Mba Eb PROJECT Research On Onoine Buyer Behaviour

Consumer Behavior for Online Shopping
1. INTRODUCTION TO E-MARKETING
The rapid growth of Information Technology (IT) has affected most parts of human society
and its dominance over the other technology is clearly visible. One of the major application
areas where information technology has greatly changed the traditions of the society is the
way in which the business is being conducted. Business are weaving IT more deeply into
the very tapestry of their operations and today, more and more business activities are
shifting to the electronic media. E-marketing has produced a revolutionary new way for
businesses to communicate and interact with the customers. It has power to expand the
businesses beyond the global boundaries by giving them competitive edge in the global
marketplace. India is one of the countries where this trend seems to be catching on. The
present paper provides a comprehensive overview of emergence, growth of e-marketing
strategies, e-marketing models, benefits of e-marketing etc.
These are some facts which show the popularity of e-business in the world today. In the
business world, the digital environment is enhancing process and activities across the entire
organization. Disciplines work together in cross functional teams using computer networks
to share and apply knowledge for increasing efficiency and profitability. Financial experts
communicate shareholders online; invent new ways to value risk and capital.
Marketing has pretty much been around forever in one form or another. Since the day when
humans first started trading whatever it was that they first traded, marketing was there.
Marketing was the stories they used to convince other humans to trade. The methods of
marketing have changed and improved, and we’ve become a lot
more efficient at telling our stories and getting our marketing messages out there.
E-Marketing is the product of the meeting between modern communication technologies
and the age-old marketing principles that humans have always applied. It provides new
market place , more opportunities to sell and market the product, and greater competitive
advantages. It creates values by vastly lowering the cost of transferring many types of
information, one-to-one, one-to-many, or many-to-many basis. The effects of e-marketing
are already appearing in all areas of business, from customer service to new product design.
1.1 What is E-Marketing?
Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

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The Internet has brought many unique benefits to marketing, one of which being lower
costs for the distribution of information and media to a global audience. The interactive
nature of Internet marketing, both in terms of providing instant response and eliciting
responses, is a unique quality of the medium. Internet marketing is sometimes considered to
have a broader scope because it refers to digital media such as the Internet, e-mail, and
wireless media
.
E-marketing ties together creative and technical aspects of the Internet, including design,
development, advertising, and sales. E-marketing is the application of a broad range of
information technologies for:
(i) Transforming marketing strategies to create more customer value through more
effective segmentation, targeting, differentiation, and positioning strategies.
(ii) More efficiently planning and executing the conception, distribution, promotion, and
pricing of goods, services and ideas.
(iii) Creating exchanges that satisfy individual consumer and organizational customers’
objectives.
This definition sounds a lot like that of traditional marketing. Another way to view it is that
e-marketing is the result of information technology applied traditional marketing.
1.2 What is E-Business?
E-business is important, powerful, and unstoppable. It is the term coined by I.B.M which
means the continuous optimization of firm’s business activities through Digital technology
like computer and internet. E-business involves attracting and retaining the right customers
and business partners. It permeates business processes, such as product buying and selling.
It includes digital communication, e-commerce, and online research. E-COMMERCE is the
subset of e-business focused on transactions.

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1.3 E-Marketing in Context Past and Present
1.3.1 Past
The first generation of e-business was like a Gold Rush. New start-ups and well established
businesses alike created a web presence and experimented a lot. Many companies quickly
attracted huge sales and market share, but only a handful brought anything to the bottom
line. In early 2000 one estimate listed 21 forms with 12 month sales growth between 100%
and 500%-but all had negative profits. In that year over 500 internet firms have shut down
in the united states alone. Having gone through the boom and bust in developed nations we
are now firmly entrenched trough of disillusionment. This was the time when marketers
returned to their traditional roots and rely on well-grounded strategy and sound marketing
practices. During DOT-COM shake out from 2000-2002, there was much industry
consolidation. Some firms such as, levi strauss, stopped selling online both because it was
not efficient and it created channel conflict.
1.3.2 Present
 Power shift from sellers to buyers
 Marketing fragmentation: mass market to one customer.
 Death of distance.
 Time compression: Online stores can be open 24/7.
 Knowledge/database management is key.
 Marketing and technology: an interdisciplinary focus.
 Intellectual capital rules, Imagination, creativity, and entrepreneurship are more important
resources than financial capital
1.4 E-Business Strategy
• The deployment of enterprise resources to capitalize on technologies for reaching

specified objectives that ultimately improve performance and create sustainable competitive
advantage.
• Corporate-level business strategies including information technology components

(Internet, digital data, databases, and so forth) become e-business strategies.
E-BUSINESS STRATEGY=CORPORATE STRATEGY + INFORMATION

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TECHNOLOGY.
1.5 E-Marketing Strategy
Strategic e-marketing is the design of marketing strategy that capitalizes on the

organization’s electronic or Information technology capabilities to reach specified
objectives. In essence, strategic e-marketing is where technology strategy and marketing
strategy wed to form the organization’s e-marketing strategy.
E-MARKETING STRATEGY=MARKETING STRATEGY + INFORMATION

TECHNOLOGY
Most strategic plans explain the rationale for the chosen objectives and strategies. There are
four appropriate types of rationale:
1. Strategic justification shows how the strategy fits with the firm’s overall mission and
business objectives,
2. Operational justification identifies and quantifies the specific process improvements that
will result from the strategy,
3. Technical justification shows how the technology will fit and provide synergy with
current information technology capabilities,
4. Financial justification examines cost/benefit analysis and uses standard measures (ROI,
NPV).
1.6 Six Step E-Marketing Plan
1. Situation analysis
2. E-Marketing strategic planning
3. Plan objectives
4. E-Marketing strategy
5. Implementation plan
6. Budget
7. Evaluation plan
1.6.1 Step 1 : Situational Analysis

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The organizational e-business plan contains a SWOT analysis of the firm adopting e-
business strategy of e-commerce. E-marketers take over from here, collecting information
on how to sell on web, perhaps focusing on e-mail. The current marketing plan will be
loaded with information of vital importance about the firm’s products, the markets currently
served and so forth. The firm’s pricing philosophy may dictate online pricing strategies for
electronic commerce. The distribution plan will identify areas where the products are
currently sold and suggest geographic gaps that might be receptive to e-commerce. Using
this and newly collected information, the marketer moves to strategy formulation.
1.6.2 Step 2 : E-Marketing Strategy
After reviewing the marketing and e-business plans, marketers conduct strategic planning to
help achieve firm’s e-business goals. An important part of the process is to define potential
revenue streams. After reviewing the e-business goals, marketers create supporting e-
marketing strategies.
Tier 1 : E-Marketing Strategy Planning

Marketers create market opportunity analysis (MOA), including both demand and supply
analysis, for segmenting and targeting. The demand analysis portion includes market
segmentation analysis to describe and evaluate the potential profitability, sustainability,
accessibility, and size of various potential segments. Segment in the B2C market uses
descriptors such as demographic characteristics, geographic locations, selected
psychographic characteristics and past behavior towards the product. B2B descriptors
include firm location, size, industry, type of need and more. These descriptors help firms
identify potentially attractive markets. Firms must also understand the segment trends – are
they growing or declining in absolute size and product use?
The purpose of supply analysis is to assist in forecasting segment profitability as well as to

find competitive advantages to exploit in the online market. Only by carefully analyzing
competitive strengths and weaknesses can a firm find its own performance advantages.
Therefore the firm should review the competition, their e-marketing initiatives, strengths
and weaknesses prior to developing their e-marketing initiatives.
Another tier 1 step toward defining e-marketing strategy includes identifying brand
differentiation and positioning strategies. Based on an understanding of both competition

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and targets, marketers must decide how to differentiate their products from competitors’
products in a way that provides benefits perceived as important by the target.

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Tier 2 : E-Marketing Strategic Planning

In conjunction with tier 1 strategies, marketers design tier2 strategies. This is an iterative
process because it is difficult to know what the brand position should be without
understanding the offer that comprises the brand promise.
1.6.3 Step 3 : Formulate Objectives
While e-commerce transactions are an exciting dimension of e-business presence, other

objectives are also worthwhile, especially when the firm is using technology only to create
internal efficiencies such as target market communication. In fact most e-marketing aim to
accomplish multiple objectives such as :
1. Increase market share

2. Increase sales revenue
3. Reduce costs such as distribution or promotion cost
4. Achieve branding goals such as increasing brand awareness
5. Improve databases
6. Achieve customer relationship management goals such as increasing customer
satisfaction, frequency of purchases, customer retention rates
7. Improve supply chain management such as by enhancing member coordination, adding
partners, optimizing inventory levels And so on……
1.6.4 Step 4 : E-Marketing Strategy
In this step marketers decide how to accomplish objectives through creative and effective
tactics. This is where marketers select marketing mix (4P’s), relationship management
tactics, and other tactics to achieve the plan objectives and then devises detailed plans for
implementation.
E-marketers pay special attention to information gathering tactics because information

technologies are especially adapted at automating these processes. Website forms, feedback
e-mail, online surveys are just some of the tactics firms use to collect information about
customers, prospects and other shareholders.

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1.6.5 Step 5 : Budgeting
A key part of any strategic plan is to identify expected from an investment. These can be
matched with the cost/benefit analysis, ROI calculation, internal rate of return, which
management uses to determine whether the effort is worthwhile. The following are some of
the revenues and costs associated with e-marketing initiatives:
 Revenue forecast
 Intangible benefits
 Cost savings
 E-marketing costs
 Technology costs
 Site design
 Salaries
 Other site development expenses

 Marketing communication
1.6.6 Step 6 : Evaluation Plan
Once the e-marketing plan is implemented, its success depends on continuous evaluation.
This means e-marketers must have tracking systems in place before the electronic door
opens.
In general, today’s firms are quite ROI driven. As a result, e-marketers must show how their
intangible goals such as brand building or CRM, will lead to higher revenue down the road.
1.7 E-MARKETING PRODUCTS
 Banner Advertisements
 Press Releases
 e-newsletter
 Computers and computer peripherals
 Landing Pages

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 Personalized URL (PURLS)

 Blogs
 Newsgroup
 Surveys / Polls
 Forums / Message Boards
 Affiliate Programs
 Viral Campaigns
 Forums
 Help / FAQ
 Chat
 Live Help / Click to Talk
 Alerts
 Smart Pages
 Art / Photos / Design
 Demos
 On-line Presentations / CDs
 Catalogs
 Contests / Coupons
 On-line Seminars
 White Papers / Case Studies

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1.8 Benefits of E-Marketing
1.8.1 CVP
Internet marketing is relatively inexpensive when compared to the ratio of cost against the
reach of the target audience. Companies can reach a wide audience for a small fraction of
traditional advertising budgets. The nature of the medium allows consumers to research and
purchase products and services at their own convenience. Therefore, businesses have the
advantage of appealing to consumers in a medium that can bring results quickly. The
strategy and overall effectiveness of marketing campaigns depend on business goals and
cost-volume-profit (CVP) analysis.
1.8.2 Growth
Internet marketing as of 2007 is growing faster than other types of media.[citation needed]
Because exposure, response, and overall efficiency of Internet media are easier to track than
traditional off-line media—through the use of web analytics for instance—Internet
marketing can offer a greater sense of accountability for advertisers. Marketers and their
clients are becoming aware of the need to measure the collaborative effects of marketing
(i.e., how the Internet affects in-store sales) rather than siloing each advertising medium.
The effects of multichannel marketing can be difficult to determine, but are an important
part of ascertaining the value of media campaigns.
1.8.3 Reach
The nature of the internet means businesses now have a truly global reach. While traditional
media costs limit this kind of reach to huge multinationals, e-Marketing opens up new
avenues for smaller businesses, on a much smaller budget, to access potential consumers
from all over the world.
1.8.4 Scope
Internet marketing allows the marketer to reach consumers in a wide range of ways and
enables them to offer a wide range of products and services. eMarketing
includes, among other things, information management, public relations, customer service
and sales. With the range of new technologies becoming available all the time, this scope
can only grow.

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1.8.5 Interactivity
Traditional marketing is largely about getting a brand’s message out their, e-Marketing
facilitates conversations between companies and consumers. With a two way
communication channel, companies can feed off of the responses of their consumers,
making them more dynamic and adaptive.
1.8.6 Immediacy
Internet marketing is able to, in ways never before imagined, provide an immediate impact.
Imagine you’re reading your favorite magazine. You see a double-page advert for some new
product or service, maybe BMW’s latest luxury sedan or Apple’s latest I-Pod offering. With
this kind of traditional media, it’s not that easy for you, the consumer, to take the step from
hearing about a product to actual acquisition.
With e-Marketing, it’s easy to make that step as simple as possible, meaning that within a
few short clicks you could have booked a test drive or ordered the I-Pod. And all of this can
happen regardless of normal office hours. Effectively, Internet marketing makes business
hours 24 hours per day, 7 days per week for every week of the year.
By closing the gap between providing information and eliciting a consumer reaction, the
consumer’s buying cycle is speeded up and advertising spend can go much further in
creating immediate leads.
1.8.7 Demographics and Targeting

Generally speaking, the demographics of the Internet are a marketer’s dream. Internet users,
considered as a group, have greater buying power and could perhaps be considered as a
population group skewed towards the middle-classes.
Buying power is not all though. The nature of the Internet is such that its users will tend to
organize themselves into far more focused groupings. Savvy marketers who know where to
look can quite easily find access to the niche markets they wish to target.

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2. INTRODUCTION TO ONLINE SHOPPING
Consumers go through to purchase products or services over the Internet. An online shop,
E-shop, E-store, Internet shop, web-shop, web-store, online store, or virtual store evokes the
physical analogy of buying products or services at a bricks-and-mortar retailer or in a
shopping mall.
The metaphor of an online catalog is also used, by analogy with mail order catalogs. All
types of stores have retail web sites, including those that do and do not also have physical
storefronts and paper catalogs. Online shopping is a type of electronic commerce used for
business-to-business (B2B) and business-to-consumer (B2C) transactions.
2.1 Web-shop
The term "web-shop" also refers to a place of business where web development, web
hosting and other types of web related activities take place (Web refers to the World Wide
Web and "shop" has a colloquial meaning used to describe the place). Buying online
introduced new ways of reducing costs by reducing the number of staff needed. It is a more
effective way of getting products to people and spreading into different demographic the
world's first recorded B2C was Gates head SIS /Tesco in May 1984.
In 1990 Tim Berners-Lee created the first World Wide Web server and browser. In 1994
other advances took place, such as online banking and the opening of an online pizza shop
by Pizza Hut. During that same year, Netscape introduced SSL encryption of data
transferred online, which has become essential for secure online shopping. In 1995 Amazon
expanded its online shopping, and in 1996 eBay appeared. More recently Overstock has
also become one of the world largest and reliable online shopping stores.
2.2 Customers
In general, shopping has always catered to middle class and upper class women. Shopping
is fragmented and pyramid-shaped. At the pinnacle are elegant boutiques for the affluent; a
huge belt of inelegant but ruthlessly efficient “discounters” flog plenty at the pyramid’s
precarious middle. According to the analysis of Susan D. Davis, at its base are the world’s

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workers and poor, on whose cheapened labor the rest of the pyramid depends for its
incredible abundance. Shopping has evolved from single stores to large malls containing
many stores that most often offer attentive service, store credit, delivery, and acceptance of
returns. These new additions to shopping have encouraged and targeted middle class
women.
In recent years, online shopping has become popular; however, it still caters to the middle
and upper class. In order to shop online, one must be able to have access to a computer, a
bank account and a debit card. Shopping has evolved with the growth of technology.
According to research found in the Journal of Electronic Commerce, if we focus on the
demographic characteristics of the in-home shopper, in general, the higher the level of
education, income, and occupation of the head of the household, the more favorable the
perception of non-store shopping. An influential factor in consumer attitude towards non-
store shopping is exposure to technology, since it has been demonstrated that increased
exposure to technology increases the probability of developing favorable attitudes towards
new shopping channels.
Online shopping widened the target audience to men and women of the middle class. At
first, the main users of online shopping were young men with a high level of income and a
university education. This profile is changing. For example, in USA in the early years of
Internet there were very few women users, but by 2001 women were 52.8% of the online
population. Socio-cultural pressure has made men generally more independent in their
purchase decisions, while women place greater value on personal contact and social
relations.
2.3 Trends
One third of people that shop online use a search engine to find what they are looking for
and about one fourth find websites by word of mouth. Word of mouth has become a leading
way by which people find shopping websites. When an online shopper has a good first
experience with a certain website, sixty percent of the time they will return to that website
to buy more.
Books are one of the things bought most online. However, clothes, shoes, and accessories
are all very popular things bought online. Cosmetics, nutrition products, and groceries are
increasingly being purchased online. About one fourth of travelers buy their plane tickets

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online because it is a quick and easy way to compare airline travel and make a purchase.
Online shopping provides more freedom and control than shopping in a store.
From a sociological perspective, online shopping is arguably the most predictable way to
shop. One knows exactly what website to go to, how much the product will cost, and how
long it will take for the product to reach them. Online shopping has become extremely
routine and predictable, which is one of its great appeals to the consumer.
2.4 Logistics
Consumers find a product of interest by visiting the website of the retailer directly, or do a
search across many different vendors using a shopping search engine.
Once a particular product has been found on the web site of the seller, most online retailers
use shopping cart software to allow the consumer to accumulate multiple items and to adjust
quantities, by analogy with filling a physical shopping cart or basket in a conventional store.
A "checkout" process follows (continuing the physical-store analogy) in which payment and
delivery information is collected, if necessary. Some stores allow consumers to sign up for a
permanent online account so that some or all of this information only needs to be entered
once. The consumer often receives an e-mail confirmation once the transaction is complete.
Less sophisticated stores may rely on consumers to phone or e-mail their orders (though
credit card numbers are not accepted by e-mail, for security reasons).
2.5 Payment
Online shoppers commonly use credit card to make payments, however some systems
enable users to create accounts and pay by alternative means, such as:
 Debit card
 Various types of electronic money

 Cash on delivery (C.O.D., offered by very few online stores)
 Cheque
 Wire transfer/delivery on payment

 Postal money order
 Reverse SMS billing to mobile phones
 Gift cards
 Direct debit in some countries

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Some sites will not allow international credit cards and billing address and shipping address
have to be in the same country in which site does its business. Other sites allow customers
from anywhere to send gifts anywhere. The financial part of a transaction might be
processed in real time (for example, letting the consumer know their credit card was
declined before they log off), or might be done later as part of the fulfillment process.
While credit cards are currently the most popular means of paying for online goods and
services, alternative online payments will account for 26% of e-commerce volume by 2009
according to Celent.
2.6 Product delivery
Once a payment has been accepted the goods or services can be delivered in the following
ways.
 Download: This is the method often used for digital media products such as software,
music, movies, or images.
 Shipping: The product is shipped to the customer's address.
 Drop shipping: The order is passed to the manufacturer or third-party distributor, who
ships the item directly to the consumer, bypassing the retailer's physical location to save
time, money, and space.
 In-store pickup: The customer orders online, finds a local store using locator software and
picks the product up at the closest store. This is the method often used in the bricks and
clicks business model.
 In the case of buying an admission ticket one may get a code, or a ticket that can be
printed out. At the premises it is made sure that the same right of admission is not used
twice.
2.7 Shopping cart systems
 Simple systems allow the offline administration of products and categories. The shop is
then generated as HTML files and graphics that can be uploaded to a web-space. These
systems do not use an online database.
A high end solution can be bought or rented as a standalone program or as an addition to
an enterprise resource planning program. It is usually installed on the company's own

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webserver and may integrate into the existing supply chain so that ordering, payment,
delivery, accounting and warehousing can be automated to a large extent.
 Other solutions allow the user to register and create an online shop on a portal that hosts
multiple shops at the same time.
 Open source shopping cart packages include advanced platforms such as Interchange, and
off the shelf solutions as Avactis, Satchmo, osCommerce, Magento, Zen Cart, VirtueMart,
Batavi and PrestaShop.
 Commercial systems can also be tailored to ones needs so that the shop does not have to
be created from scratch. By using a framework already existing, software modules for
different functionalities required by a web shop can be adapted and combined.
2.8 Design
Why does electronic shopping exist? For customers it is not only because of the high level
of convenience, but also because of the broader selection; competitive pricing and greater
access to information. For organizations it increases their customer value and the building
of sustainable capabilities, next to the increased profits
2.9 Information load
Designers of online shops should consider the effects of information load. Mehrabian and
Russel (1974) introduced the concept of information rate (load) as the complex spatial and
temporal arrangements of stimuli within a setting. The notion of information load is directly
related to concerns about whether consumers can be given too much information in virtual
shopping environments. Compared with conventional retail shopping, computer shopping
enriches the information environment of virtual shopping by providing additional product
information, such as comparative products and services, as well as various alternatives and
attributes of each alternative, etc.
Two major sub-dimensions have been identified for information load: complexity and
novelty. Complexity refers to the number of different elements or features of a site, which
can be the result of increased information diversity. Novelty involves the unexpected,
suppressing, new, or unfamiliar aspects of the site. A research by Huang (2000) showed that
the novelty dimension kept consumers exploring the shopping sites, whereas the complexity
dimension has the potential to induce impulse purchases

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2.10 Consumer expectations
The main idea of online shopping is not in having a good looking website that could be
listed in a lot of search engines and it is not about the art behind the site. It also is not only
just about disseminating information, because it is all about building relationships and
making money. Mostly, organizations try to adopt techniques of online shopping without
understanding these techniques and/or without a sound business model. Rather than
supporting the organization’s culture and brand name, the website should satisfy consumer's
expectations. Many researchers notify that the uniqueness of the web has dissolved and the
need for the design, which will be user centered, is very important. Companies should
always remember that there are certain things, such as understanding the customer’s wants
and needs, living up to promises, never go out of style, because they give reason to come
back. And the reason will stay if consumers always get what they expect. McDonaldization
theory can be used in terms of online shopping, because online shopping is becoming more
and more popular and website that wants to gain more shoppers will use four major
principles of McDonaldization: efficiency, calculability, predictability and control.
Organizations, which want people to shop more online for them, should consume extensive
amounts of time and money to define, design, develop, test, implement, and maintain
website. Also if company wants their website to be popular among online shoppers it should
leave the user with a positive impression about the organization, so consumers can get an
impression that the company cares about them. The organization that wants to be acceptable
in online shopping needs to remember, that it is easier to lose a customer then to gain one.
Lots of researchers state that even when site was a “top-rated”, it would go nowhere if the
organization failed to live up to common etiquette, such as returning e-mails in a timely
fashion, notifying customers of problems, being honest, and being good stewards of the
customers’ data. Organizations that want to keep their customers or gain new ones try to get
rid of all mistakes and be more appealing to be more desirable for online shoppers. And this
is why many designers of webshops considered research outcomes concerning consumer
expectations. Research conducted by Elliot and Fowell (2000) revealed satisfactory and
unsatisfactory customer experiences.
2.11 User interface
It is important to take the country and customers into account. For example, in Japan
privacy is very important and emotional involvement is more important on a pension’s site

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than on a shopping site. Next to that, there is a difference in experience: experienced users
focus more on the variables that directly influence the task, while novice users are focusing
more on understanding the information.
There are several techniques for the inspection of the usability. The ones used in the
research of Chen & Macredie (2005) are Heuristic evaluation, cognitive walk through and
the user testing. Every technique has its own (dis-)advantages and it is therefore important
to check per situation which technique is appropriate.
When the customers went to the online shop, a couple of factors determine whether they
will return to the site. The most important factors are the ease of use and the presence of
user-friendly features.
2.12 Market share
E-commerce product sales totaled $146.4 billion in the United States in 2006, representing
about 6% of retail product sales in the country. The $18.3 billion worth of clothes sold
online represented about 10% of the domestic market.
For developing countries and low-income households in developed countries, adoption of e-

commerce in place of or in addition to conventional methods is limited by a lack of
affordable Internet access.
2.13 Advantages
2.13.1 Convenience
Online stores are usually available 24 hours a day, and many consumers have Internet
access both at work and at home. A visit to a conventional retail store requires travel and
must take place during business hours.
Searching or browsing an online catalog can be faster than browsing the aisles of a physical
store. Consumers with dial-up Internet connections rather than broadband have much longer
load times for content-rich web sites and have a considerably slower online shopping
experience.

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Some consumers prefer interacting with people rather than computers sometimes because
they find computers hard to use. Not all online retailers have succeeded in making their sites
easy to use or reliable.
In most cases, merchandise must be shipped to the consumer, introducing a significant

delay and potentially uncertainty about whether or not the item was actually in stock at the
time of purchase. Bricks and clicks stores offer the ability to buy online but pick up in a
nearby store. Many stores give the consumer the delivery company's tracking number for
their package when shipped, so they can check its status online and know exactly when it
will arrive. For efficiency reasons, online stores generally do not ship products immediately
upon receiving an order. Orders are only filled during warehouse operating hours, and there
may be a delay of anywhere from a few minutes to a few days to a few weeks before in-
stock items are actually packaged and shipped. Many retailers inform customers how long
they can expect to wait before receiving a package, and whether or not they generally have
a fulfillment backlog. A quick response time is sometimes an important factor in consumers'
choice of merchant. A weakness of online shopping is that, even if a purchase can be made
24 hours a day, the customer must often be at home during normal business hours to accept
the delivery. For many professionals this can be difficult, and absence at the time of
delivery can result in delays, or in some cases, return of the item to the retailer. Automated
delivery booths, such as DHL's Packstation, have tried to address this problem.
In the event of a problem with the item - it is not what the consumer ordered, or it is not
what they expected - consumers are concerned with the ease with which they can return an
item for the correct one or for a refund. Consumers may need to contact the retailer, visit the
post office and pay return shipping, and then wait for a replacement or refund. Some online
companies have more generous return policies to compensate for the traditional advantage
of physical stores. For example, the online shoe retailer Zappos.com includes labels for free
return shipping, and does not charge a restocking fee, even for returns which are not the
result of merchant error. (Note: In the United Kingdom, Online shops are prohibited from
charging a restocking fee if the consumer cancels their order in accordance with the
Consumer Protection (Distance Selling) Act 2000.)
2.13.2 Information and reviews
Online stores must describe products for sale with text, photos, and multimedia files,
whereas in a physical retail store, the actual product and the manufacturer's packaging will

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be available for direct inspection (which might involve a test drive, fitting, or other
experimentation).
Some online stores provide or link to supplemental product information, such as

instructions, safety procedures, demonstrations, or manufacturer specifications. Some
provide background information, advice, or how-to guides designed to help consumers
decide which product to buy.
Some stores even allow customers to comment or rate their items. There are also dedicated
review sites that host user reviews for different products.
In a conventional retail store, clerks are generally available to answer questions. Some
online stores have real-time chat features, but most rely on e-mail or phone calls to handle
customer questions.
2.13.3 Price and selection
One advantage of shopping online is being able to quickly seek out deals for items or
services with many different vendors (though some local search engines do exist to help
consumers locate products for sale in nearby stores). Search engines, online price
comparison services and discovery shopping engines can be used to look up sellers of a
particular product or service.
Shipping costs (if applicable) reduce the price advantage of online merchandise, though
depending on the jurisdiction, a lack of sales tax may compensate for this.
Shipping a small number of items, especially from another country, is much more expensive
than making the larger shipments bricks-and-mortar retailers order. Some retailers
(especially those selling small, high-value items like electronics) offer free shipping on
sufficiently large orders.
2.14 Concerns
2.14.1 Fraud and security concerns
Given the lack of ability to inspect merchandise before purchase, consumers are at higher
risk of fraud on the part of the merchant than in a physical store. Merchants also risk
fraudulent purchases using stolen credit cards or fraudulent repudiation of the online

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purchase. With a warehouse instead of a retail storefront, merchants face less risk from
physical theft.
Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card
numbers being intercepted in transit between the consumer and the merchant. Identity theft
is still a concern for consumers when hackers break into a merchant's web site and steal
names, addresses and credit card numbers. A number of high-profile break-ins in the 2000s
has prompted some U.S. states to require disclosure to consumers when this happens.
Computer security has thus become a major concern for merchants and e-commerce service
providers, who deploy countermeasures such as firewalls and anti-virus software to protect
their networks.
Phishing is another danger, where consumers are fooled into thinking they are dealing with
a reputable retailer, when they have actually been manipulated into feeding private
information to a system operated by a malicious party. Denial of service attacks are a minor
risk for merchants, as are server and network outages.
Quality seals can be placed on the Shop web page if it has undergone an independent
assessment and meets all requirements of the company issuing the seal. The purpose of
these seals is to increase the confidence of the online shoppers; the existence of many
different seals, or seals unfamiliar to consumers, may foil this effort to a certain extent.
A number of resources offer advice on how consumers can protect themselves when using
online retailer services. These include:
 Sticking with known stores, or attempting to find independent consumer reviews of

their experiences; also ensuring that there is comprehensive contact information on the
website before using the service, and noting if the retailer has enrolled in industry oversight
programs such as trust mark or trust seal.
 Before buying from a new company, evaluate the website by considering issues such
as: the professionalism and user-friendliness of the site; whether or not the company lists a
telephone number and/or street address along with e-contact information; whether a fair and
reasonable refund and return policy is clearly stated; and whether there are hidden price
inflators, such as excessive shipping and handling charges.

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 Ensuring that the retailer has an acceptable privacy policy posted. For example note if
the retailer does not explicitly state that it will not share private information with others
without consent.
 Ensuring that the vendor address is protected with SSL (see above) when entering
credit card information. If it does the address on the credit card information entry screen
will start with "HTTPS".
 Using strong passwords, without personal information. Another option is a "pass
phrase," which might be something along the lines: "I shop 4 good a buy!!" These are
difficult to hack, and provides a variety of upper, lower, and special characters and could be
site specific and easy to remember.
Although the benefits of online shopping are considerable, when the process goes poorly it
can create a thorny situation. A few problems that shoppers potentially face include identity
theft, faulty products, and the accumulation of spy ware. Most large online corporations are
inventing new ways to make fraud more difficult, however, the criminals are constantly
responding to these developments with new ways to manipulate the system. Even though
these efforts are making it easier to protect yourself online, it is a constant fight to maintain
the lead. It is advisable to be aware of the most current technology and scams out there to
fully protect yourself and your finances.
One of the hardest areas to deal with in online shopping is the delivery of the products.
Most companies offer shipping insurance in case the product is lost or damaged; however, if
the buyer opts not to purchase insurance on their products, they are generally out of luck.
Some shipping companies will offer refunds or compensation for the damage, but it is up to
their discretion if this will happen. It is important to realize that once the product leaves the
hands of the seller, they have no responsibility (provided the product is what the buyer
ordered and is in the specified condition).
2.14.2 Lack of full cost disclosure
The lack of full disclosure with regards to the total cost of purchase is one of the concerns
of online shopping. While it may be easy to compare the base price of an item online, it may
not be easy to see the total cost up front as additional fees such as shipping are often not be
visible until the final step in the checkout process. The problem is especially evident with
cross-border purchases, where the cost indicated at the final checkout screen may not
include additional fees that must be paid upon delivery such as duties and brokerage. Some

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services such as the Canadian based Wishabi attempts to include estimates of these
additional cost, but nevertheless, the lack of general full cost disclosure remains a concern.
2.14.3 Privacy
Privacy of personal information is a significant issue for some consumers. Different legal
jurisdictions have different laws concerning consumer privacy, and different levels of
enforcement. Many consumers wish to avoid spam and telemarketing which could result
from supplying contact information to an online merchant. In response, many merchants
promise not to use consumer information for these purposes, or provide a mechanism to
opt-out of such contacts.
Brick-and-mortar stores also collect consumer information. Some ask for address and phone
number at checkout, though consumers may refuse to provide it. Many larger stores use the
address information encoded on consumers' credit cards (often without their knowledge) to
add them to a catalog mailing list. This information is obviously not accessible to the
merchant when paying in cash.
2.14.4 Product suitability
Many successful purely virtual companies deal with digital products, (including information
storage, retrieval, and modification), music, movies, office supplies, education,
communication, software, photography, and financial transactions. Other successful
marketers use Drop shipping or affiliate marketing techniques to facilitate transactions of
tangible goods without maintaining real inventory.
Some non-digital products have been more successful than others for online stores.
Profitable items often have a high value-to-weight ratio, they may involve embarrassing
purchases, they may typically go to people in remote locations, and they may have shut-ins
as their typical purchasers. Items which can fit through a standard letterbox — such as
music CDs, DVDs and books — are particularly suitable for a virtual marketer.
Products such as spare parts, both for consumer items like washing machines and for
industrial equipment like centrifugal pumps, also seem good candidates for selling online.
Retailers often need to order spare parts specially, since they typically do not stock them at
consumer outlets—in such cases, e-commerce solutions in spares do not compete with retail
stores, only with other ordering systems. A factor for success in this niche can consist of

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providing customers with exact, reliable information about which part number their
particular version of a product needs, for example by providing parts lists keyed by serial
number.
Products less suitable for e-commerce include products that have a low value-to-weight
ratio, products that have a smell, taste, or touch component, products that need trial fittings
— most notably clothing — and products where colour integrity appears important.
Nonetheless, Tesco.com has had success delivering groceries in the UK, albeit that many of
its goods are of a generic quality, and clothing sold through the internet is big business in
the U.S. Also, the recycling program Cheapcycle sells goods over the internet, but avoids
the low value-to-weight ratio problem by creating different groups for various regions, so
that shipping costs remain low.
2.14.5 Aggregation
High-volume websites, such as Yahoo!, Amazon.com and eBay, offer hosting services for
online stores to small retailers. These stores are presented within an integrated navigation
framework. Collections of online stores are sometimes known as virtual shopping malls or
online marketplaces.
Become.com is a product price comparison service and discovery shopping search engine
with a mission to help shoppers make ideal buying decisions. Dulance was a price engine
that specialized in searching for hard-to-find products often sold by small independent
online retailers (“The Long Tail”).

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3. RESEARCH METHOSOLOGY
Research always starts with the question of the problem. Its purpose is to find answer to the
questions. Research can be classified into broad categories.
(1) Basic Research

(2) Applied Research.
3.1 Research problem statement
“Consumer Buying Behaviour towards Online Shopping of Computer and Computer

peripherals in Lucknow City.”
3.1.1 Management question
Management wants to know the Consumer Buying Behaviour towards Online Shopping of
Computer and Computer peripherals in Lucknow city, so that they can craft the strategy
accordingly
3.1.2 Research question
The research question is the best state the research objectives of the research study which
provide the manager with information necessary to make decisions.
3.2 Research objective
The principle objectives of my project are as follows:
Primary objective:
 To study the Consumer Buying behavior towards Online shopping of computer and
computer peripherals

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Secondary objective:
 To study the awareness of Internet Retailing in Lucknow city

 To study the buying pattern of consumer towards online shopping of computer and
computer peripherals in Lucknow city
 To find out target group for online selling
 To study the challenges of E-retailing in Lucknow city
3.2.1 Selecting the Objective
Firstly the objective was to selecting the topic to study Online shopping, so the survey was
conducted to study the Consumer Buying Behavior towards Online Shopping of
Computer/Computer peripherals in Lucknow City.
3.2.2 Specification of Objectives
After the area was selected, next task was to formulate it precisely, in order to overcome the
problem, following specification defined:
3.2.2.1 Unit of analysis
“The unit or object whose characteristics are to be measure are called Unit of analysis”
Earning person above the age of 18 were selected for Research program.
3.2.2.2 Time and space boundary
It define the time limit and area wherein the research has to be completed, The problem
chosen has to be solved within the limited time period, and another, Regarding space
boundary were limited for Lucknow only.
3.3 List of information needed
For the completion of the research the information needed regarding are
- Buying Behavior.
3.3.1 To know the Consumer Buying Behavior towards Online Shopping of
Compute/Computer Peripherals in Lucknow City the information required are.

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- Gender
- Occupation
- Annual Family Income
- Awareness
- Mode of payment
- Services
3.4 Research Design
A Research Design is the over all frame work or plan use for the collection and analysis of
the data in the research project is broadly classified in 3 categories.
Exploratory research is carried out to define problem and develop hypothesis to be tasted
later. Descriptive research gives an account of frequency or characteristics of some of the
characteristic of some of the variable. Where Causal research helps in determine cause and
effect relationship.
3.4.1 Reason why Descriptive research
The reason of using descriptive design in present study is that it is not based on judgment
and intuition but on actual data collected and therefore, accurate in generalizing.
In which research concerned with the finding out who, what, where, when, and how.
1 Have you ever made purchase of computer / computer peripherals over internet?
2 What helps you to decide which site to use for shopping online?
3 How many transaction have you made with the internet retailer over the past 12
months?
4 Did you ever been cheated by internet retailer?
5 Which kind of mode of payment do you prefer?
6 Do you recommend others for Online buying?
3.5 Sampling Plan
Sampling may be define as “The selection of some part of aggregate or totality on the basis
of which a judgment or inference about the aggregate totality is made.”

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In order to understand in detail we need to know the following item.
Universe refers to the total of the item or the unit in the field inquiry.
Population refers to the total of the items about which information is desired.
Sample refers the few item selected form the universe for study.
3.5.1 What is relevant population?
Population of Lucknow City is around 40 lakh. From that all the people above the age of 18
were selected as unit for research program and that could be around 27 to 32 lakh.
3.5.2 What are the parameter of interest?
This project report is prepared with the focus on the Consumer Buying Behavior towards
Online Shopping of Computer/Computer Peripherals in Lucknow City.
3.5.3 What is the sampling frame?
The sampling frame consists of the list item from which the sample is to be drawn. The
sample framer for the research constitutes the people residing in Lucknow city.
Business
Profession
Students
Service
Others

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3.5.4 What is the type of sample?
The project is entirely based on the practical approach. Project s based on the Convenience
sampling that is Non probability and unrestricted sampling because the questionnaire was
filled as per convenience and time.
3.5.5 what is the size of sample?
The size of sample refers to the number of items to be selected from the universe to
constitute the sample. This is major problem, the size of the sample should neither be
excessively large, nor to small, it should be optimum. Now an optimum sample is one,
which fulfills the requirement of efficiency, representative ness, reliability and flexibility. I
have selected the sample size of 150.
3.6 Data collection
There are basically two types of data primary and secondary.
3.6.1 Primary data
Primary data are those which are fresh and collected for the first time, that are original data.
The source for the primary data is Questionnaire Method.
An assurance was given to customer that information given by them are kept strictly
confidential and use only for the academic purpose, otherwise respondent are hesitant to
answer the question related to their income and so forth.
3.6.2 Secondary data
Secondary data are those, which have been already collected by some one else and which
have been passed through statistical process, the various sources of collecting the secondary
data are
Library: It is one of the best place in getting the secondary data about the information
related to report preparation as well as referring various subject like buying behaviour, and
research methodology and other book help in collecting secondary data as well as
preparation of report.

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3.7 Processing and analyzing collected data
The processing analysis of data is based on the statistical package like SPSS, Excel,
percentage method and chart are also made to view the data pictorially.
3.8 Limitation of study
There is always a boundary existing every where and every time.

Every task that is undertaken has some obstacles in its way, some basic limitation that make
the task bit difficult are stated as follows
 The survey was limited only to the physical boundaries of Lucknow city and that is
limited in the population and the sample size was limited to 150 respondents only.
 The study on buying behaviour of consumer towards online shopping of computer

is limited to the product of computer and computer peripherals only.
 As we survey the area of Lucknow city, the research could not give the result on the
whole. The people might have different attitude and behaviour for the product at different
places.
 Thus despite of the limitation we have tried to make the report as accurate as we
could make.
3.9 Interpretation
This step involves inference from the analysis of the data collected. The required goal
fulfilled at this stage. All the data’s are carefully scrutinized and thereafter report was
prepared.
It was of no use of collection unless it is tabulated properly so as to interpret it with a view

to arrive at a certain logical and meaningful conclusion. Use of charts has been made with a
view to data pictorially, precisely, and to make study more interesting and easily
comprehensible.

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3.10 Report writing
This is the last step in the preparation of the project report. The sole objective of the report
writing was to report the finding to the concerned authority.

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4. CONSUMER BUYING BEHAVIOUR
Knowledge of the buying behaviour of consumer is essential for a market. The consumers
bring the changes in the market. It is essential task for marketing behaviour of target
Market.
The Consumer market consist the individual and household the buy goods and Services for
personal consumption. It is attempted to understand and predict human actions in the buying
role. It has assumed growing in the importance under Market Oriented or Customer
Oriented working planning and Management.
Consumers very tremendously in age income adulation level and Preferences. Marketer
found it useful to distinguishably different consumer groups and to develop products and
services tailored to their needs. Consumer behaviour always involves choice.
Buying behavior includes acts of individual directly involves in obtaining and using
economics Good and Services includes sequences of decision processes that proceed and
determine these acts. Actual purchase is only a part of the decision process in buyers
behavior we consider not only why now and what people buy other factors. Such as where
how offer and under in find analysis buyer is one of the most important keys to successful
Marketing.
4.1 WHAT IS CONSUMER BEHAVIOR?
The wealth and services product in a country make an economy strong. Almost all the
product which are available to buyer, have a number of alternative supplies that is suitable
products are available to customers. Who make a decision to buy products? Therefore, a
seller most of his time seeks buyers and tries to please them. In order to successful, a seller
is concerned with:
• Who is Consumer?
• What do Consumers buy?
• When do Consumers buy?

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• How do Consumers buy?

• From where do Consumers buy?
• Why do Consumers buy?
A buyer makes a purchase of a particular product or a particular brand and this can be
termed “Products buying Motives” and the reason behind the Purchase from particular
Seller is “Patronage Motives”.
The buyer may take a decision whether to save or spend the money. When he decision to
spend them there are many problems as to what to purchase because needs are numerous.
This leads to ranking the needs in terms of priority. Those the problems are consumption
problems where to buy, whom to buy etc.
4.2 FACTORS INFLUENCING CONSUMER BEHAVIOUR
Factor influencing the consumer behaviour are internal needs, motives, perception and
attitude as well as external- family, social group, cultural, economic, business influences,
etc.
4.2.1 Economics Factors.
An economics factor of buying behaviour is un-diplomacy it assumes that Consumers are

economics. When are they following the principle of maximization of utility based on the
low of diminishing Managerial utility. As economic when, consumer evaluations rationally
the alternative in terms of cost and value received. They try to maximize their utility or
satisfactory while spending them scarce resources of time, energy and money.
4.2.2 Psychological Factors
Psychology has contributed much to the markers to understand the buyer’s psychology
explains how consumers learn about a product and how they can recall from the memory.
The development of buying habits, this includes the following factors:
a) Motive

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A buying motive is the reason why a person buys particular products. It is the driving force
behind buying behavior and may be based on psychological or psychological want
marketers are in rested in patronage motives such as store loyalty and brand loyalty.
b) Perception
Perception causes the behavior in a certain way perception influences this behavior. It gives
direction to the taken by the behaviour. It the meaning we have on the bases on our past
dependence.
c) Learning
Learning refers to changes in behaviour brought about by practice or experience. Almost
every timing one does or timing is learned product features such as price quality services,
brand, packing, etc. Act as hints influencing consumer’s response.
d) Attitude
Attitude is a state of mind of fillings it includes a per disposition to behave in source way.
Attitude core very important in explaining buyer’s behaviour. A change in attitude leads to
changes purchasing attitude and modify buyer behaviour knowledge of consumer attitude
can product redesigning packages and developing and evaluating promotional programs.
e) Personality
In general perception attitude belief lead collectively to a consistent response by the
individual to his environment. This consistent pattern or behaviour is termed as personality
its primary teachers are self-concept role and level of consciousness.
4.2.3 Social Factors
This includes the following factors:

a) Family
Most consumers belong to a family group. The family can exert considerable influence in
shaping the pattern of consumption and indicating the decision making role personal value
attitude and buying habits have been shaped by family influences.
b) Reference Group

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The small group to which the buyer belongs influence buyer behaviour. A human being is
considered as a social animal spending much of his or her life in group situation, group
norms direct attention of its member to a new style of a product.
c) Social Class
As a predictor of consumption patterns marketing management is familiar with social
classes consumers, buying behaviour is determined by the social class to which they espiers
rather than by their income belong. Proudly speaking we have distant social class upper,
middle and lower classes usually stress rationality, exhibit sense of choice making whereas
consumers of lower classes have essentially no rational purchases and show limited sense of
choice making. The three social classes will have differences in the stress they patronize.
The magazines they read and abutting and furniture they select social class may act as one
criterion for market segmentation.
d) Culture
A culture is as distinctive way of life of a group of people their complete design for living it
is the man made pan or man’s environment the sum total of his knowledge. Belief morals
customers. Art laws etc it includes the attitude and values of a whole society and affects the
ways in which we do things, see tunic, use things and judge things in every culture.
European culture, American culture etc. Marketing strategies can developed for each culture
separately.
4.3 BUYING DECISION PROCESS
The process consists include following step:

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4.3.1 Recognition of an unsatisfied need
When a person has an unsatisfied need the buying process begins to satisfy the needs
generally the unsatisfied need leads to tension. The nature of the want indicates the speed
with which a person moves to fulfil the unsatisfied want which is of high pressing need on
the basis of need and its urgency forms the order of pointy.
4.3.2 Identification of Alternatives
Different alternatives are available in the market the consumer must know the brand of the
product which gives maximum satisfaction and the person has to source out for relevant
information of the product brand location etc.
4.3.3 Valuation of Alternatives
This is a critical stage especially with regard to the costly items consumers have different
alternatives. The attributes tastes colour price durability etc. have different preference the
marketers must understand this process.
4.3.4 Purchase Decision
By considering the likes and dislikes of alternatives one is about to take a decision as to buy
one will consider with reference to product type price quality etc. A seller can facilitate such
consumers to understand the products through advertisements.
4.3.5 Post Purchase Decision

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Feedback information is important as for as a seller is concerned. A brand preference

maturely repeats sales to a marketer. A satisfied buyer is a silent advertisement. A satisfying
dependence of a buyer tends to strengthen the brand preference.

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5. DATA ANALYSIS & INTERPRETATION
Gender wise classification
Gender wise classification
Particulars Respondents Percent
Valid Male 86 57.3

Female 64 42.7
Total 150 100.0
Gender classification
Male
Female
43%
Male
57% Female
Interpretation: From the above table and chart we can examine that out of the total
respondents 150, 57% of the respondents were male i.e. 86 respondents were male while
43% of the respondents were female i.e. 64 were female respondents.

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Age group wise classification

Age group wise classification
Valid < 20 years 21 14.0

21-30 years 67 44.0
31-40 years 31 20.7
41-50 years 18 12.0
> 50 years 13 8.7
Total 150 100.0
Age Group Of Respondent
age, 9% < 20 yrs

age, 14%
age, 12%
21-30 yrs
31-40 yrs
41-50 yrs
age, 21%
> 50 yrs
age, 44%
Interpretation : From the above table and the chart we examine that majority of the
respondents i.e. 44% of the respondents were in the age group of 21-30 years followed by
21% respondents in the age group 31-40 years, while the lowest 9% respondents were there
in the age group above 50 years while 12% were the respondents in the age group below
41-50 years.

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Occupation wise classification
Occupation wise classification
Valid Business 26 17.3

Profession 27 18.0
Student 52 34.7
Service 34 22.7
Others 11 7.3
Total 150 100.0
60
Student
50
40 Business
Service
Service
30 Business Profession Profession
Student
20
Others
Others
10
0
No. of respondent
Interpretation : From the above table and chart we can examine that 35% of the
respondents were students i.e. 52 respondents were students followed by occupation like
service and profession with 23% and 18% respectively i.e. 34 and 27 respondents
respectively, while the respondent who were engaged in the occupation of business were
17% i.e. 26 respondents . The respondents engaged in other type of occupation were 7%.

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Annual family income wise classification
Annual family income wise classification
Valid < 50,000 16 10.7

50,000-1,00,000 25 16.7
1,00,000-2,00,000 48 32.0
2,00,000-3,00,000 45 30.0
> 3,00,000 16 10.7
Total 150 100.0
Annual family income
> 3,00,000
> 3,00,000
2.00.000-3,00,000
2.00.000-
3,00,000
1,00,000- 1,00,000-2,00,000
2,00,000
50,000- 50,000-1,00,000
1,00,000
< 50,000 < 50,000
0% 10% 20% 30% 40%
Interpretation : From the above table and chart we examine that 32% of the respondent
belong from annual income group of 1,00,000 to 2,00,000. followed by 30% of respondent
which belong to the income group of 2,00,000 to 3,00,000 while the income group above
3,00,000 the respondents were 11%.

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What is your highest level of education?
Education
Valid High school 4 2.7

Diploma 10 6.7
Undergraduate 22 14.7
Graduate 58 38.7
Post graduate 47 31.3
Ph.d 3 2.0
Others 6 4.0
Total 150 100.0
70
60
High school
50 Diploma
40 Undergraduate
Graduate
30 Post Graduate
20 P hd
Others
10
0
No. of respondent
Interpretation : From the above chart we examine that majority of the respondents
education; 39% of the total respondents were graduate followed by 31% of the respondent
were postgraduate, 15% of the respondents were undergraduate while only 2% of the total
respondents were PhD

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Are you aware of Internet Retailing ?

Aware of Internet Retailing
Particulars Respondent Percent
Valid Yes 114 76.0

No 36 24.0
Total 150 100.0
Aware of Internet Retailing * Age group Crosstabulation
Age group Total

< 20 years 21-30 years 31-40 years 41-50 years > 50 years < 20 years
Aware of Internet Yes 12 52 22 15 13 114
Retailing No 9 15 9 3 0 36
Total 21 67 31 18 13 150
Aware of internet retailing

Female
24% Male
Female
Male
76%
Interpretation : From the above table and chart we examine that 76% of the respondent
i.e. 114 respondent are aware of internet retailing and only 26% of the respondent i.e. 36
respondent are not aware of internet retailing. From the cross tabulation we can examine
that youngsters are more aware of internet retailing. We also examine that age group
between 21-30 years 31-40 years are more aware of internet retailing

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1) Have you ever made purchase of computer/computer peripherals over

internet?
Purchase of Computer / Computer Peripherals
Valid Yes 42 28.0

No 108 72.0
Total 150 100.0
Table showing purchases of computer and peripherals
Purchasers Respondents Total
Valid Computer 9 9+18=27

Computer peripherals 15 15+18=33
Both computer and computer peripherals 18 9+15+18=42
Total 42
Age group * Purchase of Computer / Computer Peripherals Crosstabulation
Purchase of Computer /
Total
Computer Peripherals
yes No yes
< 20 years 1 20 21
21-30 years 33 34 67
Age
31-40 years 6 25 31
group
41-50 years 1 17 18
> 50 years 1 12 13
Total 42 108 150
Annual family income * Purchase of Computer / Computer Peripherals Crosstabulation
Count
Total
yes No yes
< 50,000 1 15 16
Annual 50,000-1,00,000 6 19 25
family 1,00,000-2,00,000 7 41 48
income 2,00,000-3,00,000 16 29 45
> 3,00,000 12 4 16
Total 42 108 150

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Occupation * Purchase of Computer / Computer Peripherals Crosstabulation
Count
Total
yes No yes
Business 1 25 26
Profession 5 22 27
Occupation Student 28 24 52
Service 8 26 34
Others 0 11 11
Total 42 108 150
Gender * Purchase of Computer / Computer Peripherals Crosstabulation
Particulars Total
yes No
Male 27 59 86
Gender
Female 15 49 64
Total 42 108 150
Chi-Square Tests
Asymp. Sig.
Value df
(2-sided)
Pearson Chi-Square 1.153(b) 1 .283
Continuity
.792 1 .374
Correction(a)
Likelihood Ratio 1.166 1 .280
Fisher's Exact Test
Linear-by-Linear
1.145 1 .285
Association
N of Valid Cases 150
a Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 17.92.
Null Ho : Gender and Purchase of Computer and computer peripherals are independent
attributes.
H1 : Gender and purchase of Computer and Computer peripherals are not independent
attributes.
Here the Pearson chi square is .283 which is greater than 0.05 (5% significance level)
Hence we fail to reject the null hypothesis, hence we can conclude that Gender and
purchase
of computer and computer peripherals are independent attributes

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Online purchase of computer/

computer peripheralsyes
28%
yes no
no
72%
Interpretation : From the above table and chart we can examine that out of the total
150 respondents, 28% respondents i.e. 42 respondents have made the purchase of computer
or computer peripherals on internet. While 72% respondents i.e. 108 respondents have
never made the purchase of computer or computer peripherals on internet. We also examine
that youngsters in the age group 21-30 years and the annual family income group of Rs
2,00,000 to 3,00,000 and above tends to purchase computer and computer peripherals on
internet

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1a) Computer purchasers

Computer Purchaser
Particulars Respondents
Valid yes 27
No 15
Total 42
Missing System 108
Total 150
Gender * Computer Purchaser Crosstabulation
Computer Purchaser
Total
yes No
Male 20 7 27
Gender
Female 7 8 15
Total 27 15 42
Online Buying of computer
no, 36%
yes no
yes, 64%
Interpretation: From the above chart and table we can examine that out of the total 150
respondents 28% respondents have made the purchase of computer or computer peripherals
on internet, out of 28% i.e. 42 respondents, 27 respondents have made the purchase of
computers on internet, in which 9 respondents have made the purchase of computers only
while 18 respondents have made the purchase of both computer as well as of peripherals

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1b) Computer Peripherals

Computer Peripherals purchaser
Particulars Frequency
Valid yes 33
no 9
Total 42
Missing System 108
Total 150
Gender * Computer Peripherals purchaser Cross tabulation
purchser Total
yes no
Male 22 5 27
Gender
Female 11 4 15
Total 33 9 42
no
Online Buying of Computer
22% Peripherals
yes no
yes
78%
Interpretation : From the above chart and table we can examine that out of the total 150
respondents 28% respondents have made the purchase of computer or computer peripherals
on internet, out of 28% i.e. 42 respondents, 33 respondents have made the purchase of
computers peripherals on internet. In which 15 respondents have made the purchase of
computer peripherals only while 18 respondents have made the purchase of both computer
as well as peripherals.

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2) In the past three months, have you purchased any computer or

computer peripherals through Internet, for your personal use?
Purchase in past three months
Valid Yes 12
No 30
Total 42
Missing System 108
Total 150
Gender * Purchase in past three months Cross tabulation
Purchase in past three

months Total
yes no
Male 7 20 27
Gender
Female 5 10 15
Total 12 30 42
Online buyer's in past Three

months yes
29%
yes no
no
71%
Interpretation : From the above table and chart we can examine that out of 42 respondents
who have made the purchase of computer or computer peripherals on internet, 12
respondents have made the purchase of computer or computer peripherals in the past three
months while 30 respondents have not made the purchase of computer or computer
peripherals on internet in the past months.

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3) What helps you decide which site to you use for shopping online?
Site to use
Valid Search engine 21

personal recommendation 4
Special offer I saw 9
Online advertising 5
Tv advertising 3
Total 42
Missing System 108
Total 150
Age group * Site to use Cross tabulation
Site to use Total
personal
Search Special Online Search
recommen Tv advertising
engine offer I saw advertising engine
dation
< 20 years 0 0 1 0 0 1
21-30 years 17 4 5 5 2 33
Age
31-40 years 4 0 1 0 1 6
group
41-50 years 0 0 1 0 0 1
> 50 years 0 0 1 0 0 1
Total 21 4 9 5 3 42
25
Search Engine
20 Personal
Recommendation
15 Online advertising
10 TV advertising
5 Special offer I saw
0 Others
No. of respondent

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Interpretation: From the above table and chart we can examine that out of 42 respondents
who have made the purchase of computer or computer peripherals on internet, 21
respondents have used the link through the use of search engine followed by 9 respondents
who used the site by the special offer they saw and only 3 respondents have used the site
through the use of T.V. advertisement. We also examine that majority of youngsters prefer
search engine.

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4) What type of Computer you have purchased on the Internet?
Type of Computer Purchased Online
Valid Desktop 9
Laptop 16
Palmtop 2
I pad 0
Others 0
Total 27
Missing System 123
Total 150
Gender * Type of Computer Purchased Online Cross tabulation
Count
Type of Computer Purchased Online Total
Desktop Laptop Palmtop Desktop

Male 8 10 2 20
Gender
Female 1 6 0 7
Total 9 16 2 27
Occupation * Type of Computer Purchased Online Crosstabulation
Count

Business 0 1 0 1
Profession 0 0 2 2
Occupation
Student 8 13 0 21
Service 1 2 0 3
Total 9 16 2 27
Age group * Type of Computer Purchased Online Crosstabulation
Count

21-30 years 8 14 0 22
Age
31-40 years 1 2 1 4
group
> 50 years 0 0 1 1
Total 9 16 2 27

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Types of computers
I-Pad
0%
Palmtop others
8% 0%
Desktop Laptop
Desktop
33%
Palmtop I-Pad
others
Laptop
59%
who have made the purchase of computer or computer peripherals on internet and out of
that only 27 respondents have made the purchase of computers, 16 respondents have made
the purchase of laptop while the desktop and palmtop purchaser were 9 respondents and 2
respondents respectively. There was not a single purchaser of I- pad from the total
respondents. Majority of students in the age group 21- 30 years prefer to purchase computer
on internet.

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5) What types of Computer Peripherals you have purchased on the

Internet?
Computer Peripherals Percentage
Motherboard 5%
Monitor 11%
Hardisk 1%
Digital Camera 20%
Printer 11%
Key board 10%
Dvd Rom/writer/ Drivers 3%
Scanner 16%
CPU 7%
Laptop batteries 13%
Mouse 2%
Others 1%
Total 100%
Mother board
2% 1% 5% Monitor
7%
11%
Hard disk
13% 1% Digital camera
Printer
Keyboard
Dvd/Rom/Writer
Scanner
20%
Laptop batteries
16%
CPU
Mouse
3% 10%
11% Others
who have made the purchase of computer or computer peripherals on internet and out of
that only 33 respondents have made the purchase of computers peripherals, in which 20 %
of respondents have made the purchase of digital camera the other peripherals which were
purchased are scanner laptop batteries and printer were 16% 13% & 11% respectively. Only
one 1 % of the respondents have made the purchase of hard disks.

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6) Which kind of mode of payment do you prefer?

Mode of Payment
Modes of payment Respondents
Valid Cash on Delivery 11

Credit card 24
Debit card 4
Money transfer 3
Total 42
Missing System 108
Total 150
Occupation * Mode of Payment Crosstabulation
Mode of Payment Total

Cash on Money Cash on
Credit card Debit card
Delivery transfer Delivery
Business 0 1 0 0 1
Profession 1 4 0 0 5
Occupation
Student 5 16 4 3 28
Service 5 3 0 0 8
Total 11 24 4 3 42
Age group * Mode of Payment Crosstabulation
Mode of Payment Total

Cash on Money Cash on
Credit card Debit card
Delivery transfer Delivery
< 20 years 0 1 0 0 1
21-30 years 10 16 4 3 33
Age
31-40 years 1 5 0 0 6
group
41-50 years 0 1 0 0 1
> 50 years 0 1 0 0 1
Total 11 24 4 3 42

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others
Column1
Money transfer
others Demand draft
Demand draft
Cheque
Debit card
Debit card
cash on delivery
credit card
0% 20% 40% 60%
cash on delivery
who have made the purchase of computer or computer peripherals on internet. In which 24
respondents prefer credit card as mode of payment for delivery, while the other respondents
who prefer cash on delivery, debit card and money transfer were 11, 4 and 3 respondents.

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7) Did you ever return the computer after you have received it?
Return of computer
Valid yes 4
no 23
Total 27
Missing System 123
Total 150
Gender * Return of computer Cross tabulation
Return of computer
Total
yes no
Male 4 16 20
Gender
Female 0 7 7
Total 4 23 27
Return of computer after delivery

yes
15%
yes no
no
85%
Inerpretation : From the above table and chart we can examine that out of 42 respondents
who have made the purchase of computer or computer peripherals on internet. In which the
27 respondents purchased computer in which only 4 respondents return the computer after
having received it. While the other respondents are seems to be quite satisfied to purchase
computers on internet.

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8) Did you ever return the computer peripherals after you have received
it?
Return of Peripherals
Valid Yes 6
no 27
Total 33
Missing System 117
Total 150
Gender * Return of Peripherals Cross tabulation
Return of Peripherals
Total
yes no
Male 5 17 22
Gender
Female 1 10 11
Total 6 27 33
Return of computer peripherals

yes
after delivery18%
yes no
no
82%
who have made the purchase of computer or computer peripherals on internet. In which the
33 respondents purchased computer peripherals in which only 6 respondents return the
computer peripherals after having received it. While the other respondents are seems to be
quite satisfied to purchase computers peripherals on internet.

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9) Did you contact the customer service department of Internet retailer

with a complaint or problem?
Contacted Customer Service Department
Valid yes 19
no 23
Total 42
Missing System 108
Total 150
Contacted CSD of internet retailer

with Complaint/Problem
no 55%
yes no
yes 45%
0% 10% 20% 30% 40% 50% 60%
who have made the purchase of computer or computer peripherals on internet. In which
45% of the respondent i.e. 19 respondents contacted customer service department with
complaint or problem while 55% i.e. 23 respondents didn’t contacted customer service with
the complaint or problem.

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10) How many transactions have you made with the Internet retailer over
the past 12 months?
Transaction in Past Twelve months
Valid 0 12
1 17
2 9
3 2
4 2
Total 42
Missing System 108
Total 150
18
16
0
14
1
12
2
10
3
8
4
6
5
4
6
2
More than 6
0
No. of respondent
who have made the purchase of computer or computer peripherals on internet. The number
of transaction which respondents has done in past twelve months were 17 respondents made
one transaction in a year 9 respondents made two transaction while two respondents each
made transaction for three and four time respectively, 12 respondents didn’t purchased
anything in past twelve months.

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11 a) Do you think on-line buying is a novel, fun way to shop?
Online Shopping is a Novel fun way to Shop
Valid Strongly disagree 1

Disagree 3
Neutral 8
Agree 10
Strongly agree 20
Total 42
Missing System 108
Total 150
Strongly Disagree
2%
Disagree
Strongly
7%
Disagree
Disagree
Neutral
Strongly Agree 21%
47% Neutral
Agree Agree
23%
Strongly Agree
who have made the purchase of computer or computer peripherals on internet. 47%
respondent i.e. 20 respondents strongly agree that it is a novel fun way to shop on internet.
While ten and eight respondents are agree and neutral that online shopping is a novel fun
way to shop. Three respondents were disagree that online shopping is a novel fun way to
shop.

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11b) Do you think Internet shopping offers better selection than local
stores?
Online Shopping Provides Better Selection
Valid Stongly dis agree 5

Dis agree 5
Neutral 7
Agree 5
Strongly Agree 20
Total 42
Missing System 108
Total 150
Ho mean score of male and female are same

H1 mean score of male and female are different
Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
Online Shopping Provides Male 27 3.78 1.368 .263
Better Selection Female 15 3.60 1.682 .434
Total 42
Independent Samples Test
Levene's Test
for Equality of t-test for Equality of Means
Variances
Std.
Mean 95% Confidence
Sig. (2- Error
F Sig. t df Differe Interval of the
tailed) Differen
nce Difference
ce
Online Equal
shopping variance
provides s 1.544 .221 .372 40 .712 .178 .478 -.789 1.145
better assume
selection d
Equal
variance
s not .350 24.410 .729 .178 .508 -.869 1.225
assume
d
Ho: variance are equal

H1: variance are not equal
Here the Levence test of equality of variance gives f value 1.544 and its significance value .
221 so we fail to reject the Ho, So we assume that variance are equal.

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Hence the t calculated at 40 D.O.F is .372 and its significance value is .712 so we can
conclude that the Ho is fail to reject. Ho male and female are same
12% Strongly disagree
12% Dis agree
47%
Neutral
Agree
17%
Strongly agree
12%
respondent i.e. 20 respondents strongly agree that internet shopping offers better selection
than local stores, 12% respondents agree while 17% of the respondents were neutral that
internet shopping provides better selection than local stores.

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11c) Do you think the Internet offers lower prices than local stores?
Online Shopping Provides Better Prices

Dis agree 5
Neutral 19
Agree 6
Strongly Agree 8
Total 42
Missing System 108
Total 150
Strongly Agree
Strongly Agree 20%

Agree
Agree 14%
Neutral
Neutral 45%
Disagree
Disagree 12%
Strongly
Strongly Disagree
9%
Disagree
0% 10% 20% 30% 40% 50%
respondent were neutral that internet shopping provides goods at lower price than local
stores, 20% and 14% of the respondents were strongly agree and agree respectively that
internet offer goods at lower prices than local stores.

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11d) Do you find the Internet ordering process is hard to understand?
Ordering process is Hard to Understand in Online Shopping
Valid Stongly Disagree 3

Dis agree 17
Neutral 12
Agree 8
Strongly agree 2
Total 42
Missing System 108
Total 150
45%
Strongly disagree
40%
35% Dis agree

30%
25% Neutral
20% 40%
15% 29% Agree
10% 19%
Strongly agree
5%
7% 5%
0%
Strongly Dis agree Neutral Agree Strongly
disagree agree
who have made the purchase of computer or computer peripherals on internet 40% of the
respondents were disagree that internet order processing is hard to understand, while 29%
and 19% respondents were neutral and agree that internet order processing is hard to
understand.

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11 e) Do you like the delivery of Internet buying?
Delivery of Online Shopping

Disagree 5
Neutral 13
Agree 14
Strongly Agree 8
Total 42
Missing System 108
Total 150
Strongly Agree
Strongly
19%
Agree Agree
Agree 33%
Neutral
Neutral 31%
Disagree
Disagree 12%
Strongly
Disagree
Strongly
5%
Disagree
0% 10% 20% 30% 40%
who have made the purchase of computer or computer peripherals on internet. 31% of the
respondent were neutral that they like the delivery. While 33% and 19% of the respondents
were agree and strongly agree that they like the delivery of goods purchased on internet.

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11 f) Do you worry about the credit card number being stolen on the
Internet, If payment is made by credit card?
Credit card stolen

Dis agree 2
Neutral 3
Agree 9
Strongly agree 27
Total 42
Missing System 108
Total 150
Strongly agree
Strongly 64%
agree
Agree
22%
Agree
7% Neutral
Neutral
5%
Dis agree Dis agree
Strongly 2%
disagree
Strongly disagree
0% 20% 40% 60% 80%
respondent strongly agree that the worry about credit card number being stolen on internet
while 22% and 7% respondents agree and neutral respectively about the credit card number
being stolen on internet.

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12a) Did you ever been cheated by the Internet retailer?

Cheated
Valid Yes 9
no 33
Total 42
Missing System 108
Total 150
Gender * Cheated Cross tabulation

Count
Cheated
Total
yes no
Male 8 19 27
Gender
Female 1 14 15
Total 9 33 42
Cheated while buying on Internet

21%
yes no
79%
respondent i.e. is 9 respondents were cheated by internet retailer while 79% respondents
that is 33 respondents were not cheated by the internet retailer.

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12b) Did the Internet Retailer made any favor to your complain?
Favour to complain
Valid yes 29
no 13
Total 42
Missing System 108
Total 150
Gender * Favour to complain Crosstabulation
Count
Favour to complain
Total
yes no
Male 18 9 27
Gender
Female 11 4 15
Total 29 13 42
Internet retailer made favour

towards the complaint
yes no
respondents i.e. 29 respondents were favor by the internet retailer towards the complaint
made while 31% respondent i.e. 13 respondents feel that internet retailer didn’t made any
favor to their complaint.

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12C) Did you ever come to know that someone is cheated by internet
retailer?
Some one cheated
Particulars Frequency
Valid yes 23
no 19
Total 42
Missing System 108
Total 150
Gender * Some one cheated Crosstabulation
Count
Some one cheated
Total
yes no
Male 20 7 27
Gender
Female 3 12 15
Total 23 19 42
Any other cheated by Internet

retailer
45%
yes no
55%
respondents have came to know that some one is cheated by internet retailer while 45% of
the respondents have never heard that some one is cheated by internet retailer.

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12D) Do you recommend others for online buying?
Recommend others for Online Shopping
Valid yes 29
no 13
Total 42
Missing System 108
Total 150
Gender * Recommend others for Online Shopping Crosstabulation
Count
Recommend others for
Online Shopping Total
yes no
Male 19 8 27
Gender
Female 10 5 15
Total 29 13 42
Recommend others for online

buying
31%
yes no
69%
respondents recommend others for shopping online while 31% of the respondents don’t
want to recommend others for shopping online of computer or computer peripherals.

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13) What is the reason for not Buying online?
Reason for not Buying Online
Valid Insecurity of credit card transaction on the internet 29

Touch feel attribute is missing in online shopping 24
Threat of privacy violation 16
Lack of after sales service 17
Lack of customer service 10
Retail inexperience 4
Creates confusion 8
Total 108
Missing System 42
Total 150
Gender * Reason for not Buying Online Crosstabulation
Reason for not Buying Online
Insecurity of Touch feel

credit card attribute is Threat Lack of
transaction missing in of after Lack of
on the online privacy sales custome Retail Creates
internet shopping violation service r service inexperience confusion
Gender Male
20 5 7 14 8 0 5
Fem
ale 9 19 9 3 2 4 3
Total
29 24 16 17 10 4 8

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Insecurity of
30 29
credit card
25 transaction
24
Touch feel
20 attribute
16 17
15 Threat of
10 privacy
10 8 violation
5 4 lack of after
sales service
0
No. of respondent lack of
customer
service
Interpretation : From the above table and chart we canRetail
examine that out of 108
inexperience
respondents who have not made the purchase of computer or computer peripherals on
internet. 29 respondents has given reason for not buying online is insecurity of credit card
transaction while 24 and 17 respondents does not buy online because of touch feel attribute
is missing and because of lack of after sales service while 16 and 10 respondents does not
buy online due to threat of privacy violation and lack of customer service.

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14) Will you change your decision to buy online in future?

Change your Decision
Valid Yes 34
No 74
Total 108
Missing System 42
Total 150
Gender * Change your Decision Cross tabulation
Change your Decision

Total
yes no
Male 23 36 59
Gender
Female 11 38 49
Total 34 74 108
Change your decision to buy online

in future
31%
yes no
69%
who have not made the purchase of computer or computer peripherals on internet. 31% of
the respondent will change their decision to buy online in future while 69% of the
respondents are still resistant to do online shopping of computer or computer peripherals .

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6. CONCLUSION, MANAGERIAL IMPLICATION & FINDINGS
6.1 FINDINGS
The survey was quite successful to obtain information from respondent regarding different
aspects of online shopping
 In the world of information technology, youngsters are more aware about internet
shopping.
 From the survey it was found out that out of 150 respondents 76% of the
respondent i.e. 114 respondent are aware of internet retailing and only 26% of the
respondent i.e. 36 respondent are not aware of internet retailing. From the cross tabulation
we also examined that youngsters are more aware of internet retailing.
 From the survey it was found out that the respondents in the age group 21-30 years
and the respondents with the annual family income group of Rs. 2,00,000 to 3,00,000 and
above that tends to purchase computer and computer peripherals on internet. The major
respondents which purchase on internet are students.
 From the survey it was found out that out of the total 150 respondents, 28%
respondents i.e. 42 respondents have made the purchase of computer or computer
peripherals on internet. While 72% respondents i.e. 108 respondents have never made the
purchase of computer or computer peripherals on internet.
 From the survey it was found out that 28% i.e. 42 respondents have made the purchase
of computer or computer peripherals on internet , 27 respondents have made the purchase
of computers on internet on the other side 33 respondents have made the purchase of
computer peripherals on internet. There were 18 respondents out of 42 respondents who
made the purchase of both the computer and computer peripherals.
 From the survey it was found that 21 respondents have used the site through the
use of search engine followed by 9 respondents who used the site by the special offer they
saw and only 3 respondents have used the site through the use of T.V. advertisement.

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 In the survey 27 respondents have made the purchase of computers, 16

respondents have made the purchase of laptop while the desktop and palmtop purchaser
were 9 respondents and 2 respondents respectively. While the computer peripherals
purchaser were 33 respondents, in which 20 % of respondents have made the purchase of
digital camera the other peripherals which were purchased are scanner laptop batteries and
printer were 16% 13% & 11% respectively.
 From the survey 42 respondents who have made the purchase of computer or
computer peripherals on internet. In which 24 respondents prefer credit card as mode of
payment for delivery, while the other respondents who prefer cash on delivery, debit card
and money transfer were 11, 4 and 3 respondents.
 From the survey we examine that out of 42 respondents who have made the purchase of
computer or computer peripherals on internet. 69% of the respondents recommend others
for shopping online while 31% of the respondents don’t want to recommend others for
shopping online of computer or computer peripherals.
 From the survey we can examine that out of 108 respondents who have not made the
purchase of computer or computer peripherals on internet. 29 respondents has given reason
for not buying online is insecurity of credit card transaction while 24 and 17 respondents
does not buy online because of touch feel attribute is missing and because of lack of after
sales service while 16 and 10 respondents does not buy online due to threat of privacy
violation and lack of customer service.

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6.2 CONCLUSION
Increased Internet penetration, a hassle free shopping environment and high levels of Net
savviness see more and more Indians shopping online. But at the same time the companies
need to reduce the risks related to consumer incompetence by tactics such as making
purchase websites easier to navigate, and introducing Internet kiosk, computers and other
aids in stores.
The goal is not to convert all shoppers to online purchasing, but to show them it‘s 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 successful website design and by
addressing concerns about reliable performance.
From the analysis of questionnaire we can conclude that though the people are aware of
Online shopping, but still people hesitant to purchase through Internet. Demographically we
conclude, then youngster having more knowledge about Online shopping. As normally they
are educated or education is on, so they are in better touch with Internet. Also they are
influence by advertisements.
We can also conclude that people having negative attitude towards e-Retailing. People are
normally hesitant to purchase through Internet due to their wrong belief. In India still e-
retail is at introductory stage or we can say that at growth stage in metro cities. So ample
opportunities are there.
Thus, the online retailing raises more issues than the benefits it currently offers. The quality
of products offered online and procedures for service delivery are yet to be standardized.
Till the same is done, the buyer is at a higher risk of frauds.

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6.3 MANAGERIAL IMPLICATION
 Efforts need to be taken to educate the online buyers on the steps that need to be
undertaken while making an online purchase.
 Proper security should be assured to the people making online purchases. .
It is recommended that e-retailer must offer lower price and offer to attract more and more
customer.
 Stores those provide e-retailing must have performed demonstration to make

customer aware and create trust among them.
 Stores who provide these facilities must have developed their own store card, so
customer who don’t have credit card, can also purchase.
Delivery charge must be as low as possible as it can, and delivery must be as fair as
possible.
 Retailer who provides e-retailing facility must have their service station on
regional basis to promote after sale services.
 E-retailers must come up with new promotional strategies and price strategies to
achieve sustainable competitive advantage.
Retailers who provide e-retailing facility must maintain the quality level in each
categories of product as physical orientation is not there so that the concern of customers
towards quality can be taken into consideration.
Retailers should provide safety precautions like anti hacking software or anti theft
software, as a lot of customer use credit card when they do online transaction.

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BIBLIOGRAPHY
BOOKS:
Business Research Methodology

Author: Donald cooper and Pamela Schindle
Publisher:-TATA McGraw hill
Year of publication:-2003
Donald cooper and Pamela Schindle (2003),”Business research methodology ,”TATA
McGraw hill.
Marketing Management
Author: Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha
Publisher:-Dorling Kindersley (India) pvt. Ltd. Licenses of Pearson education
Year of publication:-2007
Philip Kotler and Kevin Lane Keller, marketing management (2007) 12th edition, Pearson
education
Websites:
 http://www.extreme-dm.com/tracking/
http://www.expresscomputeronline.com/eretailing.html
http://www.globalsources.com/docs/eret.htm
http://www.searchit.com/addurl.htm
http://www.woyaaonline.com.tlist/eRetailing.html
http://www.quova.com/page.php?id=35
http://www.crm2day.com/news/crm/EpFFAZAkZyOETHOUtr.php
http://www.disl.com/eretailing.htm
http://www.bitpipe.com/12943.htm
http://www.comtrust.co.ae/docs/eret.htm#top
http://www.findarticles.com/p/articles/mi m3374/is 5 21/ai 54186738
http://www.dmnews.com/cms/dm-news/direct-response-tv/12833.html

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http://www.equitymaster.com/articles/mi m 3425/ai.html
http://www.siliconindia.com.tlist/eRetailing.html
http://www.laws4india.com/addurl.htm

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Questionnaire
We are conducting a survey about Online Buying Behaviour and would like to
know your views and opinions for this. We hope you will not mind spending
few minutes from your precious time helping us by completing these few
question.
We’d like to know your views about Consumer Buying Behaviour towards
Online Shopping of Computer and Computer Peripherals in Lucknow
City, so we request you to please fill up the following questions.
Name:
Contact No:
E-mail address:
Age group: Gender:  Male  Female
 < 20 yrs  21-30yrs  31-40yrs  41-50yrs  >50yrs

What is your Occupation? (Mark as applicable)
 Business  Profession  Student

 Service  Others
What is your Annual family income?
 Less than-50,000  50,000-1,00,000  2,00,000-3,00,000

 1,00,000-2,00,000  Above 3,00,000
What is your highest level of education? (select multiple)
 High school  Diploma 

Undergraduate
 Graduate  Post Graduate  P. hd.
 Others (specify)______________________
Are you aware of Internet Retailing?
 Yes  No

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1) Have you ever made purchase of computer / computer peripherals over

internet?
 Yes  No
a) Computer  Yes 
No
b) Computer Peripherals  Yes 
No
If your answer is No, please go to question no. 13
2) In the past three months, have you purchased any computer or

computer peripherals through Internet, for your personal use?
 Yes  No
3) What helps you decide which site to you use for shopping online?
 Search engine  Personal recommendation  Special offer I saw

 Online advertising  TV advertising
4) What type of Computer you have purchased on the Internet?
 Desktop
 Laptop
 Palmtop
 I - Pad
 Other (specify)___________________
5) What types of Computer Peripherals you have purchased on the

Internet? (select multiple)
 Mother Board  Monitors  Hard
Disk
 Digital Camera  Printer  Key
Board
 DVD Rom/DVD Writer/ External Driver  Scanner
 C.P.U  UPS  Mouse
 Laptop batteries  Other (Please
Specify)_________________
6) Which kind of mode of payment do you prefer? (select multiple)
 Cash on Delivery  Credit Card  Debit card

 Cheque  Demand Draft  Money Transfer

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 Other
7) Did you ever return the computer after you have received it?
 Yes  No
8) Did you ever return the computer peripherals after you have received
it?
 Yes  No
9) Did you contact the customer service department of Internet retailer

with a complaint or problem?
 Yes  No
10) How many transactions have you made with the Internet retailer over
the past 12 months?
01  2  3  4  5  6  or more___________
Below are the questions related to the online buying of computer and computer peripherals
11) Please give following answers with tick mark (√) in a particular
number box.
1= Strongly Disagree
2= Disagree
3= Neutral
4= Agree
5= Strongly Agree
Questions 1 2 3 4 5
Do you think on-line buying is a novel,
fun way to shop?
Do you think Internet shopping offers
better selection than local stores?
Do you think the Internet offers lower
prices than local stores?
Do you find the Internet ordering
process is hard to understand?
Do you like the delivery of Internet
buying?
Do you worry about the credit card

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number being stolen on the Internet?

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12) Please give following answers with tick mark (√) in a particular box.
Questions Y N
e o
s
Did you ever been cheated by the Internet
retailer?
Did the Internet Retailer made any favor to your

complain?
Did you ever come to know that someone is
cheated by internet retailer?
Do you recommend others for online buying?
Any suggestions in regards to Online Shopping
If your answer is No to the purchase of computer and computer peripherals over

internet please answer the following
13) What is the reason for not Buying online?
 Insecurity of credit card transaction on the Internet

 Touch feel attribute is missing in online shopping
 Threat of privacy violation
 Lack of after sales service
 Lack of customer service
 Retail Inexperience
 Creates confusion
 Others_____________
14) Will you change your decision to buy online in future?
 Yes  No
Any suggestions in regards to Online Shopping
THANK YOU

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Mba Eb PROJECT Research On Onoine Buyer Behaviour

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Consumer Behavior for Online Shopping

1.1 What is E-Marketing?

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.2 What is E-Business?

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.3 E-Marketing in Context Past and Present

1.4 E-Business Strategy

• The deployment of enterprise resources to capitalize on technologies for reaching

• Corporate-level business strategies including information technology components

E-BUSINESS STRATEGY=CORPORATE STRATEGY + INFORMATION

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.5 E-Marketing Strategy

Strategic e-marketing is the design of marketing strategy that capitalizes on the

E-MARKETING STRATEGY=MARKETING STRATEGY + INFORMATION

1.6 Six Step E-Marketing Plan

1.6.1 Step 1 : Situational Analysis

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.6.2 Step 2 : E-Marketing Strategy

Tier 1 : E-Marketing Strategy Planning

The purpose of supply analysis is to assist in forecasting segment profitability as well as to

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

Tier 2 : E-Marketing Strategic Planning

1.6.3 Step 3 : Formulate Objectives

While e-commerce transactions are an exciting dimension of e-business presence, other

1. Increase market share

1.6.4 Step 4 : E-Marketing Strategy

E-marketers pay special attention to information gathering tactics because information

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.6.5 Step 5 : Budgeting

 Other site development expenses

1.6.6 Step 6 : Evaluation Plan

1.7 E-MARKETING PRODUCTS

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

 Personalized URL (PURLS)

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.8 Benefits of E-Marketing

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

1.8.7 Demographics and Targeting

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

2. INTRODUCTION TO ONLINE SHOPPING

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

 Various types of electronic money

 Wire transfer/delivery on payment

 Direct debit in some countries

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

2.6 Product delivery

2.7 Shopping cart systems

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

2.9 Information load

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

2.10 Consumer expectations

2.11 User interface

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

2.12 Market share

For developing countries and low-income households in developed countries, adoption of e-

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

In most cases, merchandise must be shipped to the consumer, introducing a significant

2.13.2 Information and reviews

Submitted by Akhilesh P Singh Department of Business Administration, Lucknow University

Some online stores provide or link to supplemental product information, such as