terms of sales. By 2020, India is
expected to generate $100 billion online retail revenue out of which $35 billion will be
through fashion e-commerce. Online apparel sales are set to grow four times in coming years.

Over the last two decades, rising internet and mobile phone penetration has changed the way
we communicate and do business. E-commerce is relatively a novel concept. It is, at present,
heavily leaning on the internet and mobile phone revolution to fundamentally alter the way
businesses reach their customers.

Key drivers in Indian e-commerce are:

Large percentage of population subscribed to broadband Internet,

burgeoning 3G internet users, and a recent introduction of 4G across the country.

Explosive growth of Smartphone users, soon to be world's second largest smartphone

user base.

Rising standards of living as result of fast decline in poverty rate.

Availability of much wider product range compared to what is available at brick and
mortar retailers.

Competitive prices compared to brick and mortar retail driven

by disintermediation and reduced inventory and real estate costs.
 Increased usage of online classified sites, with more consumer buying and selling
second-hand goods

Evolution of Million-Dollar start-ups like Amazon, flipkart, Bestbuy Etc.

Commodity Distribution in E-Commerce in India

Electronics
6% 3% Apparels and Accessories
10% Books
34%
Beauty and Personal Care
15% Home and Furnishing
Healthcare

32%

While in countries such as the US and China, e-commerce has taken significant strides to
achieve sales of over 150 billion USD in revenue, the industry in India is, still at its infancy.
However over the past few years, the sector has grown by almost 35% from 3.8 billion USD
in 2009 to an estimated 18.6 billion USD in 2015.

E-retail in both its forms; online retail and market place, has become the fastest-growing
segment, increasing its share from 10% in 2009 to an estimated 23% in 2015.

Calculations based on industry benchmarks estimate that the number of parcel check-out in e-
commerce portals exceeded 100 million in 2014. If this robust growth continues over the next
few years, the size of the e-retail industry is poised to be 20 to 25 billion USD by 2017. This
growth is expected to be led by increased consumer-led purchases in durables and electronics,
apparels and accessories, besides traditional products such as books and audio-visuals.

The essence of e-retailing is in its ability to transcend physical boundaries and reach
customers in a manner different from the traditional brick-and- mortar stores, to their very
doorstep. However, the base of the e-retailing model is technology and logistical solutions
that facilitates the customer acquisition and the final reach process. E-commerce further
brings to the table vagaries in customer orders accompanied with difficult scenarios such as
free delivery; order rescheduling, cancellation, returns and cash-on-delivery.

Additionally, an expected minimized Turn-Around-Time (TAT) which will potentially lead

to word-of-mouth publicity, feedback and customer retention to the e-portal or website. An
information network which shares updated information with respect to inventory status,
demand schedule and forecasts, shipment schedules and promotion plans among all the
stakeholders of the supply chain will form the backbone of an e-retailer.

As per the latest news report which featured in Mint on 30th March,2016 the government has
allowed 100% foreign direct investment (FDI) in online retail of goods and services under the
so-called marketplace model through the automatic route, seeking to legitimize existing
businesses of e-commerce companies operating in India.

It also notified new rules which could potentially end the discount wars, much to the
disappointment of consumers. This is because the rules now prohibit marketplaces from
offering discounts and capping total sales originating from a group company or one vendor at
25%.

This could, however, level the playing field with offline stores, which have witnessed a slump
in footfalls corresponding to the increase in e-commerce.

So far, India has allowed 100% foreign investment in business-to-business (B2B) e-

commerce but none in retail e-commercei.e., business-to-consumer, or B2C.

Even so, Indian e-commerce companies such as Flipkart and Snapdeal have been following
the marketplace modelwhich was not definedand attracting large foreign investments.
Marketplaces essentially act as a platform connecting sellers and buyers.

Chief characteristics of the e-commerce market which impact the business models

Cash-on-delivery: India has been a vibrant cash economy where the consumers
purchasing behavior involves an initial overall inspection of the product from
different perspectives and paying subsequently. Further, customers in India do not
extend much trust on the transit facilities for the delivery of the products. This has
resulted in cash-on -delivery (COD) as a preferred payment option of majority of
the Indian consumers buying online.
Consumers in India expect the return process to be seamless and convenient.
However, with an expectation of return of the items purchased online, online
shoppers have made available the option to return the purchased goods at the behest
of the retailer. Retailers have considered this option of return to develop trust and
confidence, which results in seamless subsequent purchases and positive word-of-
mouth support.
Free and quick home delivery is another characteristic of the e-commerce industry in
India. E-retailers offer free delivery of the products within a promised timeline.
Though this may be unsustainable in the long run but e-retailers have to offer the
same convenience of free and quick shipping to compete with other retailers.
 NEED OF THE STUDY
The need of this research is to identify and get insight into what main factors the online
consumer takes into consideration most when he buys laptops on the internet, what affects
their shopping behaviour, basic need of this research is to find out what are the main factors
affect the online consumer when considering and making a purchase of laptop over the
Internet.

OBJECTIVE OF THE STUDY

To study the online shopping behaviour of customers

To study the factors influencing online shoppers and consumers when it comes to laptop

To study the customers level of satisfaction with regard to online shopping of laptops
( electronics in general)

SCOPE OF THE STUDY

Due to the rapid development of the technologies surrounding the Internet, a company
that is interested in selling products from its web site will constantly has to search for an
edge in the fierce competition. Since there are so many potential consumers, it is of the
out most importance to be able to understand what the consumer wants and needs.
The importance of analysing and identifying factors that influence the consumer when
he or she decides to purchase on the Internet is vital. Since the Internet is a new medium for
there have been new demands set by the consumer. That is why it is crucial for the online
retailers to know what influences the online consumer.

Analysing consumer behaviour is not a new phenomenon. The renowned marketing expert
Philip Kotler has published several works on the topic of consumer behaviour theories. These
theories have been used for many years not only to understand the consumer, but also create a
marketing strategy that will attract the consumer efficiently. These theories can also be
applied to identify the online consumer and to create certain consumer segments. However,
some distinctions must still be made when considering traditional consumer behaviour vs.
online consumer behaviour.

Since online retailing is a relatively new retailing medium and online consumer behaviour is
diverse from traditional consumer behaviour, one must identify what influences the online
consumer. Analysing the process that the online consumer goes through when deciding and
making a purchase over the Internet, shows some factors that consumers consider these
factors need to be identified and taken into account by online retailers in order to satisfy
consumer demands and compete in the online market.
RESEARCH METHODOLOGY

Data for this study will be collected by means of a survey conducted online. The sample size
was 200, 50 per individual. The questionnaire (shown in Annexure) will be used mainly to
test the model proposed for attitude towards online shopping. The type of research will
be Descriptive. We will take around ten different market segmentations for our questionnaire
preparation, as well as, our key study. The questionnaire will consist of 14 questions, likert
scale, and demographic questions.

RESEARCH STRATEGY

When collecting data to approach the purpose of a research there are two ways in which the
data can be collected. In order to acquire a General knowledge about the topic, secondary
data is primarily used and is one of the ways by which data can be collected. The second way
to collect data is the primary data collection. Usually when a study is conducted, secondary
data is not sufficient enough and needs to be completed with primary data which is collected
by the research.

DESCRIPTIVE RESEARCH METHOD

We will conduct our research in order to collect primary data and reach the objective of the
study. Since our research is of descriptive character our primary intention is to collect
primary data and analyse it. We then will collect primary data through a survey. The main
purpose of the survey is to collect data about online consumer behaviour 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 behaviour had to be
identified whilst buying a laptop.

SAMPLE DESIGN

The factors that we intend to examine can be applied to and investigated at any population
that uses the internet and buys online products online. Since there are time and resource
restraints, a specific population had to be identified in order to generalize and create relevant
segments. We decided that the sample size should contain over 150 respondents. The
populations for this research are professionals & students at 5 key areas, that are,
Navrangpura, Satellite, Maninagar, Sarkhej, Naroda in Ahmedabad city. The city was chosen
on a convenience basis. Convenience sampling involves using samples that are the easiest to
obtain and is continued until the sampling size that is need is reached.

We will attempt to collect as many respondents as possible but since we will be

studying students & professionals we assume that there will be little variation in the
population making it more approved to generalize the response rates.

TYPE OF RESEARCH:
Descriptive Research Sample
Size:-150.
QUESTIONNAIRE

1. Do you have your own internet connection?

2. Do you think online shopping is better than physical shopping (going to a store)?
a) Yes
b) No
c) Cant say
3. Where do you usually buy electronic items?
a) Online
b) Company store
c) Digital malls
4. For the following questions, please record the number that best describes the extent to
which you agree or disagree with each statement.
1) Strongly agree
2) Somewhat agree
3) Neither agree/ nor disagree
4) Somewhat disagree
5) Strongly disagree

__ It is fun to shop online

__ Price comparison is better when shopping online
__ I prefer online to physical store because it is easy
__ I prefer online to physical store because it is convenient
__ I prefer online to physical store because there are wide range of products
__ I prefer online to physical store because there are attractive offers/ discounts
__ I prefer online to physical store because there are competitive prices
__ I prefer online to physical store because there is ease of payment

5. What online stores have you visited for laptops?

a) Flipkart
b) Amazon
c) Ebay
d) Snapdeal
e) Bestbuy
f) Others
6. What factors help you decide which site to choose for laptops?
a) TV advertisement
b) Banner ad
c) Personal recommendation
d) Special offers on sites
e) Search engines
f) Others
7. How do you prefer paying online?
a) Credit / Debit card
b) Wallet
c) COD ( Cash On Delivey)
d) NEFT
e) Others
8. Have you faced any problems while shopping online for laptops?
a) Yes
b) No
c) Cant say
9. Which brand comes to your mind the first when you see laptop?
a) Dell
b) HP
c) Lenovo
d) Sony
e) iMac
f) other______
10. What do you look in an ideal laptop?
a) Looks/ design
b) Performance
c) Price
d) Storage
e) Platform (windows, mac, linux)
f) Brand (dell, HP, etc.)
g) Size
h) Battery life
11. What factors you consider while buying laptop?
a) TV ad
b) Banner ad
c) Offers/ discount
d) Personal recommendation
e) Expert recommendation
f) Other.
12. What is your age?
a) 18-22
b) 23-30
c) 30-40
13. Gender a) male b) female
14. Profession
a) Student
b) Employed
c) Self employed
d) Other