Shanty23 - A3
Shanty23 - A3
Shanty23 - A3
UNIVERSITY OF KERALA
In the partial fulfillment of the requirement for the award of degree of
BACHELOR OF COMMERCE
SREE NARAYANA GURU COLLEGE OF ADVANCED STUDIES, PUNALUR .
MARCH 2024
DECLARATION
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We hereby declare that the project work, entitled “A STUDY ON CUSTOMER SATISFACTION
TOWARDS ONLINE SHOPPING IN ACCORDANCE WITH KOLLAM DISTRICT” submitted to the
UNIVERSITY OF KERALA, in the partial fulfillment of requirement for the award of degree of B. Com
Commerce with Computer Applications (CR under CBCSS), under the supervision and guidance of
Mr.SHAHANAS S (Assistant Professor, Department of management studies). Sree Narayana Guru
College of Advanced Studies, Punalur during the academic year 2021- 2024. We declare that no part of
this project report has previously submitted for the award of any degree/associates/fellowship or other similar
title of this or any other University or Society.
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ACKNOWLEDGEMENT
If words are considered to be sign of gratitude, then let these words convey the very same .At very first, we
would like to acknowledge almighty because of which we got the strength and courage to complete pet
successfully.
The harmonious climate of our college provided proper guide for preparation of the project. We express our
sincere thanks to Prof. JAYACHANDRAN P R, the principal of SREE NARAYANA GURU COLLEGE
OF ADVANCED STUDIES, PUNALUR
Thanks to Mrs. ANU L. Head of the Department of Commerce, Sree Narayana Guru College of Advanced
Studies, Punalur.
We deeply indebted to our guide Mr. SHAHANAS S, Assistant Professor, Department of management studies
for giving her valuable guidance and suggestions throughout the project.
I would like to take this opportunity to extend my gratitude flower of acknowledgement to our parents, sisters,
brothers, dear friends and those who have helped us to make this project a success by unflagging love and
support.
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CHAPTER TITLE PAGE NO
3
Chapter1 Introduction 1-11
Bibliography 61
Appendix 62-67
4
LIST OF FIGURES
FIGURE NO TITLE OF THE FIGURE PAGE NO
3.1 Age 29
3.3 Gender 32
3.4 Income 33
3.22 Confidence 53
LIST OF TABLE
FIGURE NO TITLE OF THE FIGURE PAGE NO
5
3.1 Age 29
3.3 Gender 31
3.4 Income 33
3.22 Confidence 53
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7
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1.0
Introduction
Online shopping (sometimes known as e-tail from "electronic retail" or e- shopping) is a form of electronic
commerce which allows consumers to directly buy goods or services from a seller over the internet using a
web browser. Alternative names are: e-web-store, e-shop, e-store, internet shop, web-shop, web-store,
online store, online storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing
from an online retailer's mobile optimized online site or app.
An online shop evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or
shopping center; the process is called business- to-consumer (b2c) online shopping. In the case where a
business buys from another business, the process is called business-to-business (b2b) online shopping.
Internet is changing the way consumers shop and buys 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, communicate 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 they will receive if they purchase the product from a particular store. Many
experts are optimistic about the prospect of online business.
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 behavior in
cyberspace. Along with the development of e-retailing, researchers continue to explain e-consumers
behavior from different perspectives.
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Many people nowadays prefer purchasing most of the things they need through online department stores.
Internet purchasing eliminates the need to face competitive sales personnel, and paying a greater amount
for the products that they need.
But, with numerous online department stores around, a shopper may find these guidelines for choosing the
most excellent online department store useful. It is not essential that the famous shops are the finest
alternatives.
While it is true that these online stores are indeed efficient, they usually provide higher expenses and often,
they do not provide much when it comes to different selections. In this line, if you are still searching for
something special, it is best to look at a smaller, independent internet purchasing area.
In the process, you'll have to handle s ome research, this is to ensure that you are buying from a trusted online
seller. Make several comparisons. You do not have to purchase the products that you need from the very first
internet
purchasing area that you discover. Start comparing the shops so you will discover the best possible deals, and
prevent automatically purchasing at the shop that is providing the lowest costs. When making comparisons,
do not look at the prices only, but take into account the reputation of the department store.
Although, some online stores quote affordable expenses, you have to make sure that it's not providing items
which are considered below quality mark. An additional factor to take into consideration while purchasing on
the internet is the type of client support that the shop is currently providing.
For shoppers who have some queries that need immediate answer, then the best thing to do is to contact the
organization through the client support division. It would be best to send a message through the online
department store's web site or you may also call the online department store customer service hotline.
It is important to interact with the company affiliate just to clear any question that you've got. Once the
associate is comfortable to deal with, then you are assured that you will be having an excellent purchasing
time with this online department store. It's also a must to be certain that the internet purchasing area is
providing a solid policy on returns and exchange; this way, you can exchange or return the products within a
particular period.
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The objective of this research study is to investigate customer satisfaction towards online shopping.
Eleven different factors were identified by studying the existing models of consumer attitudes that play an
important role in online purchase, then a model was proposed leading to online shopping.
The data was collected only through questionnaires. The sample size was 100. And random sampling was
done among the internet users.
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Consumer satisfaction is considered to be a separate factor in this study. It can occur at all possible stages
depending on consumer's involvement during the online shopping process. The relationships between
satisfaction, attitude, intention, decision making and online purchasing are proposed to be two-way
relationships due to the reciprocal influences of each on the other. In addition, three of the antecedents,
perceived usefulness, perceived ease of use, perceived enjoyment, have been found to have direct impact on
consumer satisfaction.
Personal interview and questionnaire method of survey technique method had used in this research to
collect primary data. It is considered as a suitable method collecting primary data.
Personal interview is extensively used in surveys. It is the face-to-face communication to enable better
control of the sample and ensure answer from the respondent. We also collected secondary data to add
value to the primary data.
Different sources of secondary data collected for the surveys are websites, magazines, annual reports,
journals, reference books, and newspapers etc.
The sample design includes online shopping customers in some areas of Kollam district. The sample size
decided for this study is 100. The sampling method used in this study is random sampling.
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1.5 Tools for analysis
Pie Charts
Tables
Bar Graphs are also used to interpret
1.6.1 Introduction
The current literature on consumer online purchasing decisions has mainly concentrated on identifying the
factors which affect the willingness of consumers to engage in internet shopping. In the domain of consumer
behavior research, there are general models of buying behavior that depict the process which consumers use
in making a purchase decision. These models are very important to marketers as they have the ability to
explain and predict consumers' purchase behavior.
The classic consumer purchasing decision-making theory can be characterized as a continuum extending
from routine problem-solving behaviors, through to
limited problem-solving behaviors and then towards extensive problem-solving behaviors [schiff man et al.,
2001].
The traditional framework for analysis of the buyer decision process is a five- step model. Given the model,
the consumer progresses firstly from a state of felt deprivation (problem recognition), to the search for
information on problem solutions. The information gathered provides the basis for the evaluation of
alternatives. Finally, post-purchase behavior is critical in the marketing perspective, as it eventually affects
consumers' perception of satisfaction/dissatisfaction with the product/service.
This classic five stage model comprises the essence of consumer behavior under most contexts.
Nevertheless, the management of marketing issues at each stage in the virtual environment has to be
resolved by individual e-marketers. Peterson et al. [1997] commented that it is an early stage in internet
development in terms of building an appropriate dedicated model of consumer buying behavior. Decision
sequences will be influenced by the starting point of the consumer, the relevant market structures and the
characteristics of the product in question. Consumers' attitude towards online shopping is a prominent factor
affecting actual buying behavior. (Source: jarvenpaa journal of electronic commerce research, vol. 6, and
no.2, 2005)
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Todd [1997] proposed a model of attitudes and shopping intention towards internet shopping in general. The
model included several indicators, belonging to four major categories; the value of the product, the shopping
experience, the quality of service offered by the website and the risk perceptions of internet retail shopping.
In the research conducted by vellido et al. [2000], nine factors
associated with users' perception of online shopping were extracted. Among those factors the risk
perception of users was demonstrated to be the main discriminator between people buying online and
people not buying online.
Other discriminating factors were; control over, and convenience of, the shopping process, affordability of
merchandise, customer service and ease of use of the shopping site. In another study, jarvenpaa et al. [2000]
tested a model of consumer attitude towards specific webbase stores, in which perceptions of the store's
reputation and size were assumed to affect consumer trust of the retailer. The level of trust was positively
related to the attitude toward the store, and inversely related to the perception of the risks involved in
buying from that store. Jarvenpaa et al. [2000] concluded that the attitude and the risk perception affected
the consumer's intention to buy from the store.
Consumer risk perceptions and concerns regarding online shopping are mainly related to aspects involving
the privacy and security of personal information, the security of online transaction systems and the
uncertainty of product quality. Trust is interwoven with risk [mcallister, 1995]. One of the consequences of
trust is that it reduces the consumer's perception of risk associated with opportunistic behavior by the seller
[ganesan, 1994]. Lack of trust is frequently reported as the reason for consumers not purchasing from
internet shops, as trust is regarded as an important factor under conditions of uncertainty and risk in
traditional theories.
Mayer et al. [1995] developed a model which combines traditional marketing philosophy on consumer
motivation to buy and the trust model. In this model, trust propensity; which is a personality trait possessed
by buyers; is an important antecedent of trust. In internet shopping, there is not much information available
to the buyer regarding the seller, prior to purchase buyer with a high propensity to trust will more likely be a
potential customer than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability,
benevolence and integrity constitute the main elements of trustworthiness. Ability refers to skills,
competencies and characteristics that a seller has in a specific domain. In this context, sellers need to
convince buyers of the competence of their companies in the internet shopping business. Benevolence is the
extent to which the seller is perceived by the buyer as wanting to 'do well'. Sellers have to convince buyers
that they genuinely want to do good things for buyers, rather than just maximize profit.
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It can be defined as the extent to which consumer's perceptions of the online shopping experience confirm
their expectations. Most consumers form expectations of the product, vendor, service, and quality of the
website that they patronize before engaging in online shopping activities.
These expectations influence their attitudes and intentions to shop at a certain internet store, and
consequently their decision-making processes and purchasing behavior. If expectations are met, customers
achieve a high degree of satisfaction, which influences their online shopping attitudes, intentions, decisions,
and purchasing activity positively. In contrast, dissatisfaction is negatively associated with these four
variables (ho and wu 1999; jahng et al. 2001; kim et al. 2001).
1.7 Limitations
Lack of security because the rate of cyber crime has been increasing.
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Chapterisation
Chapter 1 Introduction
An Overview
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CHAPTER-2
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2.0 Introduction
Computers and the internet have completely changed the way one handles day- to-day transactions; online
shopping is one of them. The internet has brought about sweeping changes in the purchasing habits of the
people. In the comfort of one's home, office or cyber cafe or anywhere across the globe, one can log on and
buy just about anything from apparel, books, music and diamond jewellery to digital cameras, mobile
phones, mp3 players, video games, movie tickets, rail and air tickets. Ease, simplicity, convenience and
security are the key factors turning the users to buy online.
2.1 History
English entrepreneur Michael Aldrich invented online shopping in 1979. His system connected a modified
domestic tv to a real-time transaction processing computer via a domestic telephone line. He believed that
videotex, the modified domestic tv technology with a simple menu-driven human-computer interface, was a
'new, universally applicable, participative communication medium-the first since the invention of the
telephone.' this enabled 'closed' corporate information systems to be opened to 'outside' correspondents
not just for transaction processing but also for e-messaging and information retrieval and dissemination,
later known as e-business. His definition of the new mass communications medium as 'participative'
[interactive, many-to-many] was fundamentally different from the traditional definitions of mass
communication and mass media and a precursor to the social networking on the internet 25 years later.
In march 1980 he went on to launch redifon's office revolution, which allowed consumers, customers, agents,
distributors, suppliers and service companies tobe connected on-line to the corporate systems and allow
business transactions to be completed electronically in real-time.
During the 1980s he designed, manufactured, sold, installed, maintained and supported many online
shopping systems, using videotex technology. These systems which also provided voice response and
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handprint processing pre-date the internet and the world wide web, the ibm pc, and microsoft ms-dos, and
were installed mainly in the uk by large corporations.The first world wide web server and browser, created by
tim berners-lee in1990, opened for commercial use in 1991. Thereafter, subsequent technological
innovations emerged in 1994: online banking, the opening of an online pizza shop by pizza hut, netscape's ssl
v2 encryption standard for secure data transfer, and intershop's first online shopping system. The first secure
retail transaction over the web was either by netmarket or internet shopping network in 1994, immediately
after, amazon.com launched its online shopping site in 1995 and ebay was also introduced in 1995. Alibaba's
sites Taobao and tmall were launched in 2003 and 2008, respectively. Retailers are increasingly selling goods
and services prior to availability through pretail for testing, building, and managing demand
The birth and growth of internet has been the biggest event of the century. E- commerce in India has come a
long way from a timid beginning in the 1999- 2000 to a period where one can sell and find all sorts of stuff
from a high end product to a meager peanut online. Most corporations are using internet to represent their
product range and services so that it is accessible to the global market and to reach out to a larger range of
their audience.
E-commerce revenues in the country are projected to reach rs 2,300 crore in the year 2011-12, growing at 95
per cent over 2009-10(source: internet and mobile association of India, (IAMAI). This pertains to the
business-to-consumer (b2c) segment. It may be too early to do a comparison with the e-commerce scenes in
countries such as the us where billions of dollars are spent online but the business in India is growing
exponentially every year, albeit from a smaller base, the total revenues have reached a respectful size.
The number of users logging on to the internet is growing by leaps and bounds. The number of Indians who
are online is expected to touch to 100 million by 2012-13, from the present 38.5 million according to the
research conducted by IAMAI. The numbers indicate a growing sense of comfort with the use of internet for
shopping. Accompanying this growth, there is an increasing maturity in the way people use the internet. It's
a classical curve. Online users typically start by using e-mail, gradually move on to browsing for news,
information and entertainment, and finally graduate to shopping and conducting business online. Online
sales have registered a huge jump and what was a concept five years ago is now beginning to hit the
mainstream levels. Roughly 10 percent of the world's population more than 627 million people have shopped
online at least once, in India it is just sprouted and beginning to perish. Internet is now going beyond the
simple exchange of information to a shopping paradise. This medium is far bigger than expected, but many
retailersand marketers are not using it to its full potential.
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Indian customers are increasingly getting comfortable with online shopping, and there is a higher
acceptability for the concept. India has 25 million internet users and more is now turning to online shopping.
There has been an influx of online shopping sites in India with many companyies hitching onto the internet
bandwagon. The revenues from online shopping are expected to more than double by 2011-12. According to
IAMAI, the average number of transactions per month in India has gone up from 2 lakh in 2008-09 to 4.4 lakh
in 2009-10 and has doubled to 7.95 lakh transactions per month in the year 2010-11. The online sales during
the festival season had increased rapidly especially during diwali and ramzan which recorded a sales of rs 115
crore, a 117 per cent increase from the rs53 crore in the year 2004-05(source IAMAI). These figures clearly
show that online shopping has truly come of age and consumers are keen to shop on the net. Effective
customer communication on products plus reduced shipping costs and timely delivery has helped online
marketers to seize a slice of the Rs 115 crore sales.
Online shopping has become the latest trend among shoppers. Indians are becoming more comfortable with
e-commerce. The consumer's attitude has been evolving towards online purchases. It has become
increasingly positive over the years. The attitudes that drive people to shop online, such as convenience,
price comparison and choice are improving tremendously in India.
Through a miniscule amount in the global context, the Indian online shoppers' population would make its
presence felt quite remarkably. The potential of the Indian e-market can be gauged from the fact that 16
percent of Indian consumers want to buy online in the next six months, making it the third most online-
potential country after Korea (28 percent) and Australia (26 percent) (source:imrb). This is an indication of a
growing breed of Indian consumers who are not only better equipped but also more confident of the online
transactions. Indian businesses have also grown mature enough to move up the It curve and they are
considering business to consumer (b2c) e-commerce a viable revenue model. Some Of the companies that
have benefited are baazee.com, indiatimes.com,rediff.com, indiamart.com, fabmart.com, traveljini.com and
sifymall.com.
Indiamart.com has witnessed a growth of more than ten times in just two years in its online gifts domain. In
the online travel domain, the company was able to generate an average $8,000 worth of room
bookings/month for its premium client. It is expected to touch $15-20,000/month/client by the year-end,
which is over 100 percent growth (source:indiamart). Brick-and-mortar businesses are also building up e-
commerce revenues. In the year 2005-06 Samsung India recorded a 120 percent jump in online buying from
its site over the year 2004- 05 (source: samsung). Nirula's witnessed more than double growth in its b2c e-
commerce revenues in the year 2005-06 and is positive for the next one to two years (source: nirula's).
Companies like ebay india have seen a large increase in the number of sellers and buyers from band c cities
and in a year the ebay community (buyers and sellers) base has increased to 1.7 million users, which shows
that more Indians are shopping online (source: eBay). Online sales are currently marked by a single digit
growth, but the leading garment retailers like pantaloon, shoppers' stop and globus have already made
business strategies to enter into the world of e-retailing. Famous apparel brand zodiac has already
started online stores. The main motive of these retailers through online sales is to reach the global markets
and the small towns where they do not have the outlets. Thus the India's internet shopping sector is
preparing for a massive growth, which is fuelled by increasing broadband usage and growing e-commerce.
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2.4 Online Activities
The internet has entered the mainstream consciousness over the past decade. This has happened primarily
because the web has got a graphical interface and internet has moved from governmental control to private
hands. The activities which are happening on the internet are email and instant messaging, general web
surfing or browsing, reading news, hobby searches, entertainment searches, shopping and buying online,
medical information searches, travel information searches, tracking credit cards, and playing games.
Communication i.e. Email, chat or instant message is the basic activity for which internet is used. It is the
single most important reason for people to go online. E-mail provides the opportunity to communicate more
often with a much broader circle of people than one can reach by telephone or by mail in a convenient way.
In India too email constitutes the major activity on the internet. It was found that more elderly people are
increasingly using email as compared to the younger generations.
In India the top five online activities are e-mail, surfing, chatting, search and job search. Some of the sites,
which are commonly used for these particular activities, are:
Yahoo -most preferred communication portal, tops for email and chat
Indiatimes-best event and sports news provider.
Naukri-best recruitment portal
Google-best information domain
Shaadi-best for matrimonial services
Ebay-best online shopping portal
In India online trading, travel, recruitment, ticketing, real estate, classifieds and social networking are a few
spheres ripe for investment.
The net banking is increasing and it is estimated that 4.6 million internet users are using internet for banking
purposes and it is expected to grow to 16 million plus by 2009-13 (source IAMAI). Trading stocks is also
becoming a fast booming activity amongst the Indians. The traders feel that trading through internet is not
that cheap but the convenience provided by online trading is worth the costs involved. Traders can keep a
regular check on various stocks and it is easier to compare them. They can not only buy and sell stocks but
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can also find the track record of various stocks, do technical analysis, can access live news from international
news agencies such as reuters, enbe and can find opinions from other leading brokers which help them do
decide whether to buy or sell. More and more traders today are making the immense use of these services,
which shows that there is a huge potential in this sector.
The growth in the online travel business today is phenomenal. The Indian online travel business is worth
$350-400 million and is growing at 40-50 per cent year by year, as the online population of the country is
estimated to be 25 millions (source:imrb). There has been a significant increase in online ticket booking in
India with a double-digit growth, which has also lead to an increase in Indian tourism. This growth in the
travel industry has definitely leaded to the increase in the travel portals. The scope for growth is immense in
this sector as more Indians are using the internet.
Travel sites like makemytrip.com (mmt) has been growing at about 20 per cent month-on-month, for the last
four months, selling 1,400 tickets a day on an average (source: makemytrip.com). The online bookings in
India was mainly stared because of the low cost carriers like air deccan which sells most of it tickets online.
The revenue of the Indian railway catering and tourism corporation (irctc) has also increased phenomenally
because of the online ticketing. The advantages of online ticketing are both for providers and for consumers
as the providers benefit from infrastructure cost while for users it is a convenient way to book tickets.
Thus internet has become an indispensable part of life and has reduced the world to a global village. Many
corporates are getting into this bandwagon, as there seem to be a humongous growth in the coming years.
Airline, cinema, hotel bookings, etc are all increasingly going online. The future of online business is bright
therefore companies are providing more convenient services to the consumers and thereby changing their
mindsets and attitudes towards life.
It is a fact that a great online shopping revolution is expected in India in the coming years. There is a huge
purchasing power of a youth population aged 18- 40 in the urban area.
If we observe the growth of Indian online transactions (info by: IAMAI), it is getting doubled year by year.
The usage of internet in India is only 4% of the total population. This is also getting increased day by day as
the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also
getting lower, with good competition among the providers. Wi-fi & wimax is also getting tested in Bangalore
and other cities in India. This will increase the usage as it goes more on wireless internet.
Indians are providing every time that they can beat the world when it comes to figure of online
shopping .more and more Indians are going to online shopping and the frequency of Indians online buying is
crossing the overall global averages
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2.7 Factors That Boost Online Shopping In India
2.9 In India
Over $50 billion and growing rapidly - most popular online shopping products include: books (45%),
electronic gadgets (42%), railway tickets (38%), accessories apparel (35%), apparel (35%), gifts (34%),
computer and peripherals (32%), airline tickets (28%), music downloads (21%), movie downloads (21%),
hotel rooms (22%), magazines (18%), tools (16%), home appliances (16%), toys (16%), jewelry (17%), movie
ticket (15%), etc.
2.10 Payments
Online shoppers commonly use a credit card to make payments, however some systems enable users to
create accounts and pay by alternative means, such as:
Some sites will not accept international credit cards, some require both the purchaser's billing address and
shipping address to be in the same country in which site does its business, and still other sites allow
customers from anywhere to send gifts anywhere. The financial part of a transaction might be processed in
real time or might be done later as part of fulfilment process
2.11 Advantages
Convenience
Online stores are usually available 24 hours a day, and many consumers have internet access both at work
and at home. Other establishments such as internet cafes and schools provide
access as well. A visit to a conventional retail store requires travel and must take place during business
hours.
In the event of a problem with the item it is not what the consumer ordered, or it is not what they expected-
consumers are concerned with the ease with which they can return an item for the correct one or for a
refund. Consumers may need to contact the retailer, visit the post office and pay return shipping. and then
wait for a replacement or refund. Some online companies have more generous return policies to compensate
for the traditional advantage of physical stores. For example, the online shoe retailer zappos.com includes
labels for free return shipping, and does not charge a restocking fee, even for returns which are not the
result of merchant error. (note: in the united kingdom, online shops are prohibited from charging a
restocking fee if the consumer cancels their order in accordance with the consumer protection (distance
selling) act 2000).
Online stores must describe products for sale with text, photos, and multimedia files, whereas in a physical
retail store, the actual product and the manufacturer's packaging will be available for direct inspection
(which might involve a test drive, fitting, or other experimentation).
Some online stores provide or link to supplemental product information, such as instructions, safety
procedures, demonstrations, or manufacturer specifications. Some provide background information, advice,
or how-to guides designed to help consumers decide which product to buy. Some stores even allow
customers to comment or rate their items. There are also dedicated review sites that host user reviews for
different products. Reviews and now blogs gives customers the option of shopping cheaper org anise
purchases from all over the world without having to depend on local retailers.
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In a conventional retail store, clerks are generally available to answer questions. Some online stores have
real-time chat features, but most rely on e-mail or phone calls to handle customer questions.
Shipping costs (if applicable) reduce the price advantage of online merchandise, though depending on the
jurisdiction, a lack of sales tax may compensate for this.
Shipping a small number of items, especially from another country, is much more expensive than making the
larger shipments bricks-and-mortar retailers order. Some retailers (especially those selling small, high-value
items like electronics) offer free shipping on sufficiently large orders.
Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting
users' shopping experience.
2.12 Disadvantages
Secure sockets layer (ssl) encryption has generally solved the problem of credit card numbers being
intercepted in transit between the consumer and the merchant. Identity theft is still a concern for consumers
when hackers break into a merchant's web site and steal names, addresses and credit card numbers. A
number of high-profile break-ins in the 2000s has prompted some us. states to require disclosure to
consumers when this happens. Computer security has thus become a major concern for merchants and e-
commerce service providers, who deploy countermeasures such as firewalls and anti-virus software to
protect their networks.
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Phishing is another danger, where consumers are fooled into thinking they are dealing with a reputable
retailer, when they have actually been manipulated into feeding private information to a system operated by
a malicious party. Denial of service attacks are a minor risk for merchants, as are server and network outages.
Quality seals can be placed on the shop web page if it has undergone an independent assessment and meets
all requirements of the company issuing the seal. The purpose of these seals is to increase the confidence of
the online shoppers; the existence of many different seals, or seals unfamiliar to consumers, may foil this
effort to a certain extent. A number of resources offer advice on how consumers can protect themselves
when using online retailer services. These include:
Sticking with known stores, or attempting to find independent consumer reviews of their
experiences; also ensuring that there is comprehensive contact information on the website before
using the service, and noting if the retailer has enrolled in industry oversight programs such as trust
mark or trust seal.
Before buying from a new company, evaluate the website by considering issues such as: the
professionalism and user-friendliness of the site; whether or not the company lists a telephone
number and/or street address along with e-contact information; whether a fair and reasonable
refund and return policy is clearly stated; and whether there are hidden price inflators, such as
excessive shipping and handling charges.
Ensuring that the retailer has an acceptable privacy policy posted. For example note if the retailer
does not explicitly state that it will not share private information with others without consent.
Ensuring that the vendor address is protected with ssl (see above) when entering credit card
information. If it does the address on the credit card information entry screen will start with "https".
Using strong passwords, without personal information. Another option is a "pass phrase," which
might be something along the lines: "i shop 4 good a buy!!" these are difficult to hack, and provides a
variety of upper, lower, and special characters and could be site specific and easy to remember.
Although the benefits of online shopping are considerable, when the process goes poorly it can create a
thorny situation. A few problems that shoppers potentially face include identity theft, faulty products,
and the accumulation of spyware. Whenever you purchase a product, you are going to be required to put
in your credit card information and billing/shipping address. If the website is not secure a customers
information can be
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accessible to anyone who knows how to obtain it. Most large online corporations are inventing new ways
to make fraud
More difficult, however, the criminals are constantly responding to these developments with new ways to
manipulate the system. Even though these efforts are making it easier to protect yourself online, it is a
constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams out
there to fully protect yourself and your finances. One of the hardest areas to deal with in online shopping is
the delivery of the products. Most companies offer shipping insurance in case the product is lost or
damaged; however, if the buyer opts not to purchase insurance on their products, they are generally out of
luck. Some shipping companies will offer refunds or compensation for the damage, but it is up to their
discretion if this will happen. It is important to realize that once the product leaves the hands of the seller,
they have no responsibility (provided the product is what the buyer ordered and is in the specified
condition).
Privacy
Privacy of personal information is a significant issue for some consumers. Different legal jurisdictions have
different laws concerning consumer privacy, and different levels of enforcement. Many consumers wish to
avoid spam and telemarketing which could result from supplying contact information to an online merchant.
In response, many merchants promise not to use consumer information for these purposes, or provide a
mechanism to opt-out of such contacts.
Many websites keep track of consumers shopping habits in order to suggest items and other websites to
view. Brick-and-mortar stores also collect consumer information. Some ask for address and phone number at
checkout, though consumers may refuse to provide it. Many larger stores use the address information
encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list.
This information is obviously not accessible to the merchant when paying in cash or through a bank (money
transfer, in which case there is also proof of payment).
27
time people are either stuck in an office, stuck in traffic or just at home, spending time with the family. Say
customer x remembers he needs to buy a new pair of shoes at 2 pm, while still at work. Will it be possible for
him to drive to the closest store? Will he just go online and buy his favourite pair of shoes, from a wide
selection of brands and offers. Of course it's the latter which brings us to...
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CHAPTER-3
ANALYSIS AND INTERPRETATION
29
3.0 An Introduction on Data Analysis
The process of evaluating data using analytical and logical reasoning to examine each component of the data
provided. This form of analysis is just one of the many steps that must be completed when conducting a
research experiment. Data from various sources is gathered, reviewed, and then analyzed to form some sort
of findings or conclusion. There are a variety of specific data analysis method, Some of which include data
mining, text analytics, business intelligence, and data visualizations.
Data analysis is a practice in which raw data is ordered and organized so that useful information can be
extracted from it. The process of organizing and thinking about data is key to understanding what the data
does and does not contain. There are a variety of ways in which people can approach data analysis, and it is
notoriously easy to manipulate data during the analysis phase to push certain conclusions or agendas. For
this reason, it is important to pay attention when data analysis is presented, and to think critically about the
data and the conclusions which were drawn.
30
The objectives of the research were studied with respect to a regular online shopper who shopped more
than once because they would be the right respondent to give an insight about the online shopping.
Therefore it is firstly important to understand who is a regular online shopper. In the survey the respondents
where asked the following questions which helped to know about a regular shopper.
Table no3.1
Classification of respondents on the basis of age
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respondents age
INFERENCE
From the above table25% of respondents are below 20 years of age , 35% are between 20 and 30
years,15% are between 30 and 40 years of age remaining 25% are above 40 years of age
Table no:3.2
Education qualification
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Column1
INFERENCE
89% of the shopping has been done by the regular shopper whose is educated with a graduate or
postgraduate degree. This shows that frequency of purchase is more in case of a higher educated regular
shopper as compared to a online shopping done by a regular online shopper with matriculate (8%) and non
matriculate (3%).
TABLE NO:3.3
Classification of respondents on gender basis
criteria No of respondents
Male 60
female 40
total 100
Source:-Primary data
Graph No:3.3
Graphical representation of respondents on gender basis
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Column1
male female
INFERENCE
From the above table it is clear that 60% of the respondents are male and remaining 40% are female respond
Table no:3.4
Average monthly income
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Column1
INFERENCE
From the above table it is clear that 40% of the respondents belongs to the category of monthly income
(5000-10000) and (10000-25000). 10% to the category (25000-50000). So we are considering a more than
average family people those who are in touch with online shopping and trends
Table no :3.5
Do you use internet for shopping
35
Yes No
INFERENCE
The research showed that 65% of the internet users had shopped online while 35% had not bought anything.
This is mainly because of the changing lifestyle and taste patterns. The following question helped to
understand who is a regular online shopper among the 65% who had indulged into online shopping
Table No:3.6
How long you make online shopping
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1-2 years more than 2 years
INFERENCE
From the above table it is clear that 70% of the respondents making online shopping for last 2 years only and
remaining 30% are using in for more than 2 years.
Table No:3.7
Familiar with the procedure for online shopping
37
yes no
INFERENCE
From the above table it is clear that 70% of the respondents are familiar with the procedure for online
shopping and remaining 30% are not familiar with it.
TableNo:3.8
Rate the quality of product supplied through online shopping
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excellent good average bad
INFERENCE
Majority of the respondents rate the quality of product through online shopping is excellent that is about
40%, 30% rate it as good. Also there is a small respondents rate it as bad.
Table no:3.9
Online shopping will save your time
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yes no
INFERENCE
From the above table it is clear that 80% of the respondents agrees that online shopping will save your time
and remaining 20% disagrees with it.
Table no:3.10
Rate the price of goods supplied through online shopping
40
excellent good average bad
INFERENCE
Majority of the respondents 40% rates the price of goods as excellent. While 30% rates it as good. 20% rate it
as average. Also there is a 10% of bad rating also there.
Table no:3.11
Goods are supplied through online shopping in time
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Graphical representation of goods are supplied through online shopping in time
yes no
INFERENCE
From the above table it is clear that 80% of the respondents agrees that goods are supplied through online
shopping on time and remaining 20% disagrees with it.
Table no:3.12
Fraud experience through online shopping
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yes no
INFERENCE
From the above table it is clear that 70% of the respondents agrees that they faced some fraud experience
and remaining 30% disagrees with it.
Table no:3.13
Rate the service in online shopping
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Graphical representation of rate the service in online shopping
INFERENCE
Majority of the respondents 40% rates the services in online shopping is average. While 30% rates it as good.
20% rate it as excellent. Also there is a 10% of bad rating also there.
Table no:3.14
Rate the packing of material in online shopping
44
excellent good average bad
INFERENCE
Majority respondents 40%rate of packing material is average .while30%rate is good ,20% rate it as excellent.
And also 10% of bad rating
Table no :3.15
The description specified in display tally with the actual commodity
45
yes no
INFERENCE
From the above table it is clear tha60% of respondents agress display specified in display tally with the
actual commodity and remaining 40 are disagree it
Table no :3.16
Rate the overall performance in online shopping
46
Sales
INFERENCE
Majority of respondents 50% rates the overall performance in online shopping is excellent and 30% rate it as
good and 10% rate it as average and 10% rate it also as bad
Table no:3.17
Frequently did you purchase online
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only once 2-4 times more than5 times more than6 times
INFERENCE
From the above table only once 20% respondents frequently use online purchase and majority of 50% of
respondents use 2to4 times and 10% more than5times and also it as 10% more than 6times
Table No:-3.18
Main motivation for buying through internet
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convenience price save time availability
INFERENCE
Majority respondents 40% rate it is convenient and 20% rate it is less price and 30% rate it save time and last
10% rate it has availability
Table no:3.19
Most preferred online shopping site
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ebay flipkart amazon snapdeal non of these
INFERENCE
Majority of respondents rate 50% for amazon and40% rate flipkart and 5% use ebay and 3% use snapdeal
and 2% is non of these
Table No:3.20
Recommend online shopping to others
50
yes no
INFERENCE
Majority of respondents rate 80% recommend online shopping to others and 20% respondent disagree it
Table no3.21
Actively check for secure online shopping during online transaction
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yes no
INFERENCE
From the above 80% of respondents rate yes and 20% of respondents disagree with it
Table No:3.22
Confident with Security of personal information in when shopping online
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excellent good average bad
INFERENCE
From the above majority of 30% respondents rate excellent and 40% of respondents rate good and 20%
rate average and 10% rate bad
Table no:3.23
Encounter any difficulties finding products on these website
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yes no
INFERENCE
Majority of respondents 80% rate it as yes and balance 20% of respondents disagree with it
Table no:3.24
Check for secure payment option during online transaction
40
35
30
25
20
15
10
0
daily weekly monthly yearly
INFERENCE
From the above 40% of respondents rate daily .30% of respondents rate weekly and the 20% of respondents
rate monthly and also it as 10% of rate for yearly
Table no:3.25
Satisfied with the Refund and return process for online shopping
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very satisfied satisfied not satisfied not sure
INFERENCE
Majority of respondents rate 30% for very satisfied and 40% rate satisfied and 20% rate not satisfied and at
last 10% rate not sure
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CHAPTER-4
FINDINGS, SUGGESTIONS AND CONCLUSION
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4.0 Findings
The findings show that internet usage has increased over the years and it is leading to an increase in
online shopping and also shows the consumers attitude and perception towards online shopping.
Communication still forms the major activity among the large number of online shoppers as 32% of
regular online shopper use internet for communication as compared to shopping (10%).
The most important motivating factor, which influenced the online shopping, was convenience
followed by time saving and price. Regular online shoppers considered convenience as the main
motivating factor while buying and were less price sensitive.
The online marketers should attempt to differentiate their products or services making the
comparison easier. The marketers should bring out innovative ways so that the consumers can do
more online shopping while taking the full advantage of rich information, easy access and
convenience of the internet.
One of the main concerns among the online shoppers was privacy and security. Another reason that
hindered online shopping was the touch factor.
Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35-year
range.
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4.1 Suggestions
As there are no proper laws for online purchases, they have to be implemented to prevent the
anonymous intruders.
Internet environment has to be improved in the areas of art, dynamic and interactive techniques. This
improvement will give more visual appeal.
One of the major drawbacks that the respondents have felt is no proper returning policy to the
product. After getting opinion from the respondent if the above said problem occurs, then they
should be guided in a proper way to return the product.
The vendors and service providers should avoid hidden charges. This will help to avoid increase in
price of product.
Website design and quality creates a positive impact on online shopping satisfaction.
The respondents face major problems on theft of credit card information, and lack of security on
online payments. Implementing precautionary steps to solve these problems shall create consumer
confidence on online shopping.
The reliability and responsiveness of the delivery system is the key success factor for any online
business and this will attract the consumers repurchase intention.
Developing regional language oriented websites would help new comers to enhance their knowledge
and also to increase the online purchasers
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4.2 Conclusion
The e-commerce is one of the biggest things that have taken the business by a storm. It is creating an entire
new economy, which has a huge potential and is fundamentally changing the way businesses are done. It is
believed that electronic commerce will become a huge industry in the coming years and online shopping is
now becoming a significant part of the consumers satisfaction for proper delivery of the product.
It is concluded that customers are much satisfied in online shopping it is concluded that the quality of
product available in online store are impressed the customers. From the analysis it is clear that eBay is
preferred by most of the customers.
Online shopping is picking up and is becoming a trend. More consumers are indulging into internet shopping
as seen by the research because of the value proposition it offers to a customer such as convenience, 24x7
shopping, doorstop delivery, a broad product selection and the ever-expanding range of unique and unusual
gift ideas as well as increased consumer confidence in shopping on the internet is increasing. The main
motivating factor seen during the research was the convenience and customer service which drives the
people to online shopping as a result today they are buying airline and railway tickets, books, home
appliances, electronic gadgets, movie tickets, etc by logging on to a web site, than driving up to a store as the
research suggest that increase in usage of internet increases the online shopping so there is a need to
increase in broadband penetration as it accelerates the growth of online trade. A huge buyers and sellers
across demographics are shopping online because of the changing lifestyles and shopping habits but the
majority of the users are males.
It was seen that despite the immense possibilities available on the internet it is mainly used for mailing,
chatting and surfing.
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Bibliography
61
APPENDIX
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Interview Schedule
Dear Customer,
Sir/Madam,
I am****** doing Bcom commerce with computer application at Kerala University. As a part of my
curriculum I do a project title "A STUDY ON CUSTOMER SATISFACTION TOWARDS ONLINE SHOPPING IN
ACCORDANCE WITH KOLLAM DISTRICT". In this regard, please cooperate completing this questionnaire so
that I will be grateful to you.
Kindly highlight/bold your answers.
Personal details
1. Age:
o below 20 yrs
o 20-30 yrs
o 30-40 yrs
o above 40 yrs
2. Educational background:
o non-matriculate
o matriculate
o graduate
o postgraduate
3. Gender:
o Female
o male
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Name:--------------------------------
Contact no:--------------------------
City:-----------------------------------
5. Have you purchased anything online ever?
o Yes
o No
8. How will you rate the quality of the product supplied through online shopping?
o excellent
o good
o average
o bad
10. How will you rate the price of goods supplied through online shopping?
o excellent
o good
o average
o bad
11.Do you feel that the goods are supplied through online shopping in time?
o yes
o no
15.Do you feel that the description specified in display tally with the actual commodity?
o Yes
o Nо
16. How will you rate the overall performance in online shopping?
o excellent
o good
o average
o bad
21.do you actively check for secure payment option during online transaction?
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o Daily
o Weekly
o Monthly
o yearly
22.how confident your with the security of personal information in when shopping online?
o Excellent
o Good
o Average
o bad
23.have you encounter any difficulties navigating or finding products on these website?
o Yes
o no
24.do you actively check for secure payment option during online transaction?
o Daily
o Weekly
o Monthly
o Yearly
25.how satisfied your are with the return and refund process for online purchase?
o Very satisfied
o Satisfied
o Not satisfied
o Not sure
Signature
………………….
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Chart Title
yes no
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yes no
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Chart Title
yes no
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yes no
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yes no
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yes no
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yes no
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