Consumer Behaviour
Consumer Behaviour
Consumer Behaviour
PROJECT REPORT
(Submitted for the degree of B.Com. Honours in Accounting & Finance under the
University of Calcutta)
Submitted by
Name of Candidate: Puja Khaitan
Name of the college: Goenka College of Commerce and BA
College Roll No.: 103
University Roll No.: 1145-31-0095
Registration No.: 145-1221-0083-14
Graduation Year: 2015-17
Supervised by
Name of the Supervisor: Prof. Parimal Sen
Name of the College: Goenka College of Commerce & BA
Year of Submission- 2017
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Consumer Satisfaction For Online Buying Of Electronic Products
ANNEXURE – IA
Supervisor’s Certificate
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ANNEXURE - IB
Student's Declaration
I hereby declare that the Project Work with the title “CONSUMER
SATISFACTION FOR ONLINE BUYING WITH REFERENCE TO THE
ELECTRONIC PRODUCTS” submitted by me for the partial fulfilment of the
degree of B.Com. Honours in Accounting & Finance under the University of
Calcutta is my original work and has not been submitted earlier to any other
University/Institution for the fulfilment of the requirement for any course of study.
I also declare that no part of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by me. However extracts of
any literature which has been used for this report has been duly acknowledged
providing details of such literature in the references.
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Consumer Satisfaction For Online Buying Of Electronic Products
ACKNOWLEDGEMENT
I take this opportunity to thank and express my heartfelt gratitude to one and all
that have been associated with this project assignment from the beginning till the
very end. To begin with, I sincerely thank my college, Goenka College of
Commerce and BA, Kolkata, our principal, Dr. Debasish Banerjee. I earnestly
thank my supervisor, Prof. Parimal Sen, who provided me with valuable inputs on
this topic and helped me explore this avenue.
I thank all the respondents from Kolkata who were interviewed for the collection
of primary data on which the analysis of this project is based.
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Consumer Satisfaction For Online Buying Of Electronic Products
Preface
Our objective of this project is to compare the various online shopping sites for
electronic products, study the impact of Socio-Cultural factors on online buying
behaviour. And study the Perception of Indian Consumers regarding the online
buying behaviour with reference to awareness and customer’s satisfaction. To
assess the ability of E-Shopping sites to attract and retain customers in Indian
Environment.
Both quantitative and qualitative methods were used to carry out this project. The
report is composed of both primary and secondary sources of data. Primary data
has been collected by the Questionnaire method & direct interview method based
on prepared questionnaire. And the secondary data has been collected from
journals and other publicly available documents
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Consumer Satisfaction For Online Buying Of Electronic Products
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. This study is mainly focus on the factors from the Internet
and examines those factors that affect the consumer’s online shopping behavior.
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Consumer Satisfaction For Online Buying Of Electronic Products
CONTENTS
1. Introduction 08 - 13
1.1 Background of the project
1.3Literature Survey
1.3 Research Gap
1.4 Research Design
2. Conceptual Framework 14-19
2.1 Conceptual framework of research
2.2 Global/National Scenario
2.3 Benefits & Challenges
3. Analysis& Findings 20 - 30
3.1 Objectives of the Study
3.2 Methodology for the specific analysis
3.2.1 Sample
3.2.2 Data Source
3.2.3 Tools Used
3.3 Analysis of Findings
4. Conclusion and Recommendation 31-32
4.1 Summary Observations
4.2 Recommendations for Improvement
4.3 Limitations of the Study
4.4 Scope for further Research
Biblography 33-34
Questionnaire 35-37
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Chapter- 1: Introduction
There is a good scope of online shopping in India as people are more concerned
about the products that they buy and they can easily find products while sitting at
home through logging onto their systems. In this way they can save money and
unnecessary expenses while shopping. There are fewer chances of duplicate
products as the websites only promote products that are genuine and well
established.
Online shopping in India has created a new scope for retailers as they can come
forward and advertise their products easily and the amount paid is much less than
they pay while advertising over television or by other means. The most wonderful
of all is that through online shopping portals one can buy products at discounted
rate and the rates get discounted further if the person remains loyal to the
website .It means one can save more while shopping.
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23% respondent had never tried it which suggests that online shopping is relatively
less popular in India. Male and female respondent had shown similar trend in
online shopping behaviour. Majority of the respondent in all age group shop online
for convenience followed by wide variety and discount deal and least under peer
influence. This clarified that respondents’ prime motive for online shopping is
convenience and wide variety. Observation shows below biggest concern.
Disclosure of personal credit card and debit card information is the biggest
concern in online shopping.
Second most concern is that troubles the respondents are the
misrepresentations on web by the e-tailor. Many respondents found that the
quality, size and the colour of the product differ from what they claim to
possess and displayed on website.
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Consumer Satisfaction For Online Buying Of Electronic Products
Narges delafrooz, Laily hj. Paim and Ali khatibi done the research on
“Students’ online shopping behaviour “ who’s results shows that utilitarian
orientations, convenience, price and wider selection are important determinants of
users’ attitude toward online shopping. The findings of the study imply that
students are looking for more convenience (time and money saving), cheaper
prices and wider selection when they shop online, making them as the dominant
factors that motivate consumers to shop online. On the other hand, there were not
significant relationship between users’ attitude toward online shopping and
homepage, customer service, and fun.
This may be due to the low level of involvement of the young consumers
who have experience in online shopping (only 4.2 % buy through online regularly),
In addition, a lower price is the main reason online shoppers tend to purchase
through internet because of competitive pressure, especially from new online
retailers using price as a main competitive weapon to attract customers.
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middle aged consumers. People buy tablets based on their budget, preferences,
requirements, brand choosing criteria, age and profession. It indicates the common
features of consumer buying behaviour in Russian tablet market within Moscow
region.
Study revealed that online shopping is mostly influenced by social
network/circles and personal experience. The online shopping is getting popular
among the young generation as they feel it more comfortable, time saving and
convenient. It is analysed from the survey that when a consumer makes a mind to
purchase online electronic goods he or she is affected by multiple factors.
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In USA 80% of consumers surveyed are more likely to purchase a product online
when offered free shipping, and 66% when offered one-day shipping. 64% of
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consumers are more likely to purchase when offered free returns and exchanges.
30% would spend more than $1,000 on a product online with free shipping and
returns, compared with 10% who would do so without free shipping and returns.
Global consumer electronics market research observed that China and USA are the
biggest consumer electronics markets, together accounting for more than 37% of
the global industry. We have also found that China has surpassed US to become
the leading country in the global consumer electronics industry. Growing market
demand due to tremendous technological development and rising income levels
has influenced the performance of the Chinese consumer electronics market. Its
huge population has also presented it as a highly potential market. Apart from this,
India is also one of the potential consumer electronics market. Though it has a
meager share in global market, the factors similar to China are helping it to grow
enormously.
The report also provides the current market and forecast till 2018 for US, UK,
China, India, Germany, South Korea, Japan and Taiwan. The major players of each
country have also been identified. In addition to this, the report provides product-
level analysis with forecast till 2018 of the key consumer electronics products that
are driving the whole industry. It has been observed that 3D TVs, Smart TVs,
Smartphones and Tablets are among the few products that are witnessing high
growth and hold immense potential in the future.
49% of consumer electronics and computer shoppers have bought directly from a
product manufacturer online. Hong Kong shoppers have done this most often
(73%), followed by Middle East (63%), Brazil (62%), and China (60%). Shoppers
from Australia and Denmark have done it least (31% and 32% respectively).
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Amazon
Flipkart
EBay
Snapdeal
Jabong
Junglee
Homeshop18
1. The ease and convenience provided by these e-stores for 24x7 has made very
easy shopping for consumers worldwide.
3. Brand variety will have positive impact on consumers towards shopping online.
4. Lower prices will have positive impact on consumers towards shopping online.
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1. Disclosure of personal credit card and debit card information is the biggest
concern in online shopping.
2. Many respondents found that the quality, size and the color of the product differ
from what they claim to possess and displayed on website.
3. The risk of losing money and financial details will have negative effect on
attitude toward online shopping
4. The product risk will have negative effect on attitude towards online shopping.
7. With the increase in price wars due to the entry of new players in the market
and increase in manufacturing capacity by some original manufacturers, the
profitability and margins of the companies are adversely affected. Hence
companies need to increase focus on product / store differentiation to address
various segmental specific needs.
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3) Relatively few studies have investigated in the internet shopping and impact on
consumer behaviour. The previous studies are more focus on the market’s point of
view, such as how to establish a more efficient marketing channel online rather
than the traditional offline channel.
4) This research will combines with previous studies from literature reviews, and
focus on the impact of the internet shopping on consumer behaviours to find out a
comprehensive analytical framework which showing the essential ingredient of
marketing and business to satisfying the consumer’s needs, and a deeply
understanding of online consumer behaviour as a reference for any e-commerce
company to make marketing strategies.
By carry out this work, the following research questions will be answered:
3) Through analyze data collected from the questionnaire survey to indicate the
current online consumer behaviours.
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Both quantitative and qualitative methods were used to carry out this project. The
report is composed of both primary and secondary sources of data.
Primary Data:
Primary data has been collected by the following two tools: Questionnaire method
& direct interview method based on prepared questionnaire.
Secondary Data:
The secondary data has been collected from journals and other publicly available
documents.
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Sample unit:
Professionals
Business man
Employees
House wife
Working women
Students
Magazines
Newspapers
Researcher’s
News Channels
Internet etc.
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The data collected was first tabulated and then smaller and specific tables were
extracted from the master table. Further, with the help of statistical techniques,
those of bar diagram, pie charts the resultant table figures were analyzed.
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Inferences
1. Above details shows, Mobile and Tablets is the highest purchasing product
through online. And second highest is laptops and PCs.
2. People are less interested to purchase Televisions and when we asked the
reason they mentioned risk of returning is very difficult.
Inferences
1. Maximum online booking payment is done by cash on delivery.
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2. Observation of the figures revealed that disclosure of personal credit card and
debit card information is the biggest concern in online shopping that’s why cash on
delivery is high.
Inferences
1. 30% of customer gives importance to price. So it shows that Indian consumers
are very price sensitive. They give more importance to price over the brand.
2. 26% give importance to brand. So price and Brand matter a lots for the
costumers. And they are also want best brand in best price.
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Inference:
1. A majority of customers prefer to buy from Laptops & PCs. Very less
proposition of customers buys from tablets.
2. Reason is because Laptops and PCs provide maximum visibility to check the
product picture, size and colors.
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Inference:
1. 40% of customers prefer buying products online at least once a month.
2. But 15% are buying two times a month. As per the growing trend it looks in
future percentage will increase.
Inference:
1. A majority of customers prefer to buy from stores.
2. 65% customers are preferred to buy from the stores because the stores are more
reliable with the color, size and quality.
3. Customers buy from stores because of the service and convenience.
4. Price could be the factor, which can increase the % for buying products online,
as online companies don’t have to spend much in warehouse.
Q8. Has your friends/relatives opinions influenced you to buy electronics products
from online?
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Inference-
1. Majority of the customers are influenced by friends/ family opinion in buying
electronic products
2. There are very few customers who does not influence by their relatives or
friends opinion. They are quite conservative.
Q9. What initiated you to purchase consumer durables for the first time?
Inferences-
1. People prefer to buy consumer durables when they recognize need for it or when
they are influenced by their friends/relatives.
2. Very few decide to purchase by influencing with the Celebrities & word of
mouth.
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Inference-
1. Youth and working Women Plays an important role in Purchase decision.
2. Although socialites play lesser role than youth and working women, but yet
they can’t be ignored.
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. For the evaluation stage, customers more think a lot of the
reputation from the E-commerce website, and the payment security for the
purchase stage. At the post-purchase stage, the factor of after services which is the
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most concerned about. Overall, the factors from the Internet that influenced or
prevented online consumer behaviours need to be carefully concerned by the
online retailers, who can utilize the appropriate marketing communications to
support the customer’s purchase decision making process and improve their
performance. The sector has been witnessing significant growth in recent years,
which is being helped by several drivers as below.
45% of the Indian population is below 25 years which accounts to close to 500
million
Consumers (18+) of which 230 million are in Urban India. With the rising incomes
and education levels, the expenditure is increasing.
With all the major players offering easy EMI schemes and with the increased
penetration of Credit cards, the Indian consumers now have an easier access to
consumer electronics
Gone are the times when people bought electronics with the intension of using it
for years together. With increasing speed of innovations and as new technologies
come in, the Indian consumer wants the latest and the best. Now mobile phones are
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changed every year, laptops once in 2 years, etc. People want to be trendy and are
becoming tech frenzy.
With new models, products and more competition, prices are being driven even
further down. Especially in the mobile phone segment, prices fall as much 20%
after 6 months after introduction.
1. 24*7 customer care facility should be available to take the customer’s order and
their concerns.
2. More secure payment option should be provided by the e-site, which will build
confidence in customers to buy online products.
3. Quality, size and the color of the product should not differ from what e-sites
display .
4. Return policy should be very good as customer believe if they didn’t like the
product.
5. E-sites should always deliver products as per their committed time line.
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4. I had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.
5. The sample size is also very small which represent my research on consumer
behaviour.
6. Because of using questionnaire as data gathering tools, the respondents may not
answer the questions exactly according to what they think and behave.
7. As we discussed before, there are many factors affecting on online shopping
behaviour. But in this study because of time constraints we didn't examined all
factors influencing on online shopping behaviour.
8. The methodology of this study for analyzing the data may not be able to fully
assess the online shopping behaviour of consumers based on discussed variables.
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BIBLOGRAPHY
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Some websites
http://yourstory.com/2013/01/google-india-study-about-online-shopping/http://
yourstory.com/2015/08/indias-favourite-online-shopping-brand/
www.economictimes.com
www.ecommercetimes.com
www.google.com
www.scribd.com
www.wikipedia.com
NetBanking
Debit Card
Credit Card
COD
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Product Feature
Brand
Service
Durability
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Stores
Online
Q.8Has your friends/relatives opinions influenced you to buy electronics products from online?
Strongly agree
Agree
Average
Disagree
Strongly disagree
Q.9What initiated you to purchase consumer durables for the first time?
Word of mouth
Friends
Need Recognition
Celebrities/Movies
APPENDIX
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1. Introduction 08- 13
1.1 Background of the project
1.4Literature Survey
1.3 Research Gap
1.4 Research Design
2. Conceptual Framework 14-19
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