CERTIFICATE

To Whomsoever it May Concern

This is to certify that the project report on Analysis of Online Shopping Behavior of customer
in Gohpur locality has been carried out by Milan Saikia bearing Enroll. No.: 0019 under my
supervision. Certified further, that to the best of my knowledge the work reported herein does not
form part of any other project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate.

_______________________

(Signature)

Praveen Kumar Sahu

Assistant Professor
Department of Commerce
Chaiduar College, Gohpur

1
 ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report title ANALYSIS OF
ONLINE SHOPPING BEHAVIOR OF CUSTOMER IN GOHPUR LOCALITY. It has
been an enriching experience for me, I take this opportunity to thank all those who have helped
and inspired me during the course of my project which the successful completion of project
would not have been possible. In the regard, I am immensely thankful and convey my sincere
regards who helped me with their practical knowledge of this field. Gratitude to our course
project report guide Mr. Praveen Kumar Sahu, Assistant Professor, Department of
Commerce Chaiduar College for his guidance, constant inspiration and his keen interest shown
on us during the project. We deliberate our profound sense of gratitude to him.

I also express my gratitude to Mr.Subhasish Ghosh my faculty guide who has been a constant
source of encouragement to me and has been instrumental in bringing about the successful
completion of this project.

I am thankful to the people of Gohpur for their help and suggestions in conducting this study.

And above all, I thank the Almighty God for helping me to complete this work successfully. I
would like to thank the entire respondent who took out from their busy schedules to interact with
me, fill the questionnaires and answer my queries.

Milan Saikia

B.COM
(2015)

2
 DECLARATION

I Milan Saikia, Rollno-0019, student of B.Com-6th Semester from CHAIDUAR COLLEGE of

GOHPUR, hereby declare that the project report on ANALYSIS OF ONLINE SHOPPING
BEHAVIOR OF CUSTOMER IN GOHPUR LOCALITY is an original and authenticated
work done by me partial fulfillment of my course .The project was completed between 1-2-2015
to 15-4-2015.I further declare that it has not been submitted elsewhere by any other person in
any of the institutes for the award of any degree/diploma.

The information, facts and finding in this report are based on my indigenous work and original in
nature and any resemblance with any existing work is purely coincidental.

Signature

Milan Saikia
Roll..
Chaiduar College

3
 Contents
Page No

Certificate.. 1
Acknowledgement..... 2
Declaration. 3
Abstract. 6
1. Introduction...... 7
1.1 Background of the study.... 8
1.2 Objective of the study 10
2. Literature Review..11
2.1 Literature of the study..12
3. Research Design & Research Methodology..14
3.1 Introduction..15
3.2 Research Method..15
3.3 Research Selection15
3.4 Data collection Method.16
3.5 Sample Size...16
4.Data Analysis & Interpretation17
4.1 Data Analysis & Interpretation..18
5.Findings & Recommendation............ 28
5.1 Findings...29
5.2 Conclusion & Discussion....29
5.3 Recommendation.....30
6.1 Hypothesis..32
6.2 Limitations..32
7. Annexure.22
8. References.....37

4
 List of Tables
Table 4.1 Age wise no. of respondent 24
Table: 4.2 Ever had online shopping

Table: 4.3 If any problem in online shopping

Table: 4.4 How frequently buy online

Table: 4.5 How long have been shopping online

Table: 4.6 Reason for online shopping

Table: 4.7 Go to store before making final purchase online

Table: 4.8 How many times shop product over the last year

Table: 4.9 Get the idea of buying product an online store

Table: 4.10 Main barriers of shopping online

List of Figures
Figure: 4.1 Responses based on gender

Figure: 4.2 Response based on whether consumers had online shopping

Figure: 4.3 Response based on if any problems in online shopping

Figure: 4.4 Response based on how frequently consumers buy online

Figure: 4.5 Response based on how long have been online shopping

Figure: 4.6 Response based on reason for online shopping

Figure: 4.7 Response based on whether consumers go to store before final

purchase
Figure: 4.8 Response based on last year shopping online

Figure: 4.9
Response based on from where customers get idea of online
shopping
Figure: 4.10 Response based on barriers of online shopping

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 Abstract
The growth rate of Indias e-commerce industry is fascinating. It was reported as 88% in 2013
which is a clear contrast picture of the slower economic growth of India. The rising inflation
rate in recent years has not slipped away the performance of online shopping industry in India.
Companies are using the internet to put across and commune the information. Simultaneously it
helps the companies to give an idea about their products and instantly getting the feedback of
customers fulfillment to get stimulated turnover for future. The primary objective of the current
study is to understand the online buying behavior of consumers in India. It has also made an
attempt to get information about the scope of improvement in online shopping website.

Keywords: Online Shopping, Indian Customers, Marketing Strategies, Indian

e-tail Industry

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 CHAPTER I
INTRODUCTION

1. INTRODUCTION
7
1.1 Background of the study
The internet is being developed rapidly since to decades, and with relevant digital economy that
is driven by information technology also being developed worldwide. After a long term
development of internet, which rapidly increased web users and highly speed internet
connection, and some new technology also have been developed and used for web developing,
those lead to firms can promote and enhance images of product and services through websites.
Therefore, detailed product information and improved service attracts more and more people
change their consumer behavior from the traditional mode to more rely on the internet shopping.
On the other hand, more companies have realized that the consumer Behaviour transformation is
unavoidable trend, and thus change their marketing strategy. As the recent researches have
indicated that, the internet shopping particularly in business to consumer (B2C) has risen and
online shopping become more popular to many People. For instance, the Dell Computer
Company have reached 18 million dollars sales through the internet during the first quarter of
1999. As result, about 30% of its 5.5 billion dollars total sales were achieved through the
internet. Therefore, to understand internet shopping and its impact on consumer behavior could
help companies making use of it as a form of doing e-business. The internet offers different kind
of convenience to consumers. Obviously, consumers do not need go out looking for product
information as the internet can help them to search from online sites, and it also helps evaluate
between each sites to get the cheapest price for purchase. Furthermore, the internet can enhance
consumer use product more efficiently and effectively than other channels to satisfy their needs.
Through the different search engines, consumers save time to excess to the consumption related
information and which information with mixture of images, sound, and very detailed text
description to help consumer learning and choosing the most suitable product. Companies are
using the internet to put across and commune the information. Simultaneously it helps the
companies to give an idea about their products and instantly getting the feedback of customers
fulfillment to get stimulated turnover for future. In India the growth of the e-commerce industry
is tremendous. Considering the latest updates from IBN 7, the number of on line shopping have
crossed 600 in the year 2013 which was counted as only 100 in 2012. The popularity of local e-
commerce sites is also noteworthy in addition to global leaders like eBay and Amazon. Earlier
the Indian customers were more attracted towards electronic gadgets and mobile phones for
online shopping but now the products indicative of lifestyle, viz., watches, apparels, perfumes,

8
beauty products are also in high demand through the medium of online shopping. The market is
also developing for books, juwellery, home appliances and kitchen appliances etc. The following
facts can help the academicians and researchers to understand the size and performance of Indian
e-commerce industry.

In 2013, the size of the market was $ 16 billion which was $ 8.5 billion in 2012

The growth rate in metro cities of India is expected to be much higher than the other cities of
the country.

The e-commerce industry is expected to be of $56 billion by 2023. But contradict to it, another
forecast supported by IANS, the e-commerce market is expected to grow by $ 50- 70 billion by
2020.

1.2 Objectives of the Study:

To understand the online buying behavior of consumers in Gohpur locality.

To get information about the scope of improvement in online shopping.
To analyze the problem faced by consumer in online shopping.
To offer suitable suggestions for the present study.

9
 CHAPTER I I
LITERATURE REVIEW

2. Review of Literature

10
E-Business probably began with electronic data interchange in the 1960s. However suggests that
it was only in the 1990s, primarily via the Internet, that E-Business has emerged as a core feature
of many Organization. In his opinion the hope was that e-business would revolutionize the ways
in which organizations interact with customers, employees, suppliers and partners. Some saw e-
business as part of a recipe of stay competitive in the global economy. Gloria W.W. Chan, Moez
Limayem(2002) The topic of Online Shopping Behavior has been examined under various
contexts over the years. Although researchers from a variety of business disciplines have made
significant progress over the past few years, the scope of these studies is rather broad, the studies
appear relatively fragmented and no unifying theoretical models is found in this research area. In
view of this, provide a exhaustive review of the literature and propose a research framework with
three key building blocks(intention, adoption and continuance) so as to analyze the online
consumer behavior is a systematic way. This proposed framework not only provide us with a
cohesive view of consumer behavior, but also serves as a salient guide line for researchers in this
area. Burke, R.R.(2002), trust is a key factor that determines the success of Business to
consumer(B2C) e-commerce transactions. This research focuses on available security measures
which assure online shoppers safety and great sales promotions and online deals which stimulate
customers to shop online. Abel Stephen(2003) in his paper represents the finding of research
studies that address e-commerce designed and associated consumer behavior. The innovations of
e commerce has affected not only the marketplace through the facilitation of the exchange of
goods and services. Researchers have identified and hypothesized on relevant subject matters
ranging from web usability, marketing channels and other factors influencing online buying
behavior. Though researchers have focused on what appear different aspects of online buying
behavior, their studies may be shown to be interrelated and interdependent, even to the extent of
revealing constructs upon which e- commerce, in terms of future design and research, could be
built.

Karim (2013) conducted a study on online shopping behavior of customers and documented that
online vendors can assure their consumers for transaction security and avoid long delays in
completing online orders and the hassle of returning goods for better online shopping experience.
Morris (2013) conducted a study on More Consumers Prefer Online Shopping Shoppers
increasingly want whats called a seamless omnichannel experience, meaning one in which
retailers allow them to combine online and brick and mortar browsing, shopping, ordering and

11
returning in whatever combo they would like. With the increasing size, more demand by youth
and change in the behavior of youth towards shopping has clearly indicated a huge market is
available to the incumbents and existing performers. And at this stage it is important to
understand the buying behavior of Indian customers towards online shopping which is
mandatory for a great marketing strategy by the players in this industry. The size and growth rate
of this industry was never like this before. And considering all this, the present study has made
an attempt to understand the online shopping behavior of Indian customers.

12
CHAPTER - III
Research Design

13
3. Research Design/ Research Methodology:
3.1 Introduction

As said in the Introduction that due to increasing globalization; the importance of online business
is increasing and making it more fast and convenient for consumers. So the research question of
this study is how consumers behave while shopping online?
Focusing the objective of the present study, a survey was conducted with the help of a
structured questionnaire to collect data about the consumer behavior for online shopping in India.
The structured questionnaire was designed to collect information about demographic profile of
the respondents such as age, gender, occupation. In addition to this, various questions related to
the experience of internet usage, the purpose of using Internet, types of products purchased
online, factors affecting consumer behavior while online shopping etc. were asked from the
respondents.

3.2 Research Methods:

The research method of this study is a survey research, which collect information from
participant through a questionnaire. The purpose of this research is to analyze the current and
future behaviors from consumers to help marketing manager making strategies according
feedback from participants. These behaviors include attitudes, believes, attribute, motivation and
behavior of sampled participants and that will be taken on a series of measurement based on
specific research point. After questionnaire sent out, and later collected data from feedbacks, the
quantitative research method will be used in this research. Researchers than use SPSS and Excel
programs help to analyze the outcome from the sample and generalized the conclusion in hole
points of view of consumer behavior. In addition to the collected data, some other data such as it
from official reports of governments or organizations will also be used to assist
complementarities of research.

3.2.1 Method Selection:

This section is dedicated to selection of research in this paper. The research methods can be
classified in many ways, but the most common difference is between qualitative and quantitative
14
approaches. Qualitative research method can be broadly defined as any kind of research that
produces findings not arrived at by means of statistical procedures or other means of
quantification. It also can be simply says that this research method is non quantitative. In
contrast, quantitative research method deal with measurable characteristics by using structured
questions and a formalized procedure of data collection.

3.3 Data Collection Method:

There are two ways to collect data, when collecting data to approach the purpose of a research.
Data collected from any sources that has been published already in any form is known as
secondary data published research or printed material. Secondary Data already exists; it was
gathered for previous purpose. It is not gathered for particular basis study; on the other hand,
primary data is gathered for a particular research (Gilbert A Churchill, 2009, p. 142). Primary
data can be Collected through interviews, observations, experiments and questionnaire. In
research, the main concern is to collect primary data and analyze questionnaire and respondents
in order to analyze factors involved in online shopping of electronic goods and how these are
related to respondents. The primary data is conducted in a way that it
will be able to approach the research and conclude answers to research questions.

3.4 Sample Size :

The factor that intended to examine can be applied to and investigated in Assam population that
uses the internet and buys electronic goods. Since there are time and resource constraint that is
why specific population had been approached in order to generalize the results includes 100
respondents. The questionnaire was mainly distributed in the town Gohpur of Assam but the
major reliance was on the distribution through email and through personal contacts. Initially total
20 people were approached to get response, out of 6, were simply excluded from the research as
the contacted persons have not used the internet for shopping and they have no knowledge or
access to the online shopping so 14 Respondents are studied for analysis and research.

15
 CHAPTER - IV
Data Analysis & Interpretation

16
 4. Data Analysis & Interpretation :

This chapter starts to present and analyze the data from the questionnaires. All data will be
analyzed by computer, the SPSS software Google drive and Microsoft office excel was use to
enter the data and design the graphs in order to help the researchers be able to explore and
analyze the data.

Respondents Details:

1. Age wise no of respondent:

Table: - 4:1
Age group No of respondent %
10 - 25 6 30%
26 - 40 7 35%
41 - 60 4 20%
61 & above 3 15%

No. of respondent (In %)

15% 30%
20% Oct-25
26 - 40
35%
41 - 60
61 & above

Figure 4.1: Response based on age in years

Interpretation: From the figure named as age wise analysis, it is clear that in this survey we
have in the age of 10-25 with percentage 30% which is the highest percentage among other age
distribution. In age distribution of 26-40 we have 35% and 20% fall in 41-60 age and rest 15%
fall in 61&above years old respondents. The questionnaire responses mainly show the young
generation which is actively part of the research.

17
2. Ever had online shopping:

Table: 4:2

No. of respondent %
Yes 14 70%
No 6 30%

No. of respondent(In%)

30%

Yes
70% No

Figure 4.2: Response based on whether consumers had online shopping

Interpretation: This question was asked to judge the consciousness of consumer and approach
regarding the selection of product about offered online products. It is analyzed that 70% of
respondents to buying product from an online store and 30% of dont buying product from online
store.

3. If any problem in online shopping:

Table: 4:3
No. of respondent %
Yes 6 30%
No 14 70%

18
 No. of respondent(In%)

30%

Yes
70% No

Figure 4.3: Response based on if any problems in online shopping

Interpretation: This question was asked to judge the problems of consumer and approach in
online products. It is analyzed that 70% of respondents to dont have problem buying product
from an online shopping and 30% of respondent to have problem buying product from online
shopping.

4. How frequently buy online:

Table: 4:4

No. of respondent %
In one month 3 15%
In six month 6 30%
In a year 5 25%
Never bought 6 30%

19
 No. of respondent(In%)

15%
30%
In one month

30% In six month

In a year
25%
Never bought

Figure 4.4: Response based on how frequently consumers buy online

Interpretation: Majority of the respondents to frequently bought online anything. 25% of

respondents have bought things online once a year, 15% respondents bought online things once
in a month, 30% of respondents who buy at least once in six months, 30% respondent to never
bought online. It is clear from the data that majority of the people in Gohpur are buying things
online.
5. How long have been shopping online:
Table: 4.5
No. of respondent %
Less than one year 2 10%
1 5 years 9 45%
More than 5 years 3 15%

No. of respondent(In%)

15% 10%
Less than one year
1 5 years
45%
More than 5 years

Figure 4.5: Response based on how long have been online shopping

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Interpretation: From the above question, it is clear that from 70% of respondents have been
doing online shopping from which 10%of respondents have been doing online shopping for less
than a year,45% respondents have been doing online shopping since 1 to 5 years and 15% have
been doing online shopping more than 5 years.

6. Reason for online shopping:

Table: 4.6
No. of respondent %
price 4 20%
Time saving 5 25%
Fast shipping 2 10%
Trust 1 5%
Brand conscious 2 10%

No. of respondent(In%)

10%
20%
5% price
Time saving
10%
Fast shipping
Trust
25%
Brand conscious

Figure 4.6: Response based on reason for online shopping

Interpretation: As analyzed from the result in online shopping in Gohpur, consumer concerns
are price factor, convenience and time saving. 20% of respondents consider price as the most
important factor followed by 25 % people who consider convenience and time saving,10%
respondent to fast shipping,5% respondent to trust and 10% respondent to brand conscious.

21
7. Go to store before making final purchase online

Table: 4.7
No. of respondent %
Yes 8 40%
No 6 30%

No. of respondent(In%)

30%

40% Yes
No

Figure 4.7: Response based on whether consumers go to store before final purchase

Interpretation: This question was asked to judge the consciousness of consumer and approach
regarding the selection of product about offered online products. It is analyzed that 40 % of
respondents do visit the retail store to see and check the actual product before actually buying
from an online store while 30% of them dont bother to see the actual product in offline store.

8. How many times shop product over the last year:

Table: 4.8
No. of respondent %
At least once 1 5%
1 3 times 7 35%
More than 3 times 6 30%

22
 No. of respondent(In%)

5%
30%
At least once
35% 1 3 times
More than 3 times

Figure 4.8: Response based on last year shopping online

Interpretation: It was asked in survey questionnaire that how many times they bought
electronic products over the internet during last year. As per response, 5% people say that they
bought electronics products at least once in a year and 35% of respondents say 1 to 3 times in a
year while 30% respondents say more than 3 times in a year, It can be easily analyzed from
sample of data that majority of the people bought goods more than 3 times means they are
addicted to online shopping.

9. Get the idea of buying product an online store:

Table: 4.9
No, of respondent %
By friend/family 6 30%
By online advertisement 6 30%
By offline adv. 1 5%
Use of since long 1 5%

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 No. of respondent(In%)

5% 5%
30% By friend/family
By online advertisement
30% By offline adv.
Use of since long

Figure 4.9: Response based on from where customers get idea of online shopping

Interpretation: To find the motivation behind purchase and the factors that urge consumer for
buying certain electronics product, following question was asked that how they got the idea of
buying specific electronics product through an online store.30% respondents are influenced and
referred by family and friends,30% respondent saw an online advertisement on different
websites, 5% respondent to offline advertisements and 5% respondent to use of since long.

10. Main barriers of shopping online:

Table: 4.10
No. of respondent %
Payment safety 1 5%
Low trust 2 10%
Custom duty
Shipping cost 2 10%
Refund policy
Warranty & claims
Delivery too slow 1 5%
Other reason

24
 No. of respondent(In%)

Payment safety
5% 5% Low trust
Custom duty
Shipping cost
10% 10%
Refund policy
Warranty & claims
Delivery too slow
Other reason

Figure 4.10: Response based on barriers of online shopping

Interpretation: From the survey it is revealed that safety of payment is the biggest barrier in
online shopping. 5% of the respondents ranked safety of payment as the main concern and 10%
do not trust much on online stores. 10% of people reject the idea of online shopping due to high
international shipping cost involved and 5% of slow delivery.

25
 CHAPTER - V
Finding & Recommendation

26
5. Findings, Conclusion and Recommendation:
5.1 Findings:
1) Now a days everyone using the Internet.

2) People use to buy the products through online because of many reasons such as it is save
money, time and we use to get huge information regarding any product.

3) Most of them feel secure while transaction through online.

4) Intention of buying the product through online does not differ according to age group and
gender.

5) Security on Internet shopping does not differ according to gender and intention of buying is
also not differ according to gender.

5.2 Conclusion and Discussion:

This research shows that online shopping is having very bright future in India. Perception
towards online shopping is getting better in India. With the use of Internet. Consumers can shop
anywhere, anything and any time with easy and save payment options. Consumers can do
comparison shopping between products, as well as, online stores. This study is mainly focus on
the factors from the Internet and examines those factors that affect the consumers online
shopping behavior. The research focus on the internet shopping (include the nature of Internet
shopping, E-commerce website, and online security, privacy, trust and trustworthiness) and
online shopping behaviors (include background, shopping motivation and decision making
process). Those factors were looked at, and examine the reveal the influence at online consumer
behaviors. In addition, the previous researchers were use to help the researchers understanding
more comprehensively. More ever, the customers purchase decision making process was also
examined to identify the potential factors. The information search is the most important factor
that helps the customers find the suitable products or services for their needs. Therefore, the
online retailers have to enhance and improve the information supporting such as provide much
detailed product information and used internal search engine in order to increase the efficient of
information search. For the evaluation stage, customers more thing a lot of the reputation from

27
the E-commerce website, and the payment security for the purchase stage. At the post purchase
stage, the factor of after services which is the most concerned about.

5.3 Recommendation:
1) People should buy the product through online because we can have all the detail of the
product and we can also compare with other product.

2) We can save money through buying online.

3) We can also save money.

5.4 Limitations:
1) The study has been conducted based on the data acquired from the online buyers of India only
and the findings may not be applicable to other countries of the world because of socio- cultural
differences.

2) Sample size is very small.

28
 REFERENCES

[1] Bellman, S., Lohse, G., Johnson, E.J., Predictors of online buying behavior, Association for
Computing Machinery. Communications of the ACM, 42(12), pp. 32-38, 1999.
[2] Bhatnagar, A, Misra, S., Rao, H. R.,Online risk, convenience, and Internet shopping
behavior, Communications of the ACM (43:11), pp. 98-105, 2000.
[3] Donthu, N.; Garcia, A., The Internet shopper, Journal of Advertising Research, Vol. 39,
No. 3, pp. 52-58, 1999.
[4] Maignan, I.; Lukas, B.,The nature and social uses of the Internet: a qualitative
investigation, Journal of Consumer Affairs, Vol. 31, No. 2, pp. 346-371, 1997.
[5] Pradeep Kumar Tiwari (23 slide shares), MBA in Research & Marketing. (www.online
shopping behavior- slide share)
[6] Ram swami Namakumari, Marketing Management Planning, Implementation and Control,
MacMillan India Ltd, New Delhi.
[7] 1Dr. Renuka Sharma, 2Dr. Kiran Mehta, 3Shashank Sharma 1,2Associate Professor,
Chitkara Business School 3MBA Student, Chitkara Business School.
[8]Christy M. K. Cheung, L. Z. (2003). Online Consumer Behavior: A Review
and Agenda for Future research. Hong Kong: 16th Bled ecommerce
Conference transformation.
[9] Paim, N. D. (2011). Students Online Shopping Behavior: An Empirical Study. Singapore:
IPEDR.

29
 ANNEXUR
(SAMPLE QUESTIONAIR)

30
 Section: A
Gender: Male Female
Age in years (Please select one):
18-25 years 26-40 years 41-60 years 61 years and above
Education: Below graduation Graduation and above
Occupation: Service Self Employed Unemployed
Annual income: Below 40000 40000-100000 100000-300000
(in Rs.) 300000 and above

Section: B
1. Have you ever had online shopping? Yes No

2. Have you felt any problem while conducing online shopping ? Yes No

3. If yes, what kind of problem ?

Delay in delivery Cheap quality of product Product damage Non delivery

4. How frequently do you buy online?

a. Frequently or at least once a month b. Once in six month c. Once a year d.

Never bought online

5. For how long have you been shopping online?

a. Less than a year

b. 1 to 5 years
c. More than 5 years

6.What Main Reason for online Shopping?

a. Price
b. Convenience & time saving
c. Fast Shipping
d. Trust
e. Brand conscious

31
7. Do you go to a retail store first before making your final purchase online?
a. Yes
b. No
8. Approximately how many times did you shop electronics product over internet during the last
year?
a. At least once
b. 1 to 3 times
c. More than 3 times
9. How did you get the idea of buying specific electronics product through an online store?
a. Referred by friend/family
b. Saw an online advertisement
c. Saw an offline advertisement (Local Electronics store)
d. I was just waiting for launch of this product since long _
10.What are the main barriers which keep you away from shopping online?
a. Safety of payment
b. Low trust level of online store / Brand
c. Value added tax / customs duty
d. High Shipping Cost
e. Refund Policy
f. Warranty and claims
g. Delivery too slow
h. Others reasons (please specify)

32