Capstone Project Report on

“Online shopper motivation: An examination of online shopping behavior of the shoppers in context to
Jalandhar city”

Submitted to LOVELY PROFESSIONAL UNIVERSITY

In partial fulfillment of the

Requirements for the award of degree of

Master of Business Administration

Submitted by: Research Supervisor:

Muhammed Jamsheer PK (11501963) Mrs. Supernova Chakraborty

Junaid VK (11506588) Assistant Professor
Ishfaq Bashir (11507295)

SCHOOL OF BUSINESS
LOVELY PROFESSIONAL UNIVERSITY
(2015-2017)

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 TOPIC APPROVAL PERFORMA

School of Business

Program : P371::MBA

COURSE CODE : MGN603 REGULAR/BACKLOG : Regular GROUP NUMBER : MGTRGC0134

Supervisor Name : Supernova UID : 20482 Designation : Assistant Professor

Chakraborty

Qualification : Research Experience :

SR.NO. NAME OF STUDENT REGISTRATION NO BATCH SECTION CONTACT NUMBER

1 Ishfaq Bashir 11507295 2015 Q1530 9086805032

2 Junaid. V.K 11506588 2015 Q1527 8606775491
3 Muhammed Jamsheer P K 11501963 2015 Q1528 7403783823

SPECIALIZATION AREA : Marketing-I (General Marketing) Supervisor Signature:

PROPOSED TOPIC : A study of consumer behaviour towards online shopping in context to Jalandhar city, Punjab

Qualitative Assessment of Proposed Topic by PAC

Sr.No. Parameter Rating (out of 10)

1 Project Novelty: Potential of the project to create new knowledge 5.33

2 Project Feasibility: Project can be timely carried out in-house with low-cost and available resources in 6.67
the University by the students.
3 Project Academic Inputs: Project topic is relevant and makes extensive use of academic inputs in UG 6.33
program and serves as a culminating effort for core study area of the degree program.
4 Project Supervision: Project supervisor’s is technically competent to guide students, resolve any issues, 6.67
and impart necessary skills.
5 Social Applicability: Project work intends to solve a practical problem. 6.67

6 Future Scope: Project has potential to become basis of future research work, publication or patent. 5.67

PAC Committee Members

PAC Member 1 Name: Krishan Gopal UID: 11255 Recommended (Y/N): Yes

PAC Member 2 Name: Dr. Anand Thakur UID: 11374 Recommended (Y/N): NO

DAA Nominee Name: Rajesh Poonia UID: 17434 Recommended (Y/N): Yes

Final Topic Approved by PAC: Online shoppers motivation: An examination of online shopping behaviour of the shoppers in context
to Jalandhar city.

Overall Remarks: Approved (with minor changes)

PAC CHAIRPERSON Name: 11834::Dr. Rajesh Verma Approval Date: 29 Nov 2016
11/29/2016 11:18:32 AM

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 TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project entitled “Online shopper motivation: An examination of online shopping
behavior of the shoppers in context to Jalandhar city”. Carried out by Mr. Muhammed Jamsheer PK , Mr.
Junaid VK Thakur and Mr. Ishfaq Bashir have been accomplished under my guidance and supervision as duty
registered MBA students of the Lovely Professional University, Phagwara. This project is being submitted by
them in the partial fulfilment of the requirement for the award of the Master of Business Administration from
Lovely Professional University. Their dissertation represents the original work and is worthy of consideration
for the award of the degree of Master of Business Administration.

Supernova Chakraborty
Assistant Professor
(Mittal School of Business)

3
 DECLARATION

“Muhammed Jamsheer pk”, hereby declare that the work presented herein is genuine work done originally by me and
has not been published or submitted elsewhere for the requirement of a degree program. Any literature, data or works
done by others and cited within this dissertation has been given due acknowledgment listed in the reference section.

4
 DECLARATION

“Junaid vk”, hereby declare that the work presented herein is genuine work done originally by me and has not been
published or submitted elsewhere for the requirement of a degree program. Any literature, data or works done by others
and cited within this dissertation has been given due acknowledgment listed in the reference section.

5
 DECLARATION

“Ishfaq Bashir”, hereby declare that the work presented herein is genuine work done originally by me and has not been
published or submitted elsewhere for the requirement of a degree program. Any literature, data or works done by others
and cited within this dissertation has been given due acknowledgment listed in the reference section.

6
 ACKNOWLEDGEMENT

With the profound reference it is a great privilege to express our heartfelt thanks to all those people who helped
us to complete this project work. We express our sincere gratitude to the management of the LOVELY
PROFESSIONAL UNIVERSITY.

We deeply express our gratitude to our project mentor, Mrs. Supernova Chakraborty, for her consistent
cooperation, guidance and encouragement at all levels for making this study purposeful. Without her guidance
this project would have not been successful.

We are also thankful to our parents, our source of inspiration, encouragement and strength.

Every effort has been made to enhance the quality of work. However, we owe the sole responsibility of the
shortcoming, if any, in this study.

Muhammed Jamsheer PK
Ishfaq Bashir
Junaid VK
(Mittal School of Business, LPU)

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 TABLE OF CONTENTS

S.no. TABLE Page No.

ABSTRACT 9
CH 1 INTRODUCTION 10-12
1.1 Advent of internet shopping 10-11
1.2 Online shopping in India 11
1.3 Rationale of the study 11-12
1.4 Research gap 12
1.5 Scope of the study 12
1.6 The Research procedure 12
CH 2 LITERATURE REVIEW 13-16
CH 3 RESEARCH METHODOLOGY 17-19
3.1 Design of the study 17
3.2 Research objectives 17
3.3 Sampling Design 17-18
3.4 Instrumentation 18
3.5 Reliability check and Pilot testing 18
3.6 Research tools to be used 18-19
3.7 Hypothesis to be tested 19
Annexures 20-22
ANX I Questionnaire 20-22
References 23-25

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 ABSTRACT

We have been witnessing the rapid growth of E-commerce sites and online shopping since the beginning of the 21st
century. In the competitive field of online marketing the consumer’s behavior and motivations is changing day-by-
day. However, till now limited research has been carried out in India to explore the consumer’s motivations towards
online marketing. The aim of this study is to shed light on the buying behavior and motivations of consumers by
using hedonic and utilitarian motivational theory. The study also investigates whether convenience, cost saving,
information availability, perceived risk and social interactions influence online shopping. We use survey for the
purpose of primary data collection. The analysis will be reveals the influence of convenience, cost saving,
information availability, perceived risk and social interactions in online shopping. The findings of the study will
hold practical implications for Indian E-commerce websites by providing insightful information about the relevant
factors that motivate consumers to shop online.

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 CHAPTER-1
INTRODUCTION

In the 21st century electronic marketing has brought a great revolution into our day-to-day life. Since the
beginning of the century most of the business organizations have been experiencing technological change in
every dimension of business. Two decades before the term “online shopping” was a strange things to us, but
today in this technological Era it has become part of us. Rapid growth in the field of online marketing made us
rethink the various strategies using to attract consumers over the past several years. There are several factors
that influence the purchase behavior of consumers and the aim of this study is to shed light on the customer’s
motivation towards online shopping in context to Jalandhar city area.

1.1 Advent of internet shopping

The Internet has revolutionized the computer and communications world like nothing before. The invention of
the telegraph, telephone, radio, and computer set the stage for this unprecedented integration of capabilities.
The Internet is a world-wide broadcasting capability, a mechanism for information dissemination, and a
medium for collaboration and interaction between individuals and their computers without any regard for the
geographic location. The history of the Internet begins with the development of electronic computers in the
1950s. Initial concepts of packet networking originated in several laboratories in the United States, Great
Britain, and France.
Since the mid-1990s, the Internet has made a revolutionary impact on culture and commerce, the rise of instant
communication by electronic mail, instant messaging, two-way interactive video calls, and the World Wide
Web, social networking platforms and online shopping sites. Today, people increasingly use the World Wide
Web as a universal reference library, it has transformed research and education.
The increased globalization of the world economies has created many opportunities for marketers. At the same
time this has also intensified the competition among businesses so that many companies are looking towards
unconventional forms of marketing. Marketing through the Internet is one such unconventional form of
marketing that companies have turned to. The introduction of the internet as a shopping channel offered a new
opportunity for both manufacturers and retailers to reach potential consumers in a more efficient way.

Over the past 10 years, the Internet has changed our life drastically. In the recent years, traditional media has
waned since the growing use of social media such as blogs, Twitter, Facebook, and other Web 2.0 platforms.
On these social media platforms, consumers are now able to contribute, share and access information
extensively on the World Wide Web. Given these characteristics, the new Internet not only shapes consumers’
perceptions but also empowers consumers in Internet marketing, developing a new change in consumer
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behavior over the years. Internet and technologies such as social media, mobile devices, and apps have also
helped consumer decision making by reducing search costs and potentially increasing the number of
alternatives for the consumers to choose. The Internet has made it hard for the consumers to hide. Most of the
technologies reveal the personal information and identities including their location, activities and buying
behavior to advertisers and others. Now consumption has become a very public activity. Going beyond merely
acquiring and using, consumers are now sharing information about their purchases on social media. And, when
consumers are dissatisfied, they have the powerful megaphones of the Internet, mobile devices, and social
media, consumer complaints and concerns then have to be swiftly addressed.

1.2 Online shopping in India

The Indian e-commerce market has been expanding rapidly. India has more than 100 million internet users out
of which one half opt for online purchases and the number is rising sharply every year. The growth in the
number of online shoppers is greater than the growth in Internet users, indicating that more Internet users are
becoming comfortable to shop online. The capability of purchasing without leaving your place is of great
interest to many consumers. Not only does online shopping offer really good deals, but also brings optimum
convenience to the consumers. Moreover, the use of Internet tools for price searching and comparison provides
an additional advantage in consumers’ final decision, as they can purchase their desired products in the lowest
available price. This project focuses on the understanding of perception of online purchase in Jalandhar. With
nearly half of the Indian population being young and net savvy, there has been an extra ordinary rise in the
numbers of online shoppers. The recent growth in the mall culture in the country has in fact made consumers
more aware about different options and encouraged them to search and eventually purchase online. The two
most commonly cited reasons for online shopping have been convenience and price. The capability of
purchasing without leaving your place is of great interest to many consumers. Not only does online shopping
offer really good deals, but also brings optimum convenience to the consumers. Moreover, the use of Internet
tools for price searching and comparison provides an additional advantage in consumers’ final decision, as they
can purchase their desired products in the lowest available price .On the contrary, privacy and security have
been the great concerns, resulting many people to browse the Internet for informational matters than for buying
online.

1.3 Rationale of the study

Past researches have addressed the importance of shopper’s motivation towards online shopping in different
countries including India. Given the increasing number of online shopping which is mainly related to the
browsing activity, consumers browse online for a longer period and tend to make unplanned purchases.
Contributing to a fuller theoretical understanding of shopper’s motivation towards online shopping will provide
11
insight to E-commerce companies, advertisers, marketers, and even consumers about which variables influence
shopper’s behavior to buy online. E-commerce websites may use the findings of the study to improve their
marketing strategies. In a highly competitive environment, only those online shopping websites who exceed
the expectations of their customers in terms of providing an enjoyable shopping experience can survive and
successful in the future. Advertisers and marketers can also benefit from the study by understanding the impact
of shopper’s motivations and behavior and how advertising can be used in-order to stimulate these factors. As
for the consumer, they can gain a better understanding of which factor of motivation influence while shopping
online.

1.4 Research gap

To address this gap in the literature, the present study propose utilitarian motivations such as convenience,
information availability and cost saving, and hedonic motives such as perceived risk and social interactions as
the critical factor in the underlying motives that lead an individual to shop online. Using factor analysis and
regression analysis as a basis for the research framework, the present study attempts to describe how the
hedonic motives of consumers provide motivation to seek certain shopping benefits, and how this desire for
particular types of benefits causes customers to evaluate particular attributes of an online store in determining
their patronage. Many research studies related to shopper’s motivation towards online marketing have taken
place in the western countries, but this behavior has not been explored much in India.

1.5 Scope of the study

The theoretical scope of the study follows,
 To know the increase rate of online purchasing in Jalandhar city.
 It helps to compare the growth of retail marketing and online marketing in the particular area.
 To understand the influence of online marketing among the people.

1.6 The Research procedure

Identifying the factors
Since, for the identifying part, there is not much knowledge available about the factors of shopper’s online
buying motivation. Exploratory approach is the appropriate tool to discover the factors accordingly literature
review, pilot study and final survey are considered the best tools. With the help of the literature review, factors
were collected from the related studies. The survey was conducted on the basis of these items. The survey of
this study was conducted in lovely professional university students and Jalandhar city residents.

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 CHAPTER-2
REVIEW OF LITERATURE

The development of the Internet has increased the popularity of online shopping (Lian & Lin, 2007). Online
shopping has become the third most popular Internet activity, following e-mail using/instant messaging and
web browsing (Li & Zhang, 2002). Internet usage and online shopping has been increasing and it has been on
the spotlight of so many researchers. Online shopping motivation become an attracting subject for a number of
studies over the past years. Wolfinbarger and Gilly (2001) state that online shopping provides a more
convenient and comfy shopping environment as the space that e-shopping provides is not the same in traditional
shopping.
When a person senses the urge to buy a product, the person will shop for the intended product. However,
shopping is not only about purchasing a product, as prior to the feeling of acquiring a product there are some
causes or needs as to why an individual decides to go shopping. These causes or needs are called shopping
motivation (Jansen, 2006).
Motivation is an important aspect in understanding the behavior of a consumer. Tauber’s (1972) research
paper entitled “why do people shop” was the first research paper investigated shopping motivation. In the
research paper( Tauber, 1972) indicates that the people are motivated by psychological needs which can be
categorized into personal motivation (i.e. role playing, diversion, self-gratification, learning about new trends,
physical activity and sensory stimulation) and social motivation (i.e. social experiences, communication with
others, peer group attractions, status and authority, and pleasure of bargaining). According Hirschman et al.,
(1982) motivation can be generally categorized as utilitarian and hedonic. Research on hedonic and utilitarian
motivation has primarily sought to elucidate why people shop. Utilitarian shopping motivation reflects the idea
that a shopping activity is a work assignment while hedonic motivations highlight the notion that shopping
could provide amusement and inner worth (Babin et al., 1994). In general utilitarian motivation replicates “the
task-related value of a shopping experience, while hedonic motivation expresses the value obtained in the
shopping experience itself independent of task related activities” (Overby & Lee, 2006).
Consumer shopping tends to simultaneously involve more than one type of motivation. Hedonic and utilitarian
shopping motivations were proposed to structure a number of motivations in previous studies (Babin et al.,
1994; Babin and Darden, 1995; Cardoso and Pinto, 2010). Furthermore, researchers suggest that both
utilitarian and hedonic shopping motivations should be considered together in analyzing consumer shopping
behaviors (Babin et al., 1994; Babin and Darden, 1995). Hedonic value reflects the emotional and
psychological aspects of the shopping experience; and utilitarian value relates to the achievement of shopping
objective in an efficient manner (Hirschman and Holbrook, 1982; Holbrook and Hirschman,
1982). Based on research about utilitarian versus hedonic consumption experiences, Hirschman and

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Holbrook (1982) developed a scale demonstrating that hedonic and utilitarian shopping value dimensions
exist and are related to a number of important individual consumption variables such as compulsive buying,
unplanned purchases, time pressure, pleasure, arousal and overall satisfaction.

2.1 Utilitarian Motivation

According to Griffin et al, (2000) utilitarian or functional shopping has been characterized as task-related and
objective features (e.g. durability, quality, convenience). Thus, utilitarian motivation takes into account both
the product and the platform through which the product is being advertised (Kourouthanassis et al., 2008).
Childers et al.,(2001) research paper “Journal of Retailing” indicates that In the utilitarian view, consumers
are concerned with purchasing products in an efficient and timely manner to achieve their goals with minimum
irritation. Utilitarian value is defined as an overall assessment (i.e., judgment) of functional benefits and
sacrifices (Overby & Lee, 2006). Utilitarian shopping value occurs when consumer obtains the needed
product, and this value increases as the consumer obtains the product with less effort (Lee, Kim, & Fairhurst,
2009). The same study classifies the utilitarian or functional value of online shopping based on convenience,
information availability and cost saving. To et al., (2007) argue that utilitarian motivations are influenced by
convenience, cost saving, information availability and product selection which are determinants of consumer
purchase intention.
2.1.1 Convenience
Convenience in shopping is considered as one of the main drivers underlying consumers learning to adopt
online shopping (Beauchamp and Ponder, 2010). Girard, Korgaonkar, and Silverblatt (2003) indicate that
convenience was one of the highest attractions to shopping online. According to Berry et al., (2002)
convenience refers to an individual’s “perception of saving time and energy in accessing information through
transparent windows for purchasing products or services”.
Eastlick and Feinberg’s (1999) study of catalog shoppers found that convenience was based on consumers
finding what they want in short time period, with less effort, and any time of day shopping. Rohm and
Swaminathan (2004) found convenience to be a centerpiece when assessing
Shopper’s motivations.
2.1.2 Information availability
Information availability is imperative for customers from the time of “selection of resources that it offers to the
impact it has on influencing purchase decision” (Childers et al., 2001). According to Bakos (1997), the internet
as a medium, enables users to effortlessly find all their needful information both in terms of product search and
price promotion with just a few clicks thus augmenting the intention of users to use it for shopping purposes.
Online shopping offers an infrastructure which allows the e-shoppers to search, weigh and gather information
about their desired products much quicker than within conventional stores.

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2.1.3 Cost saving
According to To et al., (2007) one of the main motivators of adopting e-shopping is the fact that the internet
as a medium for conducting purchases provides some degree of financial incentives to saving money. E-stores
allow consumers to benefit from price promotion towards the same products which they would otherwise
purchase in traditional stores (Rox, 2007). Further, Miller (2000) indicates that “virtual online stores allow
vendors to save expenditure that e-trailers enable consumers to purchase at a lower price.” According to Lim
and Dubinsky (2004), e-shopping provides customers with the advantage of both having an abundant variety
of products and the ability to compare prices against other e-stores so as to benefit from value for money.
According to Zeithaml (1988), some shoppers perceive value when the price is low, while others perceive
value when there is a balance between quality and price. Shopper’s perceived value also tends to differ across
buying situations and shoppers (Pan and Zinkhan, 2006). Arnold and Reynolds (2003) show that value
shopping is one of several hedonic shopping motivations. It is thus reasonable to expect that perceived product
value is positively related with hedonic hopping.

2.2 Hedonic Motivations

Babin, Darden and Griffin (1994) defined hedonic shopping value as perceived entertainment and emotional
value provided through shopping activities. From the perspective of hedonic value, that study categorizes the
hedonic value of online shopping as social interactions and perceived risk. Hedonic value is defined as an
overall assessment of experiential benefits and sacrifices, such as entertainment and escapism. Consumers
usually consider shopping as an activity, rather than a task to be completed (Overby & Lee, 2006). Utilitarian
shopping motivation emphasizes that consumer shopping behavior is guided by the functional features of the
products/services as well as financial desires (Kim, 2006).
Hedonic motivation, though its importance was considered late compared to utilitarian motivation, has still
attracted many researches on its impact regarding shopping motivations (Mikalef et al., 2013). For further
Scarpi’s (2006) indicates that hedonic motivation is defined as “the festive or even epicurean side of shopping
which relates to fun and playfulness instead of task achievement, and replicates the experiential side of
shopping, comprising pleasure, adventure, fantasy, escapism, and fun”. Hedonic online shopping motivations
have been uncovered through the shopping phenomena of customer’s excitement and enjoyment in shopping.
Arnold and Reynolds (2003) developed a typology that contains six hedonic shopping motivations (i.e.
adventure, gratification, social, value, role and idea). In contrast, utilitarian motivation involves the rational
actions the shopper aims to accomplish during the shopping experience. For instance, utilitarian tasks may be
the result of the motive for product-related information prior to purchase (Babin et al., 1994). Hedonic and
utilitarian motives may not be mutually exclusive. Babin et al., (1994) suggest the task of seeking hedonic
fulfilment, such as in planning for the fun, amusement, fantasy, and sensory stimulation of shopping, could

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easily be utilitarian in approach due to its task perspective.

2.2.1 Social interactions

The concept of social interactions to predict e-shopping stems from the work of Tauber (1972), who indicates
that there are several social motives which influences shopping behavior. These motives in turn include
interactions, group affiliations and communicating with those sharing similar interest. With the advent of web
2.0 applications, more specifically the social media, users can share their mutual likes, experiences and
eventually share information about the new trends prevailing in a synchronous and or/in an asynchronous way.
According to Wolfinbarger et al., (2001) involving in online conversation during the purchase process has
two main benefits. According to Korgaonkar and Wolin (1999) online social motivation is defined as how
much an individual is driven to go online out of a desire for interpersonal communication with others. The
internet is important a communication medium for youths as evidenced by the increasing use of social networks
of youths, video calling, mobile technologies (text messaging), and more. Indeed, with online social networks,
youth communicate with a multitude of friends at the same time both “inside” and “outside” social circles
(Subrahmanyam et al., 2001; Svennevig, 2000).
2.2.2 Perceived risk
Internet shoppers feel uncomfortable giving their card numbers and personal information because they are
concerned that this information may be used for some malicious purposes. Security and privacy are very
important factors for Internet shoppers' adoption to electronic commerce (Suki et al., 2001). At the same time,
privacy and security play a significant role in the development of online shopping (Miyazaki & Fernandez,
2001). Doolin et al., (2005) claim that privacy risks have a negative association with online purchasing
behavior and deter Internet users from shopping online frequently and from spending significant amounts of
money. According to Vijayasarathy (2004), security concerns are related with obtaining consumer data by a
third party (e.g. hacker and identity thief) and it is defined as ''the extent to which a consumer believes that
making payments online is secure''.
Although consumer security concerns are decreasing, online retailers face increasing credit card frauds,
therefore; online retailers use a variety of fraud management techniques, including using in-house or
commercially available screens, requesting card verification numbers and checking orders with credit card
authentication services (Weitz, 2005). Miyazaki and Fernandez (2001) studied consumers’ perceptions of
privacy and security concerns for online shopping and they associated Internet experiences and purchasing
rate.

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 CHAPTER-3
RESEARCH METHODOLOGY

This part of the study is going to discuss the research methods involved in the study. This chapter is going to
deal with design of the study, research objectives, sample design, reliability check and pilot testing, hypothesis
to be tested, data collection and data analysis tools and techniques going to use in the study.

3.1 Design of the study

The study is both descriptive and exploratory in nature. The research is going to use exploratory in the
beginning and in order to test the hypothesis of the study, it is going to follow descriptive research design. The
study is going to use quantitative research approach instead of qualitative approach. Quantitative research can
be faster as compare to qualitative as it is possible to forecast the time schedule, whereas qualitative research
can be relatively long in duration. Secondary data is collected from existing research works related to our
project and Primary data will be collected by means of a self-administered questionnaire.

3.2 Research objectives

To study contributing factors of online shopping motives of online shoppers in Jalandhar city area.
 To know the consumer motivational factors towards the products and services provided on E-commerce
sites.
 To study the influence of studied factors of consumer’s online shopping behaviour.

3.3 Sampling Design

This survey will be conducted in Lovely Professional University, an educational institution in Punjab and the
Jalandhar city residents. So the entire sample size is basically from the Jalandhar and Phagwara (lovely
professional university) Area of Punjab. The college students and city residents are considered as the sample
for several reasons. Firstly, college students and the city residents are internet users and a good chunk of them
do online shopping. Secondly, it is expected that college students and the city residents are willing to sincerely
participate in surveys.
In data collection, there are two methods in general used to collect data, primary and secondary method. This
research paper is going to use primary data collection method which include questionnaire from consumers as
what are the motives that influence to purchase on internet. As our study covers the Jalandhar internet shoppers
and lovely professional university students, so it would be easy for researcher to distribute and collect data
through questionnaire.

17
Sample size has been decided on the basis of 10:1 ratio (10 samples for every item of the questionnaire), as
per the basic assumption of multivariate analysis. There are 18 items in the questionnaire, so a minimum
required sample for the study will be 180 respondents and the sample considered for this study will be 200
respondents, so the criteria will be a well met.

3.4 Instrumentation
Questionnaire design
The questionnaire comprised of two sections. The first section gathered information on demographic profiles
of respondents. Questions about age, gender, income details and educational level were asked. The second part
of the questionnaire consist of 18 questions. The questionnaire was developed for the study based on multi item
scale of previous studies. All the items were in five point likert scale (1 is for strongly agree and 5 for strongly
disagree).

3.5 Reliability check and Pilot testing

The reliability of the questionnaire will be checked by using Cronbach alpha, will be only testing reliability for
the instrument. Validation of the questionnaire will not be need to be done as a standardized questionnaire is
being taken from the previous research work. The same will be used for pilot testing, before the final study.
3.6 Research tools to be used
The proposed techniques for interpretation and analysis are Factor Analysis and Regression Analysis.

Factor Analysis is a statistical method used to describe the variations among the observed and correlated
variables in terms of a potentially lower number of unobserved variables called factors. For example, it is
possible that variations in say six observed variables mainly reflect the variations in two unobserved variables.
Factor analysis searches for such joint variations in response to unobserved latent variables. The observed
variables are modeled as linear combinations of the potential factors. There are two types of factor analysis
which we are going to use in the study:
1) Exploratory factor analysis and 2) confirmatory factor analysis. Exploratory factor analysis is used to
measure the underlying factors that affect the variables in a data structure without setting any predefined
structure to the outcome. Confirmatory factor analysis on the other hand is used as tool in market research and
analysis to reconfirm the effects and correlation of an existing set of predetermined factors and variables that
affect these factors.
Regression Analysis is a statistical process for estimating the relationships among different variables. It
includes many techniques for modeling and analyzing several variables, when the focus is on the relationship
between a dependent variable and one or more independent variables. Regression analysis is mainly used for

18
forecasting or prediction, where its use has a substantial value with the field of machine learning. Regression
analysis is also used to understand which among the independent variables are related to the dependent variable,
and to explore the forms of these relationships. In certain restricted circumstances, regression analysis can also
be used to infer the causal relationships between independent and dependent variables.

3.7 Hypothesis to be tested

H1: Utilitarian value has a positive influence on the search intention of Internet shopping.
H2: Hedonic value has a positive influence on the search intention of Internet shopping.
H3: Utilitarian value has a negative influence on the search intention of Internet shopping.
H4: Hedonic value has a negative influence on the search intention of Internet shopping.

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 Annexure I
QUESTIONNAIRE
We are students from Lovely School of Business. As a part of the course a survey on “Online shopper
motivation: An examination of online shopping behavior of the shoppers in context to Jalandhar city” is
being conducted. You are the one of the respondents to participate in this survey. Your cooperation would be
highly appreciated. All information provided by you will be kept confidential and only be used for research
purpose.

NAME: _______________ AGE: _________ GENDER: _______________

1. Level of income

a) Below 5,000

b) Between 5,000-10,000

c) 10,001-15,000

d) 15,001-25,000

e) 25,001-35,000

f) Above 35,000
2. Level of Education

a) High School

b) Under graduate

c) Post graduate &above

3. How often do you shop online?

(a) Once in a week (b) Fortnightly (c) Once in a month (d) More/less(please specify)
4. According to you, online shopping experience is?
(a) Interesting (b) Convenient (c) Boring (d) Frustrating
5. Do you use internet prior to purchase for collecting information?
(a) Yes (b) No

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(QUES. 1 – 18)
(a) Strongly Agree (b) Agree (c) Neutral (d) Disagree (e) Strongly Disagree

Strongly Agree Neutral Disagree Strongly

agree disagree
I. Save time

II. Save money

III. More relaxing shopping

IV. Much easier shopping

V. More efficient

VI. Detail information is available while

shopping online
VII. While shopping online, I prefer to
purchase from a website that
provides safety and ease of
navigation and order

VIII. The website layout helps me in

searching and selecting the right
product while shopping online

IX. I prefer to buy from website that

provides me with quality of
information

X. It is easy to choose and make

comparison with other products while
shopping online
XI. The decision to shop via online
websites involves a high level of risk
XII. Online shopping websites provides
no guarantee that information
provided to the retailer will remain
private and secure
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 XIII. I would shop without fear if there are
strict cyber-laws in place to nab and
punish frauds and hackers

XIV. Hackers can easily track shopping

preference on the online shopping
websites and influence one to buy
fake product which may involve
losses

XV. I can share my experience of a newly

purchased product/service with
others on social media sites
XVI. I feel that I have a good
understanding on the products that
am buying through social media sites.

XVII. Information about the product can be

easily shared with friends
XVIII. Shopping via social media sites
enables me to control my online
expenditure

22
 Annexure II
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