Vandan Pandey

UNIVERSITY OF PETROLEUM & ENERGY STUDIES
School of Business, Dehradun
Consumer behaviour
in
online shopping
Submitted to: Mr. Naveen Chandra pandey
Submitted by: vandan pandey
500056309
BBA(DM)
Certificate
This is to certify that vandan Pandey of BBA Digital marketing - 2016-19 Batch”
has satisfactorily completed the thesis entitled, “Consumer Behaviour in Online
Shopping” in partial fulfilment of the requirements for the award of “ Bachlores in
Business Administration- Digital marketing"
Date: 19th April 2019

Place: Dehradun
Abstract
The Internet has developed into a new distribution channel and online transactions are rapidly
increasing. This has created a need to understand how the consumer perceives online purchases.
The purpose of this dissertation was to examine if there are any particular factors that influence the
online consumer. Primary data was collected through a survey that was conducted on students and
Employees from different part of India.
Price, Trust and Convenience were identified as important factors. Price was considered to be the
most important factor for a majority of the Customers.
Furthermore, three segments were identified, High Spenders, Price Easers and Bargain Seekers.
Through these segments I found a variation of the different factors importance and established implications
for online stores.
TableofContents
1 Introduction ......................................................................................................................... 5
1.1 Background .................................................................................................................. 5
1.2 Problem........................................................................................................................ 5
1.6 Summary ...................................................................................................................... 7
3.2.2 Online Consumer Characteristics .............................................................................. 16
1.7 Specific Consumer Traits and Online ........................................................................... 18
1.8 Important Influencing Factors ..................................................................................... 19
1.9 Summary .................................................................................................................... 24
2 Results ............................................................................................................................... 28
2.1 Introduction ............................................................................................................... 28
2.2 Questionnaire–Collected data..................................................................................... 28
2.2.1 Online Consumer Traits ......................................................................................... 28
2.2.2.................................................................................................................................. 38
2.2.3 Online Consumer Behaviour .................................................................................. 41
2.2.4.................................................................................................................................. 43
2.3 Identified Attributes ................................................................................................... 43
2.3.1 Primary Factor ....................................................................................................... 48
2.3.2 Significance of the factors within the segments ..................................................... 50
2.4 Segments.................................................................................................................... 51
2.4.1 DescriptionofSegmentOne:HighSpenders .............................................................. 51
2.4.2 Description of Segment Two: Price Easers.............................................................. 52
3 Conclusions ........................................................................................................................ 56
3.1 Future research .......................................................................................................... 56
4 References ......................................................................................................................... 57
5 Appendix ............................................................................................................................ 58
1 Introduction
The introduction chapter will be explaining the purpose of my research. There search questions,
limitations and a background will be presented.
1.1 Background
The invention of the Internet has created paradigm shift of the traditional way people shop. A
consumer is no longer bound to opening times or specific locations; he can become active at virtually any time
and place and purchase products or services. The Internet is a moderately new mode for correspondence
and data trade that has turned out to be available in our regular day to day existence. The quantity of
Internet clients is always expanding which likewise means that web based obtaining is expanding. The rapid
increase is explained by the growth in the use of broadband technology combined with a change in consumer
behaviour.
The Internet is considered a mass medium that provides the consumer with purchase characteristics as no
other medium. Certain characteristics are making it more convenient for the consumer, compared to the
traditional way of shopping, such as the ability to at any time view and purchase products, visualise their needs
with products, and discuss products with other consumers. Oppenheim and Ward explain that the current
primary reason people shop over the Internet is the convenience. They also recognize that the previous
primary reason for shopping online was price, which has now changed to convenience.
Web based shopping is the procedure buyers experience when they choose to shop on the
Internet. The Internet has formed into "another" dispersion channel and the development of this channel
online business ,has been recognized by Smith and Rupp to be the most critical commitment of the data
insurgency. Using the Internet to shop online has become one of the primary reasons to use the Internet,
combined with searching for products and finding information about them. Smith and Rupp also state that the
consumers have never had access to so many suppliers and product/service opinions. Therefore, the Internet
has developed to a highly competitive market, where the competition over the consumer is fierce. In order to
have an impact on and retain consumers, in a competitive market, Constantin ides stated that the first step is
to identify certain influencing aspects when purchasing online, these can be regarded as factors.
1.2 Problem
At any given time there are millions of people online and each of them is a potential customer for a
company providing online sales. Due to the rapid development of the technologies surrounding the Internet,
accompany that is interested in selling products from its website will constantly have to search for an edge in
the fierce competition. Since there are so many potential consumers, it is of the out most importance to be
able to understand what the consumer wants and needs.
The importance of analysing and identifying factors that influence the consumer when he or she decides to
purchase on the Internet is vital. Since the Internet is a new medium for there have been new demands set by
the consumer. That is why it is crucial for the online retailers to know what influences the online consumer.
Examining shopper conduct is certifiably not another wonder. The famous showcasing master Philip Kotler
has distributed a few takes a shot at the subject of buyer conduct hypotheses. These speculations have
been utilized for a long time not exclusively to comprehend the customer, yet in addition make a
showcasing system that will pull in the buyer productively. Consequently, understanding and
distinguishing the shopper is firmly identified with the bearings an organization will take with their
advertising technique. These hypotheses can likewise be connected to distinguish the online purchaser
and to make certain buyer sections. In any case, a few qualifications should in any case be made while
thinking about conventional shopper conduct and online customer conduct.
Since internet retailing is another retailing medium and online shopper conduct is assorted from
customary buyer conduct, one must distinguish what impacts the online purchaser. Investigating the
procedure that the online buyer experiences when choosing and making a buy over the Internet,
demonstrates a few factors that customers consider. These variables should be recognized and considered
by online retailers so as to fulfill customer requests and contend in the online market. To additionally see
how these variables, impact distinctive sorts of customers, I should recognize portions which will
empower us to make examinations.
1.3 Research Purpose
The reason for this examination is basically to distinguish and get knowledge in to what primary factors
the online purchaser contemplates when obtaining on the web. Further, I will examine if any portions can
be set up by distinguishing the customers and how these fragments identify with the recognized
components. The discoveries of this exploration will be plot a suggestions for online retailers so as to
improve their shopper information and increment their web based showcasing system viability.
1.4 Research Questions
• What principle factors influence the online customer when considering and making a buy over
the Internet?
• How do these variables impact the shopper when buying on the web?
• What sort of sections can be found inside the distinguished buyers when acquiring on the web?
• What is the association with the distinguished elements and buyer fragment gatherings?
1.5 Limitations
There are various variables impacting the online purchaser. In any case, this exploration will attempt to
recognize the fundamental components affecting the online customer and will, accordingly, endeavor to
constrain these to a couple so as to have the capacity to research the impact on the online buyer. Inside
the field of customer conduct there are numerous speculations and models that distinguish the shopper.
This exploration will constrain itself to recognizing the customer through his/her purchaser qualities and
the buyer purchasing process. Purchaser conduct varies relying upon what item or administration is
purchased. Subsequently, unique elements are of various significance to customers contingent upon the
item or administration. In this way, this exploration will confine itself to since this is the item that is most
broadly purchased on the Internet. This appeared to be the most fitting decision thinking about the
restrictions in both time and assets.
1.6 Summary
Since the rapid development of the Internet online shopping has become a new and widely used
medium for retailing. In order to understand the consumer, the retailers need to know what influences the
consumer. That is what I want to accomplish with my research.
2 Method
2.1 Choice of Methodology
I will endeavor to locate the principle factors that impact the online purchaser when making an
online buy. So as to widen my own comprehension of the subject I led my underlying examination in
writing on buyer conduct and online business. I investigated examines that had comparable points and
given specific consideration to their outcomes.
For my own exploration I chose that the most fitting methodology would be a survey that would
be rounded out by understudies and representatives.
This investigation began as an exploratory examination however formed into an illustrative
examination since I began with first picking up information about purchaser conduct to additionally having
the capacity to pick up learning about online customer conduct. Having this learning, I keep on
distinguishing explicit variables that are of significance when the online purchaser is making on the web
buys. This data is then utilized so as to discover connections and relationships between's these factors.
2.2 Research Approach
There are two most normally utilized research approaches, the inductive and the deductive
strategy. The inductive research strategy endeavors to setup a hypothesis by utilizing gathered
information, while the deductive research approach endeavors to discover the hypothesis first and
afterward test it to the watched information. I picked a deductive research approach for my examination
as I would move from the more broad to the particular. I will show the hypothetical discoveries on
customer conduct in the following section, after which I will introduce my poll in part four where I present
my gathered essential information.
2.3 Research Philosophy
When beginning an examination there must be a comprehension of in which way the investigation
will be drawn closer. The set up research theory clarifies this methodology when gathering and breaking
down information. The examination procedure has three principle centers: positivism, authenticity, and
interpretive (Saunders,Lewis&Thornhill,2007).
Positivisms the methodology where the specialist does not have any desire to be influenced by
nor influence the subject of the examination. The specialist trusts that the gathered and examined
information can be improved to permit like speculation utilizing existing speculations to create theories
from these. In the reasonable methodology, there is a reality existing autonomous of the psyche. Like the
positivistic methodology it accept a logical way to deal with the advancement of learning. The interpretive
method for moving toward the subject of the examination does not concur with the way that law-like
speculations can be made. Rather it stress that the human personality and the social world are excessively
unpredictable so as to be summed up (Saundersetal.,2007)
My exploration will be led with a positivistic methodology, since I will attempt to influence and
meddle with the gathered information as meager as could be expected under the circumstances.
2.4 Research Strategy
When gathering information to approach the motivation behind an examination there are two
manners by which the information can be gathered. So as to obtain a general information about the point,
optional information is essentially utilized what's more, is one of the ways by which information can be
gathered. These Conway to gather information is the essential information accumulation. Normally when
an investigation is directed, optional information isn't sufficiently adequate and should be finished with
essential information which is gathered by the scientist (Christensen,2001).
2.4.1 Secondary Data
Optional information can be characterized into three unique subgroups: narrative, numerous
source, and review. Narrative second and information comes in both composed and non-composed
structure. The information can be gathered from sources, for example, diaries, databases, transcripts and
so forth. This type of information is subject to the entrance the analyst needs to it. Overview based
optional information is the information that is gathered through the study and is accessible as information
table structures. Numerous source optional information is information that has been arranged into
narrative or review structure; the principle qualities of this kind of information is that it has been changed
into an alternate structure before there searcher is surveying the information (Saundersetal.,2007).
I have principally utilized narrative optional information joined with various source information.
Narrative optional information has been the information gathered through various sorts of research led
inside the point, articles, and that are composed on buyer conduct and web based business. This kind of
information has been the central hotspot for picking up learning inside the theme with the goal for us to
be capable methodology the exploration issue. The auxiliary information that I utilized for our
examination his information that has likewise lead to the finish of which factors that will be inspected.
The different source information that I have utilized has been so as to pick which item I would use for our
examination so as to have the capacity to discover the item that is most broadly purchased over the
Internet.
2.4.2 Primary Data
Essential information for our exploration was gathered through polls. When gathering essential
information one can do interviews, perceptions, trials, and surveys. Because of the motivation behind our
examination, just the survey technique would almost certainly approach the theme and have the capacity
to gather the appropriate responses in a palatable way. In our examination the essential information is
fundamentally worried about dissecting the respondent so as to later on group the respondent. Further
on, the essential information will be utilized to break down the variables and how these are identified
with the respondent. The essential information is led in a way to have the capacity to approach our
exploration and settle our examination questions. The poll will be clarified in more detail in chapter5,
theEmpiricalmethodology.
2.5 Summary
So as to discover the components that impact the online buyer, as I have embarked to do, this
examination will go from an exploratory to informative investigation. This additionally clarifies the
deductive methodology that I picked, as I first swing to the writing so as to pick up learning. I would prefer
not to influence the respondents' answers and I, in this way, play out a positivistic way to deal with the
investigation. By utilizing optional information I endeavor to discover the impacting customer factors and
afterward proceed with essential information all together explore the impact of the components
3 Theory
3.1 Introduction
This thesis goes for discovering factors that influence the online buyer's purchasing conduct. By
perusing writing concerning purchaser qualities and online shopper attributes I accept to discover
suggestions for specific factors that are of significance for the online buyer.
The Internet is a worldwide open arrangement of PC organizes that transmit information by

bundle exchanging utilizing the standard I Internet Protocol. It is a "system of systems "that comprises of
a huge number of littler household, scholarly, business, and government systems, which together convey
different data and administrations, such a select, record exchange, the interlinked WebPages and
different reports of the World Wide Web. Initially the Internet was essentially utilized by scholastics, look
into researchers and understudies; anyway that situation has changed as business associations have
moved to fuse the World Wide Web into their limited time battles, and by offering the office of web based
buying (Jobber&Fahy,2003). The Internet has developed into a worldwide available commercial center for
data trade and web based business. The key significance to be accessible for buyers on the World Wide
Web, with data and administrations has turned out to be especially important to firms.
As indicated by Vesterby and Chabert (2001) the Internet can make it simpler for organizations to
have data about their items or administrations accessible to their clients or potential clients. An
organization can fulfill the purchasers' individual need of data easily in contrast with conveying item
pamphlets for instance. As the client can pick data from sites, which suggests that the data supplier can
accomplish better comprehension of the client's needs and needs by gathering information. Then again,
the Internet is a spot with barely any structure or guidelines: in this way, substantial endeavors are
required so as to demonstrate the buyer where a particular webpage is found, and what administrations
are accessible on that website. Vesterby and Chabert (2001) guarantee that organizations with no physical
nearness must market themselves extensively, both on the web and disconnected, for the shopper to
recall their name.
Regardless of whether it is the customary market or the online market, the advertiser must
comprehend the shopper and how he settles on his choices and buying choices(Hollensen,2004), in light
of the fact that the purchaser is under a consistent progression of boosts from the advertisers notices.
The advertiser has the likelihood to choose and to control the yield that will be sent to the shoppers,
however when the notice achieves the customer that control closes. The buyer at that point deciphers
the data that has been conveyed in his own specific manner dependent on explicit elements for each
shopper. Subsequently advertisers have created distinctive speculations that can clarify why shoppers
translate data with a particular goal in mind, and there by comprehend certain practices
(Kotler&Armstrong,2007). A few articles have embarked to recognize the attributes of the online
purchaser. Allred, Smith and Swinyard (2006) recognize the online customer to have the accompanying
qualities: more youthful, wealthier, better instructed, having a higher "PC education" and are greater
retail spenders.
Donuthouand Garicia (1999) distinguish the online consumeras: more established, get more cash-
flow, comfort searcher, creative, rash, assortment searcher, less hazard mindful, less brand and cost
cognizant, and with an increasingly inspirational frame of mind towards promoting and direct advertising.
A portion of these attributes are comparative, while others are the inverse.
Attempting to distinguish the online customer is troublesome since the quick advancement of
internet business has likewise prompted an expansion of the two advances and distinctive sorts of buyers.
It is additionally realized that the kind of item impacts the online purchaser conduct which makes it
progressively hard to distinguish customer qualities (Christopher&Huarng,2003). There are still a few
qualities that can be recognized to determine the online purchaser and the accompanying content will
attempt to do as such.
3.2 Customer Behavior
Donal Rogan (2007) clarifies the connection between buyer conduct and advertising technique.
He expresses that "system is tied in with expanding the likelihood and recurrence of purchaser conduct.
Necessities for prevailing with regards to doing this are to know the client and comprehend the shopper's
needs and needs."
Chisnall (1995) out that human needs and thought processes are inseparably connected and that
the connection between them is so exceptionally close that it ends up hard to distinguish the exact
contrast which may portray them. Individuals may purchase new coats since it secures them against the
climate, yet the irreal hidden prevailing need might be to pursue the most recent style pattern.
Purchasers' attributes are significant hypotheses from Kotler and Armstrong (2007) and it clarifies the
manner in which that the shopper translates and gets upgrades from promotions. The choices of
purchasers are affected by various individual attributes that are connected to the buyer's particular needs
(Kotler and Armstrong, 2007).
3.2.1 Consumer Characteristics
Shopper qualities are clarified by: Cultural attributes, Social attributes, Personal attributes, and
Psychological Characteristics. These attributes are recognized, by the advertiser, so as to distinguish the
customer and to have the capacity to settle on the methodology to what sort of shopper to target.
Consequently, these attributes are utilized so as to fragment the market and target explicit customer
gatherings.
Social Characteristics
The Cultural Characteristics are perceived as the primary influencer of buyer conduct. These
qualities are created by three highlights under sticking shopper conduct: Culture, Subculture, and
SocialClass.
Culture is referenced as the most fundamental reason for an individual's needs and needs. Kotler
and Armstrong (2007) contends that human conduct is generally learned and that I are presented to
various arrangements of qualities and convictions since early on, and that these qualities impact our
conduct and basic leadership. Consequently, these qualities are intriguing for advertisers and significant
pointers of certain shopper conduct and taste.
Subcultures are little gathering developments with a specific number of individuals that share
esteems and convictions, for example, nationalities, religions or geographic districts. A distinguished
subculture can fill in as a significant and powerful market fragment which can be focused on.
Social class is perceived by Kotler and Armstrong (2007) as a class structure, comprising of a mix
of elements which accumulate distinctive sorts of individuals. Some distinguished variables are pay, age,
training, and riches
Social Characteristics
The Social Characteristics are separated into three distinct classes, specifically Reference Groups,
Family and Social Role and Status.
Reference Groups– According to Kotler and Armstrong (2007) the impacts of the Reference
Groups is chiefly founded on the conviction that an individual's conduct is affected by numerous little
gatherings. At the point when a gathering has an immediate impact it is known as a Membership Group,
for instance: family, neighbors and associates. Reference Groups are the gatherings to which the
individual regularly needs to be long to and to be separated of yet isn't. These gatherings in a roundabout
way and straightforwardly structure an individual's conduct and frames of mind. There are three diverse
ways by which these gatherings impact an individual's conduct; they may open an individual to new
practices and ways of life, impact an individual's frames of mind and self-ideas and furthermore make a
weight of affirmation by Reference Groups. Another impact of significance is the sentiment chief . A
conclusion head is an individual that impacts others to pursue his accepts and demeanors towards specific
issues, items or zones (Kotler& Armstrong,2007).
Family– Family individuals affect the purchasing conduct. The contribution and impact by various
relatives fluctuates, both to which degree yet additionally how. Along these lines, it is significant for
advertisers to comprehend which job is played by whom in the family and direct the notice towards the
fundamental affecting piece of the family.
Jobs and Status– Each individual has a place with various kinds of gatherings and furthermore
assumes diverse jobs while having distinctive positions in the different gatherings. Jobs are distinguished
by Kotler and Armstrong (2007) as what exercises individuals are required to perform from different
individuals from the gathering.
Individual attributes
These individual attributes are sorted into: Age and Life-CycleStage, Occupation, Economic
Situation, Lifestyle, Personality and Self-Concept.
The Age and Life-Cycle Stage These stages clarify distinctive periods in life that the buyer
encounters as he experiences life. These diverse stages likewise speak to various changes that the
customer may encounter when achieving another stage. As indicated by Kotler and Armstrong (2007)
advertisers, along these lines, characterize their objective markets interms of the distinctive stages so as
to create fitting promoting plans.
Occupation– The occupation will in general affect the items and administrations purchased by the
customers. This prompts the likelihood of creating distinctive sorts of items or administrations that suits
intrigues distinguished to be better than expected inside an occupation.
The Economic Situation– Wealth will influence a shopper's item decision. A buyer might be value
touchy or not relying upon the dimension of pay, dimension of funds, dimension of financing costs, and
furthermore the item or administration itself.
Lifestyle– This is distinguished to be an individual's method for living which is perceived by the
exercises, intrigue, or assessment she or she has and it additionally clarifies the manner in which a shopper
associates on the planet.
Personality– This is for the most part clarified by the terms fearlessness, predominance,
friendliness, independence, preventiveness, versatility and forcefulness. These mental components are
an aftereffect of one's condition. Identity can be characterized as a dynamic and sorted out arrangement
of attributes controlled by an individual that particularly impacts his or her inspirations, and practices
invarious circumstances (Ryckman,2004).
Self-idea or Self Image– Is the theoretical understanding that individuals' assets mirror their
identities. This idea brings a few clashes on the off chance that individuals may have a picture that fulfills
their identity yet does not concur with who they need to be (the perfect self-concept),the question at that
point emerges which one I would need to fulfill.
Mental Characteristics
The mental qualities are separated into the accompanying ideas: Motivation, Perception,
Learning, and Beliefs and Attitudes.
Motivation– Motivation alludes to an individual needs that must be fulfilled. These requirements
are of various kind; some are natural, for example, yearning, thirst and distress ,and some are mental, for
example, the requirement for acknowledgment, regard and having a place. Needs are not fulfilled until
they achieve a specific purpose of power and become a thought process in the purchaser to fulfill them.
Kotler and Armstrong (2007) talk about a few inspiration hypotheses, among them are Freud's and
Maslow's speculations of inspiration. Freud contended that an individual does not so much and
completely get his or her inspirations. Maslow then again needed to comprehend why a few people set
out to fulfill a few needs before others.
He at that point reached the resolution that human needs are masterminded in a progressive
system from the most squeezing to minimal squeezing, as Kotler and Armstrong (2007) clarifies it. These
necessities are recorded as mental needs, wellbeing needs, socialneeds, regard needs, and self-
completion needs. When one need has been fulfilled, an individual proceeds onward to fulfill the
following.
Observation This characteristicis dependent on the comprehension of how distinctively I see a
similar circumstance or similar upgrades. Kotler and Armstrong (2007) clarifies observation as the
procedure by which individuals select, compose, and decipher data. There are three unique procedures
that choose how I translate certain data. These are Selective Attention, Selective Distortion, and Selective
Retention.
Learning– Learning is, as indicated by Kotler and Armstrong (2007), a demonstration that changes
individuals' conduct as a result of their experience. It happens through drives: solid inward needs that call
for activity, boosts: object that drives for certain activity, prompts: little improvements that determinate
when, where and how the individual will react and fortification: when the reaction and upgrades towards
an item is experienced more than once.
Convictions and Attitudes– These are obtained by individuals through learning and encountering.
They impact the purchasing conduct by making up brands and item pictures in the shopper's heads. A
conviction is clarified by Kotler and Armstrong (2007) as an illustrative considered something and depends
on genuine learning, suppositions or confidence. Convictions can likewise be candidly charged. Frames of
mind are depicted as an individual's assessments, emotions, and propensities towards something, yet in
addition conclusions of individuals, for example, as and despises.
3.2.2 Online Consumer Characteristics
More specific identifications of the online consumer need to be made in order to understand the
online purchase behaviour. The identified characteristics are some key characteristics in regard to the
online consumer. These key characteristics were made in order to identify online consumers and to be
able to segment them.
Cultural Online Characteristics
Smith and Rupp (2003) identify that the difference in social class creates a difference in purchasing Online
Behaviour. Consumers from a higher social class generally purchase more and have a higher intention to
purchase online because there is a higher probability that they possess a computer and also have greater
access to the Internet. Consumers from lower social classes would not have the same properties. The
authors also point out that consumers with lower social class, and there by not having the same
properties, would not have the needed computer literacy to be able to leverage a computer.
Social Online characteristics
The social influence on the online consumer comes from new Reference Groups compared to the
tradition always. For the online consumer new Reference Groups were identified as virtual communities,
consisting of discussion groups on a website. The consumer can read about other people’s experiences
and opinions which have shown to have the effect of Reference Groups (Christopher &Huarng, 2003).
Other Reference Groups, which are identified by Christopher and Huarng (2003), are links to product
related websites, which encourages product selection and contact information.
Personal Online characteristics
Monsuwé, Dellaert and Ruyter (2004) explored the personal online consumer characteristics
and concluded that income has a vital role for online purchasing behaviour. The authors discussed
Lohseetal .(2000) who pointed out that consumers with higher house hold income would have a more
positive attitude towards online shopping. This conclusion was explained by the fact that house holds
with higher income would have a positive correlation with the possession of a computer, Internet access,
and higher education.
Smith and Rupp (2003) also identified the age factor as a determinant for online purchase
intentions. They argued that older people who had no frequent interactions with the Internet and the
computer would not use the Internet as a medium for purchases, while young adults would. This was
concluded by that the young adults used the Internet and computers more frequently. Younger people
were also identified to have more technical knowledge. Monsuwéetal. (2004) also supported this
judgement by concluding that younger adults usually have greater interest in using new technologies to
browse for information and evaluate alternatives.
Psychological Online Characteristics
Smith and Rupp (2003) identified the psychological characteristics of consumer behaviour as
questions the online consumer would ask himself before making a purchase online.
Motivation–The consumers is reasoning for incentives to engage in a particular behaviour. He may ask
himself questions like: should I look around for better price? If online shopping saves me time, should I
shop online more often? How much do I really need this product?
Perception- The consumer is interpreting acquired information by classing it. Questions such as the
following may come about: I feel that this site seems pretty secure. It seems that this site has a good
product but how can I be sure?
Personality- The consumer is adapting to influences of his cognitions. He may ask himself, what types of
Web sites are best suited for his personal buying preferences.
Attitude- The consumer is working out what his likes and dislikes are in respect to a particular situation.
He may ask himself: I am pretty unsure about extra costs, should I really be buying items from the
Internet? If I do not buy the item online, how else can I get it?
Emotions-The consumer is without conscious effort detecting how he is being affected by his cognitive
choice. He may ask himself: The last time I ordered from the Internet I had a really bad experience .Should
I try buying online again? What is the future of buying online? If Websites get better should I invest more
time in buying online?
1.7 Specific Consumer Traits and Online

Behaviour The online consumer’s characteristics that I have identified to be the most important ones
to have an effect on the online consumer, will be referred to as specific Consumer Traits and how the consumer
uses the Internet will be referred to as Online Behaviour.
The online consumer characteristics such as personal, social, and psychological characteristics need
to be identified in order to understand what is important for the online consumer. These characteristics reveal
the consumers’ lifestyle and identify who the consumer is and what attitudes he has towards online shopping.
Therefore, I will be using the following characteristics to segment the online consumer, by analysing:
 The consumer’s demographics, as Bergmanetal.(2005).

 Life patterns concerning Online Behaviour, such as how much the consumer uses the Internet,
Webographics, as Bergmanetal.(2005).
 For what purposes, Internet Usage, also as Bergmanetal.(2005).
 How much the online consumer shops online, Online Shopping Patterns, can be used in order to find
out what impact certain factors have on different type of consumers (Bergmanetal.2004).
 Prior experiences have also been identified to be relevant for what Beliefs and Attitudes the
consumer has towards online shopping and are therefore also important for there
search(Monsuwéetal.2004).
 Social influences have an effect on the consumer in the early decision making stage and these were
referred to as Reference Groups (Christopher&Huarng2003).
These are the consumer characteristics that are relevant for this research and need to be identified in
order to find out who the online consumer is and what affects him when shopping online. These I will be
referred to as Consumer Traits and Online Behaviour.
To summarise the prior text and to answer the question what identifies an Online Consumer, one can
draw the conclusion that for this research the important consumer characteristics that need to be identified
are:
 ConsumerTraits
 Demographics
 AttitudeandBeliefs
 ImpactofReferenceGroups
 OnlineBehaviour
 Webographics
 OnlineShoppingPatterns
 InternetUsage
Gender, Age,
Demographics
Income
Online Consumer Previous and

Attitude and Belifs
Traits Future Experience
Impact of Family, Friends and

reference groups Online forum
Online Consumer
Segments
Webographics Time spent online
Online Shopping
Online Behaviour Expenditure
Patterns
Fun, Work, Emails,

Internet Usage Information,
Shopping
Figure1-1TheOnlineConsumerSegmentSubdivisions
1.8 Important Influencing Factors

When processing the previous literature in order to find what Specific Consumer Traits and Online
Behaviour that needs to be identified, I gained knowledge of which factors that were highly important for the
online consumer.
Brengman, Geuenes, Weijters, Smith and Swinyard (2005) segment online consumers through first
identifying the Internet usage lifestyle of every consumer; they believe that the Internet experience is highly
relevant for the identification of the online consumer. Lifestyle is, as presented above, a describing group of
consumers’ personal characteristics and is expressed as a person’s demographics. These living patterns show
what opinions and interests a consumer has for certain products, for what reasons and
which intrigue they have in the Internet, the Internet utilization. The examination arrived at the
resolution that four portion gatherings could be conceptualized and these would arrange the online
purchasers as per their shopping conduct. The diverse properties, that clarify these fragments,
demonstrate that the variables Price, Trust and Convenience are very significant influencers on the online
buyer shopping conduct (Brengmanetal.,2005).
Monsuwéetal. (2004) made a structure through their investigation that would help the
comprehension of buyer's frames of mind towards web based shopping . Demeanors and convictions are
isolated from buyer's mental attributes and for the most part controlled by learning and related
involvements. Further, Bellenger pointsout that the capacity to lead value correlations has been refered
to as a noteworthy motivation behind why purchasers utilize the Internet (Wallace, 1995). Value sensitives
containers are basically worried about purchasing items at the least cost or getting the best an incentive
for the cash they burn through (Bellenger,1980).
There have been numerous endeavors to distinguish and fragment the online purchaser through
different examinations. By perusing distinctive investigations I have recognized certain variables that were
always present in the writing. There are numerous variables that affect the online buy conduct, yet I have
distinguished Price, Trust and Convenience to be significant and will put our consideration regarding these
three elements.
3.4.1 Identified Factors influencing Online Consumer Behavior
Value which is a piece of the advertising blend is a figure utilized request to invigorate the shopper
and is likewise a communicator, deal apparatus, and a focused weapon. The buyer can utilize cost as a
mean of contrasting items, judge relative incentive for cash, and judge item quality
(Brassington&Pettitt,2000).
The factor Trust is viewed as a worry on the passionate premise in the brains of the customers.
The buyers have an attention on their wellbeing needs and need to fulfill them before making a
purchase(Brassington&Pettitt,2000).
The factor Convenience is viewed as an advantage according to the buyer and a quality got from
buying over the Internet. It is along these lines viewed as amotivator and an advantage to
consumers.(Constantinides,2004)
We trust that these elements affect the buyer when buying on the web. To additionally examine
the variables, I contemplate hidden characteristics that speak to what way the elements influence the
customers.
The Factor Price

The Internet has turned into a worldwide commercial center on which buyers can accumulate and
think about data, for example, item data and costs. The advances and inventive business thoughts of the
Internet enable merchants to segregate among purchasers and purchasers to separate between sellers.
Generally, be that as it may, costs have been set by dealings in the wake of having analyzed the item
(Kotler and Keller, 2006). The Internet encourages the situation that correlations can be accomplished
effortlessly, disregarding a few advanced traits (which can be imparted through the web) and conceivable
outcomes with a few distinct merchants all the while. On the Internet it is after all the value correlation
prospect that intrigues value touchy shoppers, while another classification of customers centers around
discovering one of a kind items with specific highlights that may be hard to discover disconnected and
who, accordingly, maybe much think about the cost as auxiliary.
In any case, when on the web, just computerized qualities can be assessed by the customer, while
disconnected non-advanced traits (for which physical investigation of the item is essential) can be tried
(Lal and Sarvary,1999). This could even impact rash customers to turn out to be increasingly wary about
the item as it must be examined carefully. Moreover, when purchasing on the web, extra costs, for
example, cargo charges, traditions or delayed conveyance times can impact the online customer's choice
to reexamine the exchange despite the fact that the cost is low. Table3.1 clears up the way that the factor
cost has two characteristics, setting aside extra cash and value correlation.
Table1-1TheFactorPriceanditsAttributes
Factor Attributes
SavingMoney
Price
ComparingPrice
The Factor Trust
Monsuwéetal.(2004) conclude that because the Internet is a relatively new way of shopping, it is
challenging for the consumers and therefore perceived by the consumer as risky. They further identify the
sales person to be a silent source of trust for the consumer, and that the consumer is dependent on the sales
persons’ expertise. But since the salesperson has been removed in online shopping, the authors argue that the
basis of consumer trust has disappeared. They further explain that the consumer is not able to check the
quality of an item, nor is he able to monitor the safety of the security when revealing personal data. The
authors, therefore, conclude that if a high level of security and privacy is communicated to the consumer the
result would have a positive effect on consumer trust and the intention to buy online.
According to Luhmann (1979) who has a sociological point of view on the theory of trust, there are
three modes of maintaining expectations about the future, familiarity, confidence and trust.To experience
trust, familiarity and confidence must have been established. However, trust is only necessary when there is a
high perceive drisk, such as during a purchase transaction or a similar action.
The consumer’s previous experience and trust in the computerized medium is likely to affect his amount of
trust in online shopping (Lee & Turban,2001). According to Lee and Moray (as cited in Lee & Turban, 2001)
human trust in computerised systems depends on three factors:
 The perceived technical competence of the system-The systems apparent ability to perform assigned
tasks.
 The perceived performance level of the system-How fast and reliable it appears to bea ble to finish the
tasks.
 The human operators understand of the underlying characteristics and processes governing the
system’s behaviour.
Previous knowledge also affects trust. Luhmann (1993) states that ," Practical experience tends to teach us the
opposite: the more I know, the better I know what I do not know, and the more elaborate our risk awareness
becomes” (p.28).
Turbanetal.(2001) constructed a model that highlights what trust is constituted from when
purchasing on the Internet. According to figure3.2 which is a scaled version based on “A Trust Model for
Consumer Internet Shopping ”by Lee, Matthew K.O, and Efraim Turban (2001), trust is dependent on the six
variables
Seller
Trust n nternet Competency
Benevolence
Ec Trust
Reliability
Trust n nternet as
Understandability
Shopping channel
Security and
Payment
Figure1-2TrustinElectronicCommerce
Acompanymustshowtheconsumerthatitiscompetentinmanaginginformationandsupportingtheco
nsumerafterapurchaseisdone.Ifthatcanbeachieved,theconsumerismorelikelyto"engageintrust-
relatedInternetbehaviourslikepurchasing,cooperating,andsharinginformation"(McKnight&Chervany,200
1-2002).Table3.2showsthefactorTrustanditsattributes.
Table1-2TheFactorTrustanditsAttributes
Factor Attributes
Perceptionofsafety
Trust TrustintheInternetRetailer
TrustintheInternetasretailshopping
The Factor Convenience
Convenience is anything that is intended to save time and frustration according to the Swedish
National Encyclopaedia. Further definitions of the concept of convenience are:
 The quality of being suitable to ones comfort, purpose or needs

 Personal comfort or advantage
 Something that increases comfort or saves work at a suitable or agreeable time(Lexico Publishing
Group[LLC],2007)
Online shopping as a new medium for retailing creates a number of different advantages. One of
these is that it is considered to be more convenient to shop online compared to the traditional way of
shopping. The convenience attributes that online shopping provides are:
 Less effort:
 Being able to shop at home
 Time saving
 Being able to shop at anytime of the day
Azjen (as cited in Kim&Park, 1991) claims that online shopping provides convenience for consumers
such as time savings and search convenience if compared to the traditional way of shopping.
Kim and Park(1991) also argue that if online shopping is to be perceived as convenient for the
consumer, the consumer must perceive a certain amount of easines s with accessing the Internet and also with
carrying out the behaviour with shopping online.The less complexity the consumer perceives with accessing
the Internet the more attention the consumer has to enter the Internet and search for information.
The characteristics of convenience with online shopping can be summarized as follows:
Consumers can shop from their homes meaning they do not have to take certain aspects, needed when
shopping in the traditional way, into consideration. Online shopping is, therefore, considered to require less
effort. It is also considered to be time saving, the consumer can search for products and prices easy through
the developed search engines. Through tracking devices a consumer can at anytime check where their
package is. Another time aspect of online shopping is that it allows
The consumer to shop at any time of the day, the consumer does not need to consider if the stores are open or
not.Table3.3 shows the factor Convenience and its attributes.
Table1-3TheFactorConveniencewithAttributes
Factor Attributes
SavingTime
Convenience LessEffort
Shoppingatanytime
1.9 Summary
By first examining consumer behaviour theories I have investigated what identifies the consumer and
the processes that the consumer goes through before making a purchase. This has been applied to gain
understanding of the online consumer buying behaviour and has then been used in order to find which
characteristics that are relevant to identify and segment the online consumer.These have been
identified as Consumer Traits and Online Behaviour and are listed below along with the respective
subsegments:
ConsumerTraits:
 Demographics
 AttitudeandBeliefs
 ImpactofReferenceGroups
OnlineBehaviour:
 Webographics
 OnlineShoppingPatterns
 InternetUsage
Furthermore,I have pointed out certain factors that I believe are important for the online consumer
when shopping online through the literature overview. These factors have been identified as Price, Trust and
Convenience through the literature. In order to comprehend how the identified factors influence the online
consumer I must first identify the online consumer. This identification needs to be done mainly through the
relevant Consumer Traits and online consumer behaviour that have been identified earlier.
Figure 1-3 The influencing Factor's effect on Online Consumer Segments
Price Convenience Trust
Demographics Webographics
Online
Attitude and Consumer Online Online Shopping
Consumer
Belief Traits Behaviour Patterns
Segments
Impact of Internet Usage

Reference
Implications for Online Retail Store
We can then understand the relevance and impact of the factors for the all the respondents. By gaining
understanding and being able to segment online consumers I can see the relevance and impact of certain
factors for specific groups. Figure3.3 explains that Online Consumer Segments will be developed through how
the respondents answered questions that involved Consumer Traits and Online Behaviour. The defined
segments will be compared according to how the respondents in each segment answers the questions
involving Price, Trust and Convenience. Finally, implications for online stores will be drawn from these results.
4.4 TheQuestionnaire
So as to make the poll I began by choosing the fundamental factors that should have been examined.
These were: Demographics, Webographics, OnlineShopping Patterns,and Attitude towards Online
Shopping, Social Characteristics, Reference Groups, and the distinguished elements Price, Trust, and
Convenience.
For the poll, which was self-administrated, I utilized the Delivery and accumulation survey technique. This
technique was chiefly utilized in light of the restrictions in time and accessible assets. Distinctive kinds of
inquiries were set so as to have the capacity to gather the data that was required concerning the diverse
subjects. The analyzed factors were of various kinds. They were feelings, conduct, and properties.
Feelings are utilized to see how a respondent feels about something ,conduct ascribes are utilized to
record what the respondent does, and qualities demonstrates what the respondent has
(Saundersetal.,2007).In request to gather the right information, I expected to pose inquiries with fit
options that we read joked to the kind of the variable that should have been analyzed. In our poll I were
just utilizing shut inquiries that were of the rundown, class, positioning, amount, and ratingtype.
All evaluating inquiries utilized a seven-point Likers style rating scale. So as to decide the fundamental
mentalities for Price, Trust, and Convenience I utilized the bipolar semantic differential rating, on a seven
pointscale.The estimations of the semantic differential rating scale are depicted by inverse descriptive
words intended to grapple the respondent's demeanors towards trust. These mantic differential rating
scale was later made an interpretation of from1-7 to set another esteem scope of-3to +3for our
investigation. The acquired qualities were then being increased to get one last by and large esteem,
running from-9to+9,for each inquiry by utilizing these mantic differential rating framework.
The principal questions (1.1to1.5) of the examination were fundamentally used to clarify the
Demographics of the respondent and were planned as foundation questions. These inquiries went about
as class with one amount question. The amount question (1.2) enabled the respondent to list their age.
The class questions (1.1,1.3,and1.4) were utilized to arrange the respondents after their: sex, semester,
and salary separately. The classification questions enabled us to frame diverse fragments of the
respondents.
4.5 Reliability
Dependability is the degree to which information gathering methods yield predictable discoveries,
comparative perceptions would be made by different analysts and if there is straightforwardness in how
sense was produced using crude information (Saundersetal.,2007). Unwavering quality infers the capacity
of a study to oppose irregular blunders. As indicated by Robson (ascitedinSaundersetal.,2007)there might
be four danger store obligation:
• Subject/Participant blunder: This can happen when the respondent is on a "high", for instance
before the end of the week. The suppositions transmitted amid this period could be excessively positive,
and the other way around on the off chance that it is a Monday morning, when the respondent is probably
going to be ona"low".
• Subject/Participantbias:This happens for instance when the respondent is replying as they might
suspect their manager would need them to reply, rather than replying with their very own attitude,
dreading any results that may fall upon them on the off chance that they neglect to answer effectively as
indicated by their supervisor.
• Observererror:This is the point at which the spectator isn't gathering information as planned, and
along these lines blunders in the last research are likely.
• Observerbias: When the onlooker is translating an answer with the assistance of his own
convictions and qualities, the enrolled answer will be one-sided, and accordingly not speak to the genuine
answer given from the respondent.
These dangers can anyway be decreased. A very organized survey will make the spectator mistake nearly
non-existent. Ensuring obscurity will make a respondent progressively slanted to answer honestly, since
he won't be considered responsible for any answer, in this way limiting the inclination. At long last, the
subject and member fear can be decreased just by picking an impartial day to lead the study, for example,
a Tuesday for instance.
4.6 Validity
Legitimacy is the degree to which the information gathering strategy or strategies precisely measure what
they were planned to quantify (Saundersetal.,2007). At the point when a quantitative research results in
a deliberate esteem that compares with the genuine esteem, at that point there inquiry is viewed as
totally substantial. All things considered one has estimated what was proposed with flawless
precision(Christensenetal.,2001).The greatest errand is to make clear and non-equivocal inquiries that can
be deciphered undeniable and give us the correct data for our motivation. Notwithstanding, there is no
assurance that the respondents translate the inquiries certainly, yet I need to expect they will and do think
about the advantage of uncertainty.
4.7 Generalizability
This term alludes to how generalizable the consequences of our hunt are, and whether the discoveries
can be pertinent also there research settings (Saundersetal.,2007). Because of our choice to concentrate
on understudies, and since this gathering just speaks to a little piece of the Indian populace, the outcomes
would just be generalizable,if generalizable by any means, to understudies.
2 Results
2.1 Introduction
The questionnaire was designed to collect primary data in order to find first-hand information on how
the respondents value the importance of price, trust, and convenience when making purchases over the
Internet. The questionnaire was designed to, first, collect data that would be used to find segments among the
respondents, and second, to collect data about the factors price, trust, and convenience. The questions in the
questionnaire were based on the findings from the literature. Questions which were designed to collect data
to find respondent segments were derived from the findings within consumer behaviour. Questions about
the factors price, trust, and convenience were derived from the literature found about the factors when
purchasing online. I Emailed questioner link to all the respondents through the mail and collected emails in
order to make sure not to collect data from the same respondent more than once. I decided that the sample
size should be over200respondents and I collected 226 respondents. In order to analyse the collected data I
used the software program SPSS. The following will present and discuss the results from the questionnaire.
2.2 Questionnaire–Collected data
2.2.1 Online Consumer Traits

Demographics
Questions1.1,1.2,1.3,and1.4
These questions were used inorder to establish the consumer demographics. They were used to find
out the respondents gender, age, semester at the University, and income.
Gender
Gender was included in the survey in order to find out if there is a difference between men and
women concerning the beliefs towards the factors. The following table will show the distribution of the
male and female respondents that were included in the survey.
Table2-1Q1.1Distributionaccordingtothevariable“Gender”
Sex Frequency Percent CumulativePercent

Male 58 56.31% 56.31%
Female 44 42.72% 99.03%
Others 1 0.97% 100.00%
Total 103 100.00%
The distribution of male and female respondents shows a majority of male respondents (57%),
compared to the female respondents (42%).
Others
1% Gender
Female
42%
Male
Male
57% Female
Others
Age
Age was included to find out if there is a significant relationship to what impact the factors price,
trust, and convenience have on different age groups. Age is a demographic value that can also be used in
order to further explain and elaborate on some of the other questions that are used to find segments
among the respondents. The respondents were asked to write how old they were, instead of setting up
different age groups to choose form. In this way I were able to get the exact ageand there by setup
different age groups according to the distribution.
Table2-2Q1.2Distributionaccordingtothevariable“Age”
Years Frequency Percent CumulativePercent

<=20 17 16.50% 16.50%
21–25 77 74.76% 91.26%
25-33 5 4.85% 96.12%
34-41 1 0.97% 97.09%
42>= 3 2.91% 100.00%
Total 103 100.00%
Age
42 >=
34 - 41
25 - 33
Age
21 – 25
<= 20
0 20 40 60 80
Area
The above diagram is showing the percentage of demography of respondents and what is the
percentage of respondents who lives in rural or urban region, the below diagram is showing that 77% of
the respondents are from urban areas and 23% of the respondents are from urban area.
Table2-3Q1.3Distributionaccordingtothevariable“Area”
Area Frequency Percent CumulativePercent

Rural 25 24.27% 24.27%
Urban 78 75.73% 100.00%
Total 103 100.00%
Geogr phical Distribution
Rural
23%
Rural
Urban
Urban
77%
Occupation
This graph help us to know the occupation of the respondents, this is to know that which segment
of people are buying more products on the internet whether they are the segment of students or
government employees or professional, the above graph shows that the segment of the students i.e.90%
of the students are using internet and use to buy online products.
Table2-4Q1.4Distributionaccordingtothevariable“Occupation”

Student 70 67.96% 67.96%
Professional 24 23.30% 91.26%
Govt.Employee 5 4.85% 96.12%
SelfEmployed 3 2.91% 99.03%
Other 1 0.97% 100.00%
Total 103 100.00%
Govt. Employee Other

3% 1% Occupution
Self Employed
3%
Professional Student
24%
Professional
Student Govt. Employee
69%
Self Employed
Other
DisposableIncome
Income was used in the questionnaire mainly to find if the respondents that have a higher income
spend more money online or not. This variable is also used in order to find the correlation to the factors
price, trust, and convenience. The distribution of the variable income is highly connected with the fact
that the respondents are students and, therefore, have a lower income.
This explains the fact that the majority of respondents have the lowest income (52.48%).
Table2-5Q1.5Distributionaccordingtothevariable“DisposableIncome”

<5000 53 51.46% 51.46%
5001–6999 15 14.56% 66.02%
7000–8999 4 3.88% 69.90%
9000–10999 5 4.85% 74.76%
11000-12999 5 4.85% 79.61%
>=13000 21 20.39% 100.00%
Total 103 100.00%
Disposable Income
>= 13000
11000 - 12999
9000 – 10999
7000 – 8999 Disposable Income
5001 – 6999
< 5000
0 10 20 30 40 50 60
Internet Connection
This graph shows us the percentage of respondents who have their own internet connections, its
shows that 87.13% of respondents have their own internet connections and 35% people don’t have their
internet connection.
InternetConnection Frequency Percent CumulativePercent

Yes 88 85.44% 85.44%
No 15 14.56% 100.00%
Total 103 100.00%
Internet Connection
No
13%
Yes
Yes No
87%
Online Shopping
This graph shows us the percentage of respondents who have done Online Shopping, its shows
that 68.93% of respondents have done Online Shopping and 31.7%people haven’t done do Online
Shopping
OnlineShopping Frequency Percent CumulativePercent
Yes 71 68.93% 68.93%
No 32 31.07% 100.00%
Total 103 100.00%
Online Shopping
No
31%
Yes
Yes
No
69%
Motivation
Thisgraphshowsuswhatmotivatesthepeopletobuyinternet,asfromaboveresultIfoundoutthat
notraveltoshopisthemainthingwhichmotivatesthepeopletobuyproductsonline.
Table2-6Q2.1Distributionaccordingtothevariable“Motivation”
Motivation Frequency Percent CumulativePercent

EasyPayment 21 29.58% 29.58%
NoHiddencost 6 8.45% 38.03%
Widerangeofproducts 22 30.99% 69.01%
Notraveltoshop 22 30.99% 100.00%
Total 71 100.00%
Motiv tion
No travel to
shop
31% Easy Payment
Easy Payment
30%
No Hidden cost
Wide range of products
No travel to shop
Wide
range of No Hidden cost
products 7%
32%
Competitive Prices
This diagram shows us that whether online marketers are giving competitive price or not and
result which is came is that most of the people thought that online marketers are providing competitive
prices than physical stores. And results 74.65% of people say that it provides competitive prices and only
14.08% people says no.
Table2-7Q2.2Distributionaccordingtothevariable“CompetitivePrices”
CompetitivePrices Frequency Percent CumulativePercent

Yes 53 74.65% 74.65%
No 10 14.08% 88.73%
Can’tsay 8 11.27% 100.00%
Total 71 100.00%
Competitive Prices
Can’t say
10%
No
14%
Yes
Yes No
76% Can’t say
Products buy online

The above graphs gives result that most of the time people use to buy 36% but the margin with
other things is very less as musicCd’ save percentage of 15 and Personal and Healthcare15% S
Products buy Online

Personal and Healthcare 15
Mobiles and Acessories 34
Clothing 21
Products buy Online
Music CD's 15
Books 36
0 10 20 30 40
Frequentlyvisitedonlinestore’s
Thisgraphshowsthat57%peopleusetovisitFlipkartforonlineshopping,31%usetogoatEbay,17%
peopledoatAmazonandforotherpeopleusetovisitatBestBuyandothers.
Online stores
Other 7
Myntra 13
letsbuy 6
Flipkart 57 Online stores
Amazon 17
e-bay 31
0 10 20 30 40 50 60
Factorshelptodecidetoshoponline
Thisdiagramshowsuswhataffectspeopletobuyproductsoninternetanditshowsthat21%people
cametoknowaboutshoppingsitesthroughsearchengines.Andtheyattractedtowardsitandstartgettingp
roductsfromthere.And20%peopledecisionisaffectedbyspecialoffersbytheoffersandthediscountsgive
nbythesites.
Factors help to decide which site to
shop online
Tv advertising 4
Online Advertising 12
Special Offers On Sites 20 Factors help to decide

which site to shop online
Personal
14
Recommendation
Search Engine 21
0 5 10 15 20 25
WayofPayment
Thisdiagramshowsthatmostlypeopleusescreditcardtopaytheirpayments42%peopleusetopay
bycredit/debitcardand14%throughCashondeliveryand11%throughInternetBankingand3frompaypal.
Way of payment
Cash-on-Delivery 14
GoogleWallet 1
Paypal 3
Way of payment
Internet banking 11
Debit/ credit card 42
0 10 20 30 40 50
FrequencyofOnlineShopping
Twice a week
4% Frequency of Online shopping
Twice a month
16%
once a
week once a month
8% once a week
once a month
72% Twice a month
Twice a week
Attitudes and Beliefs
Questions4.1and4.2
Prior experience
This question was used in order to see what attitude the respondent had about shopping online.
The measured attitude was mainly derived through questions about the respondent’s prior experiences.
This usually also affects the attitude towards performing an action, in this case the action was to shop
online. The question was, therefore designed to let the respondent rate their prior experience for
shopping online.
Table2-8Q4.1Distributionaccordingtothevariable”Previousexperiencewithonlinepurchases”
Experience Frequency Percent CumulativePercent

1(VeryBad) 0 0.00% 0.00%
2 1 1.41% 1.41%
3 24 33.80% 35.21%
4 33 46.48% 81.69%
5(VeryGood) 13 18.31% 100.00%
Total 71 100.00%
Prior Experience
1 (Very Bad)
40
30
20
5(Very Good) 2
10 0
13
0 1 Prior Experience
24
433 3
Overall the respondents showed a good to very good prior experience with purchasing online.
The number of respondents with a very good attitude towards online shopping is highand the distributed
attitude declines as less respondents think of it as a bad experience. Rating number four on the scale is
considered as neither a good nor bad experience. The majority of respondents,overall 35.87%, do
consider their prior experience with online purchasing as neither good nor bad. This question is closely
related to the following question which investigates the respondents’ future expectations of online
purchasing.
Future expectations of online purchases
This question is a part of analysing the respondents’ attitude towards online purchases. Future
expectations are highly dependent on respondents’ prior experiences of online purchases; this will be
further discussed in the analysis of the results.
As with prior experiences the respondents have a highly positive attitude towards future online
purchases. The majority (41.38%), of the respondents have rated future expectations with online
purchases to be positive. Not considering the neutral respondents; an overall 80.9% of the respondents
had positive expectations.
2.2.2
Table2-9Q4.1Distributionaccordingtothevariable”Futureexperiencewithonlinepurchases”
Experience Frequency Percent CumulativePercent

1(VeryBad) 0 0.00% 0.00%
2 1 1.41% 1.41%
3 11 15.49% 16.90%
4 24 33.80% 50.70%
5(VeryGood) 35 49.30% 100.00%
Total 71 100.00%
Future Expectations
1 (Very Bad)
40
30
35 20
5(Very Good) 2
10 0
0 1 Future Expectations
11
24
4 3
Impact of Reference Groups
Questions5.1,5.2,and5.3
The impact of Reference Groups These questions were designed to find out which of the three
Reference Groups, family, friends, and online forum, that have an impact on the respondent. Families as
Reference Groups have not shown to have an impact on online purchases among students. A majority of
32.39% do not consider any of their families’ opinions and experiences at all when purchasing online.
Table2-10Q5.1Distributionaccordingtothevariable“Howmuchdoesfamilyaffectonlinepurchase”
Familyaffect Frequency Percent CumulativePercent

1(Notatall) 11 15.49% 15.49%
2 15 21.13% 36.62%
3 23 32.39% 69.01%
4 13 18.31% 87.32%
5(VeryMuch) 9 12.68% 100.00%
Total 71 100.00%
Family affect
1 (Not at all)
25
20
15 11
10
5(Very Much) 2
5 15
9
0 Family affect
13
4 3
23
Friends as a Reference Groups have shown to have a bigger impact as a Reference Groups when
respondents consider their purchases online. This can be explained by the fact that friends often are
fellow students that attend the same program and have relevant information that is of use to the
respondent. The distribution of the respondents shows that the majority of the respondents, 33.8%, take
the opinions and experiences of their friends into consideration.
Table2-11Q5.1Distributionaccordingtothevariable“Howmuchdoesfriendsaffectonlinepurchase”
Friendsaffect Frequency Percent CumulativePercent

1(Notatall) 8 11.27% 11.27%
2 10 14.08% 25.35%
3 13 18.31% 43.66%
4 24 33.80% 77.46%
5(VeryMuch) 16 22.54% 100.00%
Total 71 100.00%
Friends affect
1 (Not at all)
25
20
15
8
10
5(Very Much) 16 2
5 10
0 Friends affect
13
4 3
24
Online forums do not have any impact on the respondents. A majority of 40.85% of the respondents
do not consider the opinions and experiences discussed on online forums at all.
Table2-12Q5.1Distributionaccordingtothevariable“HowmuchdoesOnlineforumsaffectonlinepurchase”
OnlineForumsaffect Frequency Percent CumulativePercent

1(Notatall) 7 9.86% 9.86%
2 9 12.68% 22.54%
3 29 40.85% 63.38%
4 18 25.35% 88.73%
5(VeryMuch) 8 11.27% 100.00%
Total 71 100.01%
Online Forums affect

1 (Not at all)
30
25
20
15 7
5(Very Much) 10 2
8 5 9
0 Online Forums affect
18
4 3
29
2.2.3 Online Consumer Behaviour

Webographics
Question2.1
Time spent online
Thisquestionisusedinordertoinvestigatehowmuchtimetherespondentspendsonline.Therespo
ndentthatspendsmoretimeonlinehasahigherexperiencewiththeInternetwhichaccordingtotheliteratu
reisareasontobuymoreonline.Hence,thisquestioniscloselyrelatedtotherespondentsshoppingpatterns
.Thiswillbefurtherdiscussedintheanalysisoftheresults.
Table2-13Q2.1Distributionaccordingtothevariable“Timespentonline”
Timespentonline Frequency Percent CumulativePercent

<30 8 11.27% 11.27%
1-2 20 28.17% 39.44%
2-5 19 26.76% 66.20%
>5 24 33.80% 100.00%
Total 71 100.00%
Time spent
< 30
>5
11%
34%
1 - 2 hours < 30
28% 1 - 2 hours
2 - 5 hours
2 - 5 hours
27% >5
Thedistributionshowsthatthemajorityoftherespondentsspendsomewherebetween30minto2
hoursonlineeachday.Thetwosecondmajorgroupsarerespondentsthatspend5hoursandrespondentsth
atspendgreaterthan2-
4hoursonlineeachday,34%respectively27%.Theseresultswillbeusedinordertofindwhatdiffersbetwee
ntheserespondentsandwhichofthefactorsprice,trustandconveniencehasthelargestamountofimpact.
Table2-14Q2.1Distributionaccordingtothevariable“TimespentShoppingonline”
Percentageoftimespentonshopping Frequency Percent CumulativePercent

<20% 40 56.34% 56.34%
20–40% 23 32.39% 88.73%
40–60% 2 2.82% 91.55%
>60% 6 8.45% 100.00%
Total 71 100.00%
InternetUsage
ThisquestionwasincludedtoinvestigateforwhatreasontherespondentsmainlyusedtheInternet
.Therespondentsweregiven5alternativesfromwhichtheyhadtorank3bytheprimary,secondary,andtert
iarychoiceofusage.
Table2-15Q2.2Distributionaccordingtothevariables“Primaryuse,Secondaryuse,andTertiaryuse”
InternetUsage PrimaryUsage SecondaryUsage TertioryUsage

Fun 11(15.49%) 9(12.67%) 14(19.71%)
Work 21(29.58%) 16(22.54%) 9(12.67%)
Information 21(29.58%) 13(18.30%) 16(22.54%)
E-Mail 16(22.54%) 29(40.84%) 12(16.90%)
Shopping 2(2.82%) 4(5.63%) 20(28.17%)
Total 71 71 71
Accordingtothetable5.15therespondentsastheprimarymostpopularuselistedthealternatives
Work(29.58%),Information(29.58%)andEmail(22.54%),accordingly.Thesecondaryoverallmostpopular
choiceswerethealternativesE-
mail(40.84.54%),Work(22.54%)andInformation(18.30%).ThetertiarymostpopularchoiceswereShoppi
ng(28.17%),Information(22.54%)andFun(19.71%).AccordingtothedistributionthealternativesFun,E-
mailandInformationwerethemostpopularalternatives,withtheexceptionofFunastertiaryusewheretha
talternativewasreplacedwithwork.
2.2.4
2.3 Identified Attributes

Price
Questions6.2and6.3
Saving money when purchasing online compared to purchasing at store this is the first attribute of the
factor price and involves the respondents’ attitude towards saving money when purchasing online. The
respondent was asked two questions in order for us to establish their attitude. The first question examined if
the respondent agrees with the fact that purchasing online saves money and these cond question examines
the importance of this statement. The results from these two questions gave us the following distribution of
what the respondents’ attitude towards this statementis.
Table2-16Q6.2Distributionaccordingtotheattribute“Savingmoneywhenpurchasingonline”
SavingMoney Frequency Percent CumulativePercent

1(Notatall) 6 8.45% 8.45%
2 2 2.82% 11.27%
3 20 28.17% 39.44%
4 22 30.99% 70.42%
5(Always) 21 29.58% 100.00%
Total 71 100.01%
Saving Money
1 (Not at all)
25
20
15
10 6
5(Always)
21 2
5
2
0 Saving Money
4
22 203
The table 5.17 illustrates whether the respondents feel that they are saving money when they
purchase online compared to a regular store.40.7% of the respondents felt that they saved money and that it
is important to save money when they purchase online. These condlargest category is a neutralone, with
23.5% where the respondent felt that they neither save money nor do not save money . The reason for the
values being so high can be that even though the Comparing prices, through different price comparison
websites, before purchasing online.
ComparingPrice Frequency Percent CumulativePercent

1(Negative) 1 1.41% 1.41%
2 4 5.63% 7.04%
3 18 25.35% 32.39%
4 24 33.80% 66.20%
5(Positive) 24 33.80% 100.00%
Total 71 100.00%
Comparing Price
1 (Negative)
25
20
15
24 10
5(Positive) 2
5 1
4
0 Comparing Price
18
4 3
24
Table 5.18 shows how the respondents use price comparison sites such as Ebayor Myntra. Almost
everyone uses this type of comparison prior to purchasing a, more or less often, and a large group (31.9%) of
the respondents does so very often. This displays an overall positive attitude towards comparing price over
the Internet even though the largest group of 24 respondents (33.80%)consider comparing price over the
Internet as positive. This can be concluded by the fact that the respondents might not compare prices but think
that it is important. This then translates into neither a positive nor a negative attitude towards comparing
prices when purchasing online. The respondent might also compare prices but does not find it important.
Trust
Questions7.1,7.2
It is secure to shopping online
This question investigates what the respondents overall attitude is towards the first attribute I
identified that constitutes the factor trust. This attribute involves the respondent over all attitudes towards
security when shopping online. The respondent was first asked to answer whether they felt secure when
shopping online and then how important it is for them to feel safe when Shopping online.
Table2-17Q7.1Distributionaccordingtotheattribute“SecuritywhenShoppingonline”

1(Negative) 1 1.41% 1.41%
2 12 16.90% 18.31%
3 23 32.39% 50.70%
4 19 26.76% 77.46%
5(Positive) 16 22.54% 100.00%
Total 71 100.00%
The values in table5.18 explain whether the respondents feel that it is safe to purchase online, and if it
is important to feel secure when purchasing online. The largest category (32.39%) feels secure and also thinks
it is important to feel neither secure nor not secure when shopping online. These condlargest (26.76%), with
just one respondent less, is the category slightly more positive than “neither”. The large number could come
from respondents that not feel secure when they shopping online, but never the less feels that it is important
to feel secure when they do. Hence, the distribution of the respondents reveals that they generally have a
more positive attitude towards feeling secure when shopping online.
Trust in the Internet retailer
This question investigated the respondents overall attitude towards the trust in the Internet retailer. Two
questions were asked, one asked if the respondent has to trust the Internet retailer in order to make a
purchase from them, and these condquestion asked how important it is to have trust in the Internet retailer
before making a purchase from them. The results showed the respondents overall attitude towards the third
and last attribute constituting the factor trust.
Table2-18Q7.2Distributionaccordingtotheattribute“TrustintheInternetretailer”

1(Negative) 2 2.82% 2.82%
2 7 9.86% 12.68%
3 24 33.80% 46.48%
4 28 39.44% 85.92%
5(Positive) 10 14.08% 100.00%
Total 71 100.00%
The majority feel a need to trust the retailer, while also feeling that it is important to trust there tailer
when proceeding with a purchase. Only three respondents fell into the negative part of the scale. This
indicates that trust in the Internet retailer, to some degree, is almost always needed for the consumer to make
a purchase from an Internet retailer.
Convenience
Questions8.1,8.2,and8.3
If online purchasing is perceived as involving less effort compared to shopping at a store This question
examines one of the attributes that constitutes the factor convenience and is included in the questionnaire in
order to find out if the respondents perceive that purchasing online involves less effort than compared to
shopping in a store. This question is also a part of the fact or convenience and the overall attitude the
respondents have towards the factor convenience.
Table2-19Q8.1Distributionaccordingtheattribute“ShoppingonlineinvolveslesseffortcomparedtoShoppingatphysicals
tore”

1(Negative) 0 0.00% 0.00%
2 8 11.27% 11.27%
3 12 16.90% 28.17%
4 22 30.99% 59.15%
5(Positive) 29 40.85% 100.00%
Total 71 100.00%
The majority (40.85%) of the respondents did not find shopping online is convenient when it involved
the attribute less effort. The further distribution of all the respondents had a positive attitude towards the
attribute less effort. This is clearly shown by that one of the largest respondent groups (30.99%) is the group
with the highest value that perceived shopping online as always involving less effort compared to shopping in
store. Hence, there is an overall a positive attitude towards this attribute among the respondents.
Does online purchasing save time compared to purchasing at a store?
Table2-20Q8.2Distributionaccordingtheattribute“Purchasing online saves time compared to purchasing at a store”

1(Negative) 2 2.82% 2.82%
2 8 11.27% 14.08%
3 15 21.13% 35.21%
4 22 30.99% 66.20%
5(Positive) 24 33.80% 100.00%
Total 71 100.00%
The two big majority groups (33.90% respectively 30.99%) found shopping online either as always
time saving or that neither it saves time nor is more time consuming than shopping at store.The overall
distribution of the respondents had showed a positive attitude towards the attributes hopping online saves
time compared to shopping at a store. This is a logical conclusion that can be derived from the fact that when
shopping online from a computer at home does not involve having to leave the home, which can be considered
as time saving. But some complications at the website or being able to use a computer from home, can explain
the why the majority of respondents do considers shopping online neither as time saving nor is more time
consuming than shopping at store. This explanation can also be applied to the respondents on the negative
side of the scale.
2.3.1 Primary Factor
By considering all the attributes of the factors and looking at what factor each respondent had the
most positive attitude towards and labelling it as the Primary Factor, I were able to identify the following
distribution among the respondents for the factor sprice, trust and convenience in table 5.25:
Distribution according to the“Primary Factor”
PrimaryFactor Frequency Percent CumulativePercent

Price 53 75.71% 75.71%
Trust 10 14.29% 90.00%
Convenince 7 10.00% 100.00%
Total 70 100.00%
6 Analysis
6.1 TheFactors
So as to pick up an underlying comprehension of how the respondent feels towards
Value, Trust and Convenience, they were approached to rank these in the poll as needs be. I have then
researched the distinctive traits of the elements.
At the point when the respondent was asked to simply rank the diverse components, the outcomes
demonstrated that 73.9% thought about cost as the essential concern when acquiring on the web. At the
point when the respondent was placed before the three elements, I could see that a large portion of them
picked price.However, whenever contrasted with the Primary Factor, where the diverse credits to the
elements were utilized to locate the general frame of mind and significance; the outcomes did not
coordinate. The conveyances for the Primary Fact or were Price: 41.6%, Trust:30.1% and Convenience:
28.3%. This demonstrated the respondent by and large felt that Price was the most critical to the person
in question, and yet one of different components could really be the most essential to a respondent, since
the dissemination moved between the two different ways of assessing, with the Primary Factor being the
most precise since it offers a general frame of mind estimation. This answers the inquiries one and two in
our exploration.
6.2 Two Step Cluster
The two stage bunch investigation was utilized to portion the respondents. This sort of examination
gathered information so records inside a gathering were comparable. It could be connected to
information that depicted client purchasing propensities, sexual orientation, age, salary and so on. It made
portions containing bunches that shared the most for all intents and purpose and this strategy was chosen
because of the measure of factors that should have been mulled over while making the fragments.
By breaking down the gathered information, for the different factors that I expected to portion by, I chose
to bar a few factors. There as on was that a portion of the factors did not demonstrate a huge variety
which would have improved the homogeneity of the fragments. Portions should be homogenous and
various from the entire populace with the goal for them to be focused on. The factors that I didn't utilize
would rather be connected to give an extra clarification to the shaped fragments. With the two stage
bunch examination I discovered three sections in our example, in view of the factors that I portioned by,
which were: Expenditure on a normal every month, Previous involvement with acquiring on the web,
Future desires with obtaining on the web, The effect of the reference gathering: family, The effect of the
reference gathering: companions, and The effect of the reference gathering: online discussions. In this
exploration the factors are ordered into the accompanying factors appeared.
 ConsumerTraits:ImpactofReferenceGroups(Family,Friends,and,Onlineforums),andAttitudeandBe
liefs(PreviousexperienceandFutureexpectations)
Attitude and
Belifs
Consumer Traits
Impact of
Online Consumer reference Groups
Segments
Online Shopping
Online Behaviour
patterns
Figure2-1Segmentvariables
2.3.2 Significance of the factors within the segments
InordertoshowthattheresultsandconclusionswhicharetobepresentedbelowaresignificantIconduc
tedaKruskalWallistest.Thistestalsopresentedthatthenumberofcollectedrespondentswassufficientforthea
nalysisthatIhadconducted.TheKruskalWallistestisthesametestasthepriorOneWayANOVAexpectfromthefa
ctthatKruskalWallisteststwovariablesatthesametimeforsignificance.
TwoStepClusterNumber N MeanRank
PriceFishbein 1 15 127,61
2 22 118,29
3 34 100,61
Total 71
TrustFishbein 1 13 151,37
2 27 112,26
3 31 94,15
Total 71
ConvenienceFishbein 1 21 121,40
2 12 124,27
3 38 97,53
Total 71
WhenIconductedthetestIfoundthatthefactorsPrice,Trust,andConvenienceshowedasignificantvari
ancewithinthesegmentsandthattheresultspresentedbelowconcurwiththeconclusionsthatIhaddrawn.Tabl
e6.7showedthatallthreefactorswerehighlysignificant,especiallythefactorTrusttowhichtherespondentshad
answeredwithhighvariances(,000).
2.4 Segments
Thetwo-
stepclustercreatedthreesegmentsoutoftheselectedvariables.AccordingtotheTable6.1thedistributionofth
erespondentstothethreesegmentsis:SegmentOnewith47respondents,SegmentTwowith93respondentsan
dSegmentThreewith86respondents.
Segments Frequency Percent CumulativePercent

Segment1 15 21.13% 21.13%
Segment2 22 30.99% 52.11%
Segment3 34 47.89% 100.00%
Total 71 100.00%
2.4.1 DescriptionofSegmentOne:HighSpenders
Segmentoneheld20.8%ofalltherespondents.Theconsumersinthissegmentmainlyspenteachbetwe
en400-
799SEKoneachmonthduringasemester.Hence,theyarethesegmentthatcanbeconsideredtospendmosteach
month.Theentiresegment(100%)hashadverygoodpreviousexperienceswithpurchasingonlineandveryhigh
expectationsforthenexttimetheywillpurchaseonline.Theexperienceandopinionsoftheirfamilyandfriendsa
sReferenceGroupsdidnotmattertothemwhentheypurchasedonline,neitherweretheexperiencesandopinio
nsdiscussedinonlineforumstakenintoconsideration.
Asaconclusionthissegmentisthesmallestofthethreeandconsistedofconsumersthathadspentthem
ostmoneyonshopping.Theyhadveryhighconfidenceinpurchasingonline,mainlyduetoverygoodpreviousexp
eriences.TheydidnotregardtheexperienceandopinionsofanyofthenamedReferenceGroups.
Byfurtherprofilingtheconsumersinthissegmentthatwerestudyingattheirfirstorsecondsemesteratt
heUniversity,hadanageintervalbetween18to24years.Theyhadadisposableincomewithahighvariationbetw
een5.000SEKto11.000SEK.Thissegmentgroupspentmainlysomewherebetween1to2hourseachdayonline,h
owever,keepinginmindthatsomerespondentswithinthissegmentonlyspentbetweenhalfanhourto1houronl
ine.ThissegmentprimarilyusedtheInternetforfunandthesecondmostimportantasE-
mail,andthethirdasinformation.Becauseoftheidentifiedcharacteristicsofthissegment,Ichosetolabelthema
sHighSpenders
PrimaryFactorofConcernforHighSpenders
ThedistributionamongtherespondentsaccordingtothefactorsPrice,Trust,andConvenienceshowed
thatthefactorTrustwasthemainconcernoftheHighSpenderswith46.67%,closelyfollowedbyPrice(33.33%).T
hethirdconcernofSegmentOnewasidentifiedasConvenience(25.5%).
Frequency Percent CumulativePercent

Price 5 33.33% 33.33%
Trust 7 46.67% 80.00%
Convenience 3 20.00% 100.00%
Total 15 100.00%
Accordingtotable6.1theprimaryfactorofconcernfortheHighSpenderswasTrust.Here,Trusthadanab
oveaveragedistributionwhichloweredthedistributionofthefactorsPriceandConvenience.Thisindicatedthat
therespondentsofthisSegmentOneweremoreaffectedbytheTrustattributeswhentheypurchasingonline.
ByfurtherexploringthevariableTrustforthissegmentIfoundthattherespondentsweremainlyconcer
nedwithfeelingsecurewhenpurchasingonline.ThisalsoincludedtrustingtheInternetretailer.Therespondent
shadaveryhighpositiveattitudebothinagreeingtothestatementsandalsobyshowingtheirconsentthatthesta
tementswereofhighimportance.ThethirdattributeofthefactorTrust,“trustingtheInternetasdistributioncha
nnel”,didnotshowthesameoverallpositiveattitudeasthefirsttwo.Eventhoughthatamajorityoftheresponde
ntswereonthepositivesideofthescaletherewasagroupof23.4%thatbelievedthisattributetobeneutralforthe
m.
InthissegmentIalsochosetoanalysethequestionconcerningwhethertherespondentboughtfromthe
sameonlineretailer.Thissegmentwashighlyconcernedwithtrustingtheretailer,whichisanattributetothefact
orTrustandinfact,therespondentsinthissegmentalsopurchasedfromthesameonlineretailermorefrequently
thantherespondentsinSegmentTwoorSegmentThree.
Byaskingtherespondentstolistwhattheythoughtastheirprimaryconcernofthethreefactorswhenpu
rchasingonline,IfoundthattheydidnotcorrespondwiththeresultswhenapplyingtheFishbeinmodel.Theresp
ondentsinSegmentOnehadlistedthefactorPricetheirprimaryconcern,thefactorConvenienceassecondaryco
ncern,andlastthefactorTrustastertiaryconcern.Butwhenexaminingtheoverallattitudetowardsthesefactors
bydividingthedifferentattributesIfoundslightlydifferentresults,whichwerepresentedintable6.3.Accordingt
otable6.3,theprimaryconcernwasTrust,followedbyPriceandConvenience.
Theconclusionthatcanbeendrawnfromtheresults,isthatthereareconsumerswithahighlypositiveatt
itudetowardspurchasingonlinewhichisformedbythehighlypositiveattitudetowardsthefactorTrust.Sodidth
eattributesoffeelingsecurewhenpurchasingonlineandhavingtrustintheInternetretailer.Sincethesewereals
otheconsumersthatspentthelargestamountofmoneyonpurchasingonline,therebytheyweregivingimporta
ntimplicationstowardsthefactorTrust.
2.4.2 Description of Segment Two: Price Easers

SegmentTwoconsistedof22respondentsandwasthelargestsegmentgroupwith41.2%oftheoveralls
ample.Theiraverageexpenditureonpermonthwasbetween200-
599SEK.Theconsumersinthissegmenthadaslightlylesspositivethanverygoodwhenitcametotheironlinepurc
hasingexperience.Theirfutureexpectationsweresimilartothepreviousexperiences,andtheconsumerexpect
edanyfutureonlinepurchasetobeslightlylesspositivethanverygood.Mostoftheconsumershadagoodtoveryg
oodattitudetowardspurchasingonline.Generally,theconsumersinthissegmentdidnotconsidertheexperienc
esandopinionsoftheirfamilies,butontheotherhand,theydidconsideritmorecomparedthananyoftheothert
wosegments.Theirfriend’sexperiencesandopinionswould,however,affecttheirpurchasetosomedegree.Mi
norconsiderationswerealsotakentotheexperiencesandopinionsdiscussedinonlineforumsbythissegment.G
enerally,therespondentstooktheexperienceandopinionsofthedifferentReferenceGroupsintomostconside
rationcomparedtotheothersegments,andtheywereespeciallyaffectedbytheReferenceGroupfriends.
ThefurtherprofileofthissegmentgroupissomewhatsimilartothatofSegmentOne.Therespondentsinthisseg
mentwereintheagebetween18to24years.Theyweremainlystudyingtheirfirstorsecondsemesterattheunive
rsityandhadaincomeofvarioussize,themajority(43.0%),hadadisposableincomeofbelow5.000SEK,butaanot
hergroup(26.9%),hadadisposableincomeofbetween7.000-
8.999SEK.TheyprimarilyusedtheInternetforfun,andlisttheirsecondaryuseoftheInternetforinformationpur
posesandtheirtertiaryuseasEmail.Becauseoftheidentifiedcharacteristicsofthissegment,Ichosetolabelthe
masPriceEasers,sincetheyhadalowdisposableincome,butweremoreinactivewhenlookingforthelowestpric
esastheywouldrelyontheirfriends’opinions
Primary Factor of Concern for Price Easers
ThedistributionaccordingtotheprimaryfactorofconcerninthissegmentshowedthefactorPricewith4
5.45%tobethemaininfluencerwhenpurchasingonline.ThePricefactorwascloselyfollowedbythefactorConve
niencewith36.36%oftherespondents.InthissegmenttherespondentsconsideredthefactorTrusttheleastimp
ortantwith18.18%.

Price 10 45.45% 45.45%
Trust 4 18.18% 63.64%
Convenience 8 36.36% 100.00%
Total 22 100.00%
Asillustratedintable6.2,themajorityoftherespondentsinSegmentTwobelievedthatPricewastheirmostimpo
rtantconcern,followedbyConvenienceandTrust.ThisshowsthatthePriceattributesaffecttheconsumerthem
ostwhenpurchasingonline.ItshouldalsobenoticedthattheConveniencefactorinthissegmentisveryhighwhe
ncomparedtotheoveralldistributionofthefactortotheentirepopulationsample.Thesefactorshadanoverallhi
gherdistributionwhichreducedthedistributionofthefactorTrust.
WhencloserexaminingtheattributesofthefactorPriceIfoundthataccordingtoSegmentOne,themajorityofth
erespondents(52.7%),listedthattheydidagreewiththestatementthat"purchasingonlinesavedthemmoney"
andthemajority(62.4%)listedthat"savingmoneyishighlyimportant".ThesecondattributeofthefactorPrice,"c
omparingpricesthroughdifferentpricecomparisonwebsitesbeforepurchasing\online",wasshowntohavean
evendistribution.Therespondentswerealsoevenlydistributedbetweenthegroups,andthemajorityfeltthatt
hiswasimportant.
SincethefactorConveniencehasahighdistributioninthissegment,thereneedstobefurtherexaminationofthe
differentvariablesinordertowhollyunderstandtheconsumersinthissegment.Ifoundthattheoverallattitude
waspositiveandcamefromtheattributes"savingtime"and"lesseffort".Theconsumersagreedwiththefacttha
tpurchasingovertheInternetinvolvedlesseffortcomparedtopurchasingoffline.Yettheydidnotlistitasimporta
nt.Thesamedistributioncanbefoundfortheattributesavingtime,wheretheconsumersagreedtothefactthatit
savedthemtimebuttheydidnotfinditasimportantastimesaving.Comparedtothepreviousattributetheyfoun
d"savingtimewhenpurchasingonline"tobeofgreaterimportancethanwhenitinvolvedlesseffort.Thelastattri
buteofthefactorConveniencewas"beingabletopurchaseonlineatanytime"wheretheconsumersdidnotshow
asmuchofapositiveattitudeastothepriorattributes.Acloserexaminationshowsthattherespondentagreedwi
ththestatementbutdidnotfindithighlyimportant.OverallIcanconcludethattherespondentsagreedwiththea
ttributesbutdidnotperceivethemasimportant.
Whenaskedtoranktheimportanceofthethreefactors,therespondentsinSegmentTwolistedthefactorPriceas
theprimaryconcern,TrustasthesecondaryandConvenienceasthetertiaryconcern.Heretheprimaryconcernd
idagreewiththeoverallattitudetowardsthefactors,whilethesecondaryandtertiaryconcerndidnot.Theresult
sshowedthattheconsumersinthissegmentweremoreConvenienceorientedthancomparedtoTrust.
InconclusionthePriceEasersweregenerallypricesensitiveandatthesametimeveryconvenienceoriented.This
wassupportedbythefactthattherespondentstookconsiderationoftheReferenceGroupsandmostlytooktheo
pinionsoftheirfriendsintoconsideration.Inthissensetheywereveryconvenienceoriented.Therespondentsal
soconnectedtothefactthattheywantedtosavemoneybutdidnotfinditasimportantascomparingpricesbefore
purchasing.Instead,theyturnedtotheadviceandopinionsfromtheirfriends.Thefactthattherespondentsinthi
ssegmentwerepricesensitivecanalsobeconcludedbythatthemajorityoftherespondentshadthelowestdispo
sableincomeoftheoverallsample.BecauseofthePriceandConvenienceorientation,theconsumerdidnottake
muchconsiderationtothefactorTrust.EventhoughPriceEasersspentlessmoneyonpurchasing,comparedtoth
eprevioussegment,theywerestillthelargestsegmentgroupandbecauseofthatimportant.
6.3.3 Description of Segment Three: Bargain Seekers

SegmentThreewasasegmentwith86respondentsand38.0%oftheoverallsample.Theseconsumersspentabo
utasmuchastheconsumersinSegmentTwo,between200to599SEKoneachmonth.Theyhadeitherslightlygoo
dorneithergoodnorbadpreviousexperiences.Futureexpectationsforpurchasingonlinewerewithinasimilars
amerange.Overalltheconsumersinthissegmenthadtheleastpositiveattitudetowardspurchasingonlinecom
paredtotheothertwosegments.Withinthissegmentamajorityof61.6%didnotconsidertheexperiencesandop
inionsoftheirfamilyatall,whiletheyshowedamorepositiveattitudetowardstheexperienceandopinionsofthe
irfriends.TheimpactoftheReferenceGrouponlineforumswasinlinewiththeReferenceGroupfamily,wherea
majorityof66.3%didnotconsidertheexperienceandopinionsthatwerediscussed.Tosummarizethevariableof
ReferenceGrouponecanfindthattheexperienceandopinionsoffamilyandonlineformswerenotaffectingthec
onsumeratallwhiletheexperienceandopinionsoftheirfriendsweretakenintosomeminorconsideration.
OthervariablessuchasDemographicsandTimeSpentOnlinewereverysimilartotheothersegmentsandparticu
larlytoSegmentTwo.Almostnodifferencecouldbefound.Whatmightseparatetheminthesevariableswasthat
thissegmentspentslightlymoretimeonline.TherespondentsinthissegmentlistthattheymainlyusedtheIntern
etforfunandthereafterforinformationasbothsecondaryandtertiaryuse.Becauseoftheidentifiedcharacterist
icsofthissegment,IchosetolabelthemBargainSeekers.
PrimaryFactorofConcernforBargainSeekers
InthissegmentthepreferablefactorofconcernwasPricewith47.06%oftherespondentsagreeingtoit.Thedistri
butionwasclearlymadeontheexpenseofboththefactorsTrustandConvenience.Thedistributionsofthefactor
strustwere29.41%,andconveniencewas23.53%.
Thedistributionsofthefactorstrustwere29.41%,andconveniencewas23.53%.

Price 16 47.06% 47.06%
Trust 10 29.41% 76.47%
Convenience 8 23.53% 100.00%
Total 34 100.00%
WefoundtheBargainSeekerstobehighlypricesensitiveandthattheydidnotgivemuchconsiderationtothefact
orConvenience.
Afterhavinginvestigatedtheattributesfurther,thatconstitutedthefactorPrice,Ifoundthattherespon
dentshadamorepositiveattitudetowardscomparingpricesthantheyhadtowardsthefeelingofsavingmoneyw
hentheypurchasedonline.Thisindicatedthatcomparingpriceswasmoreimportantconcernfortheresponden
tsofthesegmentandsincetherespondentwerecomparingpricestheywouldautomaticallybelookingforthebe
stbuy.Bylookingforlowerpricesoneisconsequentlytryingtobesavingmoney.Iwerelinkingthisbehaviourtoth
efirstattribute,thefeelingofthattheyweresavingmoney.Bycloserlookingattheattribute“comparingprices”it
showedthattheconsumersdidfrequentlycomparepricebeforepurchasingandalsothatitwasimportantforth
emtobedoingso.WhenlookingatthesecondvariableIseethattheconsumerdidagreethatpurchasingonlinesa
vedmoney.However,theydidnotfeelthatitwasasimportantascomparingprices.Overalltherespondentswere
highlypositivetothefactorPriceandthereforetookconsiderationtoitwhenpurchasingonline.
Theprimaryconcernfortherespondentsinthissegmentshowedthattherespondentswerepriceorient
ed,forthesecondaryconcerntheystatedthattheywereTrustorientedandastertiaryconcerntheylistedConven
ience.TheseresultsmatchedwiththedistributionthatIacquiredaccordingtotheFishbeinmodel.TheBargainSe
ekershashadalowincomewhichmadethempricesensitive.Theywere,however,notConvenienceoriented;ins
teadtheytooktheirtimetocomparethepricesonlinewhichwasshownbythedifferentattributestothefactorPri
ce.Itshouldalsobenotedthattheyspentalittlemoretimeonlinethantheothersegments.Theyconsideredthee
xperiencesandopinionsoftheirfriendswhichalsoshowedthattheywereactivelyseekingthelowestpricesandt
hatitwasimportantforthemtodoso.Thatbehaviourexplainsthefactthattherespondentsfoundcomparingpri
cestobemoreimportantthanactuallysavingmoney,butasexplainedbefore,constantlysearchingforthelowes
tpriceswillautomaticallyresultinthewanttobesavingmoney.
3 Conclusions
When a consumer purchases a online, he or she is affected by various factors. The main influencing
factors have been identified as Price, Trust ,and Convenience. The Price factor exists because prices are often
lower on Internet stores compared to physical stores due to lower costs. Purchasing a online can greatly
benefit the consumer in terms of convenience and saving money. It is also convenient to shop on various sites
with different assortments, from the home. Trust is evidently needed since the consumer must share detailed
personal and financial information when purchasing a online. These types of data include the full name,
delivery address and credit card number for example, which makes Trust an important factor.
3.1 Future research

After having conducted our research and considering the limitations in time and resources that we
had been facing, it would be of interest to examine our research topic further as well as more profoundly.
Below, we have listed a few deductions for possible future research:
It would be interesting to conduct a survey at another university. If this would be done and similar results were
discovered, one could apply generalizability to the results
Conduct a survey on a larger sample, also including people that are not students and segmenting according to
that. This could find new segments, with new analytical possibilities.
This research was conducted from the consumers point of view, and if could also be conducted with greater
focus towards the online retailer.
We found that Price, Trust and Convenience were factors that are important when a consumer decides to
purchase online, but it would be interesting to see whether the concepts of these factors are perceived equally
between all consumers or if there were any discrepancies.
Furthermore, it would be of interesting to see if the factors were the same for other good that are traded
online. In general, this research could be conducted with a greater range of goods and with greater detail
towards the specific factors.
4 References
Literature:
 Brassington, F. and Pettitt, S. (2000),Principles of Marketing,(2nd edn),Edinburgh Gate, Pearson

Education Limited.
 Chisnall, M. P. (1994)Consumer Behaviour,(3rd edn), Maidenhead, McGrawHill Companies.
 Christensen, L., Engdahl, N., Grääs, C. and Haglund, L. (2001)Marknadsundersökning – en handbok,
(2nd edn), Lund, Studentlitteratur.
 Hollensen S. (2004)Global marketing – A Decision Oriented Approach, (3rdedn), Edinburgh Gate,
Pearson Higher Education.
 Jobber, D. and Fahy J. (2006)Foundations of Marketing,(2nd edn),Maidenhead, McGraw-Hill
Education.
 Kotler, P. and Armstrong, G. (2007)Principales of Marketing,(12th edn),Upper Saddle River, Prentice
Hall.
 Kotler, P. and Keller, L. K. (2006),Markating Management,(12th edn), UpperSaddle River, Prentice
Hall.
 Luhmann, N., (1979),Trust and Power, New York, Wiley.
 Luhmann, N., (1993),Risk : a sociological theory,New York, de Gruyter cop.
 Saunders, M., Lewis, P. and Thornhill, A. (2007)Research Methods forBusiness Students,(4th edn),
Edinburgh Gate, Pearson Higher Education.
 Vesterby, T. and Chabert, M. (2001)E-marketing,Viby J, Jyllands-PostenErhvervsbogklubb.
Articles and Reports:
 Allred, R. C., Smith M. S. and Swinyard, R. W(2006), ‘E-shopping loversand fearful conservatives: a
market segmentation analysis’,InternationalJournalof Retail & Distribution Management34: 4/5,
308-333.
 Brengman, M., Geuenes, M., Weijters, B., Smith, M. S. and Swinyard R. W.(2005), ‘Segmenting
Internet shoppers based in their Web-usage-relatedlifestyle: across cultural validation’,Journal of
Business Research58, 79 – 88.
 Constantinides, E. (2004) ‘Influencing the online consumer’s behavior: theWeb experience’,Internet
Research14: 2, 111-126.
 Goldsmith, E. R. and Flynn, R. L. (2004) ‘Psychological and behaviouraldrivers of online clothing
purchase’,Journal of Fashion Marketing andManagement,8:1, 84-95.
Internet Sources:
http://dictionary.reference.com/help/ahd4.html, Lexico Publishing Group,LLC,

(2007)(www.larsperner.com/teaching_materials.htm)
Corporate Authors:
Arbeitsgemeinschaft Online-Forschung e.V. [AGO F e.V.], 2007
Quotations:
Donal Rogan, FH Joanneum Graz, 28 May – 1 June 2007, InternationalConsumer Behaviour
5 Appendix
The Questionnaire
1. What is your Gender? *

Male
Female
Transgender
2. Which category best describes your age? *

<=20
21-25
25-33
34-41
42>=
3. Which area you belongs to? *

Rural
Urban
4. What is your occupation/ Employment status? *

Student
Professional
Government Employee
Self Employed
Other:
5. Which category best describes your disposable income? *

< 5000
5000-6999
7000-8999
9000-10999
11000-12999
>= 13000
6. Do you have your own internet connection? *

Yes
No
7. Have you ever done online shopping *

Yes
No
8. What motivates you to buy Online? *

Easy payment
No hidden cost
Wide range of products
No travel to shop
9. Do you feel that the online marketers are providing competitive prices? *
Yes
No
Cant say
10. What products you buy on internet? *
Books
Music CD's
Clothing
Mobiles and Acessories
Personal and Healthcare
11. Which of the following stores have you visited online? *

e-bay
Amazon
Flipkart
letsbuy
Myntra
Other:
12. What factors help you to decide which site to use for online shopping? *
Search Engine
Personal Recommendation
Special Offers On Sites
Online Advertising
Tv advertising
13. How do you make your payments on internet ? *

Debit/ credit card
Internet banking
Paypal
GoogleWallet
Cash-on-Delivery
14. How often you do Online shopping? *

once a month
once a week
Twice a month
Twice a week
15. How is your previous experience with online purchases? *
1 2 3 4 5
Very Bad Very Good
16. What is your future expectations of online shopping? *
1 2 3 4 5
Very Bad Very Good
17. How much does family affect online purchase? *
1 2 3 4 5
Not at all Very much
18. How much does friends affect online purchase? *
1 2 3 4 5
19. How much does online forums affect online purchase? *
1 2 3 4 5
20. How much time do you spend online daily? *

< 30 min
1-2 hours
2-5 hours
> 5 hours
21. How much percentage of your online time consists of online shopping? *
< 20%
20-40%
40-60%
> 60%
22. What is the reason to use Internet *

Fun Work Information Email Shopping
Primary usage
Secondary usage
Tertiary usage
23. Are you saving money while purchasing items online? *
1 2 3 4 5
Not at all Always
24. Do you compare price through different price comparison websites? *
1 2 3 4 5
Negative Positive
25. Do you find it secure to purchase things online? *

1 2 3 4 5
Negative Positive
26. Do you trust the internet retailer? *
1 2 3 4 5
Negative Positive
27. Is purchasing online saves time compared to purchasing items on a store? *
1 2 3 4 5
Negative Positive
28. Is purchasing online involves less effort compared to purchasing items at a store? *
1 2 3 4 5
Negative Positive
29. Do you feel that online shopping is better than shopping at brick and mortar store? *
Yes
No
Cant say

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UNIVERSITY OF PETROLEUM & ENERGY STUDIES

School of Business, Dehradun

Submitted to: Mr. Naveen Chandra pandey

Submitted by: vandan pandey

Date: 19th April 2019

1.3 Research Purpose

1.4 Research Questions

2.1 Choice of Methodology

2.2 Research Approach

2.3 Research Philosophy

2.4 Research Strategy

2.4.1 Secondary Data

The Internet is a worldwide open arrangement of PC organizes that transmit information by

3.2 Customer Behavior

3.2.1 Consumer Characteristics

3.2.2 Online Consumer Characteristics

Cultural Online Characteristics

Social Online characteristics

Personal Online characteristics

Psychological Online Characteristics

1.7 Specific Consumer Traits and Online

 The consumer’s demographics, as Bergmanetal.(2005).

Online Consumer Previous and

Impact of Family, Friends and

Fun, Work, Emails,

1.8 Important Influencing Factors

3.4.1 Identified Factors influencing Online Consumer Behavior

The Factor Price

The Factor Trust

Trust n nternet Competency

The Factor Convenience

 The quality of being suitable to ones comfort, purpose or needs

The characteristics of convenience with online shopping can be summarized as follows:

Price Convenience Trust

Impact of Internet Usage

Implications for Online Retail Store

2.2 Questionnaire–Collected data

2.2.1 Online Consumer Traits

Sex Frequency Percent CumulativePercent

Years Frequency Percent CumulativePercent

Area Frequency Percent CumulativePercent

Geogr phical Distribution

Years Frequency Percent CumulativePercent

Govt. Employee Other

Years Frequency Percent CumulativePercent

7000 – 8999 Disposable Income

InternetConnection Frequency Percent CumulativePercent

Motivation Frequency Percent CumulativePercent

CompetitivePrices Frequency Percent CumulativePercent

Products buy online

Products buy Online

Mobiles and Acessories 34

Special Offers On Sites 20 Factors help to decide

Debit/ credit card 42

Attitudes and Beliefs

Experience Frequency Percent CumulativePercent

Future expectations of online purchases

Experience Frequency Percent CumulativePercent

Impact of Reference Groups