CONTENTS

NUMBER TOPIC PAGE NO.

Title of the Project

CHAPTER 1 INTODUCTION

1.1 Introduction To The Topic 01-07

1.2 Related To Subject, 07-14

1.3 Objective And Vision Of Projects 15

1.4 Limitations Of The Project, 15

1.5 Literature Review 16-17

CHAPTER 2 RESEARCH METHODOLOGY 18-23

CHAPTER 3 FINDINGS & ANALYSIS 24-43

CHAPTER 4 CONCLUSIONS 44-45

CHAPTER 5 RECOMMENDATIONS / SUGGESTIONS 46

CHAPTER 6 LIMITATIONS OF THE STUDY 47

Annexure

BIBLIOGRAPHY 48

QUESTIONNAIRE 49-52

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 CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC

E-commerce has a significant impact on business costs and productivity. E-Commerce has a
chance to be widely adopted due to its simple applications. Thus it has a large economic
impact. Electronic Commerce provides the capability of buying and selling products and
information on the internet and other on-line service. Electronic commerce or e-commerce
refers to a wide range of online business activities for products and services. Electronic
commerce is transforming the marketplace by changing firms’ business models, by shaping
relations among market actors, and by contributing to changes in market structure. Itis
difficult to single out the impact of electronic commerce. Some businesses addresses three
themes associated with electronic commerce and the organizational changes it entails:
changes in business models, changes in market structure and opportunities for economic
growth created by organizational change. Electronic commerce creates the possibility of new
models for organizing production and transacting business, by offering inters modality and
complementarily – not only substitution – in business models.

E-Commerce plays an important role in the economic growth and development of nation. It is
a purposeful activity includes in planning, controlling, promotion and also distribution of
various goods and services. In this research paper will describe how the Business spirit play
an important role in nation’s growth. It also pertains to any form of business transaction in
which the parties interact electronically rather than by physical exchanges or direct physical
contact. E-commerce is usually associated with buying and selling over the Internet or
conducting any transaction involving the transfer of ownership or rights to use goods or
services through a computer-mediated network. Though popular, this definition is not
comprehensive enough to capture recent developments in this new and revolutionary business
phenomenon. A more complete definition is: E-commerce is the use of electronic
communications and digital information processing technology in business transactions to
create, transform, and redefine relationships for value creation between or among
organizations, and between organizations and individuals. While some use ecommerce and e-
business interchangeably, they are distinct concepts. In e-commerce, information and
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communications technology (ICT) is used in inter-business or inter organizational
transactions (transactions between among business organizations) and in business-to-
consumer transactions (transactions between business organizations and also individuals). E-
commerce is a way of conducting business over the Internet. Though it is a relatively new
concept, it has the potential to alter the traditional form of economic activities. Already it
affects such large sectors as communications, service, finance, retail trade and holds promises
in areas such as education, health, transport and government. The largest effects may be
associated not with many of the impacts that command the most attention but with less
visible, but potentially more effects on routine business activities.
E-commerce presents opportunities to accelerate business processes, reduce costs, reach new
customers and develop new business models and markets in the business organization. The
general agreement is that electronic markets and digitalization of products will impact
material flows. A clear identification of the extent and direction of effects, however, has not
yet been achieved, and the issue remains controversial. Increased resource productivity is
discussed as one of the major potential ecological advantages of e-commerce. Potential
exists, above all, in the fields of demand and supply chain management and mass
customization. Potentials to increase resource productivity appear in outline particularly in
the business-to-business(B2B) field, where there may be, for instance, reduction in quantities
procured or stored, surplus production, and error rates between supplier and manufacturer.
Conceptual Background of the Research Study
Today's world is a world of IT, BT and Beauty. In the age of Globalization, tremendous
progress in science and technology has brought changes in to the world of trade, commerce,
banking & marketing. Electronic commerce expands the marketplace to national and
international markets. It decreases the cost of creating processing, distributing and retrieving
paper based information. The Importance of E-Commerce is very wide because it reduces the
transaction cost. Reduced transaction cost leads to consumer empowerment. In short E-
Commerce is bringing about a very big change in commerce and marketing. E-Commerce is
the process of buying and selling or exchanging of product,, services and information via
computer networks including the internet. It is the application of technology toward the
automation of business transaction and work flow. It is the delivery of information; Products,
Services, or payments over telephone lines, computer network, or ant other electronic means.
It is a tool that addresses that desire of firms, consumers and management to cut service costs
while improving the speed of service delivery. Electronic commerce (e-commerce) remains a
relatively new, emerging and constantly changing area of business management and
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information technology. There has been and continues to be much publicityand discussion
about e-commerce. For the purpose of clarity, the distinction between e-commerce and e-
business in this research paper is based on respective terms commerce and business.
Commerce is defined as embracing the concept of trade, ‘exchange of merchandise on a large
scale between different countries’. By association, e-commerce can be seen to include the
electronic medium for this exchange. Thus electronic commerce can be broadly defined as
the exchange of merchandise (whether tangible or intangible) on a large scale between
different countries using an electronic medium – namely the Internet. The implications of this
are that e-commerce incorporates a whole socio-economic, telecommunications technology
and commercial infrastructure at the macro-environmental level. All these elements interact
together to provide the fundamentals of e-commerce. Business, on the other hand, is defined
as ‘a commercial enterprise as a going concern’. E-business can broadly be defined as the
processes or areas involved in the running and operation of an organization that are electronic
or digital in nature. These include direct business activities such as marketing, sales, human
resource accounting and human resource management but also indirect activities such as
business process re-engineering and change management, which impact on the improvement
in efficiency and integration of business processes and activities.

E-commerce involves an online transaction. E-commerce provides multiple benefits to the

consumers in form of availability of goods at lower cost, wider choice and saves time. The
general category of ecommerce can be broken down into two parts: E-Merchandise & E-
finance. Many companies, organizations, and communities in India are doing business using
E-commerce and also are adopting M-commerce for doing business. Ecommerce is showing
tremendous business growth in India. Increasing internet users have added to its growth.
Despite being the second largest user base in world, only behind China (650 million, 48% of
population), the penetration of e-commerce is low compared to markets like the United States
(266 M, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding
around 6 million new entrants every month. The industry consensus is that growth is at an
inflection point. India's e-commerce market was worth about $3.9 billion in 2009, it went up
to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70%
of India's e-commerce market is travel related. According to Google India, there were 35
million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end
of year 2016. By 2020, India is expected to generate $100 billion online retail revenue out of
which $35 billion will apparel sales are set to grow four times in coming years. This paper is
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outcome of a review of various research studies carried out on Impact of E-commerce on
Indian Commerce.

The Impact of Electronic Commerce on Business

E-Commerce and E-Business are not solely the Internet, websites or dot com companies. It is
about a new business concept that incorporates all previous business management and
economic concepts. As such, E-Business and E-Commerce impact on many areas of business
and disciplines of business management studies.
1. Management Information Systems – Analysis, design and implementation of e-business
systems within an organization; issues of integration of front-end and back-end systems
2. Human Resource Management – Issues of on-line recruiting, home working and
‘Intrapreneurs’ works on a project by project basis replacing permanent employees.
3. Finance and Accounting –On-line banking; issues of transaction costs; accounting and
auditing implications where ‘intangible’ assets and human capital must be tangibly valued in
an increasingly knowledge based economy.
4. Economics –The impact of e-commerce on local and global economies; understanding the
concepts of a digital and knowledge-based economy and how this fits into economic theory
5. Production and Operations Management –The impact of on-line processing has led to
reduced cycle times. It takes seconds to deliver digitized products and services electronically;
similarly the time for processing orders can be reduced by more than 90 per cent from days to
minutes. Production systems are integrated with finance marketing and other functional
systems as well as with business partners and customers.
6. Marketing – Issues of on-line advertising, marketing strategies and consumer behavior
and cultures. One of the areas in which it impacts particularly is direct marketing. In the past
this was mainly door-to door, home parties and mail order using catalogues or leaflets.
7. Computer Sciences – Development of different network and computing technologies and
languages to support e-commerce and e-business, for example linking front and back office
legacy systems with the ‘web based’ technology.
8. Business Law and Ethics – The different legal and ethical issues that have arisen as a
result of global ‘virtual’ market issues such as copyright laws, privacy of customer
information, legality of electronic contracted.
The Benefits of E-Commerce to Business, Consumers and Society
The previous sections have included discussions about what e-commerce is and its impact,
but what are the benefits of e-commerce? What does it offer and why do it? The benefits of e-
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commerce can be seen to affect three major stakeholders: Business Organizations, Consumers
and Society.
1. Benefits of E-Commerce to Business
a) International Marketplace - What used to be a single physical marketplace located in a
geographical area has now become a borderless marketplace including national and
international markets? By becoming e-commerce enabled, businesses now have access to
people all around the world. In effect all e-commerce businesses have become virtual
multinational corporations.
b) Operational Cost Savings - The cost of creating, processing, distributing, storing and
retrieving paper-based information has decreased.
c) Mass Customization - E-commerce has revolutionized the way consumers buy goods and
services. The processing allows for products and services to be customized to the customer’s
requirements. In the past when Ford first started making motor cars, customers could have
any color so long as it was black. Now customers can configure a car according to their
specifications within minutes on-line via the www.ford.com website.
d) Lower Telecommunications Cost - The Internet is much cheaper than value added
networks (VANs) which were based on leasing telephone lines for the sole use of the
organization and its authorized partners. It is also cheaper to send a fax or e-mail via the
Internet than direct dialing.
e) Digitization of Products and Processes - Particularly in the case of software and
music/video products, this can be downloaded or e-mailed directly to customers via the
Internet in digital or electronic format.
f) No more 24-hour-time Constraints - Businesses can be contacted by or contact
customers or suppliers at any time.
2. Benefits of E-Commerce to Consumers a) 24/7 Access - Enables customers to shop or
conduct other transactions 24hours a day, all year round from almost any location. For
example – checking balances, making payments, obtaining travel and other information.
b) More Choices - Customers not only have a whole range of products that they can choose
from and customize, but also an international selection of suppliers.
c) Price Comparisons - Customers can ‘shop’ around the world and conduct comparisons
either directly by visiting different sites, or by visiting a single site where prices are
aggregated from a number of providers and compared.

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d) Improved Delivery Processes - This can range from the immediate delivery of digitized
or electronic goods such as software or audio-visual files by downloading via the Internet, to
the on-line tracking of the progress of packages being delivered by mail or courier.
e) An Environment of Competition - Where substantial discounts can be found or value
added, as different retailers vie for customers. It also allows many individual customers to
aggregate their orders together into a single order presented to wholesalers or manufacturers
and obtain a more competitive price.

3. Benefits of E-Commerce to Society a) Enables more Flexible Working Practices -This

enhances the quality of life for a whole host of people in society, enabling them to work from
home. Not only is this more convenient and provides happier and less stressful working
environments, it also potentially reduces environmental pollution as fewer people have to
travel to work regularly.
b) Connects People - Enables people in developing countries and rural are as to enjoy and
access products, services, information and other people which otherwise would not be so
easily available to them.
c) Facilitates Delivery of Public Services - For example, health services available over the
Internet (on-line consultation with doctors or nurses) filing taxes over the Internet through the
Inland Revenue website.
The Barriers of E-Commerce The drivers of e-commerce were identified and summarized
there are barriers to the growth and development of e-commerce. Numerous reports and
surveys identify the different kinds of barriers, and many of them focus on security as being
one of the largest inhibitors to and problems for e-commerce. Different nations are at
different stages of development of ecommerce and as such the issues that are relevant to one
nation may not be relevant to another. Similarly, the issues that are relevant to the type of
organization also differ. Overall, all kinds of organizations have similar barriers but with
different emphases for discuss as follows:
1. Commercial Infrastructure - Relates to issues such as international trade agreements,
taxation laws and other legal agreements that facilitate all kinds of on-line trading and so is a
barrier relevant to all types of businesses.
2. Technology Infrastructure - Deals with issues of standardization of systems and
applications, which is a particular concern for larger organizations who want to implement
solutions such as value chain integration and e-supply chain management.

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3. Internet Infrastructure - Deals with issues such as availability and quality of the Internet
in terms of speed and reliability. This barrier is of particular concern to Business to Consumer
organizations, since their business relies more on general consumers, and so the ease with
which the general public can connect to the Internet has a direct impact on their Web-based
business.
4. Security -In its broadest term is one of the most significant barriers toe-commerce both
within the organization and external to it. Identified as Security and Encryption; Trust and
Risk; User Authentication and Lack of Public Key Infrastructure; Fraud and Risk of Loss it
relates to the development of a broader security infrastructure and it also relates to the kinds
of measures barriers to e-commerce businesses can take to improve security.
5. Interoperability of systems– This is identified as one of the major barriers for large US
based Business to Business corporations. This refers specifically to implementation and
compatibility problems of integrating new e-commerce applications with existing legacy
systems and resources within organizations. This problem also extends to interacting with
systems of business partners and stakeholders.
6. Lack of Qualified Personnel- This is a particularly strong concern because internally they
do not have sufficient resources to attract and maintain their own support staff to develop a
sophisticated technology infrastructure. With regards to third parties, the qualified personnel
tended to work for larger organizations.

1.2 RELATED TO SUBJECT

The world of internet practically can be considered as an endless market, where a consumer
living in any country of the world can get into a contractual relation with a trader operating in
any other country of the world. From this aspect a cross-border purchase is when the
consumer buys goods from any web trader settled anywhere in the world outside his/her
country of residence. Due to the differences in language and legislation environment,
furthermore sometimes in commercial traditions it is particularly essential to consider
whether to buy the selected product from a web store operated by a foreign trader.

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The consumer, in case of Online Shopping can buy the selected product rapidly by doing
some clicks from home or work saving time and energy in spite of the larger distance arising
from the endless and unlimited market offered by the internet. The offers on the internet can
be easily compared, therefore the consumer can buy the product with the most favorable
conditions (price, quality, other discounts) tailored to the individuals needs. Besides the
advantages however, it is good to know that there may also be risks connecting to online
shopping, since the International Conference on "Research avenues in Social Science”
Organize by SNGC, Coimbatore C-1229 www.ijariie.com 266 conclusion of the contract is
done without personal interaction, and the consumer sitting in front of a computer/screen
tends not to think over or consider his/her intention of buying.
Consumer’s attitude towards Online Shopping refers to their psychological state in terms of
making purchases over the Internet. Online buying behavior process refers to the products
purchased online. The process of online buying behavior consists of five steps and it is
similar to traditional shopping behavior. For instance, consumer recognize the need for
buying some product (book), they refers to the internet to buy online and start to search for
the information and look for all the alternatives and finally make a purchase which best fits to
their needs. Before making final purchase consumers are bombarded by several factors which
limits or influence consumers for the final decision.

STATEMENT OF THE PROBLEM

An increasing number and variety of firms and organizations are exploiting and creating
business opportunities on the Internet statistics indicate the repaid growth in the field of
virtual shopping. With this emerging field of shopping the interest of marketers is also
increasing in studying what actually motivates consumers to shop online. Fierce competitions

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among online sellers have forced them to gain the competitive edge in the field of virtual
shopping. As Online Shopping is a new medium so the consumer behavior in the field of
Online Shopping In order to gain competitive edge in the market, marketers need to know the
consumer behavior in the field of online shopping. So it is important to analyze and identify
the factors which influence consumers to shop online in order to capture the demands of
consumers. Other than the factors which influence consumers to shop online, online
shopper’s demography in terms of Age, gender, income and education is equally important to
define their strategies accordingly.
Internet and Information technology have made tremendous contributions for business
transformation witnessed nowadays all over the world. This has given birth to E
commerce which encompasses several pre purchase and post purchase activities leading
to exchange of products or service or information over electronic systems such as the
internet and the other Telecommunication networks.
Analysing the competitive advantage of E-Commerce it is observed that E-Commerce
enables simpler, faster and efficient business transactions. For developing country like
India, E-Commerce offer considerable opportunity for growth.
E-commerce leads to a boon for the current economic downturn. As India’s e-commerce
market is worth about Rs 50,000 crores in 2012. About 80% of this is travel related
(airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).
Online retailing comprises about 15%. India has close to 10 million online shoppers and
is growing at an estimated 40-45% per annum.
The rapid growth of e-commerce in India is being driven by greater customer choice
and improved convenience.
The company has proposed a plan to launch an online grocery store in the Indian market
for which the project was undertaken was to determine whether online grocery shopping
will be beneficial to the user with respect to questionnaire which will be analysed in three
parts.
The project will first study the attitude of customers towards online shopping, also
determining the factors which influence the consumer to purchase goods and
service.

The second half of the project will depict the attributes of Online Shopping influencing
the purchase decision by the respondent. It will also determine the issues regarding the

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online shopping.
The third part of the project determines the purchase decision with respect to grocery. It
will determine the place preference of grocery shopping with respect to price, quality,
variety, proximity and offers/ discounts.

Categories of e-commerce

As with traditional commerce, there are four principal categories of e-commerce: B2B, B2C,
C2B and C2C.

 B2B (Business to Business) — This involves companies doing business with each

other. One example is manufacturers selling to distributors and wholesalers selling to
retailers.
 B2C (Business to Consumer) — B2C consists of businesses selling to the general
public through shopping cart software, without needing any human interaction. This is
what most people think of when they hear "e-commerce." An example of this would
be Amazon. 
 C2B (Consumer to Business) — In C2B e-commerce, consumers post a project with a
set budget online, and companies bid on the project. The consumer reviews the bids
and selects the company. Elance is an example of this.
 C2C (Consumer to Consumer) — This takes place within online classified ads,
forums or marketplaces where individuals can buy and sell their goods. Examples of
this include Craigslist, eBay and Etsy.

Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with
the aim of cutting marketing costs, thereby reducing the price of their products and
services in order to stay ahead in highly competitive markets.
Companies also use the Internet to convey communicates and disseminate information,
to sell the product, to take feedback and also to conduct satisfaction surveys with
customers. Customers use the Internet not only to buy the product online, but also to
compare prices, product features and after sale service facilities the will receive if they
purchase the product from a particular store. Many experts are optimistic about the
prospect of online business.

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In addition to the tremendous potential of the E-commerce market, the Internet provides a
unique opportunity for companies to more efficiently reach existing and potential
customers.
Although most of the revenue of online transactions comes from business-to-business
commerce, the practitioners of business-to-consumer commerce should not lose
confidence .It has been more than a decade since business-to-consumer E-commerce
first evolved. Scholars and practitioners of electronic commerce constantly strive to gain
an improved insight into consumer behaviour in cyberspace.
Along with the development of E-retailing, researchers continue to explain E-
consumers behaviour from different perspectives. Many of their studies have posited
new emergent factors or assumptions which are based on the traditional models of
consumer behaviour, and then examine their validity in the Internet context.

Models of E-commerce
Business-to-Business (B2B):
B2B e-commerce is simply defined as e-commerce between companies. This is the type
of e-commerce that deals with relationships between and among businesses. About 80%
of e- commerce is of this type, and most experts predict that B2B ecommerce will
continue to grow faster than the B2C segment. Eg: indiamart.com, eindiabusiness.com,
tradeindia.com etc.
Business-to-consumer (B2C):
Business-to-consumer e-commerce, or commerce between companies and consumers,
involves customers gathering information; purchasing physical goods (i.e., tangibles such
as books or consumer products) or information goods (or goods of electronic material or
digitized content, such as software, or e-books); and, for information goods, receiving
products over an electronic network.
It is the second largest and the earliest form of e-commerce. Its origins can be traced to
online retailing (or e-tailing). Thus, the more common B2C business models are the
online retailing companies such as flipkart.com Amazon.com, snapdeal.com etc
Business-to-Government (B2G):
Business-to-government e-commerce or B2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related operations. This kind of e-commerce

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has two features: first, the public sector assumes a pilot/leading role in establishing e-
commerce; and second, it is assumed that the public sector has the greatest need for
making its procurement system more effective.
Web-based purchasing policies increase the transparency of the procurement process
(and reduce the risk of irregularities). To date, however, the size of the B2G ecommerce
market as a component of total e-commerce is insignificant, as government e-
procurement systems remain undeveloped.
Consumer-to-Consumer (C2C):
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers. This type of e-commerce is characterized by the growth of
electronic marketplaces and online auctions, particularly in vertical industries where
firms/businesses can bid for what they want from among multiple suppliers. It perhaps
has the greatest potential for developing new markets.
Online auction site eBay, Yahoo! Auctions are a couple of examples of C2C websites.
Mobile Commerce in India
Mobile is growing in India with more than 800 million subscribers across the country.
The advancement in terms of adoption of smart phones with 3G enabled services is
happening at a rapid pace. This of course has opened up the gates to mobile advertising,
mobile application development and mobile commerce in India. According to BuzzCity's
latest
report, India is top performing mobile advertising region in the whole of Asia. The growth
in mobile advertising globally is tremendous with ads served on a year-on-year growth of
139%. With respect to some number crunching, more than 126 billion ads were served in
2011, compared with 52 billion in 2010.

In India, Mobile Commerce is still in the development phase as the use of mobile phones
for carrying out transactions is very limited. However, the development is taking place at
a nice speed and in the coming years, Mobile Commerce is most likely to make its
presence feel as companies and businesses have started understanding the benefits of
Mobile Commerce. Some of the companies have even incorporated this technology.
Airtel, ICICI, Reliance are some of the companies/businesses that are using this
technology as their users are allowed to make limited purchases from their phones. For
now, the users are mainly allowed to pay phone bills, utility bills, book movie tickets,

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book travel tickets with their cell phones.

However, more services will be introduced in coming years. Security is one of the main
concerns of Mobile Commerce as it’s very important to offer secure transactions and this
is the reason why Mobile Commerce is still in the development phase in India.
For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account
with a cell phone in order to pay the utility bills. With the current rate of development, users
will be soon allowed to purchase products, advertise, to take part in auctions and pay bills
with the help of a cell phone, while they are on the move.
Online Shopping In India
The Indian economy is slated to grow by upward of 6 % annually in the next few
years which is among the highest rates of any big emerging economy. And quite a
lot of this growth would be on the back of domestic consumption of goods and
services.
E-commerce is emerging as a great level given that organized retail is still not ubiquitous
across the length and breadth of the country with large retail chains making up less than
10% of the market.
E-commerce is helping people in smaller towns in India access quality products and
services similar to what people in the larger cities have access to. It’s being forecast that
close to 60% of online shoppers would come from beyond the top eight large cities by end
of this year.
Increasing internet penetration has helped to expand the potential customer pool.
Internet penetration is only about 10% (or about 121 million users) as against about
81% in the US and 36% in China. However this number continues to rise at a consistent
pace because of falling prices for broadband connections.
Indians are also increasingly taking to mobile devices for not only search but shopping
as well. The number of smartphone users is rapidly increasing in India and with 4G
services about to take off it’s expected to get even more people going online. There are
currently about 900 million mobile subscribers and this number is expected to touch
1.2 billion by
2015. Of these about 27 million are estimated to be active mobile internet users. More
importantly, 20% users indicated intent to buy products through their mobile phones as
against the current 4% and this number is expected to only increase in the next two to

13
 three
years.
Innovation is helping e-commerce companies break the inertia for Online Shopping by
offering benefits to customers not traditionally available in a brick and mortar store.
Business models include no question asked return policies ranging from 7 days to 30
days, free product deliveries and the industry dynamics changing “cash on delivery”
model. The last innovation has really help unlock the potential as people can now order
products and pay when they get physical delivery of the product.
This has been a tremendous success because Indians are still reluctant to give their
credit/debit card details online and want to have the psychological comfort that they would
actually get the product once payment has been made. These innovations have led to further
innovations downstream as ancillary businesses are developing to support these initiatives.
Some companies have begun to develop support mechanisms for the entire cash on delivery
model and are trying to reach the far flung corners of India, including in the interiors where
traditional logistics companies are still not completely present. The logistics companies are
also shoring up their act and have started to build specific verticals and expertise to address
the requirements of e-commerce companies.
Divyan Gupta is the Founder and CEO of Keshiha Services Pvt. Ltd, a company with
interests in the internet, telecom, healthcare, education and advanced technology
businesses has stated that, acceptance of Online Shopping as a secure shopping mode is
has also helped to increase e-commerce uptake. Currently only about 10 million people
do online transactions out of an approximate population of 200 million credit and debit
card holders. However the latest industry report by First Data Corporation and ICICI
Merchant Services indicate that there are about 150 million users that are ‘ready’ for e-
commerce.
More importantly the report indicates that urban Indian consumers are now confident
enough to make online purchases of up to US$500 as against US$40-100 in the recent
past. So not only are the numbers of online shoppers projected to increase but there has
been a real increase in the total value being spent online.

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1.3 OBJECTIVE AND VISION OF PROJECTS

Objectives:
 To study the customer awareness about online shopping
 To investigate the factors effecting customer’s buying behaviour towards online
shopping.
 To find out the customer satisfaction from online shopping.
 To propose suitable suggestions for enhancing consumers satisfaction through online
shopping

1.4 LIMITATIONS OF THE PROJECT,

As has been mentioned above no study or project is error free neither is it limited by some
constraints. Following are some of the limitations observed while conducting the project of
education:

 While observing the internal environment at the education, it was felt that the
coordination among various teams and departments was very poor
 No clear cut strategy to approach companies
 There was a conflict between the sectors given for mapping and what actually was
mapped
 A lot of companies were avoided even though there was potential to grow due to their
current size
 The client database prepared in the education was not accessible to all the managers
of the organization, thus creating a lot of confusion and leading to overlapping of
work
 The education products were not explained in detail and only a brief overview was
given due to paucity of time
However, these limitations were not very huge roadblocks and hence could be worked upon.
The minimization of limitations can make this project an even better success.

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1.5 LITERATURE REVIEW

Review of research report is done to what research works have already been done on this and
related topics or fields, the methodology adopted by them, the findings and conclusions, the
listed scope for further research and so on. Below an attempt is made to review the available
literature related to the topic of this research.
According to Monsuwe, Delleart and Ruyter (2005) there are five external factors to
understand consumer's intention to purchase in the internet which is the consumer
personality, situational factors, product characteristics, previous Online Shopping experiences
and the trust in online shopping. Consumer's trait includes their demographic factors such as
age, income, gender and educational level will lead them to have the intention to shop
online .Situational factors will also lead a consumer to have the intention to shop in the
internet such as time pressure, lack of mobility, geographical distance, need for special items
and attractiveness of alternatives .
Ekeldo and Sivakumar ( 2007) This research has two major purposes: developing and
testing a resource‐based framework for entry mode choice and ascertaining the extent to
which the determinants of foreign market entry mode choice in the manufacturing sector
apply to foreign market entry mode choice in the non‐separable service sector The managerial
and research implications of the findings are delineated and directions for future research are
offered.
Kim, Lee, and Kim. (2008). In their study on “Factors Affecting Online Search Intension
and Online Purchase Intention” focused on various factors affecting online search intention,
which has been found to be a key predictor of online purchase intention. They concluded that
the utilitarian value of internet information search, hedonic value of internet information
search, perceived benefits of internet shopping, and internet purchase predicted online search
intention quite well. The findings also showed that online search intention positively affect
online purchase intention. The greater the benefits of Internet shopping as perceived by the
consumers, the greater is the intention to use the internet for information search.
Vijayasarathy (2011) examining the relationship between shopping orientation, product
types, and consumer intentions to use the internet for shopping. Irrespective of the product
type, the consumers with home and economic International Conference on "Research avenues
in Social Science” shopping orientations could be expected to use Online Shopping more

16
than those with local orientations. Moreover, consumer would be more inclined to use the
internet to shop for intangible than tangible products. He also concluded that age, gender, and
income have an influence on Online Shopping orientations, specifically; younger males with
higher household income would be more likely to engage in Internet shopping.
Sita Mishra (2013) Study examines “Consumers Attitude towards Online Shopping for
clothing” examines the demographic characteristics of online consumers and their attitude
towards Online Shopping behavior for clothing. This study is based on a sample of 200
internet users in NCR Delhi. The findings show that consumers have positive attitude towards
Online Shopping but low attitude towards online purchase of clothes. The analysis shows that
city and sex do not affect consumers’ attitude but age and income indicates a significant
association. The issue of trust enjoys ability and trial policy seems to be major concerns for
the consumers but convenience and technological advancement play a major role in online
shopping.
• Bhatnagar et al. (2014) Suggest that shopping online is perceived to be quite risky.
Perceived risk includes fear of technology use and information overload, feeling of
uncertainty and confusion, feeling of insecurity when engaging in online transactions (e.g.
credit card fraud). Because technology for secure transactions (e.g. online payment) is not yet
mature, security and privacy are major issues that should be addressed satisfactorily in this
medium.

• Song and Zahedi (2015) classify website quality elements into five categories according to
their purpose: for promotion, service, informational influence, self-efficacy, and resources
facilitation. These investigators find that each of the five significantly and positively
reinforces the consumers. Perceptions in these factors, which in turn positively influence
consumer Online Shopping attitudes and behavior.

17
 CHAPTER 2 :
RESEARCH METHODOLOGY

This chapter deals with the methodology adopted in conducting the study. The chapter is
organized as follows; research design, sources of data, population and sampling, research
instrument (data collection technique), administration of instrument and analysis of data.

The project is a systematic presentation consisting of the enunciated problem, formulated

hypothesis, collected facts of data, analyzed facts and proposed conclusions in form of
recommendations. The data has been collected from both the sources primary and secondary
sources.

Research Design

The research was based on assessing consumer behavior. The design was exploratory study
which used closed observation in analyzing consumer behavior.

The study was based on the use of questionnaires. These approaches were used because they
were satisfactory tools for collecting data for the sample population to investigate the topic
under study.

A research design is the arrangement of the condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.

A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is the overall operation pattern or framework of
the project that stipulates what information is to be collected from which source and be what
procedures.

 What is study about?

 What is study being made?

 Where will the study be carried out?

 What type of data is required?

18
  Where can the required data be found?

 What will be the sample design?

 Technique of data collection.

 How will data be analyzed?

Sources of Data

Both primary and secondary source of data were used in conducting the research.

Primary Sources

In getting primary data there are several approaches available to gathering data. In order to
collect reliable and valid information, the researcher go to the market place and collect data
from different user of student. The method used in collecting the primary data was
questionnaire.

Questionnaires

The purpose of using questionnaire was to identify and assess the affect the consumer
behavior. A set of questionnaire was prepared with open – ended questions.

Secondary Sources

The study also made use of secondary data in collecting information. The sources of the
secondary data include books, internet search, articles, and journals among others. This
helped to identify how others have defined and measured key concepts, the data sources that
of others used and this helped to discover how this research project is related to other studies.

Sample Size

A sample size of 50 was chosen from the market. This was based on the consumer behavior
and to ensure that the sampled was representative enough to draw conclusion through pie
chart.

Sampling Techniques

The simple random sampling technique was used to select respondents from the market. This
is basically because the population will have an equal chance of being selected. Significantly,

19
the purposive sampling technique, which is a non-probability sampling technique, was used
to select respondents. This was because the researcher wanted to deal with only typical cases
based on the objectives of the study.

Data Collection Instrument

The researcher used questionnaire. The researcher prepared the questionnaires to be

responded by the consumers. The questions were designed to make the purpose of the study
successful after the results have been ascertained. This instrument gave expected information
about the consumer behavior.

Administration of Instruments

Copies of the questionnaire were distributed to consumers at market place. After some time,
the researcher went back and collected the answered questionnaires. The researcher explained
the questions to the respondents thoroughly after copies of the questionnaire were given
them. The purpose of this was to help the respondents to understand the purpose of the
research, and to do away with suspicions, partialities and also to be able to provide their
independent opinions on the questionnaire items given them. To have a valid and reliable
data, the researcher ensured that the questions were well formulated which allows error
minimization.

Data Analysis

The collected data were statistically analyzed, using the pie-chart and tables. Representations
like tables and charts were used to ensure easy and quick interpretation of data. Responses
were expressed in percentages. Data from the completed questionnaire were checked for
consistency. The items were grouped based on the responses given by the respondent. This
method was used because it is the best instrument to identify, compare, describe and reach a
conclusion.

Sampling Design

SOURCES FOR DATA COLLECTION:

(a) Primary Data Collection Sources:

It has been collected by forming a proper questionnaire. Questionnaire is a systematic and

structured manner of collecting data for conducting experiment. The nature of the

20
questionnaire is very inductive and fundamental. It has been kept in a proper framework to
make it clear to the retailers.

Primary data can be collected in five main ways:

i) Observation

ii) Focus groups

iii) Surveys

iv) Behavioral data

v) Experiments

Among these, ‘survey method’ was selected to collect the primary data. 100 user were visited
& collected the required data relevant to this project.

(b) Secondary Data Collection Sources:

Secondary sources

Information was collected from secondary sources such as customer survey, newspapers
advertisements, newsletters, etc.

Beside these the use of Internet was also made in collecting relevant information. The data
collected from the above mentioned sources has been adequately structured and used at
appropriate places in the report. The information gathered included:

• Their annual reports.

• Pamphlets.

• Newsletters.

• Pictures.

• Exchange schemes.

UNIVERSE/POPULATION:

21
 Univariate analysis is the simplest form of quantitative (statistical) analysis. The
analysis is carried out with the description of a single variable in terms of the applicable unit
of analysis. For example, if the variable "age" was the subject of the analysis, the researcher
would look at how many subjects fall into given age attribute categories.
 Univariate analysis contrasts with bivariate analysis – the analysis of two variables
simultaneously – or multivariate analysis – the analysis of multiple variables simultaneous.
Univariate analysis is commonly used in the first, descriptive stages of research, before being
supplemented by more advanced, inferential bivariate or multivariate analysis.
SAMPLING UNIT
Sampling techniques can be broadly classified in to two types:

 Probability Sampling
 Non Probability Sampling
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.

Types of Research :

Research are mostly categorized in to four major categories:

 First is descriptive & Analytical

 Second Applied & Fundamental
 Third Quantitative & Qualitative
 Fourth Conceptual & Empirical
The project will be based on Descriptive Research type.

SAMPLE SIZE
It is the process of selecting representative subset of a total population for obtaining data for
the study of the whole population the subset is known as sample. The sample size is selected
for the study 50 user. The techniques of sampling unit in this study are convenience
sampling.

Sampling Technique
Sampling techniques can be broadly classified in to two types:
 Probability Sampling (here the every item in the universe have the equal chance of
inclusion in the sample)

22
 Non Probability Sampling (Here the item in the sample are deliberately selected by
the researcher)
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.
Tools Used for Data Analysis
 Bar chart (Bar charts will be used for comparing two or more values that will be taken
over time or on different conditions, usually on small data set )
 Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or
frequencies)

23
 CHAPTER 3:
FINDINGS & ANALYSIS

3.1 DATA ANALYSIS & INTERPRETATIONS

Gender

Male Female Total

29 21 50

42%

Male
58% Female

Interpretation: The above diagram depicts that out of the total 50 respondent 42% of the
respondent were female as the objective was to study the consumer behaviour with
respect to online grocery, as grocery is more shopped by female respondent.

Age Bracketes

24
 Age
18- 25-    
24 30 30 & Above Total

23 19 8 50

25
23

20 19

15

10
8

Interpretation: The above diagram depicts that out of the total 50 respondent 42% of the
respondent were female as the objective was to study the consumer behaviour with
respect to online grocery, as grocery is more shopped by female respondent.
 The 38 % of the respondent were among 30 & above age bracket as
these respondents are well educated and web savvy.
 Another 46% of the respondent were ranging from 18-24 age bracket and the
remaining 16 % were respondent were ranging from 25-30 age bracket, as
these respondents are ready to adapt changes.

Occupation
Occupation

25
 Service Business Total

31 19 50

38%

Service
Business
62%

Interpretation:
For the research to be successful most of the respondent are working officials who
are educated and web savvy

Annual Income Level

26
 Annual Income Level

1-5 Lakhs 5-10 Lakhs 10 & above

76 82 42

6%

46%
1-5 Lakhs
5-10 Lakhs
48% 10 & above

Interpretation:
From the above pie chart we can determine that 48 % of the respondent have around 5-10
lakhs of annual income which indicates majority of the respondent have spending power to
purchase grocery items.

Q.1.Which item you shop online?

27
 Apparels Books Electronic Food Games Music Other

12 7 14 4 8 3 2

16

14

12

10

0
Apparels Books Electronic Food Games Music Other

Interpretation:
 The above diagram depicts that electronic has the highest number transaction in
online shopping.
 Apparels is the second most item sold in the online shopping, along with
electronics appliances like hair dryer, mobile appliances, computer peripherals
etc.
 The other items that are sold in the Online Shopping are the apparels which are
more preferred by the female respondent.
 Games are the items that are proffered with the respondent ranging the age
bracket between

Q.2.How much money do you spent in online shopping?

28
100-500 500-1000 1000-5000 5000 & above
       
12 17 9 12

20
18
16
14
12
10
8
6
4
2
0
100-500 500-1000 1000-5000 5000 & above

Interpretation:
 The money spend in Online Shopping is ranging from INR 1000-5000,
which indicates the users are willing to pay more price when there is
premium quality products such as electronics, branded apparels, original
music etc.

Q.3.When do you feel the need to shop online?

29
 Percentage

When I need home delivery 17%

When I want Something Uniques & 12%

Special

When I need to compare prices 6%

When I don’t have the time to find things 10%

in different markets

Other 5%

20
18
16
14
12
10 17 10
8 12 5
6 6
4
2
0
When I need When I want When I need to When I don’t other
home delivery Something compare prices have the time to
Uniques & Special find things in
different markets

Interpretation:
 From the above we can depict the factor which motivates the respondent to
shop online is when they need home delivery.
 The other factor which motivates to shop online when they compare prices
of different products at a same place.
 The above graph also determines that people shop online when they don’t have the
time to find things in the market for the product to be purchased.
 Also respondent shop online when they want some unique & special product
which they cannot find in the offline market.

Q.4. What features in Online Shopping website attracts you?

Design of website Discounts Advertisemen Variety Value of
offered t money

30
          
13 12 16 6 3

20
18
16
14
12
16
10
8 13 12
6 3
6
4
2
0
Design of website Discounts offered Advertisement Variety Value of money

Interpretation:
 From the above diagram we can determine that people prefer Online Shopping
when discounts offered are offered to them.
 Also the variety of product offering to the customer also forms an important
factor which motivates the respondent to shop online.
 The other factor that motivates the user to shop online is when the product
they purchase is of value of money. Also the design of website along with
the different advertisement promotion motivates the user to shop online.

Q.5. While shopping what affects your satisfaction the most?

  Very Important Somewhat Important Not Important
     
     

31
        
       
Website User 23 17 4
Friendly
       
       
Cash on delivery 27 29 3
       
       
Credit/Debit Card 22 22 3
payment
       
       
Offers & Discounts 21 19 1
       
       
Free Shipping 29 12 2

29 29
30 27
25
23 2222 2119
17
20
12
15
10
Very Important
5 Somewhat Important
0 Not Important

Interpretation:
The above diagram depicts that website user friendliness forms an important factor when
it comes to online shopping, more the website user friendliness will determine more
number of visits on a website which will in turn results an increase in the sale truncations
for the particular shopping site.

 Cash on delivery forms an important aspect of the Online Shopping website in

Indian Online Shopping market, the above graph depicts that it does forms an most
important part on the online shopping.

32
  The other mode of payment gateway through net banking and credit/debit
banking also forms an important part of the Online Shopping website.
 When it comes to tracking of items service in Online Shopping most of the
respondent think that it is an important service which allows the user to track their
items in transit.
When it comes to security aspect of the website Id & password forms an important
aspect of the online transaction. The other aspect order confirmation is the like the
shopping cart where the user gets the list of items he/she is going to purchase which
avoids unnecessary purchase of the product , also forms an important part of the
Online Shopping website.
The above graph depicts that along offers & discounts, free shipping also forms as the
most important factor for the Online Shopping website, which forms a motivating
factor for the user to shop

Q.6. What are your issues regarding online shopping?

People may select more than one checkbox, so percentages may add up to more than 100%.
           
No Possibility of Product highly Too much Security Physical
guarantee forgery priced clutter issue examinat
ion
12 13 11 7 5 2

33
 14 13
12
12 11
10

8 7
6 5
4
2
2

0
No Possibility of Product Too much Security Physical
guarantee forgery highly priced clutter issue examination

Interpretation:
 The other factor which demotivates the user to shop online is the security
issue, which consists of issues like phishing, hacking of accounts etc.

Q7. Where do you shop for your product?

       
Local Kirana Ration Shop Sabzi Mandi Supermarkets
22 7 14 14

34
 25

20

15

22
10

14 14
5
7

0
Local Kirana Ration Shop Sabzi Mandi Supermarkets

Interpretation:
 The above graph depicts that most of the respondents shop from supermarket
for grocery items. The reason for shopping from the particular shopping centre
can be depicted below.

Q.8. If given an option to buy grocery online will you buy online?

Yes No Maybe

17 22 11

35
 22%
34%

Yes
No
Maybe

44%

Interpretation:
 The remaining percentage of the respondent may or may not buy grocery online
due the factors like physical examination and security issues.
 The above graph depicts that around 34% of respondent are willing to
buy grocery online if the option is given.

Q.9.Do you think buying grocery online is beneficial? If yes, why do you think is
beneficial?

Yes No Total
34 16 50

36
 32%

Yes
No

68%

Interpretation:
 The above diagram depicts that most of the respondent think that buying grocery
is beneficial which can be determined from the next question.
 The remaining respondent thinks that online grocery shopping will be not
beneficial due the factors like forgery products, highly priced products and no
guarantee of the product.

Q11. If yes, why do you think is beneficial?

Easy to order Variety Discount & Saves time Avoid long

     Offers    queues
17 12 13 5 3

37
 20
18
16
14
12
10 17 13
8 12
6 5 3
4
2
0
Easy to order Variety Discount & Saves time Avoid long
Offers queues

Interpretation:
 The above graph depicts that user respondent think that Online Shopping will
be beneficial as it will save their time to shop for grocery items.
 The next relating aspect why consumer will shop grocery online as it will allow
the user to avoid long queues resulting in reduction in time spent in shopping.
 The other factors why online grocery shopping will be beneficial as it will allow
the user to shop all the grocery at a particular place with discounts and offers.

12. Which type of products you purchase from Online Shopping?

Particulars Number of Respondent Percentage

Skin care products 32 32%

38
 Beauty care products 35 35%

Home care products 13 13%

Food beverages 5 5%

Other products 15 15%

TOTAL 100 100%

35%
32%
35%

30%

25%

20% 15%
13%
15%

10% 5%
5%

0%
Skin care Beauty care Home care Food Other
products products products beverages products

Interpretation:

The above graph reveals that 35% customer purchase Beauty care products from Online 32%
customer purchase Skin care products from Online Shopping Company , 13% customer
purchase Home care products from Online Shopping Company . , 15% customer purchase
Other products from ONLINE SHOPPING Company

13. How do you feel the purchaseing environment in ONLINE SHOPPING Company?

Particulars Number of Respondent Percentage

39
 Excellent 10 10%

Good 22 22%

Poor 50 50%

Very Poor 18 18%

TOTAL 100 100%

18% 10%

22%

Excellent
Good
Poor
Very Poor

50%

Interpretation:

The above graph reveals that 22% feel good for purchasing environment in ONLINE
SHOPPING Company, 10% feel Excellent for purchasing environment in ONLINE
SHOPPING Company, 18% feel very poor for purchasing environment in ONLINE
SHOPPING Company, 50% feel poor for purchasing environment in ONLINE SHOPPING
Company,

14. Are you satisfied with to join current ONLINE SHOPPING Company?

Particulars Number of Respondent Percentage

40
 Yes 25 25%

No 70 70%

Can’t Say 5 5%

TOTAL 100 100%

25%
5%

Yes
No
Can’t Say

70%

Interpretation:

The above graph reveals that 70% user does not satisfied with to join current ONLINE
SHOPPING Company, 25% user satisfied with to join current ONLINE SHOPPING
Company.

15.: Online Shopping Company have Good Quality?

Table No. 15

41
 Particulars Number of Respondent Percentage

Strongly agree 16 16%

Agree 14 14%

Neither agree 55 55%

Disagree 15 15%

TOTAL 100 100%

Graph No. 15

55%
60%

50%

40%

30%
16% 15%
20% 14%

10%

0%
Strongly agree Agree Neither agree Disagree

Interpretation:

The above graph reveals that good perception comes from 16%, 16% have Strongly agree
perception about the Online Shopping Company and rest by 14% have agree, 15% have
Disagree.

3.2 FINDINGS
 Majority (28.3%) of the respondents are preferred to purchase electronic products through
online shopping.

42
 90% of the respondents felt that delivery time is very important while purchasing through
online.
 68.3% of the respondents are said that reputation of the company is very important while
making purchase decision through online.

 Most (65%) of the respondents said, it is very important that the company should give
proper description about their product.

 Majority (81.7%) of the respondents are said that security is very important while
purchase the product through online.

 53.3% of the respondents are agreed that Online Shopping saves consumer’s time

 48.3% respondents are strongly agreed that Online Shopping enable to shop any day and
anywhere.

 50.0% majority of the respondents agreed that Online Shopping eventually superseded
traditional shopping.

 53.3% majority of the respondents agreed that online price is lower than the actual price.
 From the data collected above we can observe that there is an increase in the number
of respondent in Online Shopping as there is awareness about this concept in the market.
Certain parameters which motivates the user to shop online are:
 User friendliness of the website.
 Discounts and offers, offered by the website.
 Cash on delivery form an important gateway in online transaction.
 Free shipping is the most important factor which motivates the user to shop online.
 Physical examination is the important issues in the Online Shopping
which determines the tangibility of the product.
 The data depicts that supermarket are the preferred shopping destination as it
offers all the basic aspect of the Online Shopping which are price, quality variety,
proximity to home, offers & discounts.
 From the above data collection we can determine most of respondent agree to
buy grocery online if the option is give.

CHAPTER 4
CONCLUSIONS

43
4.1 CONCLUSION

This research paper involves a study of the inability to find the product or services of interest
quickly is the biggest barrier to effective marketing this problem may be overcome through
E- commerce, where number of companies offer several products thought the net. In Short,
Indian e-commerce has to face many difficulties in web marketing because of infrastructural
difficulties and computer illiteracy. Majority of the customers live in rural areas do not
sufficient knowledge about computer and internet. Some of customers in urban areas do not
have credit facilities and therefore online buying and selling of goods is limited to urban class
having knowledge of computer internet if Indian marketers take into account essentials of
good website they can definitely make success marketing in international markets.
This study investigates the determinants that are responsible for choosing of the online
purchasing portals by the consumers whenever they decide for purchasing products.
Furthermore, the study was taken ahead with the conclusions drawn from the empirical
survey and developing innovations important for the online purchasing portals. The empirical
results show that consumers preferred to accept on line purchasing portals for their purchases
whenever they perceived that the determinants like product preference through the respective
purchasing portals, variety options available in the portals and convenience of Online
Shopping and in accordance to their preferences. This research shows that Online Shopping is
having very bright future in India. Perception towards Online Shopping is getting better in
India. With the use of internet, consumers can shop anywhere, anything and anytime with
easy and safe payment options. Consumers can do comparison shopping between products, as
well as, online stores.
 From the above data analysis it can be conclude that consumer buys goods from
the Online Shopping website on the basis of factors like offers and discounts,
variety of product available, free home delivery, website user friendliness and cash
of delivery payment option.
 The hypothesis framed for the project Consumer Perception towards Online Grocery
Shopping was “Online grocery shopping stores are beneficial for the consumer”.
 From the above data analysis it can be determined that most of the respondent
would agree to buy grocery online rather than shopping of grocery with the
traditional method.

 Out of the agreed respondent to buy online grocery, most of the respondent

44
 would think that it would be beneficial to shop grocery online on the basis of
factors like easy to order, variety, discounts/ offers, saves time and avoid long
queues.
 With above analysis we can thus prove the hypothesis to be positive.
 The recommended business operation will not only beneficial for the consumer
but also to the firm, as it allows the firm to maintain its low operating expenses
and for the consumer

CHAPTER 5
RECOMMENDATIONS / SUGGESTIONS

45
5.1 SUGGESTION

 Consumers should be educated on Online Shopping procedures with proper steps to be

following while online shopping.

 Transactions should be safe and proper security should be assured to the people making
online purchases.

 Government should play a pivotal role in encouraging online shopping.

 E-marketers must give a thought to secure, time saving, information about product and
services factors when they design their online product strategy.

 The study highlights that convenience, accessibility, scope, attraction, reliability,

experience and clarity are the important factors considered by the online shopper.

 Usage of internet includes the consumer’s purchase of product as well as the consumer
intention to secure for product related information while experiencing the new technology.

 Banking should promote Debit card, Credit card facility in Online Shopping

CHAPTER 6 :
LIMITATIONS OF THE STUDY

46
LIMITATIONS OF THE STUDY
 The sample size is very small compared to the total population of the region.
 The study was conducted with the basic assumption that the information given by the
respondent is factual and represents their true feelings and behavior.

 The method lacks flexibility. In case of inadequate or incomplete information the

result may deviate.
 It is very difficult to check the accuracy of the information provided.
 Since all the products and services are not widely used by all the customers it is
difficult to draw realistic conclusions based on the survey.

BIBLIOGRAPHY

BIBLIOGRAPHY
Books:
1. Bhatnagar, A, Misra, S., and Rao, H. R. (2000) “Online risk, convenience, and Internet
shopping behavior”, Communications of the ACM (43:11), pp. 98-105.

47
2. Mishra, Sita (2007), ‘Consumer preference Towards Online Shopping for Clothing,’ The
ICFAI Journal of marketing, Vol. 6, No. 1 pp. 32-39

3. Yulihasri et al (2011) “Factors that Influence Customers’ Buying Intention on Shopping

Online”, International Journal of Marketing Studies Vol. 3, No. 1

4. Lina Zhou (2007)“Online Shopping Acceptance Model — A Critical Survey Of Consumer

Factors In Online Shopping’ Journal of Electronic Commerce Research, Vol 8, No.1,

WEBSITES:
 https://www.questia.com/library/journal/1P3-3333088491/a-study-on-online-
shopping-experience-and-customer
 http://search.proquest.com/openview/7623aa0cfaaa390a1866015e0da0a0a0/1?pq-
origsite=gscholar&cbl=1936345
 https://issuu.com/sanjaykumarguptaa/docs/a_study_on_consumer_perception_towa
 http://ijariie.com/AdminUploadPdf/A_STUDY_ON_CONSUMERS
%E2%80%99_ATTITUDE_TOWARDS_ONLINE_SHOPPING_c_1229.pdf
 https://www.ripublication.com/gjmmr16/gjmmrv6n1_01.pdf

APPENDICES
Name : …………………………………………………………………………
Age : …………………………………………………………………………..
Contact No. ……………………………………………………………………
Address : ………………………………………………………………………
…………………………………………………………....................................

48
………………………………………………………………………………….
□ Male
□ Female
Age:-
□ 18-24
□ 25-30
□ 30 and above
Occupation:-
□ Student
□ Service
□ Business
Income Level:-
□ 1 lakh – 5 lakhs
□ 5 lakhs – 10 lakhs
□ 10 lakhs and above

Q1. Which item you shop online?

□ Apparels
□ Books
□ Electronics
□ Food
□ Games
□ Music
□ Any other(Please specify)

Q2. How much money do you spent in online shopping? (Rupees)

□ 100 – 500
□ 500 – 1000
□ 1000 – 5000
□ 5000 & above
Q3. When do you feel the need to shop online?

49
□ When I need home delivery
□ When I want something unique and special
□ When I need to compare prices
□ When I don’t have the time to find things by different markets
□ Any other(Please specify)
Q4. What features in Online Shopping website attracts you?
□ The design of a website
□ Discounts offered
□ Advertisement
□ Variety
□ Value for money
□ Any other(Please specify)
Q5. While shopping what affects your satisfaction the most?
 Website User Friendly
 Cash on delivery
 Credit/Debit Card payment
 Offers & Discounts
 Free Shipping
Q6. What are your issues regarding online shopping?
□ No guarantee
□ Possibility of forgery
□ Product highly priced
□ Too much clutter
□ Security issue
□ Physical examination
□ Any other(Please specify)
Q7. Where do you shop for items?
□ Local Kirana
□ Ration Shop
□ Sabzi Mandi
□ Supermarkets
Q9. If given an option to buy online will you buy online?

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□ Yes
□ No
□ May be
Q10. Do you think buying grocery online is beneficial?
□ Yes
□ No
Q11. If yes, why do you think is beneficial?
□ Easy to order
□ Variety at one shop
□ Discounts & offers
□ Saves time
□ Avoid long queues
□ Any other(Please specify)

12. Which type of products you purchase from Online Company?

a) Skin Care Products b) Beauty Care Products

c) Home care products d) food beverages

e) Other products

13. How do you feel the purchasing environment in Online Company?

a) Excellent b) Good

c) Poor d) Very poor

14. Are you satisfied with to join current Online Company?

a) Yes b) No c) Can’t Say

15. Online Company have Good Quality?

a) Strongly agree b) Agree

c) Neither agree d) Disagree

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