WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

TRIMESTER VI PROJECT REPORT

ON

TO STUDY THE FACTORS AFFECTING CONSUMER ONLINE BUYING BEHAVIOR IN TIER-2 CITIES
USING EXPLORATORY FACTOR ANALYSIS

BY

ANIMESH KUMAR

PGDM - RESEARCH & BUSINESS ANALYTICS (2020 – 22)

ROLL NO : 44

PROJECT FACULTY GUIDE

PROF. DR. KIRTI AREKAR

 PROJECT COMPLETION CERTIFICATE

This is to certify that project titled “To study the factors affecting consumer online buying behavior
in tier-2 cities using exploratory factor analysis” has successfully been completed by Mr. / Ms.
Animesh Kumar in partial fulfillment of his / her two years full time course ‘Post Graduation Diploma
in Business Design Management’ recognized by AICTE through the Print. L. N. Welingkar Institute
of Management Development & Research, Matunga, Mumbai.

This project has been completed carried out under my guidance.

(Signature of Faculty Guide)

Name: Prof. Dr. Kirti Arekar

Date: 1st May 2022

 Table of Contents
Introduction………………………………………………………………………………………………………1
Introduction and Motivation................................................................................................................................ 1
How it will help organizations ............................................................................................................................ 2
Gap Analysis ....................................................................................................................................................... 2
Literature review………………………………………………………………………………………………...3
Research Methodology…………………………………………………………………………………………..5
Demographic Profile ........................................................................................................................................... 5
Variables of the study .......................................................................................................................................... 5
Source of the data ................................................................................................................................................ 6
Hypothesis of the project..................................................................................................................................... 6
Technique used for Analysis ............................................................................................................................... 6
Findings and Data Analysis……………………………………………………………………………………..7
Descriptive Statistics ........................................................................................................................................... 7
Hypothesis Testing-Chi Square Test ................................................................................................................. 11
Factor Analysis .................................................................................................................................................. 13
Output Interpretation………………………………………………………………………………………… 19
Conclusions and Recommendations…………………………………………………………………………...20
Limitations………………………………………………………………………………………………………21
References……………………………………………………………………………………………………….22
 List of Figures
Figure 1 Age Distribution ....................................................................................................................................... 7
Figure 2 Marital Status............................................................................................................................................ 8
Figure 3 Qualification ............................................................................................................................................. 8
Figure 4 Occupation ................................................................................................................................................ 9
Figure 5 Earning Per Annum .................................................................................................................................. 9
Figure 6 Kind of Products for Shopping ............................................................................................................... 10
Figure 7 Frequency of Buying .............................................................................................................................. 10
Figure 8 Mode of Payments .................................................................................................................................. 11

List of Tables

Table1 Gender Distribution……………………………………………………………………………………...7

Table2 Hypothesis test-1 Chi-Square……………………………………………………………………………11
Table3 Hypothesis test-2 Chi-Square……………………………………………………………………………12
Table4 Hypothesis test-3 Chi-Square……………………………………………………………………………12
Table5 KMO and Bartlett’s Test-1………………………………………………………………………………13
Table6 Communality Table-1……………………………………………………………………………………13
Table7 KMO and Bartlett’s Test-2……………………………………………………………………………....15
Table8 Communality Table-2……………………………………………………………………………………15
Table9 Total Variance Explained………………………………………………………………………………..17
Table10 Rotation Matrix…………………………………………………………………………………………18
 Introduction
Introduction and Motivation
In today’s world, the Internet plays an important role and it is widely used by many individuals, business entities,
and service organizations for various purposes. They provide a variety of data/information and gives us a big
platform to meet the sellers and buyers. Digital space is a place where various buyers meet their sellers. It includes
online shopping, in consumers buy the goods directly .
Gone were the days when people needed only food, cloth and shelter now maximum people is highly dependent
on that extra need which is Internet. And it’s all have been possible due to rapid transformation in communication
sector ,it also has changed the people’s way of shopping.
From fashion to pharma everything is available online these days and after Covid 19 it has taken a boom .Many
Indian as well as foreign companies have started using the internet keeping in mind the profits and reduced
marketing costs associated with it to sustain the completion in the market.
They provide a variety of information and gives a big platform to meet the buyer and seller. Digital space provides
a platform where consumers can buy the goods and services directly with the sellers. It is been done with use of
internet only without an additional cost. With the advancement in technology, easy accessibility of internet and
smart phone revolution many companies are now selling their goods on mobile based application. There are
several factors like high-speed delivery, quality, variety , ease of availability in location and reliability are some
important factors which helps in making purchase decision.
Companies today have understood the needs and changing lifestyles of people and how they are dependent on
Internet. In most of the cases people these days are bounded to search products online due to several factors such
as easy availability, heavy discounts. It also saves times and gives much relief from travelling and crowd for such
items.
As Indians most oldsters continuously look for less expensive products moreover called “high-quality deals” and
it acts as a sense of fulfillment related to it.
In this research we will study what are the factors which really converts a browsing customer to a make deal
customer. Do people only look for discounts , quality or there are some hidden factors associated with it. Is online
shopping being only for grocery or fashion items or people are gaining trust of buying expensive items also like
jewelleries. We will try to figure out is there any specific segment of people buying items online more or there
are not any specific boundaries related to it. Are people willing to make payments online or people still have a
feeling of lack of trust . The present research paper will make an attempt to study the impact of demographic
factors of online buying behavior of different age groups, different educations.
The paradigm shift in mobile based applications for foods, clothing, pharma due to Corona virus pandemic have
created a tremendous change in the mindset of common people and their buying decisions. It can be due to fear
of Covid ,but how will it go in the future ? Will there be a need for hyper local delivery for everything like in case
of groceries ?These all factors motivated me to do research on this topic and identify the behaviors of people
doing online shopping . Through this paper I want to study that how shopping behaviors have changed from
generation to generation that is from baby boomers to Millennials to Gen. According to the report of Statista 43%
of global shoppers research products online via social networks. Clothing is the main online vertical. If we look
at the growth trends it will make up 22% of global retail sales by 2023

1
How it will help organizations

Unlike brick-and-mortar store where we have sells- man and other technical staffs to support with your queries
and products ,moreover you can see and feel your products before buying . But when it comes to online store
/websites/organizations they really lag in instant feedbacks and resolution as they lack touch and feel factor .
Every day with new and new players coming in it is very natural for the existing players as well as new players
to come up with innovative techniques to sell their goods and services. For all those strategies and innovation,
they must innovate and improve the customer satisfaction and that can only be done by knowing your customer
first through research. Marketers can change their strategies in less spending cost and also in less time and thus
improving bottom line. It will help in targeting customer segments based on demographic factors such as age,
sex, level of education. As the e -commerce is growing at a very fast pace, everyday technology is changing and
to cope up with latest advancements and features it is vital to understand what the end customer wants in their
products a s well as service. Many companies try to correlate customer loyalty and customer satisfaction and for
that a thorough research is needed. Many users spend their time on surfing the websites and various e-commerce
platforms but still don’t buy. The reasons for this can be getting items from a competitor ,not getting desired
benefits, distraction due to bad GUI, they can’t find exact product information. It will also be useful to Website
designers and product designers ,marketers as if the selling platform is user friendly and free from unnecessary
bugs and advertisements people tend to buy things quickly.
There are several mobile based apps which targets the specific location and customizes the adds based on
demographics ,so this study will help in converting potential customers into active customers.

Gap Analysis

In this paper we will try to cover the variables which are associated with the product/service buying in an online
space. In today’s world time is the most important factor so we will consider delivery time as a factor from an
order to receiving how much time it takes ,is this an important factor to consider along with the return/exchange
time. Product price comparison is another aspect we look upon. These days same brands are present on different
e commerce sites, we tend to spend more time comparing form other websites and places ,so this can be an
important study to decide whether it is really required or not .Do websites /E-commerce sites show exact product
image and quality or it’s a trick to make people buy in case of fashion segments. There is a comparison .If e
commerce sites, business decision makers know the important factors affecting Indian youth’s buying behavior
and the associations within them they can further improve the marketing strategies

2
 Literature review
The current literature is on consumer’s purchasing online decisions and describes on identifying the factors
which affect the willingness of customers to engage in the online shopping in India.
Gurvider Shergill , Zhaobin Chen(2005) [1]in his research paper the method adopted was factor analysis in
which he studied various factors which help customers to make their buying decisions. This paper explains the
critical factors related to websites design, privacy, customer reliability, and fulfillment. He mentioned that there
is a big challenge faced for e-commerce marketers on how to convert low-frequency customers into regular
ones by an easy, reliable, and easy interface of websites design. Customer service also plays one of the
important roles which influence consumers' perception of their buying experience.
According to Benedict G.C. Dellaert, Ko De Ruyter, (2004) [2], the author used Technology Acceptance
Model framework and studied the factors which also comprise attitudes towards online shopping and also the
intention to buy online are not only affected by the usefulness, joy but by extrinsic factors such as situational
factors, previous buying experience, customer call service and also trust. Anurag Pandey and Jitesh Parmar
(2019), [3] the writer used judgmental sampling and factor analysis in his paper and obtained that factor such as
product preferences, problems faced during buying, after-sales, and discounts affected customer satisfaction
towards online shopping.
Sang Yong Kim & Young Jun Lim (2001) [4] cites out that entertainment, convenience, reliability,
information quality, and fast service play an important role in customer satisfaction while buying online. In this
research, the attributes of the B2C online websites checked the correlation between consumer’s perceived
importance of and satisfaction with online buying . It was found that the factors of recreation, convenience,
reliability, data quality, and speed are vital for choosing web search-based shopping sites
Dr. Bhumija Chouhan and Dr.Kapil Khatter [5 ]in their paper published in 2015 with the use of ANOVA
technique he cited that consumer have enough knowledge and skills in using computers, a survey was done for
Rajasthan and they are using internet services and payment services for online shopping. The paper used
descriptive analysis for data interpretation and concludes that the higher the income bracket of consumers, the
more favorable is the attitude towards buying online. Issues like security and privacy in online transactions
come out to be a major concern for consumers.
In a paper published by Achal Hardia (2013),[6] the findings say that E-commerce websites can use variables
identified from the research to create their strategies. The research paper talks about an attempt to study the
impact of demographic factors on the online buying behavior of youths.
The results of the research help in customer segmentation. One important observation was that females shop
more from online methods. For determining the factors amongst the youth factor analysis was done using SPSS
and important factors analyzed were Internet Ease access, Easy process, Security, On-time delivery.
According to Anurag Pandey, Jitesh Parmar (2019) [7] perceived ease of use along with risk, perceived
behavioral control, attitude, and perceived usefulness are important factors in determining online consumer
behavior.
In summary, of the paper by Hana Uzun Poturak (2014) [8] on based on secondary research and descriptive
study the findings show that factors such as trust, convenience, satisfaction are the most important factors
followed by price and quality of the commodities. These factors help the customers to decide to shop online.
Survey also tells that people are very concerned about online fraud and cheating which happens on the internet.

3
Leena Jenefa ,R. Mohan Kumar(2013), [9] final results of the descriptive look at changed into to decide how
the consumer prefers to choose the retail store and the impact element to shop for the goods are best, product
criterion, product performance, charge, and promotions. In these studies, they discovered that consumer
pleasure isn't like the time of buy and does now no longer vary with gender, place, marital status, month-to-
month profits, pre-budgeting.
Ahmad Reza Asadollahi (2012),[10] regression analysis was used for the study and this paper discussed the
factors like how to make websites more user-friendly and easier to the interface. Emphasized how it should
encourage more and more online consumers to spend more time and options like price comparison, product
comparison, detailed review, and feedbacks should be mentioned on the websites. The findings also tell that
customer looks for after-sales service in case of electronics items and easy resolution of problems on request
call back. These are the factors that ensure faith in online shopping platforms.
When it comes to online payments, most customers are worried about losing their financial details and their
credit card information. Finally, based on the research results consumers were also worried and unsure about the
delivery of their orders. Online retailers should provide the exact delivery tracking facility to know the exact
date of delivery along with easy return/exchange facilities due to any fault in the system.
Kok Wai Tham , Omkar Dastane (2019), [11] Confirmatory factor analysis was used for study and it talks
about the 5 types of risk factors including financial, convenience, product, delivery, and exchange policy risks
of the Malaysian online consumers. It was found that the non-delivery of products has the opposite impact on
online consumer behavior. The return /exchange policies should be made available on websites and e-commerce
selling platforms to avoid a lack of misinformation. Product risks can be avoided by displaying clear
information.
According to Hasanov Jasur, Khalid Haliyana (2015) [12] website quality is not the only determining factor
that could increase consumer purchasing intention. There are other qualities such as nice customer service, legit
product distribution and good logistics, and also correct verified reviews from customers that play an important
role.

4
 Research Methodology

Demographic Profile
In the questionnaire, respondents are requested approximately about their gender, age, occupation, spending
shopping frequency and their annual income along with their maximum degree.
Gender- Male/Female
Age-Less than 25, 25-35, 36-45
Married status- Married /Unmarried
Highest degree-Completed High school/Completed UG Degree/Completed PG degree
Occupation- Still studying/ Govt Job/Private Job/Own Business
Earnings /Income- <5 lacs /annum/5-7lacs/annum,>7 lacs/annum
Kind of products purchased online- Clothes, Electronic items, grocery items, Books/CD, Jewelleries, Others
Frequency of buying- Once in 10 days, once in a month, once in 2 months, once in a year

Variables of the study

From the literature review, I found that 15 variables which have significant influence on online buying behavior.
13 statements are designed based on variables found from the literature review which have most influence on
online buying behavior. Factor analysis is conducted on those 13 variables
The E- commerce platforms provide detailed information about the products.
I find the level of personalization (based on cookies ) too much right at the site I visit .
I find very easy to complete the transaction .
It takes too long to complete an order .
E- commerce site show me comparative prices of other websites too.
It asks too many personal information.
Products I receive matches to the shown-on websites to a great extent.
I often get wrong size products or wrong products.
The product is delivered on time as promised by the company.
I find delay when opted for product return/exchange.
Instant Customer care support are provided.
I feel privacy concern while making payments while online shopping.
Mode of payment u prefer for payment.

5
Source of the data
Step I: Research Design
This would involve the data collection form secondary sources such as journals, websites, published research
papers. This would help in framing the questionaries with respect to demographic survey and questions related to
online buying behavior and determining the sample size. A questionnaire will be made for the primary research.
The response obtained will be in 1-5 ,where 1- Strongly Disagree,2-Disagree,3-Neutral,4-Agree,5-Strongly Agree
Likert scale and it will be analyzed using SPSS25 software.
Step II: Data Collection
The collected data will be tabulated and analyzed using simple statistical techniques like frequency table, Chi
Square test and Factor analysis using SPSS25 .Sample size for the study will be around 100 respondents. Sampling
method used is convenience sampling.

Hypothesis of the project

Hypothesis Framed
H0: There is no significant correlation between gender and level of satisfaction towards correct delivery of
products.
H1: There is a significant correlation between gender and level of satisfaction towards correct delivery of
products.
H0: There is no significant correlation between Qualification and Level of satisfaction towards finds very easy to
complete the transaction
H2: There is a significant correlation between Qualification and Level of satisfaction towards very easy to
complete the transaction
H0: There is no significant correlation between Qualification and Level of satisfaction towards correct delivery
of products
H3: There is a significant correlation between Qualification and Level of satisfaction towards correct delivery of
products.

Technique used for Analysis

To continue towards the main analysis, factor analysis has been performed to identify the key dimensions
affecting online purchase of products provided from e- commerce websites. The respondent ratings will be are
given to principal axis factoring method in which we will use varimax rotation to improve reliability on the data.
Chi Square test are performed for hypothesis testing.

6
 Findings and Data Analysis

In the questionnaire, respondents are asked about their Gender, Age, Occupation, Earnings per annum, Frequency
of buying things online and their highest degree .The data were collected with the help of google forms and were
circulated randomly .

Descriptive Statistics
Table-1

what is your gender

Cumulative
Frequency Percent Valid Percent Percent
Valid Male 55 55.0 55.0 55.0
Female 45 45.0 45.0 100.0
Total 100 100.0 100.0

Total Respondents were 100 out of which 55 were male and 45 were female.

Figure 1 Age Distribution

Maximum respondents (48)were in age group between 25-35 followed by (32)which were less than 25 years of
age.

7
 Figure 2 Marital Status

Maximum respondents (68) were single followed by married(32)

Figure 3 Qualification

Maximum respondents (40) completed their Under Graduation ,followed by Post Graduation(33)

8
 Figure 4 Occupation

Maximum respondents (38) were doing Private job followed by (33) who were still studying

Figure 5 Earning Per Annum

Maximum respondents (32) annual income was greater than 7 lacs per annum

9
 Figure 6 Kind of Products for Shopping

Maximum respondents(35) purchased Clothes and Electronics items online followed by Only Electronics
items(28)

Figure 7 Frequency of Buying

Most of the respondents (44) purchased once in a month followed by Once in 2 month(38)

10
 Figure 8 Mode of Payments

Most of the respondents (39) used Net banking for payment, followed by Card payments(26)

Hypothesis Testing-Chi Square Test

Hypothesis Number 1
H0: There is no significant correlation between gender and level of satisfaction towards correct delivery of
products.
H1: There is a significant correlation between gender and level of satisfaction towards correct delivery of
products.

Table-2

Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 1.027a 4 .906
Likelihood Ratio 1.026 4 .906
N of Valid Cases 100
a. 6 cells (60.0%) have expected count less than 5. The minimum
expected count is 2.25.
11
Source of data : SPSS25: Test statistics showed that Chi-Square calculated at 4 degree of freedom 1.027 less than
table value 9.488. Hence null hypothesis is accepted that there is no significant correlation between gender &Level
of satisfaction towards correct delivery of products.
Hypothesis Number 2
H0: There is no significant correlation between Qualification and Level of satisfaction towards finds very easy to
complete the transaction
H2: There is a significant correlation between Qualification and Level of satisfaction towards very easy to
complete the transaction
Table-3

Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 10.244a 8 .248
Likelihood Ratio 13.292 8 .102
N of Valid Cases 100
a. 8 cells (53.3%) have expected count less than 5. The minimum
expected count is .27.

Source of data : SPSS25: Test statistics showed that Chi-Square calculated at 8 degree of freedom 10.244 less
than table value 15.507. Hence null hypothesis is accepted that there is no significant difference between
Qualification &Level of satisfaction towards finds very easy to complete a transaction
Hypothesis Number 3
H0: There is no significant correlation between Qualification and Level of satisfaction towards correct delivery
of products
H3: There is a significant correlation between Qualification and Level of satisfaction towards correct delivery of
products.
Table-4

Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 9.674a 8 .289
Likelihood Ratio 11.857 8 .158

12
N of Valid Cases 100
a. 9 cells (60.0%) have expected count less than 5. The minimum
expected count is 1.35.

Source of data : SPSS25: Test statistics showed that Chi-Square calculated at 8 degree of freedom 9.674 less than
table value 15.507. Hence null hypothesis is accepted that there is no significant difference between Qualification
& Level of satisfaction towards correct delivery of products.

Factor Analysis

To move further to the main analysis, factor analysis has been performed to identify the key factors affecting
online purchase of products provided at online platforms. Respondent ratings are set to principal component
analysis(PCA) and varimax rotation is used to reduce potential multi -collinearity among the variables and to
improve reliability on the data.
Table-5

KMO and Bartlett's Test-1

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .577
Bartlett's Test of Sphericity Approx. Chi-Square 108.225
df 66
Sig. .001

From the KMO and Bartlett’s test it is observed that KMO is 0.577 that is more than the required value of 0.50.
Bartlett’s test of sphericity tells us that strength of relationship among variables is strong. It gives us the idea to
proceed to factor analysis for the data as the data is valid.
H0: Data is not suitable for carrying out Factor Analysis
H4: Data is suitable for carrying out Factor Analysis
The value of Chi-square test (108.225 with significance level 0.001) signifies the rejection of null hypothesis. It
means there is a significant difference between the factors affecting online buying decisions and we are accepting
Alternate Hypothesis and data is suitable for factor analysis (H4)

Table-6

Communalities-1
Initial Extraction
The E- commerce platforms 1.000 .361
provide detailed information
about the products [Row 1]

13
I find the level of 1.000 .486
personalization (based on
cookies ) too much right at
the site I visit [Row 1]
I find very easy to complete 1.000 .591
the transaction . [Row 1]
It takes too long to complete 1.000 .664
an order [Row 1]
E- commerce site show me 1.000 .652
comparative prices of other
websites too [Row 1]
It asks too many personal 1.000 .684
information. [Row 1]
I often get wrong size 1.000 .559
products or wrong products.
[Row 1]
Products I receive matches 1.000 .723
to the shown-on websites to
a great extent [Row 1]
The product is delivered on 1.000 .638
time as promised by the
company [Row 1]
I find delay when opted for 1.000 .475
product return/exchange
[Row 1]
Instant Customer care 1.000 .584
support are provided [Row 1]
I feel privacy concern while 1.000 .683
making payments while
online shopping [Row 1]
Extraction Method: Principal Component
Analysis.
Communality value which is less than 0.4(The E- commerce platforms provide detailed information about the
products is removed and hence we can say that it is not important variable for our study and re run the KMO
Bartlett’s test .

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 Table-7

KMO and Bartlett's Test-2

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .582
Bartlett's Test of Sphericity Approx. Chi-Square 96.873
df 55
Sig. .000

From the KMO and Bartlett’s test it is observed that KMO is 0.582 that is more than the required value of 0.50

Table-8

Communalities-2
Initial Extraction
I find the level of 1.000 .495
personalization (based on
cookies ) too much right at
the site I visit [Row 1]
I find very easy to complete 1.000 .592
the transaction . [Row 1]
It takes too long to complete 1.000 .683
an order [Row 1]
It asks too many personal 1.000 .685
information. [Row 1]
E- commerce site show me 1.000 .637
comparative prices of other
websites too [Row 1]
Products I receive matches 1.000 .734
to the shown-on websites to
a great extent [Row 1]
The product is delivered on 1.000 .657
time as promised by the
company [Row 1]
I often get wrong size 1.000 .675
products or wrong products.
[Row 1]
I find delay when opted for 1.000 .474
product return/exchange
[Row 1]

15
Instant Customer care 1.000 .627
support are provided [Row 1]
I feel privacy concern while 1.000 .685
making payments while
online shopping [Row 1]
Extraction Method: Principal Component Analysis.

All the communalities’ values are greater than 0.4,we can proceed for the test further

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 Table-9

Total Variance Explained

Extraction Sums of
Squared Loadings Rotation Sums of Squared Loadings
% of
Comp % of Cumulative Varian Cumula % of
onent Total Variance % Total ce tive % Total Variance Cumulative %
1 2.135 19.412 19.412 2.135 19.412 19.412 1.613 14.662 14.662
2 1.383 12.576 31.988 1.383 12.576 31.988 1.391 12.643 27.305
3 1.216 11.050 43.038 1.216 11.050 43.038 1.373 12.477 39.783
4 1.158 10.525 53.563 1.158 10.525 53.563 1.285 11.682 51.465
5 1.052 9.563 63.126 1.052 9.563 63.126 1.283 11.662 63.126
6 .916 8.327 71.454
7 .751 6.830 78.284
8 .742 6.746 85.029
9 .639 5.810 90.839
10 .554 5.033 95.872
11 .454 4.128 100.000
Extraction Method: Principal Component Analysis.

Five Variables explains the cumulative variance of 63.126

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 Table-10

Rotated Component Matrix

Component
1 2 3 4 5
I find delay when opted for .646
product return/exchange
[Row 1]
It takes too long to complete .595 -.564
an order [Row 1]
It asks too many personal .592 .441
information. [Row 1]
I find very easy to complete -.584
the transaction . [Row 1]
Products I receive matches -.840
to the shown-on websites to
a great extent [Row 1]
I often get wrong size .528 -.521
products or wrong products.
[Row 1]
The product is delivered on .803
time as promised by the
company [Row 1]
I feel privacy concern while .777
making payments while
online shopping [Row 1]
I find the level of .505
personalization (based on
cookies ) too much right at
the site I visit [Row 1]
E- commerce site show me .739
comparative prices of other
websites too [Row 1]
Instant Customer care .727
support are provided [Row 1]
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 35 iterations.

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 Output Interpretation

13 items are reduced to 5 orthogonal factor dimensions which explained 63.126 % of the overall variance
indicating that the variance of original values is well captured by these five factors.
Factor-1 Factor-2
Quick Service
Delay in case of .646 Incorrect Shipment
exchange Wrong delivery of .528
Takes too long for .595 products
order completion
Takes too many .592
personal information

Factor-3 Factor-4
Timely delivery Privacy
On time delivery .803 Privacy concern while .777
making payments
Too much personalized .505
information

Factor-5

After service support

Comparative prices 0.739
shown of other
websites
Instant customer .727
support

The most important factor people look while doing online shopping is Ontime delivery of products(.803),followed
by privacy concerns while making online payments(.777).Factors such as after service support (0.739) and quick
service(.646) in case of exchange plays an important role for the online customers.

19
 Conclusions and Recommendations

In this research paper, we explored some factors affecting decision for online shopping with respect to consumers.
Factor analysis was used to assess the effects of variables on each other . Results of hypotheses testing indicated
that there is no gender &Level of satisfaction towards correct delivery of products, not significant difference
between qualification &Level of satisfaction towards completing a transaction and no association between
qualification and level of satisfaction between correct delivery of products. Clothes and Electronics items were
the maximum items purchased by the consumers online based on data collected. Maximum respondents buy one
or more items at least once in a month. For online payments most preferred method used net banking followed
by card payments. Marketing team ,e -retailers should design their websites safer and more secured while
customers are making their payments. Companies should work on correct delivery of products with the target on-
time delivery. As the complete transaction is done virtually and often, they get wrong products and face a lot
while return and exchange so there should be a quick resolution of customer queries and refunds to make a long-
life trust between them. Website Designers should try to take only required data from customers and too much
personalization is not favored by most of the customers surveyed

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 Limitations

1) There are many factors affecting on making decisions with respect to online shopping behavior. In this study
looking of time constraints, we did not examine all factors which influenced the online shopping behavior of the
customers.
2) As ,we are using google form as a medium for questionnaire as data gathering tools, the respondents may not
answer the questions exactly according to what they think and behave and what exactly it should be.
3) In this research because of time constraints we examined factors affecting on online shopping behavior of
consumers virtually. It is quite obvious that in other parts of the cities, people have different characteristics and
behaviors. Then result of this study may have lack of globality to other parts of the country.
4) The methodology of this study for analyzing the data may not be able to fully assess the online shopping
behavior of consumers based on discussed variables.

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 References

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